Document:

Prepared by MERRILL CORPORATION

Exhibit 10.3

 

 

 

	

  SBA

  Loan #

  	

   

  	

  GP-452368

  40 08-CAS

  
	

  SBA

  Loan Name

  	

   

  	

  Sento

  Corporation

  
	

  Date

  	

   

  	

  June

  4, 2001

  
	

  Loan

  Amount

  	

   

  	

  $1,000,000.00

  
	

  Interest

  Rate

  	

   

  	

    8.5000

  
	

  Borrower

  	

   

  	

  Sento

  Corporation

  
	

  Operating

  Company

  	

   

  	

  Sento

  Corporation

  
	

  Lender

  	

   

  	

  Wyoming Industrial

  Development Corporation

  

 

1.     PROMISE TO

PAY:

 

        In return

for the Loan, Borrower promises to pay to the order of the Lender the amount of

 

 

                interest on the unpaid principal

balance, and all other amounts required by this Note.

 

2.     DEFINITIONS:

 

        “Collateral”

means any property taken as security for payment of this Note or for any

guarantee of this Note.

 

        “Guarantor”

means each person or entity that signs a guarantee of payment of this Note.

 

        “Loan”

means the loan evidenced by this Note.

 

        “Loan Documents” means the documents

related to this loan signed by Borrower, any Guarantor, or anyone who pledges

collateral.

 

        “SBA” means the Small Business Administration, an Agency of

the United States of America.

3.     PAYMENT

TERMS:

 

Borrower

must make all payments at the place Lender designates. The payment terms for

this Note are:

 

 

The

interest rate is 8.5% per year.

 

Borrower

must pay a total of 6 payments of interest only on the disbursed principal

balance beginning one month from the month this Note is dated and every month

thereafter; payments must be made on the 15th calendar day in the months they

are due.

 

Borrower

must pay principal and interest payments of $21,388.00 every month, beginning

seven months from the month this note is dated; payments must be made on the

15th calendar day in the months they are due.

 

Lender

will apply each installment payment first to pay interest accrued to the day

Lender receives the payment, then to bring principal current, then to pay any

late fees, and wit apply any remaining balance to reduce principal.

 

All

remaining principal and accrued interest is due and payable 5 years from date

of Note.

 

Late

Charge: If a payment on this Note is more than 10 days late, Lender may charge

Borrower a late fee of up to 5% on the unpaid portion of the regularly

scheduled payment.

 

In

the event Lender is required to retain an attorney to enforce any of the terms

of this Note or the Loan Agreement or other agreements that are given in

connection with this Note, Lender shall be entitled to recover from Borrower

reasonable attorneys’ fees and legal expenses, including, without limitation,

those incurred at trial and also fees and expenses incurred on appeal and fees

and expenses incurred in collecting the indebtedness or otherwise enforcing the

agreement, in addition to all other sums provided by law. Lender shall be

entitled to recover all such fees and expenses whether or not litigation is

commenced, and all such sums shall be part of the indebtedness owed and secured

and shall be immediately due and payable.

4.     RIGHT TO

PREPAY:

 

Borrower

may prepay this Note. Borrower may prepay 20 percent or less of the unpaid

balance at any time without notice. If Borrower prepays more than 20 percent

and the Loan has been sold on the secondary market, Borrower must:

	

  A.

  	

   

  	

  Give

  Lender written notice; and

  
	

  B.

  	

   

  	

  Pay a

  minimum of 21 days’ interest on the unpaid balance from the date Lender

  receives the notice, even if Borrower prepays in less than 21 days.

  

If

Borrower does not prepay within 60 days from the date Lender receives the

notice, Borrower must give Lender a new notice.

 

 

5.     DEFAULT:

 

Borrower

is in default under this Note if Borrower does not make a payment when due

under this Note, or if Borrower or Operating Company:

	

  A.

  	

   

  	

  Fails

  to do anything required by this Note and other Loan Documents;

  
	

  B.

  	

   

  	

  Defaults

  on any other loan with Lender;

  
	

  C.

  	

   

  	

  Does

  not preserve, or account to Lender’s satisfaction for, any of the Collateral

  or its proceeds;

  
	

  D.

  	

   

  	

  Does

  not disclose, or anyone acting on their behalf does not disclose, any

  material fact to Lender or SBA;

  
	

  E.

  	

   

  	

  Makes,

  or anyone acting on their behalf makes, a materially false or misleading

  representation to Lender or SBA;

  
	

  F.

  	

   

  	

  Defaults

  on any loan or agreement with another creditor, if Lender believes the

  default may materially affect Borrower’s ability to pay this Note;

  
	

  G.

  	

   

  	

  Fails

  to pay any taxes when due;

  
	

  H.

  	

   

  	

  Becomes

  the subject of a proceeding under any bankruptcy or insolvency law;

  
	

  I.

  	

   

  	

  Has

  a receiver or liquidator appointed for any part of their business or property;

  
	

  J.

  	

   

  	

  Makes

  an assignment for the benefit of creditors;

  
	

  K.

  	

   

  	

  Has

  any adverse change in financial condition or business operation that Lender

  believes may materially affect Borrower’s ability to pay this Note;

  
	

  L.

  	

   

  	

  Reorganizes,

  merges, consolidates, or otherwise changes ownership or business structure

  without Lender’s prior written consent; or

  
	

  M.

  	

   

  	

  Becomes

  the subject of a civil or criminal action that Lender believes may materially

  affect Borrower’s ability to pay this Note.

  

 

 

6.     LENDER’S

RIGHTS IF THERE IS A DEFAULT:

 

Without

notice or demand and without giving up any of its rights, Lender may:

 

	

  A.

  	

   

  	

  Require

  immediate payment of all amounts owing under this Note;

  
	

  B.

  	

   

  	

  Collect

  all amounts owing from any Borrower or Guarantor;

  
	

  C.

  	

   

  	

  File

  suit and obtain judgement;

  
	

  D.

  	

   

  	

  Take

  possession of any Collateral; and

  
	

  E.

  	

   

  	

  Sell,

  lease, or otherwise dispose of, any Collateral at public or private sale,

  with or without advertisement.

  

7.     LENDER’S

GENERAL POWERS:

 

Without notice and without Borrower’s consent, Lender may:

	

  A.

  	

   

  	

  Bid

  on or buy the Collateral at its sale or the sale of another lienholder, at

  any price it chooses;

  
	

  B.

  	

   

  	

  Incur

  expenses to collect amounts due under this Note, enforce the terms of this

  Note or any other Loan Document, and preserve or dispose of the Collateral.

  Among other things, the expenses may include payments for property taxes,

  prior liens, insurance, appraisals, environmental remediation costs, and

  reasonable attorney’s fees and costs. If Lender incurs such expenses, it may

  demand immediate repayment from Borrower or add the expenses to the principal

  balance;

  
	

  C.

  	

   

  	

  Release

  anyone obligated to pay this Note;

  
	

  D.

  	

   

  	

  Compromise,

  release, renew, extend or substitute any of the Collateral; and

  
	

  E.

  	

   

  	

  Take

  any action necessary to protect the Collateral or collect amounts owing on

  this Note.

  

 

8.     WHEN

FEDERAL LAW APPLIES:

 

When SBA is the holder, this Note will be interpreted and enforced

under federal law, including SBA regulations. Lender or SBA may use state or

local procedures for filing papers, recording documents, giving notice,

foreclosing liens, and other purposes. By using such procedures, SBA does not

waive any federal immunity from state or local control, penalty, tax, or

liability. As to this Note, Borrower may not claim or assert against SBA any

local or state law to deny any obligation, defeat any claim of SBA, or preempt

federal law.

 

9.     SUCCESSORS

AND ASSIGNS:

 

Under this Note, Borrower and Operating Company include the successors

of each, and Lender includes it successors and assigns.

 

 

10.   GENERAL

PROVISIONS:

 

	

  A.

  	

   

  	

  All

  individuals and entities signing this Note are jointly and severally liable.

  
	

  B.

  	

   

  	

  Borrower

  waives all suretyship defenses.

  
	

  C.

  	

   

  	

  Borrower

  must sign all documents necessary at any time to comply with the Loan

  Documents and to enable Lender to acquire, perfect, or maintain Lender’s

  liens on Collateral.

  
	

  D.

  	

   

  	

  Lender

  may exercise any of its rights separately or together, as many times and in

  any order it chooses. Lender may delay or forgo enforcing any of its rights

  without giving up any of them.

  
	

  E.

  	

   

  	

  Borrower

  may not use any oral statement of Lender or SBA to contradict or alter the

  written terms of this Note.

  
	

  F.

  	

   

  	

  If

  any part of this Note is unenforceable, all other parts remain in effect.

  
	

  G.

  	

   

  	

  To

  the extent allowed by law, Borrower waives all demands and notices in

  connection with this Note, including presentment, demand, protest, and notice

  of dishonor. Borrower also waives any defenses based upon any claim that

  Lender did not obtain any guarantee; did not obtain, perfect, or maintain a

  lien upon Collateral; impaired Collateral; or did not obtain the fair market

  value of Collateral at a sale.

  

 

 

 

11.   STATE

–SPECIFIC PROVISIONS:

 

NONE

12.   STATE

–BOROWER’S NAME(S) AND SIGNATURE(S):

 

By signing below, each individual or entity becomes obligated under

this Note as Borower.

 

 

Sento

Corporation

 

 

 

 

 

/s/

Stanley J. Cutler,

  Corporate OfficerExhibit 10.14

                               Heads of Agreement
                               ------------------

               VideoDome.Com Networks Inc. / I.T. Technology, Inc.

1.       VideoDome.Com Networks, Inc. ("VDOME") agrees to sell and I.T.
         Technology, Inc. ("IT") agrees to buy the Business and "Business
         Assets" of VDOME as defined below:

"Business" shall mean the business carried on by and under the name of VDOME. "
Business Assets" shall mean the following assets used in the Business which are
the assets sold by VDOME to IT under this Agreement:

                  (a)      the Assets including but not limited to the "Assigned
                           Assets" as listed in Schedule 1 attached;

                  (b)      the Business Names;

                  (c)      The Business Records;

                  (d)      the Goodwill;

                  (e)      the Intellectual Property Rights;

                  (f)      the Plant and Equipment;

                  (g)      the Property Leases;

                  (h)      the Clients;

                  (i)      the SalesForce Database

                  (j)      Domain Names

                  (k)      Trademarks and patents

                  hereafter referred to as the ("Business Assets")

2.       Upon the consummation of a formal agreement, IT will issue a total of
         either 20,000,000 shares of $0.0002 par value restricted common stock
         or options to acquire 20,000,000 shares of $0.0002 par value restricted
         common stock in IT in consideration for the Business and Business
         Assets and the shares shall be isuued as follows:

         (i)      IT will issue to VideoDome.Com Networks, Inc. ("VDOME") or its
                  designated nominee either 19,200,000 shares of $0.0002 par
                  value restricted common stock or options to acquire 19,200,000
                  shares of $0.0002 par value restricted common stock in IT in
                  consideration for the Business and Business Assets.

<PAGE>

         (ii)     IT will issue to Oren Ariel 800,000 shares of $0.0002 par
                  value restricted common stock in IT in consideration for the
                  4% pursuant to Clause 7 entitled "Oren Arial Compensation" of
                  the July 2, 2001 Shareholder's Agreement between IT's wholly
                  owned subsidiary Bickhams Media, Inc. ("BM") and VDOME.

3.       IT will organize the surrender and cancellation by BM of its entire
         equity interest in VDOME, such that the remaining corporate entity of
         VDOME, to the exclusion of the actual name, shall be wholly owned by
         Daniel Aharonoff or his nominee. IE - the corporate shell previously
         known as VDOME, shall revert to back to Daniel Aharonoff or his
         nominee.

4.       IT agrees to assume the outstanding debt payable to Sunswipe
         Australasia Pty Ltd ("Sunswipe"), pursuant to the Loan Agreement dated
         January 4, 2001 between VDOME and Sunswipe and shall hold harmless
         VDOME and its officers Daniel Aharonoff and Vardit Cohen.

5.       Daniel Aharonoff shall enter into a 3 year employment agreement with IT
         on terms and conditions to be determined in a formal agreement, to
         become the Chief Technology Officer of IT. Until such time as a formal
         agreement is prepared, IT will commence paying a salary of $4000 as of
         November 1, 2001 which shall be reviewed from time to time.

6.       Daniel Aharonoff agrees that all previous amounts of accrued salary and
         compensation previously deemed outstanding pursuant to clause 10,
         entitled "Accrued Salary" of that Shareholder's Agreement of July 2,
         2001 between BM and VDOME shall no longer be payable or of any force or
         effect.

7.       Daniel Aharonoff and Vardit Cohen agree, that all previous share
         options in IT granted to both Daniel Aharonoff and Vardit Cohen
         pursuant to that Shareholder's Agreement of July 2, 2001 shall
         terminate and no longer be of any force or effect.

8.       VDOME agrees to sell and IT agrees to buy the Business and the Business
         Assets for the purchase price as described in Clause 2 above, free of
         any mortgage, lien, charge, pledge, claim, covenant, or other
         encumbrance granted by VDOME or any other party, with the exception of
         the outstanding debt payable to Sunswipe, as mentioned in clause 4
         above and with the exception of the current proceedings between Bob
         Helfant vs. VDOME.

9.       VDOME agrees to use all reasonable endeavours to achieve the transfer
         of the Business Assets and any business records, documents and
         information as soon as practically possible not currently in the
         possession of IT.

10.      It is understood that in the event that IT or its successor entity
         shall cease to exist and operate within 24 months from the date of this
         Agreement, the source code for the VDOME "Media Manager" product will
         revert back to Daniel Aharonoff with the rights to further develop and
         the rights for future sale.

                                       2
<PAGE>

11.      Upon completion of the formal agreement, Daniel Aharonoff will be
         invited to become a member of the IT board of Directors.

12.      VDOME agrees that upon completion of this term sheet, a formal
         agreement will be prepared between the parties with standard
         representations and warranties.

13.      VDOME agrees that this Head of Agreement shall be subject to the
         approval of the Board of Directors of IT.

Dated this 25TH day of October, 2001

Agreed to and accepted by:

/s/ Daniel Aharonoff
Daniel Aharonoff
Chief Executive Officer
VideoDome.Com Networks, Inc.

/s/ Daniel Aharonoff
Daniel Aharonoff

/s/ Vardit Cohen
Vardit Cohen

                                       3
<PAGE>

                                   SCHEDULE 1
                                 Assigned Assets

The Assigned Assets, as defined and described in Section 1 of the Term Sheet,
include, but are not limited to, the following items:

1.       Names, trademarks, service marks. Logos, or other branding devices, and
         federal registrations therefore, which the Company is currently using
         or intends to use in the course of business. Including, without
         limitation. "VideoDome.Com" and "VideoDome.Com,Networks,Inc" and
         derivations thereof.

2.       Domain names which the Company is currently using or intends to use in
         the course of business, including without limitation, www.videodome.com

3.       All designs, software, presentations, demonstration, source code,
         inventions, software architecture specifications, and provisional
         patent applications related to the business of the Company, including
         without limitation, the entertainment website creation and hosting
         function, the technology underlying the entertainment website creation
         and hosting function, the management of information gathered through
         the use of the entertainment website creation and hosting function, the
         organization of such information in a database format, the product
         portal, and the dynamic creation of web pages providing organized
         access to information from the database (collectively "Company
         Technology")

4.       All confidential information related to the business of the Company,
         including methods of promoting the use of Company Technology, strategic
         partners and alliances for furthering the adoption of Company
         Technology, future functions or features of Company Technology, revenue
         projections, market research, business models, methods of exploiting
         Company Technology, business plans, and business development
         strategies.

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