Document:

Exhibit 10.0

                                 LOAN AGREEMENT

                         DATED AS OF FEBRUARY 14, 2003

                                    BETWEEN

                                CERTAIN LENDERS

                                      AND

                      URBAN TELEVISION NETWORK CORPORATION

                                 LOAN AGREEMENT

     This Loan and Security  Agreement  (this  "Agreement")  is made and entered
into  as  of  February  14,  2003,  by  and  between  Urban  Television  Network
Corporation,  a Nevada corporation (the "Company"), and the lenders set forth on
the Lenders Schedule (each a "Lender" and collectively, the "Lenders").

                                    ARTICLE 1

                           AMOUNT AND TERMS OF CREDIT

1.1.  SECURED TERM LOAN.  Subject to the terms and conditions of this Agreement,
at the Closing,  periodically  each Lender agrees to lend and the Company agrees
to  borrow  an amount  equal to the  mount  set  forth on the  Lenders  Schedule
opposite such Lender's name (herein called such Lender's  "Loan")  pursuant to a
promissory note in the form of Exhibit A, with  appropriate  insertions  (herein
called  such  Lender's  "Note") to be dated as of the  Closing  Date (as defined
herein).  Additional  amounts shall be loaned,  at the rate of $250,000 every 60
days  beginning  60 days  from the date of the  Bridge  Loan  Agreement,  to the
Company by a Lender or new Lenders during the Commitment  Period, so long as the
aggregate  amount  of the Loans  outstanding  at any time  does not  exceed  the
Maximum Loan  Amount.  Should  Lenders  fail to make any  payment,  Lender shall
forfeit their right to make future  funding  amounts and the  Commitment  Period
shall be  considered  expired on the date  Lenders  do not  submit the  required
funding to the  Company.  No  additional  amounts  may be loaned to the  Company
hereunder  after  the  expiration  of the  Commitment  Period.  At the time that
additional  amounts  are  loaned  hereunder,  the  Company  shall  (a) amend the
Lender's Schedule  accordingly,  (b) append an additional signature page for any
new Lender,  (c)  prepare a  promissory  note to each Lender for the  additional
amount loaned, and (d) allow such new Lender to become a party to this agreement
and all ancillary documents or agreements contemplated herein or hereby.

1.2 CLOSING.  The funding of the initial Loans (the "Closing")  shall occur upon
the  satisfaction  of all  conditions  to Closing  specified in Article 4 hereof
("Closing  Date"),  and may be  accomplished  via the exchange of all  requisite
documentation by overnight mail, messenger, e-mail or telecopy.

1.2.  DOCUMENTATION  EXPENSES.  The Company  shall pay all  reasonable  fees and
expenses  relating to the  negotiation and preparation of this Agreement and the
consummation of the transactions contemplated hereby. To the extent the same are
known, the Company shall pay all such fees and expenses on the Closing Date.

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                                    ARTICLE 2

                     NOTE PAYMENTS AND CONVERSION PRIVILEGES

2.1. INTEREST  PAYMENTS.  The principal balance due and owing on the Loans shall
bear  interest  as stated in the Note and shall be due and  payable as stated in
the Note.

2.2. PRINCIPAL  PAYMENTS.  Principal payments shall be due and payable as stated
in the Note.

2.3. VOLUNTARY PREPAYMENT. The Company may from time to time, without premium or
penalty,  prepay the Loans in whole or in part, so long as all prepayments shall
be made PRO RATA among the Lenders in accordance  with the Percentage  Shares at
the time of  prepayment.  Any  prepayment  of the full amount of the Loans shall
include all accrued interest  thereon.  All payments and prepayments of the Loan
shall be first  applied to accrued and unpaid  interest on the unpaid  principal
balance of the Loan, and the remainder, if any, to any unpaid principal balance.

2.4 PAYMENTS TO LENDERS. All payments, distributions,  collections or recoveries
made hereunder and under the other Loan  Documents  shall be made PRO RATA among
the Lenders in  accordance  with the  Percentage  Shares at the time of any such
payment.

2.5 CONVERSION PRIVILEGES. The Lenders shall be entitled to convert the
outstanding balance of the Loans and accrued interest thereon, at any time
before the maturity date of the Loans or date the Company announces intent to
prepay the Loans, at the rate of two shares of the Company's common stock for
each $1.00 of Loan balance and accrued interest thereon.

                                    ARTICLE 3

                         WARRANTIES AND REPRESENTATIONS

The Company represents and warrants to each Lender as follows:

3.1. CORPORATE ORGANIZATION AND AUTHORITY. The Company,

(a) is a corporation duly organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation;

(b) has all requisite power and authority and all necessary licenses and permits
to own and operate its  properties and to carry on its business as now conducted
and as presently proposed to be conducted;

(c) has duly taken all action  necessary to authorize the execution and delivery
by  it  of  the  Loan  Documents  and  to  authorize  the  consummation  of  the
transactions  contemplated  thereby  and  the  performance  of  its  obligations
hereunder;

(d) is duly authorized to borrow funds hereunder;

(e) the  Company is duly  licensed  or  qualified  and is in good  standing as a
foreign  corporation  in each  jurisdiction  wherein the nature of the  business
transacted by it or the nature of the property  owned or leased by it makes such
licensing or qualification necessary.

3.2.  FULL  DISCLOSURE.  All  filings of the  Company  with the  Securities  and
Exchange  Commission ("SEC Filings") have been timely made, are true and correct
and are not being  investigated,  challenged or  supplemented  or amended in any
way.

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3.3. PENDING  LITIGATION.  Except as may be set forth in the SEC Filings,  there
are no  proceedings  or  governmental  investigations  pending  or,  to the best
knowledge of the  Company,  threatened  against or affecting  the Company in any
court or before any governmental authority or arbitration board or tribunal, (b)
there are no outstanding judgments, injunctions, writs, rulings or orders by any
such court,  governmental  authority,  arbitration board or tribunal against the
Company or any of the Company's  stockholders,  partners,  directors or officers
and counsel which could cause a Material Adverse Change,  and (c) the Company is
not in default with respect to contracts or agreements to which it is a party or
any  order of any  court  or  governmental  authority  or  arbitration  board or
tribunal.

3.4. NO CONFLICTS.  The borrowing  under the Loans and the issuance of the Notes
and compliance by the Company with all of the provisions of this Agreement,  the
Notes  and the  other  Loan  Documents  do not and  will  not  (i)  violate  any
provisions  of any law or any order of any court or  governmental  authority  or
agency,  (ii)  conflict  with  or  result  in any  breach  of any of the  terms,
conditions or provisions  of, or constitute a default under the  Certificate  of
Incorporation  or Bylaws of the Company or any  indenture  or other  contract or
agreement  or  instrument  to which the Company is a party or by which it may be
bound, (iii) result in the acceleration of any Indebtedness owed by the Company,
or (iv) result in the imposition of any liens or encumbrances on any property of
the  Company,  except  as  expressly  contemplated  or  permitted  in  the  Loan
Documents.

3.5. This section left blank intentionally.

3.6. GOVERNMENTAL  CONSENT. No approval,  consent or withholding of objection on
the part of any  regulatory  body,  state,  Federal or local,  is  necessary  in
connection with the execution and delivery by the Company of this Agreement, the
Notes  or the  Loan  Documents  or  compliance  by the  Company  with any of the
provisions of this Agreement, the Notes or the Loan Documents.

3.7. USE OF PROCEEDS. The Company will use the Loan proceeds as follows:

     (a)  to fund the Company's operations.

3.8.  ENFORCEABLE  OBLIGATIONS.  This Agreement is, and the other Loan Documents
when duly executed and delivered will be, legal,  valid and binding  obligations
of the  Company,  enforceable  in  accordance  with their  terms  except as such
enforcement may be limited by bankruptcy,  insolvency or similar laws of general
application relating to the enforcement of creditors' rights.

3.9. OTHER OBLIGATIONS. The Company has outstanding Liabilities of the following
kind,  including,   but  not  limited  to  programming  contracts,   affiliation
agreements,  and satellite space and satellite  uplink  agreements which are, in
the aggregate, material to the Company or material with respect to the Company's
consolidated financial condition which have been disclosed in the company's last
10K.

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<PAGE>

3.10. LABOR DISPUTES AND ACTS OF GOD. Except as disclosed in this Loan Agreement
or  other  Schedules  to this  Loan  Agreement,  neither  the  business  nor the
properties of the Company have been affected by any fire,  explosion,  accident,
strike,  lockout or other  labor  dispute,  drought,  storm,  hail,  earthquake,
embargo,  act of God or of the public  enemy or other  casualty  (whether or not
covered by insurance), which could cause a Material Adverse Change.

3.11.  NAMES AND PLACES OF BUSINESS.  The Company has not,  during the preceding
five  years,  had,  been known by, or used any other trade or  fictitious  name,
except as disclosed in the Company's SEC filings.  Except as otherwise indicated
in the SEC filings,  the chief executive  office and principal place of business
of the  Company is (and for the  preceding  five years has been)  located at the
address of the Company set out on the signature pages hereto.

3.12. GOVERNMENT REGULATION.  The Company is not subject to regulation under the
Public  Utility  Holding  Company  Act of  1935,  the  Federal  Power  Act,  the
Investment  Company Act of 1940 (as any of the preceding acts have been amended)
or any other law which  regulates the incurring by the Company of  indebtedness,
including laws relating to common contract  carriers or the sale of electricity,
gas, steam, water or other public utility services.

3.13.  SOLVENCY.  Upon giving effect to the issuance of the Notes, the execution
of the Loan Documents by the Company and the  consummation  of the  transactions
contemplated  hereby,  the  Company  will be  solvent  (as such  term is used in
applicable bankruptcy, liquidation, receivership, insolvency or similar laws).

3.14. TITLE TO PROPERTIES;  LICENSES.  The Company has good and defensible title
to all of the Collateral and to all of its material  properties and assets, free
and clear of all Liens, encumbrances,  or adverse claims, everything is free and
clear  of all  impediments  to the  use of such  properties  and  assets  in the
Company's  business.  The Company possesses all licenses,  permits,  franchises,
patents, copyrights, trademarks and trade names, and other intellectual property
(or otherwise  possesses  the right to use such  intellectual  property  without
violation of the rights of any other  Person)  which are  necessary to carry out
its business as presently  conducted  and as presently  proposed to be conducted
hereafter,  and the Company is not in violation  in any material  respect of the
terms under which it possesses  such  intellectual  property or the right to use
such intellectual property.

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<PAGE>

3.15. SECURITY DOCUMENT  REPRESENTATIONS AND WARRANTIES.  Capitalized terms used
in this section,  not otherwise  defined in this  Agreement,  and defined in the
Security  Documents shall when used in this section have the meanings given them
in the Security Documents.

               (a) OWNERSHIP FREE OF LIENS.  No effective  financing  statement,
          other than the financing  statements relative to the bridge loans from
          Richard Halden, or other  registration or instrument similar in effect
          covering all or any part of the Collateral is on file in any recording
          office except any,  which have been filed in favor of Lender  relating
          to the Security  Documents and any which have been filed to perfect or
          protect  any  Permitted  Lien.  None  of  the  Collateral  is  in  the
          possession of any Person other than the Company or the Lenders, except
          for Collateral being transported in the ordinary course of business.

               (b) RECEIVABLES. Each Receivable represents the valid and legally
          binding  indebtedness  of a bona fide account  debtor arising from the
          sale or lease by the Company of goods or the  rendition by the Company
          of services and is not subject to contra-accounts,  setoffs,  defenses
          or counterclaims  by or available to account debtors  obligated on the
          Receivables,  except for those for which  adequate  reserves have been
          taken in  substantially  the same  amount  as is shown on the  Initial
          Financial Statements.

               (c) DOCUMENTS  AND  INSTRUMENTS.  All  Documents and  Instruments
          included  within  the  Collateral  are  valid  and  genuine.  Any such
          document  or  Instrument  has only  one  original  counterpart,  which
          constitutes collateral within the meaning of the UCC or the law of any
          applicable  jurisdiction,  and all such original  counterparts  (other
          than checks delivered in payment of Receivables in the ordinary course
          of business)  have been  delivered  into the possession of such Person
          designated  by  Majority  Lenders as agent  pursuant  to the  Security
          Agreement.

               (d) ADDRESS.  The chief  executive  office and principal place of
          business and the office where all records  concerning  the  Collateral
          are kept at the  Company's  address  set forth on its  signature  page
          hereto.

The  representations and warranties  contained in this Agreement,  the Notes and
the other Loan Documents are made by the Company as an inducement to each Lender
to make its Loan,  and the  Company  understands  that each Lender is relying on
such   representations  and  warranties,   and  that  such  representations  and
warranties are true and correct at the time of the first disbursement  hereunder
and shall remain true and correct at all times thereafter so long as any part of
the Loans shall remain outstanding.

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<PAGE>

                                    ARTICLE 4

                           CONDITIONS TO DISBURSEMENT

4.1.  DOCUMENTS TO BE DELIVERED.  No Lender has any  obligation to make its Loan
unless such Lender shall have  received all of the  following,  at such Lender's
office as set forth on the Lender's Schedule, duly executed and delivered and in
form, substance and date satisfactory to Majority Lenders:

               (a) This Agreement.

               (b) The Notes.

               (c) Each Security Document listed in the Security Schedule.

               (d) Certain certificates of the Company including:

                    An  "Omnibus  Certificate"  of  the  Secretary  and  of  the
               Chairman of the Board or President  of the  Company,  which shall
               contain the names and  signatures  of the officers of the Company
               authorized  to execute Loan  Documents and which shall certify to
               the truth, correctness and completeness of the following exhibits
               attached  thereto:  (1) a copy of resolutions duly adopted by the
               Board of Directors of the Company and in full force and effect at
               the  time  this  Agreement  is  entered  into,   authorizing  the
               execution  of  this   Agreement  and  the  other  Loan  Documents
               delivered  or to be  delivered  in  connection  herewith  and the
               consummation of the transactions contemplated herein and therein,
               a copy of the charter documents of the Company and all amendments
               thereto,  certified by the appropriate  official of the Company's
               state of organization, and a copy of any bylaws of the Company.

4.2. ADDITIONAL CONDITIONS  PRECEDENT.  No Lender has any obligation to make its
Loan unless the following conditions precedent have been satisfied:

     (a) All  representations  and  warranties  made by the  Company in any Loan
Document  shall be true on and as of the date of the Loan  (except to the extent
that the facts upon which such  representations  are based have been  changed by
the extension of credit hereunder) as if such representations and warranties had
been made as of the date of the Loan.

     (b) No Material  Adverse  Change shall have occurred since the date of last
10K.

     (c) The Company shall have  performed and complied with all  agreements and
conditions required in the Loan Documents to be performed or complied with by it
on or prior to the date of the Loan.

     (c) The making of the Loan shall not be prohibited by any law and shall not
subject the Lender to any penalty or other onerous  condition  under or pursuant
to any such law.

     (d) Lenders shall have received all  documents  and  instruments  which any
Lender has then  requested,  in  addition  to those  described  in  Section  4.1
(including  corporate  documents  and  records;  certificates  of  officers  and
representatives of the Company; and all reports, records, certificates and other
documents  requested in relation to any  Security  Document  delivered  pursuant
hereto),   as  to  the  accuracy  and  validity  of  or   compliance   with  all
representations,  warranties and covenants made by the Company in this Agreement
and the other Loan  Documents,  the  satisfaction  of all  conditions  contained
herein or therein, and all other matters pertaining hereto and thereto. All such
additional  documents and instruments  shall be satisfactory to Lenders in form,
substance and date.

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                                    ARTICLE 5

                                COMPANY COVENANTS

From and after the date  hereof and  continuing  so long as any  amount  remains
unpaid on the Notes.

5.1. CORPORATE  EXISTENCE,  ETC. The Company will preserve and keep in force and
effect its corporate  existence,  its rights and franchises and all licenses and
permits that it currently  has, which are necessary to the proper conduct of its
business  and will qualify to do business in all states or  jurisdictions  where
required by  applicable  law,  except  where the failure to so qualify  will not
cause a Material Adverse Change.

5.2.  INSURANCE.  The Company will at all times maintain  casualty and liability
insurance coverage by financially sound and reputable insurers in such forms and
amounts and against such risks as are customary for  corporations of established
reputation  engaged in the same or a similar  business and owning and  operating
similar  properties with limits and scope of coverage  reasonably  acceptable to
Majority Lenders.  All policies evidencing such insurance shall name the Lenders
as an  additional  insured and shall contain a loss payable  endorsement  to the
Lenders in form and substance  acceptable  to Majority  Lenders that will become
effective upon the occurrence of an Event of Default.

5.3. TAXES, CLAIMS FOR LABOR AND MATERIALS. The Company will pay or discharge or
cause to be paid or discharged,  before the same shall become delinquent (i) all
taxes,  assessments and  governmental  charges levied or imposed upon it or upon
the income,  profits or property of the Company,  and (ii) all lawful claims for
labor,  materials and supplies  which, if unpaid might by law become a Lien upon
the property of the Company;  PROVIDED,  HOWEVER,  that the Company shall not be
required to pay or  discharge  or cause to be paid or  discharged  any such tax,
assessment,  charge or claim whose  amount,  applicability  or validity is being
contested in good faith by appropriate proceeding. The Company will promptly pay
and discharge when due all other Liabilities now or hereafter owed by it.

5.4.  MAINTENANCE,  ETC.  The  Company  will  maintain,  preserve  and  keep all
Collateral  and all other property used or useful in the conduct of its business
in good repair and working order, ordinary wear and tear excepted, in compliance
with all  applicable  laws,  and from time to time will,  as  determined  in the
reasonable  judgment of the Company,  make all necessary repairs,  replacements,
renewals and  additions  thereto  needed to enable the  business and  operations
carried on in connection  therewith to be promptly and advantageously  conducted
at all times.

5.5.  NATURE OF  BUSINESS.  The Company will not engage in any business if, as a
result, the general nature of the business which would then be engaged in by the
Company would be  substantially  changed from the general nature of the business
engaged in by the Company on the date of this Agreement.
5.6. SEC FILINGS.  The Company shall at all times make all SEC Filings  required
pursuant to the  Securities  Exchange Act of 1934, as amended,  and the rules of
any stock exchange upon which the Company shall have listed its securities,  and
shall  notify each Lender of any  inquiries  from the SEC or any stock  exchange
with  respect to all of its SEC  Filings,  to the extent  permitted  by law. The
Company shall provide each Lender with copies of all such SEC Filings.

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5.6. SEC FILINGS.  The Company shall at all times make all SEC Filings  required
pursuant to the  Securities  Exchange Act of 1934, as amended,  and the rules of
any stock exchange upon which the Company shall have listed its securities,  and
shall  notify each Lender of any  inquiries  from the SEC or any stock  exchange
with  respect to all of its SEC  Filings,  to the extent  permitted  by law. The
Company shall provide each Lender with copies of all such SEC Filings.

5.7. REPORTS.  The Company will keep proper books of record and account in which
full and correct  entries will be made of all dealings or  transactions of or in
relation to the business and affairs of the Company in accordance with GAAP.

     (a) As soon as  available,  and in any event  within  ninety-one  (91) days
after the end of each  Fiscal  Year,  complete  consolidated  and  consolidating
financial statements of the Company together with all notes thereto, prepared in
reasonable  detail in  accordance  with GAAP based on an audit  using  generally
accepted  auditing  standards,  by an independent  certified  public  accountant
selected by the Company stating that such consolidated financial statements have
been so prepared.  These financial  statements  shall contain a consolidated and
consolidating  balance sheet as of the end of such Fiscal Year and  consolidated
and  consolidating  statements  of  earnings,  of cash flows,  and of changes in
owners' equity for such Fiscal Year, each setting forth in comparative  form the
corresponding figures for the preceding Fiscal Year.

     (b) As soon as  available,  and in any event  within  forty-five  (45) days
after  the  end  of  each  Fiscal  Quarter,   the  Company's   consolidated  and
consolidating   balance  sheet  as  of  the  end  of  such  Fiscal  Quarter  and
consolidated  and  consolidating  statements of the Company's  earnings and cash
flows for the period from the  beginning of the then current  Fiscal Year to the
end of such Fiscal Quarter,  all in reasonable detail and prepared in accordance
with GAAP, subject to changes resulting from normal year-end adjustments.

5.8.  PAYMENT AND  PERFORMANCE.  The Company  will pay all amounts due under the
Loan  Documents in accordance  with the terms thereof and will observe,  perform
and comply with every covenant,  term and condition  expressed or implied in the
Loan Documents.

5.9.  PERFORMANCE ON BORROWER'S  BEHALF.  If the Company fails to pay any taxes,
insurance premiums, expenses, attorneys' fees or other amounts it is required to
pay  under  any Loan  Document,  Lenders  may pay the same.  The  Company  shall
immediately upon written notice of any such payment reimburse any Lender for any
such payments and each amount paid by such Lender shall constitute an Obligation
owed hereunder  which is due and payable on the date such amount is paid by such
Lender.

5.10.  INTEREST.  The Company hereby  promises to each Lender to pay interest at
the Default Rate on all  Obligations  (including  Obligations  to pay fees or to
reimburse  or  indemnify  any Lender)  that the  Company  has in this  Agreement
promised to pay to the Lenders  and which are not paid when due.  Such  interest
shall accrue from the date such Obligations become due until they are paid.

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     (a) IMPAIRMENT OF SECURITY  INTEREST.  The Company will not take or fail to
take any action that would in any manner impair the value or  enforceability  of
the Lenders' first priority security interest in any Collateral.

     (b)  COMPROMISE  OF  COLLATERAL.  The  Company  will  not  adjust,  settle,
compromise, amend or modify any of its rights in the Collateral.

     (c) EQUIPMENT. The Company will use its best efforts to maintain, preserve,
protect and keep all Equipment included within the Collateral in good condition,
repair and working  order and will use its best efforts to cause such  Equipment
to be  used  and  operated  in a good  and  workmanlike  manner  to  the  extent
commercially reasonable, in accordance with applicable law and in a manner which
will not make void or cancelable any insurance with respect to such Equipment.

                                    ARTICLE 6

                              DEFAULTS AND REMEDIES

6.1.  EVENTS OF DEFAULT.  Any one or more of the following  shall  constitute an
"Event of Default" as the term is used herein:

     (a) Default shall occur in the observance or performance of any covenant or
agreement  contained herein or in the other Loan Documents that are not remedied
within 30 days after notice thereof to the Company by Lender's Agent; or

     (b) If any  representation or warranty made by the Company herein or in any
Loan Document,  or made by the Company in any statement or certificate furnished
by the Company pursuant  hereto,  is untrue or incorrect in any material respect
as of the date of the making thereof or subsequently becomes untrue or incorrect
and such inaccuracy is not immediately disclosed to each Lender; or

     (c) The Company  becomes  insolvent or bankrupt or makes an assignment  for
the benefit of creditors,  or the Company  causes or suffers an order for relief
to be entered  with respect to it under  applicable  Federal  bankruptcy  law or
applies for or consents to the appointment of a custodian,  trustee, liquidator,
or receiver for the Company or for the major part of the property of either; or

     (d) A custodian,  trustee,  liquidator,  or receiver is  appointed  for the
Company or for the major part of the  property  of either and is not  discharged
within 30 days after such appointment; or

     (e) Bankruptcy,  reorganization,  arrangement or insolvency proceedings, or
other proceedings for relief under any bankruptcy or similar law or laws for the
relief of debtors,  are  instituted by or against the Company and, if instituted
against the Company,  are consented to or are not dismissed within 60 days after
such institution; or

6.2.  REMEDIES.  When any Event of Default described in Section 6.1 has occurred
and is continuing, the Lenders' obligation to make the Loans shall terminate and
the principal  balance and all accrued interest as well as other costs, fees and
expenses  due and owing on the Loans shall  immediately  become due and payable,
without  presentment,  demand,  notice  of  acceleration,  notice  of  intent to
accelerate,  protest or further notice of any kind or nature whatsoever,  all of
which are hereby  expressly  waived,  and the  Default  Rate shall  commence  to
accrue.  In addition,  Lenders may pursue any or all of the rights  available to
them at law or in equity or as  provided  herein  and in the  Notes,  including,
without limitation, all rights and remedies of a secured party under the UCC. In
connection  therewith,  the Company  agrees that a ten (10) day notice period is
commercially  reasonable  for the conduct of a public or private  sale under the
UCC, and the Company  hereby  irrevocably  makes,  constitutes  and appoints any
Lender or any other Person  designated  by Majority  Lenders for that purpose as
the Company's true and lawful attorney and agent-in-fact to sign the name of the
Company on any  continuation  statement or other  document  necessary to further
perfect the Lenders'  security  interest or foreclose  and/or take possession of
the Collateral.

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6.3 COSTS OF  REMEDIES.  Any and all costs and  expenses  (including  reasonable
attorney's fees) incurred by any Lender in pursuing its remedies hereunder shall
be an  additional  indebtedness  due and owing by the Company to such Lender and
shall be governed by this Agreement, the Notes and the other Loan Documents.

                                    ARTICLE 7

                               CERTAIN DEFINITIONS

"Affiliate" shall mean a Person (a) which, directly or indirectly through one or
more intermediaries,  controls,  or is controlled by, or is under common control
with,  another  Person (b) which  beneficially  owns or holds 10% or more of any
class of the voting  interests of such Person,  or (c) 10% or more of the voting
interests  of  which is  beneficially  owned  or held by such  Person.  The term
"control" means the possession,  directly or indirectly,  of the power to direct
or cause the  direction  of the  management  and  policies of a Person,  whether
through the ownership of voting interests, by contract or otherwise.

"Business Day" means a day other than a Saturday or Sunday,  on which commercial
banks are open for business with the public in Fort Worth, Texas.

"Change of Control" means the occurrence of either of the following events:  (a)
any Person or two or more  Persons  acting as a group shall  acquire  beneficial
ownership  (within  the  meaning of Rule 13d-3 of the  Securities  and  Exchange
Commission under the Securities Act of 1934, as amended,  and including  holding
proxies to vote for the  election of  directors  other than  proxies held by the
Company's  management  or their  designees  to be  voted  in  favor  of  Persons
nominated by the Company's Board of Directors) of 50% or more of the outstanding
voting  securities  of the  Company,  measured by voting power  (including  both
common stock and any preferred  stock or other equity  securities  entitling the
holders  thereof  to vote with the  holders  of common  stock in  elections  for
directors  of the  Company) or (b)  one-third  or more of the  directors  of the
Company  shall  consist of  Persons  not  nominated  by the  Company's  Board of
Directors  (not  including as Board  nominees any  directors  which the Board is
obligated  to  nominate  pursuant  to  shareholders'  agreements,  voting  trust
arrangements or similar arrangements).

"Closing" and "Closing Date" are defined in Section 1.2.

"Collateral"  means the specific  property that is subject to a UCC-1  financing
statement on accounts  receivable,  notes receivable and the Company's  personal
property in favor of any Lenders.

"Commitment  Period"  means the period from and including the Closing Date until
and including the date that is one year after the Closing Date.

"Default" shall mean any event or condition, the occurrence of which would, with
the  lapse of time or the  giving of  notice,  or both,  constitute  an Event of
Default as defined in Section 6.1.

"Default  Rate"  shall mean 10% per annum (or the maximum  rate  allowed by law)
calculated on the basis of a 360 day year.

"Distribution"  means (i) any dividend or other distribution made by the Company
on or in respect of any stock, partnership interest, or other equity interest in
the Company or any subsidiary of the Company (including any option or warrant to
buy  such an  equity  interest),  or (ii) any  payment  made by the  Company  to
purchase,  redeem,  acquire or retire any stock,  partnership interest, or other
equity  interest in the Company or any subsidiary of the Company  (including any
such option or warrant).

"Existing  Credit  Facility" means that certain credit facility in the amount of
$154,297  between the Company and Richard Halden Lending Group as evidenced by a
Business Loan Agreement,  between the Company and Richard Halden,  together with
all  promissory  notes made by the Company  hereunder and all other  agreements,
documents,  instruments  and writings at any time delivered to Richard Halden in
connection therewith.

                                       31
<PAGE>

"Fiscal  Quarter"  means a  three-month  period  ending  on March  31,  June 30,
September 30 or December 31 of any year.

"Fiscal Year" means a twelve-month period ending on September 30 of any year.

"GAAP" means those generally accepted accounting  principles and practices which
are  recognized  as such by the  Financial  Accounting  Standards  Board (or any
generally  recognized  successor)  and which,  in the case of the  Company,  are
applied for all periods  after the date hereof in a manner  consistent  with the
manner in which such  principles  and  practices  were  applied  to the  Initial
Financial  Statements.  If any change in any accounting principle or practice is
required by the Financial  Accounting Standards Board (or any such successor) in
order for such  principle  or  practice  to  continue  as a  generally  accepted
accounting principle or practice,  all reports and financial statements required
hereunder with respect to the Company shall be prepared in accordance  with such
change.

"Indebtedness"  of  any  Person  means  Liabilities  in  any  of  the  following
categories:

     (a) Liabilities for borrowed money,

     (b)  Liabilities  constituting  an obligation to pay the deferred  purchase
price of property or services,

     (c) Liabilities evidenced by a bond, debenture, note or similar instrument,

     (d)  Liabilities  which would under GAAP be shown on such Person's  balance
sheet as a  liability,  and are  payable  more  than  one year  from the date of
creation  thereof  (other than  reserves for taxes and  reserves for  contingent
obligations),

     (e) Liabilities owing under direct or indirect guaranties of Liabilities of
any other Person or otherwise constituting obligations to purchase or acquire or
to otherwise protect or insure a creditor against loss in respect of Liabilities
of any other Person  (such as  obligations  under  working  capital  maintenance
agreements,  agreements  to keep-well,  or  agreements to purchase  Liabilities,
assets,  goods,  securities or  services),  but  excluding  endorsements  in the
ordinary  course  of  business  of  negotiable  instruments  in  the  course  of
collection,

     (f) Liabilities (for example, repurchase agreements, mandatorily redeemable
preferred Stock and  sale/leaseback  agreements)  consisting of an obligation to
purchase or redeem securities or other property,  if such Liabilities arises out
of or in connection with the sale or issuance of the same or similar  securities
or property,

     (g)  Liabilities  with  respect  to letters  of credit or  applications  or
reimbursement agreements therefor, or

     (h)  Liabilities  with  respect to other  obligations  to deliver  goods or
services in consideration of advance payments therefore; provided, however, that
the  "Indebtedness"  of any Person shall not include (i)  Liabilities  that were
incurred by such Person on ordinary trade terms to vendors,  suppliers, or other
Persons  providing  goods and  services  for use by such Person in the  ordinary
course of its business,  unless and until such  Liabilities are outstanding more
than 90 days past the original invoice or billing date therefore.

                                       32
<PAGE>

"Investment" means any investment, made directly or indirectly, in any Person or
any  property,  whether by  purchase,  acquisition  of shares of capital  stock,
indebtedness  or other  obligations or securities or by loan,  advance,  capital
contribution or otherwise and whether made in cash, by the transfer of property,
or by any other means.

"Law" means any statute,  law, regulation,  ordinance,  rule, treaty,  judgment,
order,  decree,  permit,  concession,  franchise,  license,  agreement  or other
governmental  restriction  of the  United  States  or  any  state  or  political
subdivision  thereof or of any foreign  country or any  department,  province or
other political subdivision thereof.

"Lenders' Schedule" means Schedule I hereto.

"Lenders' Agent" shall be elected by the majority of the group.

"Liabilities"  means,  as to  any  Person,  all  indebtedness,  liabilities  and
obligations  of  such  Person,  whether  matured  or  unmatured,  liquidated  or
unliquidated,  primary or  secondary,  direct or  indirect,  absolute,  fixed or
contingent, and whether or not required to be considered pursuant to GAAP.

"Lien"  means,  with  respect to any  property or assets,  any right or interest
therein of a creditor to secure  Liabilities owed to it or any other arrangement
with such creditor  which  provides for the payment of such  Liabilities  out of
such property or assets or which allows such  creditor to have such  Liabilities
satisfied out of such  property or assets prior to the general  creditors of any
owner thereof, including any lien, mortgage, security interest, pledge, deposit,
production payment,  rights of a vendor under any title retention or conditional
sale agreement or lease substantially  equivalent thereto, tax lien,  mechanic's
or  material  man's  lien,  or any other  charge  or  encumbrance  for  security
purposes,  whether  arising by Law or agreement or otherwise,  but excluding any
right of  offset  which  arises  without  agreement  in the  ordinary  course of
business. "Lien" also means any filed financing statement, any registration of a
pledge  (such as with an  issuer  of  uncertificated  securities),  or any other
arrangement  or action  which  would  serve to perfect a Lien  described  in the
preceding  sentence,  regardless of whether such  financing  statement is filed,
such registration is made, or such arrangement or action is undertaken before or
after such Lien exists.

"Loans" has the meaning given to such term in Section 1.1.

"Loan  Documents" means this Agreement,  the Notes, the Subscription  Agreement,
the  Questionnaire,   the  UCC-1  financing   statement,   and  all  amendments,
modifications and restatements of such documents and instruments.

"Material Adverse Change" means a material and adverse change, from the state of
affairs  presented in the Initial  Financial  Statements  or as  represented  or
warranted in any Loan Document,  to (a) the Company's financial  condition,  (b)
the Company's  operations,  properties or prospects,  considered as a whole, (c)
the Company's ability to timely pay the Obligations,  (d) the  enforceability of
the material  terms of any Loan  Documents,  or (e) the  Collateral  or Lenders'
Liens on the Collateral.

                                       33
<PAGE>

"Maximum Loan Amount" means the amount equal to $1,500,000.

"Maximum  Rate" means,  at any time and with respect to any Lender,  the maximum
rate of nonusurious  interest under applicable law that such Lender may contract
for, take, charge or receive with respect to the Obligations.

"Note" has the meaning given to such term in Section 1.1.

"Obligations"  means all  Liabilities  from time to time owing by the Company to
any  Lender  under or  pursuant  to this  Agreement,  the Notes or any  Security
Document  (including any  modifications,  amendments or restatements of any such
documents or instruments). "Obligation" means any part of the Obligations.

"Percentage Share" means, with respect to any Lender, the percentage obtained by
dividing (i) the sum of the unpaid  principal  balance of such Lender's Loans at
the time in question,  by (ii) the sum of the aggregate unpaid principal balance
of all Loans at such time.

"Permitted Investments" means

     (a) property used in the ordinary course of business of the Company;

     (b) current  assets arising from the sale or lease of goods and services in
the  ordinary  course of business by the Company or from sales  permitted  under
Section 5.23; and

     (c) Investments by the Company in any Additional Stations.

"Permitted Liens" means:

     (a) statutory Liens for taxes, assessments or other governmental charges or
levies which are not yet  delinquent or which are being  contested in good faith
by appropriate  action and for which adequate  reserves have been  maintained in
accordance with GAAP;

     (b)  landlords',   operators',  carriers',   warehousemen's,   repairmen's,
mechanics',   material   men's,   or  other  like  Liens  which  do  not  secure
Indebtedness,  in each case only to the extent arising in the ordinary course of
business and only to the extent securing obligations which are not delinquent or
which are being contested in good faith by appropriate proceedings and for which
adequate reserves have been maintained in accordance with GAAP;

     (c) minor defects and  irregularities in title to any property,  so long as
such defects and  irregularities  neither  secure  Indebtedness  nor  materially
impair the value of such  property or the use of such  property for the purposes
for which such property is held;

     (d) deposits of cash or securities to secure the performance of bids, trade
contracts,  leases, statutory obligations and other obligations of a like nature
(excluding appeal bonds) incurred in the ordinary course of business;

     (e) Liens under the Security Documents;

     (f)  Liens  securing  purchase  money  Indebtedness,   provided  that  such
Indebtedness shall be secured only by the acquired asset;

                                       34
<PAGE>

     (g) Liens  securing  Indebtedness  outstanding  under the  instruments  and
agreements described in Schedule II;

     (h) with  respect  only to  property  subject  to any  particular  Security
Document,  Liens  burdening  such property  that are  expressly  allowed by such
Security Document.

"Person"  shall  mean  an  individual,   partnership,   corporation,   trust  or
unincorporated organization, and a government or agency or political subdivision
thereof.

"Security  Agreement"  means  the  security  agreement  of  even  date  herewith
delivered by the Company to the Lenders in  connection  with this  Agreement and
listed on the Security Schedule.

"Security  Documents" means the instruments  listed in the Security Schedule and
all other security  agreements,  deeds of trust,  mortgages,  chattel mortgages,
pledges, guaranties,  financing statements,  continuation statements,  extension
agreements and other  agreements or instruments  now,  heretofore,  or hereafter
delivered by the Company to any Lender in connection  with this Agreement or any
transaction  contemplated  hereby to secure or guarantee the payment of any part
of the  Obligations  or  the  performance  of the  Company's  other  duties  and
obligations under the Loan Documents.

"Security Schedule" means Schedule II hereto.

"Subsidiary"  means, with respect to any Person,  any corporation,  association,
partnership,  limited  liability  company,  joint venture,  or other business or
corporate  entity,  enterprise  or  organization  that is directly or indirectly
(through one or more  intermediaries)  controlled  by or owned fifty  percent or
more by such Person.

"UCC"  means the  Uniform  Commercial  Code in effect in the State of Texas,  as
amended.

                                    ARTICLE 8

                            INTERCREDITOR PROVISIONS

8.1. PARI PASSU LIENS AND PRO RATA  TREATMENT.  All Liens on Collateral in favor
of any one or more Lenders shall,  as between the Lenders,  be PARI PASSU and of
equal rank and  authority  regardless  of the order of filing of any  mortgages,
financing  statements or other  documents with respect  thereto or the taking of
any other action relevant to the  determination of the perfection or priority of
such liens and security  interests.  The Lenders  hereby further agree that they
will receive PRO RATA treatment,  in accordance with their Percentage Shares, in
connection with all payments,  distributions,  collections or recoveries and all
other matters relating to the Obligations and to the Collateral.

8.2. ENFORCEMENT OF LIENS. Each Lender hereby agrees that, pursuant to the terms
hereof  all  payments,  distributions,  collections,  recoveries  and all  other
matters  relating to the Collateral and the  enforcement of the Liens as well as
any other matters  specifically so stated in this Agreement.  Each Lender hereby
agrees that if an Event of Default  shall have occurred and be  continuing,  (i)
Lenders  may  exercise  in respect  of the  Collateral  all rights and  remedies
allowed to the Lenders  under the  Security  Documents  and (ii)  Lenders  shall
appoint any one Person  (including  any Lender) as agent for the Lenders,  which
such agent  shall  exercise  any and all such  rights and  remedies  at Lenders'
direction and discretion.

                                       35
<PAGE>

8.3.  LIENS SECURE ALL DEBT.  Each Lender and the Company hereby agree that each
Lien given to any Lender under any Security  Document will henceforth secure the
payment of all of the  Obligations,  whether or not such  Obligations  are named
therein  as so being  secured,  and each  Security  Document  is hereby  amended
accordingly. In furtherance of the foregoing, each Lender and the Company hereby
agree that  enforcement  of any security  interest  under any Security  Document
shall provide a means of paying all Lenders.

8.4. EXCULPATION; LIABILITY OF LENDERS. Each Lender shall be entitled to rely on
any  communication  or document  believed by it to be genuine and correct and to
have  been  communicated  or  signed by the  person  by whom it  purports  to be
communicated  or signed  and shall  not be  liable to any  Lender  for any other
consequence  of such  reliance.  Neither any Lender nor any  director,  officer,
employee  or agent of any Lender  shall be liable  for any  action  taken or not
taken by it, him or them under, or in connection with, any of the Loan Documents
in the absence of his or their  negligence  or willful  misconduct.  Neither any
Lender nor any  director,  officer,  employee  or agent of any  Lender  shall be
responsible  for or have any duty to  ascertain,  inquire into or verify (i) any
statement,  warranty or  representation  made in connection with any of the Loan
Documents or any payment there under;  (ii) the performance or observance of any
of the  covenants  or  agreements  of the Company or any Lender under any of the
Loan  Documents;  (iii) the validity,  effectiveness  or genuineness of the Loan
Documents or any other instrument or writing furnished in connection  therewith;
or (iv) the  existence,  genuineness  or value of any of the  Collateral  or the
validity,  perfection,  priority  or  enforceability  of the Liens on any of the
Collateral.

                                    ARTICLE 9

                            MISCELLANEOUS PROVISIONS

9.1. WAIVERS AND AMENDMENTS; ACKNOWLEDGMENTS.

     (a)  WAIVERS  AND  AMENDMENTS.  No failure or delay  (whether  by course of
conduct or  otherwise) by any Lender in  exercising  any right,  power or remedy
which such Lender may have under any of the Loan  Documents  shall  operate as a
waiver thereof or of any other right,  power or remedy,  nor shall any single or
partial  exercise by any Lender of any such right,  power or remedy preclude any
other or further  exercise  thereof or of any other right,  power or remedy.  No
waiver of any  provision of any Loan  Document  and no consent to any  departure
there  from  shall  ever be  effective  unless it is in  writing  and  signed as
provided  below in this  section,  and then  such  waiver  or  consent  shall be
effective  only in the specific  instances  and for the purposes for which given
and to the  extent  specified  in such  writing.  No  notice to or demand on the
Company shall in any case of itself  entitle the Company to any other or further
notice or demand in similar or other circumstances. This Agreement and the other
Loan  Documents set forth the entire  understanding  between the parties  hereto
with respect to the transactions  contemplated  herein and therein and supersede
all prior  discussions  and  understandings  with respect to the subject  matter
hereof and thereof, and no waiver, consent,  release,  modification or amendment
of or supplement to this Agreement or the other Loan Documents shall be valid or
effective  against any party hereto  unless the same is in writing and signed by
(i) if such party is the Company,  by the  Company,  and (ii) if such party is a
Lender,  by such Lender on behalf of Lenders.  Notwithstanding  the foregoing or
anything to the contrary herein, Lenders shall not, without the prior consent of
each individual Lender,  execute and deliver on behalf of such Lender any waiver
or amendment which would:  (1) waive any of the conditions  specified in Article
IV (provided that any Lender may in its  discretion  withdraw any request it has
made under Section 4.2(e)), (2) increase the maximum amount which such Lender is
committed  hereunder  to lend,  (3)  reduce  any  fees  payable  to such  Lender
hereunder, or the principal of, or interest on, such Lender's Note, (4) postpone
any date fixed for any  payment of any such fees,  principal  or  interest,  (5)
amend the  definition  herein of " Lenders" or  "Percentage  Share" or otherwise
change the aggregate amount of Percentage Shares that is required for Lenders to
take any  particular  action  under  the Loan  Documents  or the  provisions  of
Sections  2.3 and 2.4 or Article 8 hereof,  (6)  release  the  Company  from its
obligation to pay such Lender's Note or (7) amend this Section 9.1(a).

                                       36
<PAGE>

     (b)  ACKNOWLEDGMENTS   AND  ADMISSIONS.   The  Company  hereby  represents,
warrants, acknowledges and admits that (i) it has been advised by counsel in the
negotiation,  execution and delivery of the Loan Documents,  (ii) it has made an
independent  decision to enter into this Agreement and the other Loan Documents,
without reliance on any representation, warranty, covenant or undertaking by any
Lender,  whether written,  oral or implicit,  other than as expressly set out in
this  Agreement  or in  another  Loan  Document  delivered  on or after the date
hereof, (iii) there are no representations,  warranties, covenants, undertakings
or agreements by any Lender as to the Loan Documents except as expressly set out
in this  Agreement  or in another Loan  Document  delivered on or after the date
hereof,  (iv) no Lender has any  fiduciary  obligation  toward the Company  with
respect to any Loan Document or the transactions  contemplated  thereby, (v) the
relationship  pursuant to the Loan Documents between the Company and the Lenders
is and  shall be solely  that of  debtor  and  creditor,  respectively,  (vi) no
partnership or joint venture  exists with respect to the Loan Documents  between
the Company and the Lenders,  (vii)  should an Event of Default  occur or exist,
Lenders will  determine in their sole  discretion and for their own reasons what
remedies and actions it will or will not  exercise or take at that time,  (viii)
without  limiting  any of the  foregoing,  the Company is not  relying  upon any
representation or covenant by any Lender, or any representative  thereof, and no
such representation or covenant has been made, that any Lender will, at the time
of an Event of Default, or at any other time, waive, negotiate, discuss, or take
or refrain  from  taking  any action  permitted  under the Loan  Documents  with
respect  to any  such  Event  of  Default  or any  other  provision  of the Loan
Documents,  and  (ix)  each  Lender  has  relied  upon the  truthfulness  of the
acknowledgments  in this  section  in  deciding  to  execute  and  deliver  this
Agreement and to become obligated hereunder.

     (c)  JOINT  ACKNOWLEDGMENT.  THIS  WRITTEN  AGREEMENT  AND THE  OTHER  LOAN
DOCUMENTS  REPRESENT  THE FINAL  AGREEMENT  BETWEEN  THE  PARTIES AND MAY NOT BE
CONTRADICTED  BY  EVIDENCE  OF  PRIOR,   CONTEMPORANEOUS,   OR  SUBSEQUENT  ORAL
AGREEMENTS OF THE PARTIES.

     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

9.2.  SET-OFF.  In  addition  to any  rights  now  or  hereafter  granted  under
applicable  law  and not by way of  limitation  of any  such  rights,  upon  the
occurrence and  continuance  of any Event of Default or any condition,  event or
act which, with the giving of notice or lapse of time, or both, would constitute
such an Event of Default,  the Lenders are hereby authorized at any time or from
time to time,  without prior notice to the Company or to any other  Person,  any
such prior notice being hereby expressly  waived,  to set-off and to appropriate
and apply any and all deposits  (general or special) and any other  indebtedness
at any time held or owing by any office of the Lenders or their Affiliates to or
for the credit of the account of the Company, regardless of the currency of such
deposits or other  indebtedness,  against and on account of the  obligations and
liabilities  of the Company to the Lenders  under this  Agreement  and the other
Loan  Documents,  including,  without  limitation,  all  claims of any nature or
description  arising out of or connected  with this Agreement and the other Loan
Documents, irrespective of whether or not the Lenders shall have made any demand
hereunder and although such obligations,  liabilities or claims, or any of them,
shall be contingent or unmatured.  The Lenders shall provide Company with notice
of such  set-off  within a  reasonable  time  after the  occurrence  of any such
set-off.

9.3.  SURVIVAL  OF  AGREEMENTS;   CUMULATIVE   NATURE.   The  Company's  various
representations,  warranties,  covenants and  agreements  in the Loan  Documents
shall survive the  execution  and delivery of this  Agreement and the other Loan
Documents  and the  performance  hereof  and  thereof,  including  the making or
granting of the Loan and the delivery of the Notes and the other Loan Documents,
and shall further  survive until all of the  Obligations are paid in full to the
Lenders and all of Lenders'  obligations  to the  Company  are  terminated.  All
statements  and  agreements  contained in any  certificate  or other  instrument
delivered by the Company to any Lender under any Loan  Document  shall be deemed
representations and warranties by the Company or agreements and covenants of the
Company under this Agreement. The representations,  warranties, indemnities, and
covenants made by the Company in the Loan Documents, and the rights, powers, and
privileges  granted to the Lenders in the Loan Documents,  are cumulative,  and,
except for expressly  specified waivers and consents,  no Loan Document shall be
construed in the context of another to diminish,  nullify,  or otherwise  reduce
the  benefit to the  Lenders of any such  representation,  warranty,  indemnity,
covenant,  right, power or privilege.  In particular and without limitation,  no
exception set out in this Agreement to any representation,  warranty, indemnity,
or  covenant  herein  contained  shall  apply  to  any  similar  representation,
warranty,  indemnity, or covenant contained in any other Loan Document, and each
such similar representation,  warranty,  indemnity, or covenant shall be subject
only to those  exceptions which are expressly made applicable to it by the terms
of the various Loan Documents.

                                       37
<PAGE>

9.4.  INDEMNITY.  THE COMPANY AGREES TO INDEMNIFY EACH LENDER, UPON DEMAND, FROM
AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, BROKER'S FEES, CLAIMS, LOSSES,
DAMAGES,  PENALTIES,  FINES,  ACTIONS,  JUDGMENTS,  SUITS,  SETTLEMENTS,  COSTS,
EXPENSES OR DISBURSEMENTS (INCLUDING REASONABLE FEES OF ATTORNEYS,  ACCOUNTANTS,
EXPERTS  AND  ADVISORS)  OF ANY  KIND OR  NATURE  WHATSOEVER  (IN  THIS  SECTION
COLLECTIVELY CALLED "LIABILITIES AND COSTS") WHICH TO ANY EXTENT (IN WHOLE OR IN
PART) MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST ANY LENDER GROWING OUT
OF,  RESULTING FROM OR IN ANY OTHER WAY ASSOCIATED  WITH ANY OF THE  COLLATERAL,
THE LOAN DOCUMENTS AND THE TRANSACTIONS AND EVENTS (INCLUDING THE ENFORCEMENT OR
DEFENSE  THEREOF)  AT ANY TIME  ASSOCIATED  THEREWITH  OR  CONTEMPLATED  THEREIN
(WHETHER ARISING IN CONTRACT OR IN TORT OR BY STATUTE OR OTHERWISE). AMONG OTHER
THINGS, THE FOREGOING  INDEMNIFICATION COVERS ALL LIABILITIES AND COSTS INCURRED
BY ANY LENDER  RELATED  TO ANY BREACH OF A LOAN  DOCUMENT  BY THE  COMPANY,  ANY
BODILY INJURY TO ANY PERSON OR DAMAGE TO ANY PERSON'S PROPERTY, OR ANY VIOLATION
OR NONCOMPLIANCE WITH ANY ENVIRONMENTAL  LEGAL REQUIREMENTS BY ANY LENDER OR ANY
OTHER PERSON OR ANY LIABILITIES OR DUTIES OF ANY LENDER OR ANY OTHER PERSON WITH
RESPECT TO HAZARDOUS MATERIALS FOUND IN OR RELEASED INTO THE ENVIRONMENT.

THE FOREGOING  INDEMNIFICATION  SHALL APPLY WHETHER OR NOT SUCH  LIABILITIES AND
COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM
OR THEORY OF STRICT  LIABILITY OR CAUSED,  IN WHOLE OR IN PART BY ANY  NEGLIGENT
ACT OR OMISSION OF ANY KIND BY LENDER,

provided  only that no Lender  shall be entitled  under this  section to receive
indemnification  for that portion, if any, of any liabilities and costs which is
proximately caused by its own individual gross negligence or willful misconduct,
as determined in a final judgment.  If any Person  (including the Company or any
of its Affiliates) ever alleges such gross  negligence or willful  misconduct by
any Lender, the  indemnification  provided for in this section shall nonetheless
be paid upon demand,  subject to later adjustment or  reimbursement,  until such
time as a court of  competent  jurisdiction  enters a final  judgment  as to the
extent and effect of the alleged gross negligence or willful misconduct. As used
in this section the term "Lender" shall include each director,  officer,  agent,
trustee, attorney, employee, representative and Affiliate of or for any Lender.

9.5. EXECUTION IN COUNTERPARTS.  This Agreement may be executed in any number of
counterparts  and  by  the  different  parties  hereto  or  thereto-in  separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken  together  shall  constitute one and the same
instrument.

9.6. NOTICES.  Any notices to be served pursuant hereto shall be deemed properly
delivered if delivered  personally,  by United  States  certified or  registered
mail,  postage prepaid,  or by Federal Express or comparable  overnight  courier
service fare prepaid, or by legible facsimile transmission,  to set forth on its
signature  page  hereto or to such other  address as the  Company  may direct in
writing and to each  Lender at its address set forth on the Lenders  Schedule or
at such other  address as such Lender may direct in writing.  Such notices shall
be deemed received the same day if delivered personally or by legible facsimile,
three business days after delivery by certified or registered mail, and the next
business day if delivered by overnight courier.

9.7. GOVERNING LAW; SUBMISSION TO PROCESS.  EXCEPT TO THE EXTENT THAT THE LAW OF
ANOTHER JURISDICTION IS EXPRESSLY ELECTED IN A LOAN DOCUMENT, THE LOAN DOCUMENTS
SHALL BE DEEMED  CONTRACTS AND  INSTRUMENTS  MADE UNDER THE LAWS OF THE STATE OF
TEXAS AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF TEXAS AND THE LAWS OF THE UNITED STATES OF AMERICA, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  CHAPTER 346 OF THE TEXAS FINANCE CODE
(WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING  TRI-PARTY
ACCOUNTS)  DOES NOT APPLY TO THIS  AGREEMENT OR TO THE NOTE.  THE COMPANY HEREBY
IRREVOCABLY  SUBMITS ITSELF TO THE  NON-EXCLUSIVE  JURISDICTION OF THE STATE AND
FEDERAL  COURTS  SITTING  IN THE STATE OF TEXAS AND  AGREES  AND  CONSENTS  THAT
SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL  PROCEEDING  RELATING TO THE
LOAN  DOCUMENTS OR THE  OBLIGATIONS  BY ANY MEANS ALLOWED UNDER TEXAS OR FEDERAL
LAW. IN ADDITION TO THE PLACES OF PAYMENT  SPECIFIED  IN THE NOTES,  THE COMPANY
AND EACH LENDER STIPULATE AND AGREE THAT TARRANT COUNTY, TEXAS IS AN APPROPRIATE
AND ACCEPTABLE  VENUE FOR ANY STATE OR FEDERAL COURT ACTION  CONCERNING THE LOAN
DOCUMENTS.

                                       38
<PAGE>

9.8.  CONSTRUCTION.  This Agreement shall not be construed more strictly against
any Lender than against the Company or any other Lender  merely by virtue of the
fact  that the same  has been  prepared  by  counsel  for any  Lender,  it being
recognized that both the Company and the Lenders have contributed  substantially
and materially to the preparation of this Agreement.

9.9. CAPTIONS.  The captions of various articles herein are for convenience only
and  are  not to be  utilized  in  construing  the  content  or  meaning  of the
substantive provisions hereof.

9.10.  POTENTIAL  INVALIDITY.  In the event of any inconsistency among the terms
hereof (including incorporated terms) or between such terms and the terms of the
Notes,  the terms of this  Agreement  shall  govern  and  prevail.  The whole or
partial  invalidity,  illegality or  unenforceability of any provision hereof or
the Notes at any time,  whether  pursuant to the terms of then applicable law or
otherwise, shall not affect:

     (a)  in the instance of partial invalidity, illegality or unenforceability,
          the validity,  legality or  enforceability  of such  provision at such
          time except to the extent of such partial  invalidity,  illegality  or
          unenforceability; or
     (b)  the  validity,  legality or  enforceability  of such  provision at any
          other time or of any other provision hereof at that or any other time.

9.11.  INTERPRETATION.  All words herein which are expressed in the masculine or
neuter  gender  shall be deemed to include the  masculine,  feminine  and neuter
Lenders.  Any word herein  which is expressed in the singular or plural shall be
deemed,  whenever  appropriate  in the  context,  to include  the plural and the
singular.

9.12. AGREEMENT BINDING ON SUCCESSORS.  This Agreement shall be binding upon and
shall  inure to the benefit of the Company  and the  Lenders,  their  respective
successors,  permitted assigns, grantees and legal representatives.  The Company
may not  assign  any of its  rights or  delegate  any of its  duties  under this
Agreement, Notes or any other Loan Documents.

9.13. LIMITATION ON INTEREST.  The Lenders and the Company and any other parties
to the Loan Documents  intend to contract in strict  compliance  with applicable
usury law from time to time in  effect.  In  furtherance  thereof  such  Persons
stipulate and agree that none of the terms and provisions  contained in the Loan
Documents  shall ever be  construed  to create a contract  to pay,  for the use,
forbearance  or detention of money,  interest in excess of the maximum amount of
interest  permitted to be charged by applicable law from time to time in effect.
Neither  the  Company  nor any  present or future  endorsers,  or other  Persons
hereafter becoming liable for payment of any Obligation shall ever be liable for
unearned  interest  thereon or shall ever be required to pay interest thereon in
excess of the maximum amount that may be lawfully  contracted for,  charged,  or
received under applicable law from time to time in effect, and the provisions of
this section shall control over all other provisions of the Loan Documents which
may be in conflict or apparent conflict herewith.  The Lenders expressly disavow
any intention to contract for, charge, or collect excessive unearned interest or
finance charges in the event the maturity of any Obligation is  accelerated.  If
maturity of any  Obligation is  accelerated  for any reason,  any  Obligation is
prepaid and as a result any amounts held to constitute  interest are  determined

                                       39
<PAGE>

to be in excess of the legal  maximum,  or any Lender or any other holder of any
or all of the Obligations shall otherwise collect moneys which are determined to
constitute interest which would otherwise increase the interest on any or all of
the  Obligations  to an  amount in excess of that  permitted  to be  charged  by
applicable law then in effect,  then all sums determined to constitute  interest
in excess of such legal limit shall,  without  penalty,  be promptly  applied to
reduce the then  outstanding  principal of the related  Obligations  or, at such
Lender's or such holder's option,  promptly returned to the Company or the other
payor  thereof  upon  such  determination.  In  determining  whether  or not the
interest paid or payable, under any specific  circumstance,  exceeds the maximum
amount  permitted  under  applicable  law,  the Lenders and the Company (and any
other payors  thereof) shall to the greatest extent  permitted under  applicable
law, characterize any non-principal payment as an expense, fee or premium rather
than as interest,  exclude  voluntary  prepayments and the effects thereof,  and
amortize,  prorate, allocate, and spread the total amount of interest throughout
the entire  contemplated  term of the instruments  evidencing the Obligations in
accordance  with the amounts  outstanding  from time to time there under and the
maximum legal rate of interest from time to time in effect under  applicable law
in order to lawfully  contract  for,  charge,  or receive the maximum  amount of
interest  permitted under  applicable law. In the event  applicable law provides
for an interest  ceiling under Chapter 303 of the Texas Finance Code (the "Texas
Finance  Code") as  amended,  for that day,  the  ceiling  shall be the  "weekly
ceiling" as defined in the Texas Finance Code,  provided that if any  applicable
Law permits  greater  interest,  the Law permitting the greatest  interest shall
apply. As used in this section the term  "applicable  law" means the laws of the
State of Texas or the Laws of the United States of America, whichever laws allow
the  greater  interest,  as such laws now exist or may be  changed or amended or
come into effect in the future.

9.14.  CREDIT  DECISIONS;  EXCULPATION.  Each Lender  acknowledges  that it has,
independently and without reliance upon any other Lender,  made its own analysis
of the Company and the transactions  contemplated hereby and its own independent
decision to enter into this Agreement and the other Loan Documents.  Each Lender
also  acknowledges  that it will,  independently  and without  reliance upon any
other  Lender  and based on such  documents  and  information  as it shall  deem
appropriate at the time,  continue to make its own credit decisions in taking or
not taking action under the Loan Documents.  Nothing in the Loan Documents shall
be construed to constitute any Lender a trustee or other fiduciary for any other
Lender or  participant.  Each  Lender  acknowledges  that  Lenders may take such
actions  and  exercise  such  powers  that are  granted  to  Lenders in the Loan
Documents without notice to the other Lenders after a designated Lender has been
chosen by the Lenders. Each Lender, its directors,  officers,  agents, attorneys
and  employees  shall not be liable to any other  Lender for any action taken or
omitted  to be  taken  by any of them  under  or in  connection  with  the  Loan
Documents,  INCLUDING THEIR NEGLIGENCE OF ANY KIND AND ANY CLAIM ARISING UNDER A
THEORY OF STRICT  LIABILITY,  except that each shall be liable for its own gross
negligence or willful misconduct.

                                       40
<PAGE>

9.15. WAIVER OF JURY TRIAL, PUNITIVE DAMAGES. THE COMPANY AND EACH LENDER HEREBY
KNOWINGLY,  VOLUNTARILY,  INTENTIONALLY,  AND IRREVOCABLY WAIVES, TO THE MAXIMUM
EXTENT  NOT  PROHIBITED  BY LAW,  ANY  RIGHT  IT MAY  HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY  LITIGATION  BASED HEREON,  OR DIRECTLY OR INDIRECTLY AT ANY TIME
ARISING  OUT  OF,  UNDER  OR IN  CONNECTION  WITH  THE  LOAN  DOCUMENTS  OR  ANY
TRANSACTION  CONTEMPLATED  THEREBY  OR  ASSOCIATED  THEREWITH,  BEFORE  OR AFTER
MATURITY;  WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY
HAVE TO CLAIM OR  RECOVER  IN ANY SUCH  LITIGATION  ANY  "SPECIAL  DAMAGES",  AS
DEFINED BELOW, CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR
COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED
THAT SUCH  PARTY  WOULD NOT,  IN THE EVENT OF  LITIGATION,  SEEK TO ENFORCE  THE
FOREGOING WAIVERS,  AND ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS  CONTAINED
IN THIS  SECTION.  AS  USED IN THIS  SECTION,  "SPECIAL  DAMAGES"  INCLUDES  ALL
SPECIAL,  CONSEQUENTIAL,  EXEMPLARY,  OR  PUNITIVE  DAMAGES  (REGARDLESS  OF HOW
NAMED),  BUT DOES NOT INCLUDE ANY  PAYMENTS OR FUNDS WHICH ANY PARTY  HERETO HAS
EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY HERETO.

                          Page Left Blank Intentionally

                                       41
<PAGE>

IN WITNESS OF THE FOREGOING, the Company and each Lender have executed or caused
this  Agreement to be executed by their duly  authorized  officers as of the day
and year first above written.

                         LENDERS:

                         /s/ Jim Villines
                         ----------------
                             Jim Willines

                         /s/ Dick Calvert
                         ----------------
                             Dick Calvert

                         /s/ Marion Little
                         -----------------
                             Marion Little

                         /s/ Dwight Brown
                         ----------------
                             Dwight Brown

                         /s/ Charles E. Penfield
                         -----------------------
                             Charles E. Penfield

                         /s/ Lance A. Penfield
                         ---------------------
                             Lance A. Penfield

                         /s/ Layne T. Penfield
                         ---------------------
                             Layne T. Penfield

                         /s/ Mike Duke
                         -------------
                             Mike Duke

                         /s/ Bud Whestone
                         ----------------
                             Bud Whestone

                         /s/ Bud & Julie Whestsone, Charitable Foundation
                         ------------------------------------------------
                             Bud & Julie Whestsone, Charitable Foundation

                         /s/ Travis P.Bull
                         -----------------
                             Travis P.Bull

                         /s/ Thomas J. Cunningham, Jr.
                         -----------------------------
                             Thomas J. Cunningham, Jr.

                                       42
<PAGE>

                         /s/ Brad T. Tillery
                         -------------------
                             Brad T. Tillery

                         /s/ Charles W. Smith
                         --------------------
                             Charles W. Smith

                         /s/ Lane Smith
                         --------------
                             Lane Smith

                         /s/ Ronnie Crawford
                         -------------------
                             Ronnie Crawford

                         /s/ Darrell Walker
                         ------------------
                             Darrell Walker

                         BORROWER:

                         URBAN TELEVISION NETWORK CORPORATION

                              By: /s/ Randy Moseley
                                  -----------------
                                      Randy Moseley
                                      President

                         Address: Urban Television Network Corporation
                                  18505 Highway 377 South
                                  Cresson, Texas  76035
                                  Attention:  Randy Moseley

                                       43
<PAGE>

                                 PROMISSORY NOTE

$                                                                     ,   , 2003
 ------------------                                          ---------  --

FOR VALUE RECEIVED,  the undersigned,  Urban Television Network  Corporation,  a
Nevada  corporation  ("Borrower"),  hereby  promises  to  pay to  the  order  of
                          ("Payee"),  in lawful  money of the  United  States of
America in immediately  available funds, the principal sum of            Dollars
($             ), together with interest on the unpaid principal balance thereof
as hereinafter set forth, both principal and interest payable as herein provided
in lawful money of the United States of America at the offices of Borrower or at
such other  place as from time to time may be  designated  by the holder of this
Note.

     All principal and interest on the  outstanding  principal  balance shall be
payable  at  the  expiration  of the  first  to  occur  of  the  following:  (a)
       ,  ,  2004; (b) the closing by Borrower of a public offering or offerings
(whether  debt or equity or a  combination)  raising in the  aggregate  at least
$10,000,000  of gross  proceeds  (i.e.  prior  to the  payment  of  underwriting
expenses  and  commissions)  to  Borrower;  and (c)  the  closing  of a  private
placement  or  placements  (whether  debt or  equity or a  combination)  whereby
Borrower  receives gross proceeds of at least $10,000,000 in the aggregate (i.e.
prior to the payment of sales expenses and commissions). The principal amount of
this Note  (exclusive of any past due  principal or interest)  from time to time
outstanding  shall  bear  interest  on each day  outstanding  at the rate of six
percent (6.0%) per annum,  calculated at on the basis of actual days elapsed and
a year of 360 days.  All past due  principal  of and interest on this Note shall
bear  interest on each day  outstanding  at the rate of ten percent  (10.0%) per
annum, calculated at on the basis of actual days elapsed and a year of 360 days,
and such interest shall be due and payable daily as it accrues.

     Borrower shall have the right to prepay, without premium or penalty, at any
time, any part or all of the  indebtedness  evidenced by this Note upon five (5)
days advance notice to Payee.  Any prepayment  shall include interest accrued to
the date of such  prepayment,  and all prepayments of principal shall be applied
first against accrued interest and then principal.

     Payee shall be entitled to convert the outstanding balance of the Loans and
accrued  interest  thereon at anytime  before the  maturity  date or  Borrower's
announced  prepayment  date,  of the  Loans  at the  rate of two  shares  of the
Company's  common  stock for each $1.00 of Loan  balance  and  accrued  interest
thereon.

1. This Note is issued and delivered  under that certain Loan  Agreement of even
date herewith between Borrower and Lenders (as defined therein; including Payee)
(herein,  as from time to time  supplemented,  amended or  restated,  called the
"Loan  Agreement"),  and is a "Note" as defined  therein,  (b) is subject to the
terms and  provisions  of the Loan  Agreement,  which  contains  provisions  for
payments and prepayments  hereunder and acceleration of the maturity hereof upon
the happening of certain  stated  events,  and (c) is secured by and entitled to
the benefits of certain  Security  Documents (as  identified  and defined in the
Loan  Agreement).  Payments  on this Note shall be made and  applied as provided
herein and in the Loan Agreement. Reference is hereby made to the Loan Agreement
for a description  of certain  rights,  limitations of rights,  obligations  and
duties of the parties hereto and for the meanings assigned to terms used and not
defined herein and to the Security Documents for a description of the nature and
extent of the security thereby provided and the rights of the parties thereto.

                                       44
<PAGE>

     All  remedies  afforded  by law  shall  be  cumulative,  and all  shall  be
available  to Payee at all times until this Note has been paid and  performed in
full.  No delay or omission  of Payee to exercise  any right or power under this
Note  shall  impair  such right or power or be  construed  to be a waiver of any
Default or Event of Default or acquiescence  therein,  and any single or partial
exercise  of any such  right or power  shall not  preclude  any other or further
exercise  thereof or the  exercise  of any other  right or power,  and no waiver
whatsoever  shall be valid  unless it is in a  writing  signed by Payee and then
only to the extent specifically set forth in such writing.

     The terms and  provisions  of this Note shall  inure to the  benefit of any
assignee,  transferee, or holder of this Note, and in the event of such transfer
or assignment,  each of the rights,  powers,  privileges and benefits  conferred
upon  Payee by this Note  shall  automatically  be  vested  in such  transferee,
assignee, or holder.

     The terms and  provisions  of this Note shall be binding upon  Borrower and
its successors,  assigns,  and transferees,  but any such assignment or transfer
shall not relieve Borrower of its obligations under this Note.

     The  invalidity or  unenforceability  of any of the provisions of this Note
shall not affect the validity or enforceability of the remainder hereof.

     If this Note is placed in the hands of an  attorney  for  collection  after
default, or if all or any part of the indebtedness represented hereby is proved,
established or collected in any court or in any bankruptcy, receivership, debtor
relief, probate or other court proceedings, Borrower and all endorsers, sureties
and  guarantors  of this Note  jointly  and  severally  agree to pay  reasonable
attorneys'  fees and  collection  costs to the holder  hereof in addition to the
principal and interest payable hereunder.

     Borrower and all  endorsers,  sureties and  guarantors  of this Note hereby
severally  waive  demand,  presentment,  notice of demand  and of  dishonor  and
nonpayment  of this Note,  protest,  notice of protest,  notice of  intention to
accelerate the maturity of this Note,  declaration or notice of  acceleration of
the  maturity of this Note,  diligence in  collecting,  the bringing of any suit
against  any party and any notice of or  defense  on account of any  extensions,
renewals, partial payments or changes in any manner of or in this Note or in any
of its terms,  provisions and covenants, or any releases or substitutions of any
security,  or any delay,  indulgence  or other act of any  trustee or any holder
hereof, whether before or after maturity.

     Notwithstanding  the foregoing  paragraph and all other  provisions of this
Note, in no event shall the interest  payable  hereon,  whether  before or after
maturity, exceed the maximum amount of interest which, under applicable law, may
be contracted for, charged, or received on this Note, and this Note is expressly
made subject to the provisions of the Loan Agreement that more fully set out the
limitations on how interest accrues hereon. In the event applicable law provides
for an interest  ceiling under Chapter 303 of the Texas Finance Code (the "Texas
Finance  Code") as  amended,  for that day,  the  ceiling  shall be the  "weekly
ceiling" as defined in the Texas Finance Code and shall be used in this Note for
calculating  the Maximum Rate and for all other purposes.  The term  "applicable
law" as used in this Note  shall mean the laws of the State of Texas or the laws
of the United  States,  whichever laws allow the greater  interest,  and as such
laws now exist or may be changed or amended or come into effect in the future.

     This Note and the rights and duties of the parties hereto shall be governed
by the laws of the State of Texas (without  regard to principles of conflicts of
law), except to the extent the same are governed by applicable federal law.

                                       45
<PAGE>

THIS  CONVERTIBLE  PROMISSORY NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION
HEREOF HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933, AS AMENDED
(THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAW,  AND MAY NOT BE SOLD,
TRANSFERRED,  PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF OR EXERCISED UNLESS
(i) A REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT AND  APPLICABLE  STATE
SECURITIES  LAWS SHALL HAVE BECOME  EFFECTIVE  WITH REGARD  THERETO,  OR (ii) AN
EXEMPTION  FROM  REGISTRATION  UNDER THE  SECURITIES  ACT AND  APPLICABLE  STATE
SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.

AN INVESTMENT  IN THESE  SECURITIES  INVOLVES A HIGH DEGREE OF RISK.  PAYEE MUST
RELY ON HIS OR HER OWN ANALYSIS OF THE  INVESTMENT  AND  ASSESSMENT OF THE RISKS
INVOLVED.

                                    BORROWER:

                                    URBAN TELEVISION NETWORK CORPORATION

                                       By:   /s/ Randy Moseley
                                             ---------------------------
                                             Randy Moseley
                                       Its:  President
                                             ----------------------------

                                       46MUTUAL SPECIFIC RELEASE

       FOR VALUABLE CONSIDERATION described below, the receipt and sufficiency whereof are hereby acknowledged, XML-GLOBAL TECHNOLOGIES, INC, a Colorado corporation ("XML") on the one hand, and PARADIGM MILLENNIUM FUND, LP (the "Fund") AND PARADIGM GROUP II, LLC (the "Group") (the Fund and the Group shall collectively be referred to as "Paradigm") on the other, together with their respective subsidiaries, officers, directors, partners, employees, attorneys, agents, shareholders, affiliates, representatives, successors, and assigns , both past and present, each hereby irrevocably and unconditionally releases, acquits and forever discharges the other party, together with its affiliates, agents, employees, officers, directors, representatives, shareholders, attorneys,  successors and assigns, of and from any and all charges, complaints, grievances, claims, actions, causes of action, suits, liabilities, obligations, promises, agreements, demands, controversies, rights, damages, costs, debts, losses, expenses (including attorneys' fees and costs actually incurred or to be incurred), from any rights claimed or asserted by any reason and any other rights, whether statutory, contractual, or tortious, known or unknown, foreseen or unforeseen, at law or in equity, any matter, transaction, fact, occurrence or conduct which has occurred or does or shall otherwise exist, at or prior to the date hereof, including, but not limited to, any and all liability for claims, damages, or causes of action of whatsoever kind, known or unknown; provided, however, that the releases contained herein shall not apply to claims based upon a party's breach of or failure to perform under this Mutual Specific Release; provided however that XML Global shall not be deemed released from its agreement to prepare and file a registration statement subject to the conditions contained in the Registrations Rights Agreement dated August 2002 and as amended by a subsequent agreement dated January 29, 2003, between the parties.

       Each party does hereby (i) represent and warrant to the other party that no portion of any claim, demand, cause of action or other matter released herein, nor any portion of any recovery or settlement to which such party might be entitled from the other, has been assigned or transferred to any other person, firm, entity or corporation, either directly or by way of subrogation or operation of law, and (ii) covenants (a) to indemnify, defend and hold harmless the other party from all loss, costs, claim or expense (including, but not limited to, all expenses of investigation and defense of any such claim or action, including reasonable attorney's fees and accountants' fees, costs and expenses) arising out of any claim made or action instituted against the other by any person or entity who claims to be the beneficiary of any such assignment or transfer, and to pay and satisfy any judgment resulting from any settlement of any such claim or action and (b) not to sue the other party for any claim or claims or arising under any local, state or federal statutory, regulatory or common law right, claim or cause of action whatsoever which may have existed prior to, or may exist at the time of, the execution of this Mutual Specific Release.

       Each party hereby further agrees to indemnify, defend and hold harmless the other party from and against any and all loss, cost, damage or expense, including without limitation, attorney's fees, incurred by the party arising out of any breach by said party of any representation, warranty, covenant, or undertaking of the party.  Upon the occurrence of any event which would give rise to a claim by one party against, or to a right of defense and indemnity against one party pursuant to this Mutual Specific Release, or in the event that any suit, action, investigation, claim or proceeding has begun, made or instituted as a result of which one party may become obligated to the other party hereunder, said other party shall give notice to the party of the occurrence of such event and shall identify the other party's choice of counsel to represent such investigation, claim or proceeding; provided, however, that the failure of the other party to give notice shall not affect the indemnification obligations of the party hereunder.  The other party (i) shall have the exclusive right to so defend, contest or protect against such matter utilizing the counsel of its choice and (ii) without further notice may set-off or apply against all amounts due to the party under any agreement or instrument or pursuant to any obligation the full amount for which indemnification hereunder is provided.

       Each party covenants and agrees as follows:

	Effective January 29, 2003, XML and Paradigm executed an Agreement (the "Agreement") pursuant to which the Fund agreed to complete a financing of XML under a Common Stock and Warrant Purchase Agreement dated August 23, 2002 (the "Financing Agreement"). As part of the Agreement, Group executed and delivered a promissory note in favor of XML in the principal amount of $200,000 dated January 29, 2003 (the "Note"). The Note was personally guaranteed by Sheldon Drobny, Reevy Rosenberg, Aaron Fisher and Randall Goulding (collectively the "Guarantors"). XML agrees that in consideration of the Note being converted into a subscription described below, the Guarantors shall be released from any liability under the Note. In addition, except as provided for herein, Paradigm shall have no further obligation to complete the purchase of XML securities under the Financing Agreement.
	Paradigm agrees to unconditionally and irrevocably subscribe to the attached term sheet to purchase
  20,000,000 shares of XMLG Common Stock and 20,000,000 Detachable Warrants - PARADIGM GROUP, L.L.C. SUPPLEMENTAL TERM SHEET - XML GLOBAL TECHNOLOGIES, INC.  COMMON STOCK WITH DETACHABLE WARRANTS, in the principal amount of up to $200,000. The funds to be advanced as per the Supplemental Term Sheet dated April 9, 2003 attached as Appendix A.

       Each party warrants and represents that no promise or inducement has been offered except as expressly set forth herein and that this Mutual Specific Release is executed without reliance upon any statement or representation by the persons or parties involved or their representatives concerning the nature or extent of any damages or any legal liability of the other party therefor.  Each party further assumes the risk of any mistake of fact, whether said fact or facts are past, presently existing or arise in the future, as to the extent of any damages or losses they have incurred or may incur as a result of their relationships with the other.

       The parties recognize and agree that by entering into this Mutual Specific Release no party admits, and each of them does specifically deny, any violation of any local, state or federal law, common or statutory or any liability to the other.  The parties further recognize that no delivery of any document or instrument made in connection with this Mutual Specific Release is to be construed as an admission of liability by such party and that this instrument has been entered into in order to consummate a compromise and final settlement of any and all claims of the parties which might arise against another party arising prior to the date hereof.  This Mutual Specific Release and the negotiations with respect to it shall not be introduced into evidence in any legal proceeding, except in a legal proceeding by a party hereto for the purpose of enforcing any term or provision of this Mutual Specific Release.

       This instrument shall be binding upon each party and upon each party's heirs, administrators, representatives, successors, assigns, principals, agents, affiliates and representatives and shall inure to the benefit of each party's respective heirs, administrators, representatives, executors, successors, assigns, affiliates, principals and agents.

       Each party further expressly warrants, declares and represents that before executing this instrument, such party has fully informed himself/itself of its terms, contents, conditions and effects; that such party understands that he/it may consult an attorney of their choice concerning this instrument and their decision to enter into this Mutual Specific Release.  Each party represents and acknowledges that he/it has read the foregoing instrument carefully and fully and that he/it understand its terms, and each is executing such agreements voluntarily and without any coercion, undue influence, threat or intimidation of any kind or type whatsoever.

       IN WITNESS WHEREOF the parties have signed this
16th day of April, 2003.

	

     

    	

XML-GLOBAL TECHNOLOGIES, INC. 

  a Colorado corporation

    
	   

    	By:____________________________________ 

      Authorized Agent

    
	
   

    	
PARADIGM MILLENNIUM FUND, LP

    
	
   

    	
By:_______________________________________

Authorized Agent

    
	

   

    	

PARADIGM GROUP II, LLC

    
	

   

    	

By:_______________________________________

     Authorized Agent

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