Document:

mgcn10ksb103103ex106

    

    
      

    

    Exhibit 10.6

    MAGIC MEDIA NETWORKS, INC.

      CONVERTIBLE PROMISSORY NOTE

    THIS NOTE AND THE SECURITIES REPRESENTED BY THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

    	
          $100,000.00                      

        	 	
          October 15, 2003

        

    For value received, Magic Media Networks, Inc., a Delaware corporation (the "Company"), hereby promises to pay to Dr. Harold K. Terry ("Holder"), the principal sum of One Hundred Thousand & 00/100 Dollars ($100,000.00) with simple interest thereon from the date of this Convertible Promissory Note (the "Note") until paid at the rate of six percent (6%) per annum, calculated on the basis of the actual number of days elapsed and a year of 365 days. The principal and interest shall be due and payable on the one year anniversary of the issuance of this Note, unless, at the option of the Holder and pursuant to the terms of Section 1 hereof, earlier converted into common stock of the Company.

                   1.    Conversion Prior to the Repayment Date.    

                                  (a)  The Company and the Holder agree that all or a portion of the outstanding principal hereof (the "Debt") and accrued interest shall, at the election of the Holder (the "Conversion Election"), be convertible into shares of Common Stock of the Company at a purchase price (the "Conversion Price") equal to the average closing price of the Company’s Common Stock for the five (5) trading days prior to the date of receipt of election to convert but not less than $0.05 per share. If the Company at any time while this Note remains outstanding shall split or subdivide its outstanding shares of Common Stock into a greater number of shares, pay a dividend on its outstanding shares of Common Stock payable in shares of Common Stock, or combine the outstanding shares of Common Stock of the Company into a smaller number of shares, the Conversion Price shall be proportionately decreased in the case of a split, subdivision or dividend or proportionately increased in the case of a combination. The number of Shares into which this Note may be converted shall be determined by dividing the Debt or a portion of the Debt, as the case may be, by the Conversion Price. If the Holder makes the Conversion Election, the Holder agrees to surrender this Note for conversion at the principal office of the Company at the time of such closing, and the Company and the Holder agree to execute all appropriate documentation necessary to effect such conversion, including, in the event of a Conversion Election for a portion of the Debt, issuance of a new promissory note in the form of this Note for the remaining portion of the Debt.       

                   2.    Issuance of Stock on Conversion.                

                                  (a)  As soon as practicable after conversion of this Note pursuant to Section 1 hereof, the Company at its expense will cause to be issued in the name of and delivered to the Holder, a certificate or certificates for the number of shares of Common Stock to which the Holder shall be entitled on such conversion (bearing such legends as may be required by applicable state and federal securities laws in the opinion of legal counsel for the Company). Such conversion shall be deemed to have been made upon the applicable event of conversion described in Section 1 above, regardless of whether the Note has been surrendered on such date. Notwithstanding the foregoing, the Holder agrees to promptly surrender the Note prior to or upon such conversion.  

                                  (b)  The Company covenants to authorize (and if necessary create), maintain and reserve, a sufficient number of shares of the applicable securities for conversion of this Note pursuant to Section 1 hereof.

                   3.    Transfer Procedure.    

                   This Note is not transferable without the written consent of the Company, which may not be unreasonably withheld. Upon surrender and cancellation of this Note upon any such transfer, the Company shall issue a new note for the same aggregate principal amount and interest to the transferee. The Company and any transfer agent may deem and treat the person in whose name this Note is registered upon the books of the Company as the absolute owner of this Note (whether or not this Note is overdue and notwithstanding any notation of ownership or other writing hereon) for all other purposes, and neither the Company nor any transfer agent shall be affected by any notice to the contrary. All payments to the registered owner shall be valid and effectual to satisfy and discharge the liability on this Note to the extent of the sum so paid.

                   4.      Registration Rights.

                   If the Company shall propose to file any registration statement under the Securities Act of 1933, as amended, covering a public offering of the Company's Common Stock and permitting the inclusion of shares of selling shareholders, it will notify the holder hereof at least ten (10) days prior to each such filing and will include in the registration statement the Common Stock issued or issuable upon conversion of the Note to the extent requested by the Holder hereof.  All expenses of any such registrations referred to in this Section 4, except the fees of counsel to such holder and underwriting commissions or discounts, shall be borne by the Company. The Holder agrees to cooperate with the Company in the preparation and filing of any such registration statement and in the furnishing of information concerning the Holder for inclusion therein.

                   5.    Notice.    

                   All notices and other communications required or permitted hereunder shall be in writing and shall be either mailed by United States first-class mail, postage prepaid, or delivered personally by hand or nationally recognized courier or sent via facsimile, addressed to the address of each respective party set forth on the signature pages hereto, or at such other address as each party shall have furnished to the other party in writing. All such notices and other written communications shall be effective (i) if mailed, three (3) business days after mailing, (ii) if

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    delivered, upon delivery, (iii) if sent by nationally recognized overnight delivery courier, one (1) business day after deposit with such courier and (iv) if sent by facsimile, upon confirmation of receipt printed/obtained from the transmitting machine.

                   6.    Amendment and Waivers.    

                   This Note may be amended at any time and from time to time with the written consent of the Company and the Holder. Any written amendment, waiver, or consent by the Holder shall be conclusive and binding upon Holder and any future holder of this Note and of any note issued in exchange or substitution therefore, irrespective of whether or not any notation of such amendment, waiver, or consent is made upon this Note or such exchanged or substituted note. No delay on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right or any other right.

                   7.    Event of Default.    

                   The occurrence of the following shall constitute an "Event of Default" under this Note: (a) the Company shall fail to pay when due any principal or interest on the due date hereunder and such payment shall not have been made within sixty (60) days of such due date; (b) the Company admits in writing an inability to pay debts generally as they become due; (c) the Company makes a general assignment for the benefit of creditors; (d) the Company applies for or consents to the appointment of a receiver of the whole or any substantial part of the Company's assets; (e) the Company files a voluntary petition in bankruptcy or a petition or an answer seeking reorganization or a arrangement with creditors or to take advantage of any insolvency law; (f) an order, judgment, or decree is entered, without the application, approval, or consent of the Company, by any court of competent jurisdiction adjudging the Company to be a bankrupt or approving a petition appointing a receiver, trustee, or liquidator of the whole or any substantial part of the assets of the Company, and such order, judgment, or decree is not vacated or set aside or stayed within sixty (60) days from the date of its entry uncured after the period allowed to cure the breach.

                   8.    Rights of Holder upon Event of Default.    

                   Upon the occurrence or existence of any Event of Default described in Section 7(a) and at any time thereafter during the continuance of such Event of Default, Holder may, by written notice to the Company, declare the outstanding balance payable by the Company hereunder to be immediately due and payable Upon the occurrence or existence of any Event of Default described in Sections 7(b), 7(c), 7(d), 7(e) or 7(f), the balance payable by the Company hereunder shall automatically become due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived. In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, Holder may exercise any other right power or remedy otherwise permitted to it by law, either by suit in equity or by action at law, or both.

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                   10.    Governing Law and Venue.    

                   This Note is delivered in and shall be construed in accordance with the laws of the State of Florida without regard to any rules that would apply the law of another jurisdiction. Venue shall lie exclusively in Broward County, Florida.

                   11.    Attorneys' Fees and Costs.    

                   In the event that any dispute between the parties to this Note should result in litigation, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Note, such reasonable attorneys’ fees as approved by the court.

                   IN WITNESS WHEREOF, the undersigned has executed this Convertible Promissory Note as of the date first referenced above.

    	
          MAGIC MEDIA NETWORKS, INC.

        	 	
          HOLDER

        
	 	 	 	 	 
	
          By:

        	
          
            

          

        	 	 	
          
            

          

        
	 	
          President

        	 	 	
          H.K. Terrymgcn10ksb103103ex107

    
      

    

    Exhibit 10.7

    STRATEGIC ALLIANCE Agreement

    This Strategic Alliance Agreement is made and entered into this _____day of November 2003, by and between UTEK CORPORATION (“UTK”), 202 South Wheeler Street, Plant City, Florida 33566, a Delaware Corporation, and Magic Media Networks, Inc (MGCN), 530 N. Federal Highway, Ft. Lauderdale, Fla 33301, a Delaware Corporation.

    WITNESSETH:

                WHEREAS, MGCN desires to engage UTK to provide the services as set forth in this Agreement, and

                WHEREAS, UTK is agreeable to provide these services.

                NOW THEREFORE, in consideration of the mutual promise made in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

                I. ENGAGEMENT 

                MGCN hereby retains UTK to provide those services as defined herein and UTK hereby agrees to the appointment on the terms and conditions hereinafter set forth and agrees to use commercially reasonable efforts in providing said services.

                II. INDEPENDENT CONTRACTOR

                UTK shall be, and in all respects be deemed to be, an independent contractor in the performance of its duties hereunder.

                            A. MGCN shall be solely responsible for making all payments to and on behalf of its employees and UTEK shall in no event be liable for any debts or other liabilities of.

                            B.     UTK shall not have or be deemed to have, fiduciary obligations or duties to, and shall be able to pursue, conduct and carry on for its own account (or for the account of others) such activities, ventures, businesses and other pursuits as UTK in its sole, absolute and unfettered discretion, may elect.

                            C.     Notwithstanding the above, no activity, venture, business or other pursuit of UTK, during the term of this Agreement shall conflict with UTK’s obligations under this Agreement.

                III. SERVICES

                UTK agrees to provide the following services, hereinafter collectively referred to as “Services”:

                See Strategic Alliance Summary (exhibit a) attached and made a part hereof.

                            A.     UTK shall devote such time and efforts, as it deems commercially reasonable, under the circumstances to the affairs of, as is reasonable and adequate to render the Services contemplated by this Agreement.

                            B.     UTK cannot guarantee results on behalf of, but shall pursue all reasonable avenues available through its network of contacts.  The acceptance and consumption of any transaction is subject to acceptance of the terms and conditions by in its sole discretion.

                            C.     In conjunction with the Services, UTK agrees to:

                                        1.       Make itself available at the offices of or at another mutually agreed upon place, during normal business hours, for reasonable periods of time, subject to reasonable advance notice and mutually convenient scheduling.

                                        2.       Make itself available for telephone conferences with the principal officer(s) of during normal business hours.

                IV. EXPENSES

                It is expressly agreed and understood that each party shall be responsible for its own normal and reasonable out-of-pocket expenses.

                V. COMPENSATION

                            A.     In consideration for the services, agrees that UTK shall be entitled to compensation as follows:

                            See Strategic Alliance CONFIDENTIAL TERM SHEET (exhibit a) attached and made a part hereof.

                VI. TERM AND TERMINATION

                The term of the Agreement will be for 12 months unless terminated sooner. 

                This Agreement may be renewed upon mutual, written agreement of the parties.

                Either party may terminate this agreement at any time with 90 days written notice. 

                VII. LEGAL COMPLIANCE

                 MGCN agrees that it will put in place, if it has not already done so, policies and procedures relating to and addressing, with the commercially reasonable intent to ensure compliance with, applicable securities laws, rules and regulations, including, but not limited to:

                            A.        The use, release or other publication of forward-looking statements.

                            B.         Disclosure requirements regarding the required disclosure of the nature and terms of UTK’s relationship with, including, but not limited to press releases, publications on its web site, letters to investors and telephone or other personal communication with potential or current investors.

                            C.         No press releases or any other forms of communication to third parties, which mention both UTK CORPORATION and MGCN, shall be released without the prior written consent and approval of both UTK and MGCN.

                            D.         EXECUTION.  The execution, delivery and performance of this Agreement, in the time and manner herein specified will not conflict with, result in a breach of, or constitute a default under any existing agreement, indenture, or other instrument to which either MGCN or UTK is a party or by which either entity may be bound or affected.

                            E.         TIMELY APPRAISALS.  MGCN shall use its commercially reasonable efforts to keep UTK up to date and apprised of all business, market and legal developments related to and its relationship to UTK.

                            F.         CORPORATE AUTHORITY.  Both MGCN and UTK have full legal authority to enter into this Agreement and perform the same in the time and manner contemplated.

                            G.         The individuals whose signatures appear below are authorized to sign this Agreement on behalf of their respective corporations.

                            H.          MGCN will cooperate with UTK and will promptly provide UTK with all pertinent materials and requested information in order for UTK to perform its Services pursuant to this Agreement.

                            I.            When delivered, the shares of MGCN Common Stock shall be duly and validly issued, fully paid and non-assessable.

                            J.            UTK represents to MGCN that a) it has the experience and MGCN as may be necessary to perform all the required, b) all Services will be performed in a professional manner, and c) all individuals it provides to perform the Services will be appropriately qualified and subject to appropriate agreements concerning the protection of trade secrets and confidential information of which such persons may have access to over the term of this Agreement.

                            K.          Until termination of the engagement, MGCN will notify UTK promptly of the occurrence of any event, which might materially affect the condition (financial or otherwise), or prospects of.

                VIII. CONFIDENTIAL DATA

                            A.           UTK shall not divulge to others, any trade secret or confidential information, knowledge, or data concerning or pertaining to the business and affairs of MGCN, obtained by UTK as a result of its engagement hereunder, unless authorized, in writing by MGCN. UTK represents and warrants that it has established appropriate internal procedures for protecting the trade secrets and confidential information of, MGCN including, without limitation, restrictions on disclosure of such information to employees and other persons who may be engaged in such information to employees and other persons who may be engaged in rendering services to any person, firm or entity which may be a competitor of.

                            B.           MGCN shall not divulge to others, any trade secret or confidential information, knowledge, or data concerning or pertaining to the business and affairs of UTK obtained as a result of its engagement hereunder, unless authorized, in writing, by UTK.

                            C.           UTK shall not be required in the performance of its duties to divulge to MGCN, or any officer, director, agent or employee of MGCN, any secret or confidential information, knowledge, or data concerning any other person, firm or entity (including, but not limited to, any such person, firm or entity which may be a competitor or potential competitor of) which UTK may have or be able to obtain other than as a result of the relationship established by this Agreement.

                IX. OTHER MATERIAL TERMS AND CONDITIONS

                            A.        INDEMNITY.

                                        1.       UTK shall indemnify, defend and hold harmless MGCN from and against any and all losses incurred by MGCN which arise out of or result from misrepresentation, breach of warranty or breach or non- fulfillment of any covenant contained herein or Schedules annexed hereto or in any other documents or instruments furnished by UTK pursuant hereto or in connection with this Agree

                                        2.        MGCN shall indemnify, defend and hold harmless UTK from and against any and all losses incurred by UTK which arise out of or result from misrepresentation, breach of warranty or breach or non-fulfillment of any covenant contained herein or Schedules annexed hereto or in any other documents or instruments furnished by MGCN pursuant hereto or in connection with this Agreement.

                            B.     PROVISIONS.  Neither termination nor completion of the assignment shall affect the provisions of this Agreement, and the Indemnification Provisions that are incorporated herein, which shall remain operative and in full force and effect.

                            C.     ADDITIONAL INSTRUMENTS.   Each of the parties shall from time to time, at the request of others, execute, acknowledge and deliver to the other party any and all further instruments that may be reasonably required to give full effect and force to the provisions of this Agreement.

                            D.     ENTIRE AGREEMENT.  Each of the parties hereby covenants that this Agreement, is intended to and does contain and embody herein all of the understandings and agreements, both written or oral, of the parties hereby with respect to the subject matter of this Agreement, and that there exists no oral agreement or understanding expressed or implied liability, whereby the absolute, final and unconditional character and nature of this Agreement shall be in any way invalidated, empowered or affected.  There are no representations, warranties or covenants other than those set forth herein.

                            E.      ASSIGNMENTS. The benefits of the Agreement shall inure to the respective successors and assignees of the parties and assigns and representatives, and the obligations and liabilities assumed in this Agreement by the parties hereto shall be binding upon their respective successors and assigns; provided that the rights and obligations of UTK under this Agreement may not be assigned or delegated without the prior written consent of MGCN and any such purported assignment shall be null and void.  Notwithstanding the foregoing, UTK may assign this Agreement or any portion of its Compensation as outlined herein to its subsidiaries in its sole discretion.

                            F.      ORIGINALS.  This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original and constitute one and the same agreement.

                            G.     ADDRESSES OF PARTIES.  Each party shall at all times keep the other informed of its principal place of business if different from that stated herein, and shall promptly notify the other of any change, giving the address of the new place of business or residence.

                            H.     NOTICES.  All notices that are required to be or may be sent pursuant to the provision of this Agreement shall be sent by certified mail, return receipt requested, or by overnight package delivery service to each of the parties at the addresses appearing herein, and shall count from the date of mailing or the validated air bill.

                            I.        MODIFICATION AND WAVIER.   A modification or waiver of any of the provisions of this Agreement shall be effective only if made in writing and executed with the same formality as this Agreement.  The failure of any party to insist upon strict performance of any of the provisions of this Agreement shall not be construed as a waiver of any subsequent default of the same or similar nature or of any other nature.

                            J.       Injunctive RELIEF.   Solely by virtue of their respective execution of this Agreement and in consideration for the mutual covenants of each other, MGCN and UTK hereby agree, consent and acknowledge that, in the event of a breach of any material term of this Agreement, the non-breaching party will be without adequate remedy-at-law and shall therefore, be entitled to immediately redress any material breach of this Agreement by temporary or permanent injunctive or mandatory relief obtained in an action or proceeding instituted in any court of competent jurisdiction without the necessity of proving damages and without prejudice to any other remedies which the non-breaching party may have at law or in equity.

                            K.     ATTORNEY’S FEES.   If any arbitration, litigation, action, suit, or other proceeding is instituted to remedy, prevent or obtain relief from a breach of this Agreement, in relation to a breach of this Agreement or pertaining to a declaration of rights under this Agreement, the prevailing party will recover all such party’s attorneys’ fees incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions there from.  As used in this Agreement, attorneys’ fees will be deemed to be the full and actual cost of any legal services actually performed in connection with the matters involved, including those related to any appeal to the enforcement of any judgment calculated on the basis of the usual fee charged by attorneys performing such services.

    APPROVED AND AGREED:

    	
          UTEK CORPORATION

        	
          MAGIC MEDIA NETWORKS, INC

        

    	
          By:

        	 	
          By:

        	 
	 	
          
            

          

        	 	
          
            

          

        
	 	
          Clifford M. Gross

           Chief Executive Officer

        	 	
          Gordon Scott Venters

           Chief Executive Officer

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