Document:

exv10w10

 

EXHIBIT 10.10

OPTION AGREEMENT

     This Option Agreement is entered into as of the 3rd day of October, 2005 by and among Prentiss
Properties Continental, L.L.C. (“Continental”) and Michael V. Prentiss.

RECITALS

     A. Continental owns a 12.5% undivided interest (the “Interest”) in a Challenger 300, Serial
Number 20036, FAA Registration Number N516FX (the “Aircraft”) through Bombardier Aerospace
Corporation (“FlexJet”), pursuant to that certain Purchase Agreement between FlexJet and
Continental dated March 15, 2005 and Management Agreement between FlexJet and Continental dated
March 15, 2005 (collectively, the “FlexJet Agreements”).

     B. Continental desires to grant Mr. Prentiss an Option (as hereinafter defined), subject to
the terms of this Option Agreement, to purchase the Interest.

     NOW, THEREFORE, in consideration of the premises and the covenants and agreements set forth
herein, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, Continental and Mr. Prentiss hereby agree as
follows:

1. Option. Continental hereby grants Mr. Prentiss a non-transferable and irrevocable
option (the “Option”) to acquire, subject to the terms, conditions and delivery obligations set
forth herein, all right, title and interest in the Interest.

2. Exercise.

     a. Mr. Prentiss may exercise the Option at any time on or before three years after the date of
the earlier to occur of Mr. Prentiss’ death, disability, or termination of his employment with
Prentiss Properties Trust as Chairman of the Board without “Cause” or after a “Change of Control”
as such terms are defined in the Third Amended and Restated Employment Agreement, dated as of
January 1, 2004, as amended, between Prentiss Properties Trust and Mr. Prentiss. The date when the
Option is exercised is herein called the “Exercise Date.” The Option may be exercised by the
delivery of written notice (the “Exercise Notice”) to Continental prior to the expiration of the
Option.

     b. The closing of the transaction contemplated hereby (the “Closing”) shall take place within
ten days after the delivery of the Exercise Notice to Continental. The date of the Closing is
herein referred to as the “Closing Date.”

3. Conditions to Closing.

     a. Continental’s obligation to consummate the transactions contemplated to occur on the
Closing Date is subject to the satisfaction or waiver by Continental of each condition precedent
listed below.

         i. Delivery of a certificate to Continental, executed by Mr. Prentiss, dated the Closing Date,
certifying as to the representations and warranties of Mr. Prentiss under this Option Agreement
being true, complete and correct in all material respects as of the Closing Date

 

 

and the performance in all material respects of all agreements and covenants contained herein required to
be performed by Mr. Prentiss on or prior to the Closing Date;

         ii. Receipt by Continental of $100,000 (the “Exercise Price”) from Mr. Prentiss; and

         iii. Receipt by Continental of consent for the transfer of the Interest from FlexJet if
required by Flexjet.

     b. Mr. Prentiss’ obligation to consummate the transactions contemplated to occur on the
Closing Date is subject to the satisfaction or waiver by Mr. Prentiss of each condition precedent
listed below.

         i. Delivery of a certificate to Mr. Prentiss, executed by an officer of Continental, dated the
Closing Date, certifying as to the representations and warranties of Continental under this Option
Agreement being true, complete and correct in all material respects as of the Exercise Date and the
performance in all material respects of all agreements and covenants contained herein required to
be performed by Continental on or prior to the Closing Date;

         ii. Receipt by Mr. Prentiss of the Interest and all documents, duly authorized, executed and
delivered, necessary to deliver unencumbered title in the Interest to Mr. Prentiss;

         iii. Mr. Prentiss shall have received consent for the transfer of the Interest from FlexJet;
and

         iv. The terms of the FlexJet Agreements have not been materially and adversely amended in
connection with the transfer of the Interest.

     c. The obligations of Continental and Mr. Prentiss are each subject to the satisfaction of
each condition listed below.

         i. No governmental body, arbitrator or mediator shall have issued an order, injunction,
judgment, decree, ruling or assessment that shall then be in effect restraining or prohibiting the
completion of the transactions contemplated hereby nor shall any order, injunction, judgment,
decree, ruling or assessment be pending or, to either party’s knowledge, threatened.

         ii. The transactions contemplated by this Option Agreement shall not be in contravention of
any applicable law, order or judgment.

         iii. All necessary consents, approvals, licenses, permits, orders and authorizations of, or
registrations, declarations and filings with, any governmental authority or of or with any other
person with respect to any of the transactions contemplated hereby shall have been duly obtained or
made to the extent required on or before the date hereof and, when made, shall be in full force and
effect.

2

 

4. Representations and Warranties.

     a. Continental represents and warrants to Mr. Prentiss as of the date hereof and as of the
Closing Date as follows:

         i. Ownership. Continental is the owner of the Interest free and clear of all liens,
security interests, pledges, claims, liabilities and restrictions of any nature whatsoever. On the
Exercise Date, Mr. Prentiss will acquire good and marketable title to the Interest from Continental
free and clear of any liens, security interests, encumbrances and restrictions of any nature
whatsoever, except for restrictions imposed by the FlexJet Agreements.

         ii. Organization. Continental is a limited liability company duly organized and
validly existing under the laws of the State of Delaware and is in good standing. Continental has
all corporate power and authority to execute, deliver and perform its obligations under this Option
Agreement.

         iii. Authorization. This Option Agreement has been duly authorized, executed and
delivered by Continental and is a valid and binding obligation of Continental enforceable against
Continental in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting
creditors’ rights generally and by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in law or in equity).

         iv. No Conflicts. The execution, delivery and performance of this Option Agreement
and the consummation of the transactions contemplated by this Option Agreement do not and will not
conflict with or result in any breach of any of the terms, conditions or provisions of, or
constitute a default under (a) Continental’s certificate of organization or limited liability
company agreement (each as amended to date and presently in effect), (b) any agreement or other
instrument to which Continental is a party or by which it or any of its properties is bound and
which conflict, breach or default would have a material adverse effect upon Continental, its
assets, properties, business or condition (financial or otherwise) or (c) any decree, judgment,
order, statute, rule or regulation applicable to Continental.

         v. No Consents. No consent, approval, order, authorization or waiver from, notice to
or declaration, registration or filing with any governmental authority or any other person is
necessary in connection with the execution, delivery and performance by Continental of this Option
Agreement or the consummation of the transactions contemplated hereby other than the consent of
FlexJet.

         vi. Condition. To the knowledge of Continental, the Aircraft is in good working order
and repair and have a valid Certificate of Airworthiness issued by the Federal Aviation
Administration with all airworthiness directives and inspections current.

         vii. No Defaults. To the knowledge of Continental, no defaults of FlexJet or
conditions which, with the passage of time or giving of notice or both, would constitute defaults
of FlexJet exist under the FlexJet Agreements.

         viii. Inspection. To the knowledge of Continental, the Aircraft will have been
inspected and maintained within the preceding 12 month period (or such shorter period to the

3

 

extent the Aircraft is less than 12 months old) in accordance with the provisions of FAR Part 91, with all
applicable requirements for maintenance and inspection thereunder complied with.

     b. Mr. Prentiss represents and warrants to Continental as of the date hereof and as of the
Closing Date as follows:

         i. Enforceability. This Option Agreement has been executed and delivered by Mr.
Prentiss and is a valid and binding obligation of Mr. Prentiss enforceable against Mr. Prentiss in
accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and similar laws relating to or affecting creditors’ rights generally
and by general equitable principles (regardless of whether such enforceability is considered in a
proceeding in law or in equity).

         ii. No Conflicts. The execution, delivery and performance of this Option Agreement
and the consummation of the transactions contemplated by this Option Agreement do not and will not
conflict with or result in any breach of any of the terms, conditions or provisions of, or
constitute a default under (a) any agreement or other instrument to which Mr. Prentiss is a party
or by which he or any of his properties is bound and which conflict, breach or default would have a
material adverse effect upon Mr. Prentiss, his assets, properties, business or condition (financial
or otherwise) or (c) any decree, judgment, order, statute, rule or regulation applicable to Mr.
Prentiss.

         iii. No Consents. No consent, approval, order, authorization or waiver from, notice
to or declaration, registration or filing with any governmental authority or any other person is
necessary in connection with the execution, delivery and performance by Mr. Prentiss of this Option
Agreement or the consummation of the transactions contemplated hereby.

5. Miscellaneous.

     a. Assignment. Neither this Option Agreement nor the Option may be assigned without
the prior written consent of Mr. Prentiss.

     b. Expenses. Continental and Mr. Prentiss shall each pay their own fees and expenses
incurred in connection with this Option Agreement and the transactions contemplated hereby.

     c. Specific Performance. Each party hereto acknowledges and agrees that the other
party hereto would be irreparably damaged if any provision of this Option Agreement is not
performed in accordance with its specific terms or is otherwise breached. Accordingly, each party
hereto agrees that the other party hereto will be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Option Agreement and to specifically enforce this Option
Agreement and its terms and provisions in any action instituted in any court of the United States
or any state thereof having jurisdiction over the parties in the matter subject to Section
5.e. hereof, in addition to any other remedy to which they may be entitled, at law or in
equity.

     d. Further Assurances. Each of Continental and Mr. Prentiss agrees to take such
actions and execute and deliver such other documents or agreements as may be necessary or desirable
for the implementation of this Option Agreement and the consummation of the transactions
contemplated hereby.

4

 

     e. Submission to Jurisdiction; Consent to Service of Process.

         i. The parties hereto hereby irrevocably submit to the exclusive jurisdiction of any federal
or state court located within the County of Dallas, State of Texas, over any dispute arising out of
or relating to this Option Agreement or any of the transactions contemplated hereby and each party
hereby irrevocably agrees that all claims in respect of such dispute or any suit, action or
proceeding related thereto shall be heard and determined in such courts. The parties hereby
irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may
now or hereafter have to the laying of venue of any such dispute brought in such court or any
defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto
agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

         ii. Each of the parties hereto hereby consents to process being served by any party to this
Option Agreement in any suit, action or proceeding by the mailing of a copy thereof in accordance
with the provisions of Section 5.f. hereof.

     f. Notices. Any notice, request, demand or other communication required or permitted
to be given to a party pursuant to the provisions of this Option Agreement will be in writing and
will be effective and deemed given under this Option Agreement on the earliest of: (a) the date of
personal delivery, (b) the date of transmission by facsimile, with confirmed transmission and
receipt, (c) two (2) days after deposit with a nationally-recognized courier or overnight service
such as Federal Express, or (d) five (5) days after mailing via certified mail, return receipt
requested. All notices not delivered personally or by facsimile will be sent with postage and
other charges prepaid and properly addressed to the party to be notified at the address set forth
for such party:

If to Michael V. Prentiss

 

5006 Seneca Drive

Dallas, Texas 75209

Phone: (214) 350-3011

 

If to Continental:

 

3890 West Northwest Highway, Suite 400

Dallas, Texas 75220

Phone: (214) 761-1440

     Any party hereto (and such party’s permitted assigns) may change such party’s address for
receipt of future notices hereunder by giving written notice to the other parties hereto.

     g. Governing Law. This Option Agreement and the performance of the transactions and
the obligations of the parties hereunder will be governed by and construed and enforced in
accordance with the laws of the State of Texas, without giving effect to any choice of law
principles.

     h. Entire Agreement. This Option Agreement, the certificates, documents, instruments
and writings that are delivered pursuant hereto, constitutes the entire agreement and

5

 

understanding of the parties hereto in respect of its subject matters and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they
relate in any way to the subject matter hereof or the transactions contemplated hereby.

     i. Counterparts. This Option Agreement may be executed in two or more counterparts or
facsimiles thereof, each of which will be deemed an original but all of which together will
constitute one and the same instrument.

     j. Amendments and Waivers. This Option Agreement may not be amended or modified, and
no provisions hereof may be waived, without the written consent of Mr. Prentiss and Continental.
No action taken pursuant to this Option Agreement, including without limitation, any investigation
by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such
action of compliance with any representation, warranty, covenant or agreement contained herein.
The waiver by any party hereto of a breach of any provision of this Option Agreement shall not
operate or be construed as a further or continuing waiver of such breach or as a waiver of any
other or subsequent breach. No failure on the part of any party to exercise, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of such right, power or remedy by such party preclude any other or
further exercise thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by law.

     k. Successors and Assigns. This Option Agreement and the rights and obligations of
the parties hereunder shall inure to the benefit of, and be binding upon, their respective
successors, assigns and legal representatives.

     l. Severability. The provisions of this Option Agreement will be deemed severable and
the invalidity or unenforceability of any provision hereof will not affect the validity or
enforceability of the other provisions hereof; provided that if any provision of this Option
Agreement, as applied to any party or to any circumstance, is adjudged by a court, governmental
body not to be enforceable in accordance with its terms, the parties hereto agree that the court,
governmental body, making such determination will have the power to modify the provision in a
manner consistent with its objectives such that it is enforceable, and/or to delete specific words
or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

     m. Remedies. The parties hereto shall have all remedies for breach of this Option
Agreement available to them as provided by law or equity.

[Signature Page Follows]

6

 

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

	 	 	 	 	 
	 	Prentiss Properties Continental, LLC

a Delaware limited liability company

 	 
	 	By:  	Prentiss Properties Acquisition Partners, L.P.
 	 
	 	 	By:  Prentiss Properties I, Inc. 	 
	 	 	its General Partner 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Thomas F. August 	 
	 	 	Thomas F. August 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Michael V. Prentiss
 	 
	 	Michael V. Prentiss 	 
	 	 	 
	 

Option
Agreement Dated October 3, 2005Exhibit
10.90

PROMISSORY NOTE

	$12,500.00	September 27, 2005

FOR VALUE
RECEIVED, the undersigned, YOUTHSTREAM MEDIA NETWORKS, INC.,
a Delaware corporation (the
"Borrower") promises to pay to the
order of
                                                                           
(the "Lender"), the principal sum of
TWELVE THOUSAND FIVE HUNDRED DOLLARS ($12,500.00) (the
"Principal"), together with interest
on the Principal as provided below, in lawful money of the United
States of America, payable pursuant to the terms and conditions
provided for herein. 

This promissory note (this
"Note") is one a series of promissory
notes being issued by Borrower as of even date herewith in the
aggregate principal amount of $50,000 (the "Bridge
Notes") which contain the same interest, repayment and
other terms as this Note. The payment rights of each lender holding
Bridge Notes shall rank equally and each of such lenders shall share in
any proceeds thereof pro rata according to the unpaid principal
amount due and owing to each of such lenders.

1. Payment
Terms. Subject to Section 3 hereof, the Principal and accrued
interest thereon are due and payable on December 31, 2005
("Maturity Date"). The payment of
Principal and interest under this Note shall be made to Lender in
immediately available funds, at such address or location as Lender
shall designate.   Borrower may at any time, without penalty,
premium or charge of any kind, prepay in whole or in part the
indebtedness evidenced by this Note. Any such prepayments shall be
applied first to interest accrued through the date of prepayment and
then to Principal.

2. Interest. Interest shall accrue
on the unpaid Principal balance at the rate of four percent (4%)
per annum until this Note is paid in full and shall be paid on the
Maturity Date or earlier in the event of an optional prepayment or
mandatory prepayment as provided herein.

3. Mandatory
Prepayment. This Note shall be prepaid to the extent of and
promptly following the Borrower's receipt of any proceeds from
(i) that certain promissory note dated February       , 2004 in
the principal amount of $1,100,000 issued by Clive Corporation, Inc.
and 1903 West Main Street Realty Management, LLC in connection with the
sale of assets of the Borrower's wholly-owned subsidiary, Beyond
the Wall, Inc., (ii) tax sharing payments pursuant to that certain Tax
Sharing Agreement dated February 28, 2005, (iii) the closing of the
sale of any of its equity securities or long-term debt instruments or
(iv) the sale or transfer of any of its assets, including, without
limitation, its investment in KES Acquisition Company LLC.

4.
Use of Proceeds. The Borrower agrees that the proceeds from
the Bridge Notes shall be used only for general corporate purposes.

5. Events of Default; Acceleration . Borrower shall be in
default under this Note upon the occurrence of any of the following
events of default ("Default"):

(a) Borrower fails to pay the Principal and/or interest
under this Note, when due; or

(b) Borrower becomes
insolvent or bankrupt; or if Borrower suffers a receiver or trustee for
it or substantially all of its assets to be appointed and, if appointed
without its consent, not discharged within sixty (60) days; or if
Borrower makes an assignment for the benefit of its creditors.

6. Remedies Upon Default. Upon the occurrence of any
Default, the Principal balance hereof together with all accrued
interest shall become immediately due and payable without notice or
demand.   In addition, upon the occurrence of any Default,
Borrower shall pay all of Lender's reasonable costs of
collection, including actual and reasonable attorneys' fees and
disbursements.

7. Notices. All notices, requests,
demands and other communications required or permitted under this Note
shall be in writing and shall be deemed to have been duly given, made
and received the same day when personally delivered or sent by telecopy
with receipt confirmation, the next business day when delivered by
overnight courier,   or three (3) business days after mailing, if
sent in the United States by registered or certified mail, postage
prepaid, return receipt requested, addressed as set forth
below:

If to Lender
:

YouthStream Media Networks, Inc.
 244 Madison
Avenue, PMB # 358
 New York, New York 10016
 Attn: Jonathan V.
Diamond Chief Executive Officer

If to Borrower
:

                                    

                                    

                                    

or at such other address or addresses as either Lender or
Borrower may from time to time designate by notice to the other party,
in writing.

8. Waivers of Presentment, Etc.
BORROWER EXPRESSLY WAIVES PRESENTMENT, PROTEST, DEMAND, NOTICE OF
DISHONOR, NOTICE OF NON-PAYMENT, NOTICE OF MATURITY, NOTICE OF PROTEST,
PRESENTMENT FOR THE PURPOSE OF ACCELERATING MATURITY, AND DILIGENCE IN
COLLECTION.

9. Waivers and Amendments:
Non-Contractual Remedies: Preservation of Remedies. This Note may
be amended, superseded, canceled, renewed or extended and the terms
hereof may be waived, only by a written instrument signed by Lender and
Borrower or, in the case of a waiver, by Lender. The failure of Lender
to insist, in any one or more instances, upon performance of the terms
or conditions of this Note shall not be construed as a waiver or
relinquishment of any right granted hereunder or of the future
performance of any such term, covenant or condition. No waiver on the
part of Lender of any right, power or privilege, nor any single or
partial exercise of any such right, power or privilege, shall preclude
any further exercise thereof or the exercise of any other such right,
power or privilege. The rights and remedies herein provided are
cumulative and are not exclusive of any rights or remedies that Lender
may otherwise have at law or in equity.

10.
Headings.   The headings in this Note are for reference
only and shall not affect the interpretation of this Note.

11. Severability.   Whenever possible, each
provision of this Note shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Note is held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or
the remaining provisions of this Note.

12.
Mutilated, Lost Stolen or Destroyed Note. In case this Note
shall be mutilated, lost, stolen or destroyed, Borrower shall issue and
deliver, in exchange and substitution for and upon cancellation of the
mutilated Note, or in lieu of and substitution for this Note lost,
stolen or destroyed, a new Note of like tenor, but only upon receipt of
evidence satisfactory to Borrower of such loss, theft, or destruction
of such Note.

13. Miscellaneous.

(a)   This Note shall bind the Borrower and its
respective successors, and the benefits hereof shall inure to the
benefit of Lender and its successors and assigns.   Borrower may
not assign this Note to any third party.

(b)   All
references herein to "Borrower" and
"Lender" shall be deemed to apply to the
Borrower and Lender, and their respective successors and assigns.

(c) This Note and any other documents delivered in
connection herewith and the rights and obligations of the parties
hereto and thereto shall for all purposes be governed by and construed
and enforced in accordance with the substantive law of the State of
Delaware without giving effect to its conflicts of law principles.

(d) Any individual signing this Note on behalf of an entity
represents and warrants to the Lender that such individual has the
right and authority to so execute this Note, and that this Note will be
enforceable against such entity in accordance with its
terms.

2

IN WITNESS WHEREOF, this Note has
been executed and delivered on the date first written above.

		YOUTHSTREAM MEDIA NETWORKS, INC.

		By:
/s/ Robert N. Weingarten
        Name: Robert N.
Weingarten
        Title: Chief Financial
Officer

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]