Document:

Exhibit

Exhibit 10.3
 ASSET PURCHASE AGREEMENT
This ASSET PURCHASE AGREEMENT (this "Agreement") is dated as of  June 27, 2017, by and among DTV Holding Inc., a Delaware corporation ("Buyer"), KING FORWARD, INC., a Florida corporation ("King Forward"), TIGER EYE BROADCASTING CORPORATION, a Florida corporation, ("Tiger Eye"), TIGER EYE LICENSING, L.L.C., a Florida limited liability company ("Tiger Eye Licensing") and BELLA SPECTRA CORPORATION, a Florida corporation ("Bella Spectra" and together with King Forward, Tiger Eye and Tiger Eye Licensing, collectively, the "Sellers" and each a "Seller").
WHEREAS, King Forward is the licensee or permittee of the television stations listed on Schedule 3.4 hereto (collectively, the "King Forward Stations") and owns or leases the tangible assets used and utilized in the operation of the King Forward Stations;
WHEREAS, Tiger Eye is the licensee or permittee of the television stations listed on Schedule 3.4 hereto (collectively, the "Tiger Eye Stations") and owns or leases the tangible assets used and utilized in the operation of the Tiger Eye Stations;
WHEREAS, Tiger Eye Licensing is the licensee or permittee of the television stations listed on Schedule 3.4 hereto (collectively, the "Tiger Eye Licensing Stations") and owns or leases the tangible assets used and utilized in the operation of the Tiger Eye Licensing Stations;  
WHEREAS, Bella Spectra is the licensee or permittee of the television station listed on Schedule 3.4 hereto (the "Bella Spectra Station" and together with the King Forward Stations, the Tiger Eye Stations and the Tiger Eye Licensing Stations, collectively, the "Stations") and owns or leases the tangible assets used and utilized in the operation of the Bella Spectra Station;
WHEREAS, the Sellers desire to sell to Buyer, and Buyer desires to purchase and acquire certain assets that are used in the business or operations of the Stations from the Sellers, upon the terms and subject to the conditions set forth in this Agreement, in consideration for certain payments by Buyer, all as specifically described in this Agreement;
NOW, THEREFORE, in consideration of the foregoing recital and the respective covenants, agreements, representations and warranties contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
SECTION 1 -DEFINITIONS
The following terms, as used in this Agreement, shall have the meanings set forth in this Section:
“Accounts Receivable” means accounts receivable earned by each Seller prior to 11:59 p.m., EST, on the day prior to the Closing Date, including, without limitation, the rights of each 

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Seller to payment for the sale of programming time or advertising time run on the Stations by such Seller prior to the day prior to the Closing Date.
 “Action” means, any legal or administrative claim, suit, action, complaint, charge, investigation, inquiry, arbitration or other proceeding by or before any Governmental Authority.
"Affiliate" (and, with a correlative meaning “affiliated”) means, with respect to any Person, any direct or indirect subsidiary of such Person, and any other Person that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with such first Person.  As used in this definition, “ control ” (including with correlative meanings, “ controlled by ” and “ under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise). 
“Assumed Contracts” means all Contracts listed in Schedule 3.7.
“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed (or actually closed) in the City of New York.
“Closing” means the consummation of the purchase and sale of the Purchased Assets pursuant to this Agreement in accordance with the provisions of Section 9.
“Closing Date” means the date on which the Closing occurs, as determined pursuant to Section 9.
“Communications Laws” means the Communications Act of 1934, as amended, and the rules and published policies of the FCC promulgated thereunder.
“Company” means DTV America Corporation, a Delaware corporation.
“Consents” means the consents, permits, or approvals of Governmental Authorities and other third parties necessary to transfer the Purchased Assets to Buyer or to otherwise consummate the transactions contemplated by this Agreement.
“Contracts” means all contracts, leases, non-governmental licenses, and other agreements (including leases for personal or real property and employment agreements), written or oral (including any amendments and other modifications thereto) to which any Seller is a party or which are binding upon any Seller and which relate to or affect the Purchased Assets or the business or operations of the Stations, and (i) which are in effect on the date of this Agreement or (ii) which are entered into by any Seller between the date of this Agreement and the Closing Date.
 “FCC” means the Federal Communications Commission and any of its Bureaus or offices.
 “FCC Consent” means the requisite consent of the FCC or any of its bureaus to permit the consummation of the transaction contemplated hereby, including the assignment by Sellers to Buyer as contemplated by this Agreement.

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“FCC Licenses” means all Licenses (including modifications, renewals and extensions thereof) issued by the FCC to the Sellers in connection with the business or operations of the Stations.
“Governmental Authority” means any federal, state or local governmental entity or municipality or subdivision thereof or any authority, department, commission, board, agency, court or instrumentality thereof.
“Governmental Order” means any order, writ, judgment, injunction, decree, decision, stipulation, determination or award entered by or with any Governmental Authority.
“Intangibles” means all FCC call signs, domain names, URL registrations, copyrights, trademarks, trade names, service marks, service names, licenses, patents, permits, jingles, proprietary information, technical information and data, machinery and equipment warranties, and other similar intangible property rights and interests (and any goodwill associated with any of the foregoing) applied for, issued to, or owned by each Seller or under which each Seller is licensed or franchised and which are used in the business and operations of the Stations as of the date of this Agreement, together with any additions thereto between the date of this Agreement and the Closing Date as the parties may agree in writing.
“Law” means any United States (federal, state, local) or foreign law, constitution, treaty, statute, ordinance, regulation, rule, code, order, judgment, injunction, writ or decree.
“Liability” means any and all debts, losses, liabilities, taxes, claims, damages, expenses, fines, costs, royalties, proceedings, deficiencies or obligations (including those arising out of any action, such as any settlement or compromise thereof or judgment or award therein), of any nature, whether known or unknown, absolute, contingent, accrued or unaccrued, liquidated or unliquidated, or otherwise and whether due or to become due, and whether in contract, tort, strict liability or otherwise, and whether or not resulting from third party claims, and any reasonable out-of-pocket costs and expenses in connection therewith (including reasonable legal counsels’, accountants’, or other fees and expenses incurred in defending any action or in investigating any of the same or in asserting any rights thereunder or hereunder). 
“Licenses” means the applications, permits (including, without limitation, construction permits), licenses and other authorizations, including any waiver or special temporary authorization and any renewals thereof or any transferable pending application therefor issued by the FCC or any other federal, state, or local Governmental Authority to each Seller in connection with the conduct of the business or operations of the Stations, each of which existing as of the date hereof is identified on Schedule 3.4.
"Liens" means, with respect to any Purchased Asset, any lien, encumbrance, pledge, mortgage, deed of trust, security interest, claim, lease, charge, option, right of first refusal, right of first offer, easement, servitude, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement or encumbrance or any other restriction or limitation whatsoever. 
“Material Adverse Effect” means any event, state of facts, circumstance, development, change, effect or occurrence (an “Effect”) that, individually or in the aggregate with any other Effect, 

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has had or would reasonably be expected to have a materially adverse effect on (a) the business, properties, assets, financial (and other) condition or results of operation of the Stations, (b) the Purchased Assets or (b) the ability of a Seller to perform its obligations under this Agreement, excluding in all respects any Effects resulting from (i) conditions in the economy of the United States generally, including changes in the United States or foreign credit, debt, capital or financial markets (including changes in interest or exchange rates) or the economy of any town, city or region or country in which the Stations, only to the extent that the Effects thereof are not disparately adverse to or on the Stations or the Purchased Assets, conduct business, (ii) general changes or developments in the broadcast low power television industry to the extent that the Effects thereof are not disproportionately adverse to or on the Stations or the Purchased Assets, (iii) the execution and delivery of this Agreement, the announcement of this Agreement and the transactions contemplated hereby, the consummation of the transactions contemplated hereby, the compliance with the terms of this Agreement or the taking of any action required by this Agreement or consented to by Buyer, or (iv) earthquakes, hurricanes, tornadoes, natural disasters or global, national or regional political conditions, including hostilities, military actions, political instability, acts of terrorism or war or any escalation or material worsening of any such hostilities, military actions, political instability, acts of terrorism or war existing or underway as of the date hereof (other than any of the foregoing that causes material damage or destruction to or renders unusable any Purchased Asset) only to the extent that the Effect thereof is not disproportionately adverse to or on the Stations or the Purchased Assets or (v) the actual knowledge of the Buyer of the information related to the Purchased Assets set forth in the exhibits and schedules hereto.
“Permitted Liens” means Liens (i) imposed by Buyer or (ii) set forth on Schedule 3.5.
"Person” means and includes natural persons, corporations, limited partnerships, limited liability companies, general partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and all Governmental Authorities.
“Post-Closing Tax Period” means any Tax period (or portion thereof) beginning and ending after the Closing Date. 
“Pre-Closing Tax Period” means any Tax period (or portion thereof) ending on or prior to the Closing Date.
“Purchased Assets” means the assets to be sold, transferred, or otherwise conveyed to Buyer under this Agreement, as specified in Section 2.1.
“Purchase Price” means the purchase price specified in Section 2.2.
“Related Agreements” means any certificate, agreement, document or other instrument to be executed and delivered in connection with the transactions contemplated by this Agreement.
“Securities Purchase Agreement” means the Securities Purchase Agreement dated as of the date hereof among DTV Holding Inc., as purchaser, and the sellers a party thereto.

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“Tangible Personal Property” means all machinery, equipment, vehicles, leasehold improvements, office equipment, plant, inventory, spare parts, and other tangible personal property (including, but not limited to, such  machinery, equipment, vehicles, leasehold improvements, office equipment, plant, inventory, spare parts, and other tangible personal property owned by King Forward and John N. Kyle II) used exclusively in the business and operations of the Stations which are listed on Schedule 3.6, together with any additions thereto between the date of this Agreement and the Closing Date as the parties may agree in writing.
“Tax” or “Taxes” means all federal, state, local or foreign income, excise, gross receipts, ad valorem, sales, use, employment, franchise, profits, gains, property, transfer, payroll, intangible or other taxes, fees, stamp taxes, duties, charges, levies or assessments of any kind whatsoever (whether payable directly or by withholding) imposed by a Governmental Authority, together with any interest and any penalties, additions to tax or additional amounts imposed with respect thereto.
“Tax Returns” means all returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Governmental Authority relating to Taxes.
“Transfer Taxes” means all excise, sales, use, value added, registration stamp, recording, documentary, conveying, franchise, property, transfer, gains and similar Taxes, levies, charges and fees.
SECTION 2 -    PURCHASE AND SALE OF ASSETS
2.1.    Agreement to Sell and Buy. Subject to the terms and conditions set forth in this Agreement, on the Closing Date, each Seller agrees to sell, transfer, assign, convey and deliver, or cause to be sold, transferred, assigned, conveyed and delivered, to Buyer, and Buyer agrees to purchase, acquire and accept from each such Seller, all of such Seller's legal and beneficial right, title and interest in, to and under, as of the Closing Date, any and all of the following assets together with any additions thereto between the date of this Agreement and the Closing Date as the parties may agree in writing (but excluding the Excluded Assets), free and clear of any Liens (except for Permitted Liens) (collectively, the "Purchased Assets"):
(a)    The Tangible Personal Property;
(b)    The Licenses and any pending applications associated with same, along with all material transferable municipal, state and federal franchises, licenses, permits, franchises, certificates, approvals and other authorizations issued by any Governmental Authority other than the FCC used primarily in the operation of the Stations;
(c)    The Assumed Contracts;
(d)    The Intangibles, and all intangible assets of each Seller relating solely to the Stations that are not specifically included within the Intangibles, including the goodwill of the Stations, if any;

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(e)    All of each Seller’s proprietary information, technical information and data, machinery and equipment warranties, maps, computer discs and tapes, plans, diagrams, blueprints, and schematics, including filings with the FCC, relating solely to the business or operation of the Stations; and
(f)    All books and records relating solely to the business or operations of the Stations, including executed copies of the Assumed Contracts, and all records required by the FCC to be kept by the Stations.
2.2.    Excluded Assets. The Purchased Assets shall exclude the following assets (the "Excluded Assets"):
(a)    Each Seller’s cash and cash equivalents on hand as of the Closing Date and all other cash and cash equivalents in any of each Seller’s bank or savings accounts; any insurance policies, letters of credit, or other similar items and cash surrender value in regard thereto; any stocks, bonds, certificates of deposit and similar investments; and all prepaid expenses and assets (including deposits) paid prior to the Closing Date;
(b)    Each Seller’s corporate name, any books and records which each Seller is required by law to retain, all records relating to the excluded assets described in this Section 2.2 and to each Seller’s accounts payable and accounts receivable and general ledger records, and each Seller’s corporate minute books and other books and records relating to each Seller’s internal corporate matters;
(c)    Any pension, profit-sharing, or employee benefit plans, and any collective bargaining agreements;
(d)    The Accounts Receivable;
(e)    Any claims, rights and interest in and to any refunds of federal, state or local franchise, income or other taxes or fees of any nature whatsoever, or refunds from any other Governmental Authorities or third parties (including utilities), in each case for periods prior to the Closing Date;
(f)    All property listed on Schedule 2.2; 
(g)    Any intercompany receivables;
(h)    All current and prior insurance policies and all rights of any nature with respect thereto, including all insurance proceeds received or receivable thereunder and rights to assert claims with respect to any such insurance recoveries;
(i)    All personnel records (including all human resources and other records) of each Seller relating to employees of such Seller that such Seller is required by applicable law to retain in its possession; and

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(j)    All rights, claims and causes of action in favor of each Seller and the Stations that arise out of or are related to the operations of the Stations prior to the Closing.
2.3.    Assumption of Liabilities. As of the Closing Date, Buyer shall assume and undertake to pay, discharge and perform all obligations and Liabilities of each Seller under the Licenses owned by such Seller and included in the Purchased Assets and the Assumed Contracts to which such Seller is a party insofar as they relate to the time on or after the Closing Date or arise out of events occurring on or after the Closing Date (the "Assumed Liabilities").  Buyer shall not assume any other Liability of any Seller, or any predecessor or Affiliate of any Seller, nor any Liability associated with or relating to the Purchased Assets or the Stations, including, without limitation, (i) any Liabilities under any Contract not included in the Assumed Contracts, (ii) any Liabilities under the Assumed Contracts and Licenses relating to the period prior to the Closing Date, (iii) any Action relating to the Stations and the Purchased Assets prior to the Closing, (iv) any Liabilities of each Seller arising under capitalized leases, financing arrangements or indebtedness, (v) any Liabilities of each Seller under any employee pension, retirement, health and welfare or other benefit plan or collective bargaining agreement, (vi) any obligation to any employee of each Seller for severance, retention, performance or stay bonus, benefits, vacation time, sick leave accrued or any other compensation payable in connection with the consummation of the transactions contemplated by this Agreement or otherwise due and payable prior to the Closing, (vii) any Liability under or with respect to any Governmental Order to be discharged prior to the Closing, (viii) any Tax Liability of a Seller or (ix) any Liability relating to or arising out of any of the Excluded Assets (the Liabilities listed in Clauses (i) through (ix) above and any other Liability that is not an Assumed Liability, collectively, the "Excluded Liabilities").
2.4.    Consents to Certain Assignments.  (a)  Notwithstanding anything to the contrary in this Agreement, this Agreement shall not constitute an agreement to sell, transfer or assign, directly or indirectly, any Purchased Asset, or any benefit arising thereunder, if the direct or indirect sale, transfer or assignment thereof, without the Consent of a third party (including a Governmental Authority), would constitute a breach, default, violation or other contravention of the rights of such third party, would be ineffective with respect to any party to an Assumed Contract or a Contract concerning such Purchased Asset or would adversely affect the rights of the applicable Seller or, upon transfer, Buyer, under such Purchased Asset.  Notwithstanding anything in the preceding sentence to the contrary, any such asset that would otherwise constitute part of the Purchased Assets shall be held and/or received by the applicable Seller for the benefit of Buyer so that Buyer will be in substantially the same position as if such Purchased Asset had been transferred to Buyer at the Closing.
(b)  If any such Consent is not obtained prior to the Closing, subject to satisfaction of the conditions to Closing set forth in Section 8, the Closing shall nonetheless take place on the terms set forth herein and, thereafter, the applicable Seller shall use its commercially reasonable best efforts to secure such Consent as promptly as practicable after the Closing, and such Seller shall provide or cause to be provided all commercially reasonable assistance to Buyer (not including the giving of any consideration) reasonably requested by Buyer to secure such consent, or cooperate with Buyer (at such Seller's expense) in any lawful and reasonable arrangement proposed by Buyer under which (i) Buyer shall obtain (without infringing upon the legal rights of such third party or 

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violating any law) the economic rights and benefits under the Purchased Asset with respect to which the Consent has not been obtained and (ii) Buyer shall assume any related economic burden with respect to such Purchased Asset. 
 
2.5.    Purchase Price. The purchase price for the Purchased Assets shall be Two Million Six Hundred and Seventy Two Thousand Seven Hundred and Seven U.S. Dollars ($2,672,707.00) (the "Purchase Price").
(a)    At Closing, Buyer shall pay to King Forward the sum of Two Hundred Fifteen Thousand Nine Hundred One Dollars and Ten Cents ($215,901.10), to Tiger Eye the sum of Thirty Two Thousand Seven Hundred Forty Seven Dollars and Sixty Cents ($32,747.60), to Tiger Eye Licensing the sum of Fifteen Thousand Eight Hundred One Dollars and Forty Cents ($15,801.40) and to Bella Spectra the sum of Two Thousand Eight Hundred Twenty Dollars and Sixty Cents ($2,820.60), respectively, in cash, representing in the aggregate Ten Percent (10%) of the Purchase Price (the "Cash Purchase Price").  The Cash Purchase Price shall be paid by Buyer to Sellers at Closing by wire transfer of same-day funds pursuant to wire instructions which shall be delivered by Sellers to Buyer, at least two (2) days prior to the Closing Date.
(b)    At Closing, Buyer shall execute and deliver to King Forward, Tiger Eye, Tiger Eye Licensing and Bella Spectra separate promissory notes, in the form attached hereto on Exhibit A and in the sum of One Million Nine Hundred Forty Three Thousand One Hundred Nine Dollars and Ninety Cents ($1,943,109.90) in favor of King Forward, Two Hundred Ninety Four Thousand Seven Hundred Twenty Eight Dollars and Forty Cents ($294,728.40) in favor of Tiger Eye, and One Hundred Forty Two Thousand Two Hundred Twelve Dollars and Sixty Cents ($142,212,60) in favor of Tiger Eye Licensing  and Twenty Five Thousand Three Hundred Eighty Five Dollars and Forty Cents ($25,385.40) in favor of Bella Spectra (representing in the aggregate Ninety Percent (90%) of the Purchase Price), signed by an authorized representative of DTV License Holding Inc., a Delaware corporation ("DTV License Holding") and a wholly owned subsidiary of the Buyer (the “Note”). Each Note shall be for a term of 36 months (the “Maturity Date”), and shall bear interest at 7.0% per annum.  Each Note shall be secured by a pledge of the common stock of DTV License Holding by and among the Sellers and the Buyer, as pledger, pursuant to a Stock Pledge Agreement in the form attached hereto as Exhibit B (the "Stock Pledge Agreement") and a guaranty of the Buyer pursuant to a Guaranty Agreement (the "Guaranty Agreement") in the form attached hereto as Exhibit C, each to be executed simultaneously with the execution of the Note.   
2.6.    Allocation.   Within 90 days after the Closing Date, Buyer shall provide to Sellers an allocation of the applicable portions of the Purchase Price among the applicable Purchased Assets in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder (and any similar provisions of state, local, or foreign Law, as appropriate) and Buyer and Sellers shall use such allocation in the filing of any and all Tax Returns and other relevant documents with any other Governmental Authority. Sellers shall provide Buyer with any comments on such schedule within fifteen (15) Business Days after the date thereof, and Buyer and Sellers agree to negotiate in good faith regarding the allocation of the Purchase Price (unless a Seller does not provide any comments within the time period set forth herein, in which case Buyer's proposed allocation shall 

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be deemed final). If the parties are unable to reach agreement with respect to such allocation then the parties shall have no further obligation under this Section 2.6, and each party shall make its own determination of such allocation for financial and Tax reporting purposes.
SECTION 3 -    REPRESENTATIONS AND WARRANTIES OF SELLERS
Each Seller severally and not jointly represents and warrants to Buyer as follows, except as disclosed in the pertinent Schedules hereto:
3.1.    Such Seller is a corporation or limited liability company duly organized or formed, validly existing and in good standing under the laws of the State of Florida.  Each Seller is qualified to do business and is in good standing in each jurisdiction where such qualification is necessary, except where the failure to so qualify would not reasonably be expected to have a Material Adverse Effect.  Such Seller has all requisite power and authority (i) to own, lease, and use the Purchased Assets as now owned, leased, and used, (ii) to conduct the business and operations of the Stations which it owns and operates as now conducted, and (iii) to execute and deliver this Agreement, the Related Agreements to which such Seller is a party and the documents contemplated hereby to which such Seller is a party, and to perform and comply with all of the terms, covenants, and conditions to be performed and complied with by such Seller hereunder and thereunder.  
3.2.    The execution, delivery, and performance of this Agreement and the Related Agreements to which such Seller is a party by such Seller have been duly authorized by all necessary actions on the part of such Seller. This Agreement and the Related Agreements to which such Seller is a party have been duly executed and delivered by such Seller and constitute the legal, valid, and binding obligation of such Seller, enforceable against it in accordance with its terms except as the enforceability of this Agreement and the Related Agreements to which such Seller is a party may be affected by bankruptcy, insolvency, or similar laws affecting creditors' rights generally, and by judicial discretion in the enforcement of equitable remedies.
3.3.    Subject to obtaining the Consents listed in Schedule 3.3, the execution, delivery, and performance by such Seller of this Agreement and the documents contemplated hereby (with or without the giving of notice, the lapse of time, or both): (i) do not require the consent of any third party other than the FCC; (ii) will not conflict with any provision of the certificate of incorporation or bylaws (or similar organizational document) of such Seller; (iii) will not conflict with, result in a breach of, or constitute a default under, any law, judgment, order, ordinance, injunction, decree, rule, regulation, or ruling of any Governmental Authority applicable to such Seller and the Purchased Assets; (iv) will not conflict with, constitute grounds for termination of, result in a breach of, constitute a default under, or accelerate or permit the acceleration of obligations of such Seller or a counterparty required by the terms of any Assumed Contract to which such Seller is a party or by which such Seller may be bound; (v) result in the creation of any Lien on any of the Purchased Assets; or (vi) result in the termination of (a) any agreement, license, franchise, lease or permit to which such Seller is a party or to which it is bound or (b) any right of such Seller under any of the foregoing. 

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3.4.    Schedule 3.4 sets forth a true and complete list of the Licenses held by such Seller. Such Seller has delivered to Buyer true and complete copies of such Licenses (including any amendments and other modifications thereto).  
(a)    Validity.  Each of the Sellers’ Licenses has been validly issued, is in full force and effect (including the final disposition having occurred with respect to any challenges to the validity of the applicable Licenses), is validly held by such Seller and is free and clear of conditions or restrictions, other than those routinely imposed in conjunction with FCC licenses of a similar type or other than those appearing on the face of the applicable License or in the FCC’s publicly available databases.  
(b)    Completeness. The Licenses of such Seller listed on Schedule 3.4 comprise all of the material licenses, permits and other authorizations used or useful from any Governmental Authority for the lawful conduct of the business and operations of the Stations owned by such Seller in the manner and to the full extent they are now conducted and as intended to be conducted, and none of the Licenses of such Seller is subject to any restriction or condition that would limit in any material respects the full operation of the Stations owned by such Seller as now operated and as intended to be operated.  
(c)    No Actions. Except as disclosed in Schedule 3.4(c), there are no Actions pending or threatened as of the date hereof before the FCC or any other Governmental Authority relating to the Licenses of such Seller and the business or operations of the Stations owned by such Seller.  Except as disclosed in Schedule 3.4(c), no governmental authority or regulatory agency has threatened to terminate or suspend any of the Sellers’ Licenses, and Sellers are not in violation or default, nor have received any notice of any claim of violation or default, with respect to any of the Sellers’ Licenses.  There are no third-party claims of any kind that have been asserted with respect to any of the Sellers’ Licenses.  No event has occurred with respect to any of the Sellers’ Licenses that permits, or after notice or lapse of time or both would permit, revocation or termination thereof or that will or would reasonably be expected to result in any violation or default, claim of violation or default or impairment of or adverse effect on the rights of the holder of such Sellers’ License.  In each case Sellers are not aware of any basis for any such action referred to in this paragraph.  Except as disclosed in Schedule 3.4(c), such Seller has not (i) entered into a tolling agreement or otherwise waived any statute of limitations relating to the Licenses of such Seller and the Stations owned by such Seller during which the FCC may assess any fine or forfeiture or take any other action or (ii) agreed to any extension of time with respect to any FCC investigation or proceeding. 
(d)    Control.  Each of the Licenses is held solely by such Seller.  No shareholder, officer, employee or former employee of Seller or any Affiliate thereof, or any other Person, holds or has any proprietary, financial or other interest (direct or indirect) in, or any authority to use, or any other right or claim in or to, any of the Sellers’ Licenses.  Sellers have good, valid and transferable title to, free and clear of all Liens (other than Permitted Liens), all of the Licenses owned by such Seller.
(e)    No Leases, Other Rights. Except as set forth on Schedule 3.4(e), none of the spectrum covered by the Sellers’ Licenses is subject to any lease or other agreement or arrangement with any third party, including any agreement giving any third party any present or 

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future right to lease, use, reserve, modify or restrict such spectrum or any agreement in which any Seller has agreed to permit interference, including any lease or capacity agreement, or any right of first refusal or option to purchase.  No consent, approval, order or authorization of, or registration, declaration or filing with any third party, other than the FCC, is required to be obtained or made by or with respect to any Seller in connection with the assignment of the Sellers’ License to Buyer as contemplated by this Agreement.
(f)    No License-Related Debts. No amounts (including installment payments consisting of principal and/or interest or late payment fees) are due to the FCC or the United States Department of the Treasury with respect to the Sellers’ Licenses, and none of the Sellers’ Licenses were acquired with bidding credits.  There are no liabilities of such Seller or any Affiliate thereof (whether matured or unmatured, direct or indirect, or absolute, contingent or otherwise), whether related to, associated with, or attached to, any of Sellers’ Licenses or otherwise to which the Buyer or any of its Affiliates will be subject from and after the Closing as a result of the consummation of the transaction contemplated hereby.
(g)    Full Force And Effect. Except as disclosed in Schedule 3.4(c), the Licenses are in full force and effect, have not been revoked, suspended, canceled, rescinded or terminated, have not expired and are unimpaired by any act or omission of such Seller or its employees, and the operations of the Stations owned by such Seller are in accordance therewith.  All reports, forms and statements required to be filed by such Seller with the FCC with respect to the Licenses of such Seller and the Stations owned by such Seller have been filed and, except as disclosed in Schedule 3.4, were complete and accurate in all material respects at the date of filing.  
(h)    No Applications Pending. Except as disclosed in Schedule 3.4, there are no applications before the FCC filed by such Seller relating to the Stations owned by such Seller.  
(i)    Ordinary Course Conditions.  Except as disclosed in Schedule 3.4 and Schedule 3.4(c), the Licenses of such Seller (i) have been issued for the full terms customarily issued by the FCC and (ii) are not subject to any condition, except for those conditions appearing on the face of the Licenses of such Seller or in the FCC’s publicly available databases and other than those conditions generally applicable to such Licenses and routinely imposed in conjunction with FCC licenses of a similar type.  Except as disclosed in Schedule 3.4(c), there are no facts which under the Communications Laws, would disqualify such Seller as an assignor of the Licenses of such Seller. 
(j)    Renewal Expectancy.  Except as disclosed in Schedule 3.4(c), Sellers have no reason to believe that any of Sellers’ Licenses will not be renewed in the ordinary course.  None of Sellers’ Licenses will be adversely affected by the consummation of the transaction contemplated hereby.  Except as disclosed in Schedule 3.4(c), Sellers are not aware of any basis for any application, action, petition, objection or other pleading, or for any proceeding with the FCC or any other Governmental Authority, which (i) questions or contests the validity of, or seeks the revocation, forfeiture, non-renewal or suspension of, any License, (ii) seeks the imposition of any modification or amendment with respect to any License, (iii) seeks the payment of a fine, sanction, penalty, damages or contribution in connection with the use of any License, or (iv) in any other way will or could reasonably be expected to adversely affect any License.  

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(k)    Current Compliance.  Except as disclosed in Schedule 3.4(c), Sellers and any Affiliate thereof are in compliance in all material respects with, and are not in violation in any material respect of, any Law applicable to the Licenses to which any of them is subject, including all pertinent aspects of the FCC Rules, including the FCC’s rules and policies pertaining to eligibility to hold low-power television licenses in general and to the Sellers’ Licenses in particular.  Except as disclosed in Schedule 3.4(c), Sellers are in material compliance with all terms and conditions of, and all of their obligations under, each of Sellers’ Licenses.
(l)    No Adverse Actions. Except as disclosed in Schedule 3.4(c), Sellers have not taken any action that would be likely to result in the FCC's denial of the application to be filed by Buyer and such Seller with the FCC for consent to the assignment of the Licenses of such Seller to Buyer.  
(m)    Qualified Assignor.  Except as disclosed in Schedule 3.4(c), to each Seller's knowledge, such Seller is qualified under the Communications Laws to assign, or cause to be assigned, the Licenses held by such Seller to Buyer.  Except as disclosed in Schedule 3.4(c), to each Seller's knowledge, there are no facts or circumstances relating to such Seller, the Licenses of such Seller or the Stations owned by such Seller that would reasonably be expected to (i) result in the FCC's refusal to grant the FCC Consent or (ii) materially delay the receipt of the FCC Consent.  Such Seller has no reason to believe that the FCC Applications (as hereinafter defined) might be challenged or might not be granted by the FCC in the ordinary course due to any fact or circumstance relating to such Seller or the Licenses of such Seller. 
3.5.    Such Seller has good, valid and transferable title to, free and clear of all Liens (other than Permitted Liens as set forth on Schedule 3.5), all of the Purchased Assets owned by such Seller.
3.6.    Schedule 3.6 lists all material items of Tangible Personal Property of such Seller. The Tangible Personal Property listed on Schedule 3.6 comprises all material items of tangible personal property currently used exclusively to conduct the business and operations of the Stations owned by such Seller as now conducted. Except as disclosed in Schedule 3.6(a), such Seller owns and has good and valid title to each item of Tangible Personal Property of such Seller as disclosed in Schedule 3.6, and none of such Tangible Personal Property is subject to any Lien, except for Permitted Liens or as disclosed in Schedule 3.6(b).  Each item of Tangible Personal Property is available for immediate use in the business and operations of the Stations (but only in the business and operations of the Stations) owned by such Seller. All Tangible Personal Property and Purchased Assets of such Seller, and the use and the state of maintenance thereof, are in compliance in all material respects with the Licenses of such Seller and the Communications Laws, and with all other applicable statutes, ordinances, rules and regulations of any Governmental Authority.  No Seller owns any real property.
3.7.    Schedule 3.7 sets forth a true and complete list of all Assumed Contracts to which such Seller is a party. Such Seller has delivered to Buyer true and complete copies of all such Assumed Contracts.  Except as set forth on Schedule 3.7(a), such Seller has, with respect to such Assumed Contracts, performed in all material respects all obligations required to be performed by it, and is not in default in any material respect under any such Assumed Contract, and no other party to any such Assumed Contract is in default in any material respect thereunder.  Except as disclosed 

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in Schedule 3.7(b), no event has occurred which, with the lapse of time or the giving of notice or both, would constitute a default in any material respect by such Seller or any other party to any such Assumed Contract.  Except for the need to obtain the Consents listed in Schedule 3.3, such Seller has full legal power and authority to assign its rights under such Assumed Contracts to Buyer in accordance with this Agreement, and such assignment will not affect the validity, enforceability, or continuation of any of such Assumed Contracts.
3.8.    Each of such Assumed Contracts is in full force and effect and binding and enforceable upon such Seller or its Affiliates, as applicable, and the other parties thereto, subject in each case to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar Laws affecting or relating to enforcement of creditors' rights generally and general principles of equity (regardless of whether enforcement is considered in a proceeding at law or in equity).  None of such Assumed Contracts has been amended, modified or terminated, except as expressly disclosed in Schedule 3.8.
3.9.    (a)  Except as set forth on Schedule 3.9(a), all material Tax Returns have been filed (including, but not limited to, sales and use Tax Returns) required to be filed with respect to the Purchased Assets and the Stations owned by such Seller, all such Tax Returns are correct and complete in all material respects and prepared in substantial compliance with all applicable Laws, and such Seller has or will have timely paid all such Taxes due and owing by it with respect to such Purchased Assets and Stations owned by such Seller (whether or not shown on any Tax Return) except which either (i) constitute Excluded Liabilities or (ii) are disclosed on Schedule 3.9(a).  None of such Purchased Assets owned by such Seller are subject to any Lien in favor of the United States for nonpayment of federal Taxes, or any Tax Lien in favor of any state or municipality pursuant to any comparable provision of state or local Law, or any other U.S. federal, state or local Tax Law under which transferee liability might be imposed upon Buyer as a buyer of such Purchased Assets.
(a)    There are no material Liens against Purchased Assets owned by such Seller in respect of any Taxes, other than with respect to Taxes not yet due and payable.
(b)    There is no material Action pending or threatened by any Governmental Authority for assessment or collection of any Taxes of any nature affecting Purchased Assets owned by such Seller.
(c)    Except as set forth on Schedule 3.9(d) such Seller currently is not the beneficiary of any extension of time within which to file any material Tax Return relating to Purchased Assets owned by such Seller.
(d)    There is no material dispute or claim concerning any Tax liability relating to Purchased Assets owned by such Seller or such Seller’s operation of the Stations owned by such Seller which has been claimed or raised by any Governmental Authority in writing.
(e)    Such Seller has not (i) waived any statute of limitations in respect of material Taxes relating to Purchased Assets owned by such Seller or the operation of the Stations owned by such Seller or (ii) agreed to any extension of time with respect to a material Tax assessment or 

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deficiency which extension is currently in effect relating to such Purchased Assets or the operation of the Stations owned by such Seller.
(f)    All Taxes required to have been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party that relate to Purchased Assets owned by such Seller have been withheld and paid in full.
(g)    No Tax allocation, Tax sharing or Tax indemnity or similar agreement or arrangement, or power of attorney with respect to any Tax matter, is currently in force with respect to Purchased Assets owned by such Seller that would, in any manner, bind, obligate, or restrict Buyer.
(h)    No notice or inquiry from any jurisdiction where Tax Returns are not currently filed with respect to Purchased Assets owned by such Seller has been received to the effect that such filings may be required or that such Purchased Assets may otherwise be subject to taxation by such jurisdiction.
3.10.    Except as disclosed in Schedule 3.3, no consent, approval, permit, or authorization of, or declaration to or filing with any Governmental Authority (other than the FCC), or any other third party is required (i) for such Seller to consummate this Agreement, the Related Agreements to which such Seller is a party and the transactions contemplated hereby and thereby, or (ii) to permit such Seller to assign or transfer the Purchased Assets owned by such Seller to Buyer.
3.11.    Schedule 3.11 sets forth a true and complete list of all Intangibles owned by such Seller, all of which are valid, in good standing and uncontested.  Such Seller has delivered to Buyer copies of all documents it has in its possession establishing or evidencing such Intangibles.  Such Seller has, or will have as of the Closing Date, good and marketable title to all rights and interests in such Intangibles, all of which will be free and clear of any third party interests or claims at the Closing.  To Sellers' knowledge (a) no Seller is infringing upon to any trademarks, trade names, service marks, service names, copyrights, patents, patent applications, know-how, methods, or processes owned by any other person or persons, and (b) there is no claim or action filed or threatened with respect thereto.
3.12.    Neither such Seller nor any person acting on such Seller’s behalf has incurred any liability for any finders or brokers fees or commissions in connection with the transactions contemplated by this Agreement for which Buyer could become liable.  
3.13.    Except as disclosed in Schedule 3.4(c), such Seller is not subject to any judgment, award, order, write, injunction, arbitration, decision, decree or Governmental Order which would affect such Seller’s ability to perform its obligations hereunder or under any Related Agreement to which such Seller is a party, and there is no litigation or Action pending or, to such Seller's knowledge, threatened against such Seller or relating to the Purchased Assets owned by such Seller in any federal, state or local court, or before any Governmental Authority or arbitrator or before any other tribunal duly authorized to resolve disputes, which would have any material effect upon such Purchased Assets or which seeks to enjoin or prohibit, or otherwise questions the validity of, any 

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action taken or to be taken pursuant to or in connection with this Agreement or any Related Agreement to which such Seller is a party or which would materially adversely affect such Seller’s ability to perform its obligations under this Agreement or any Related Agreement to which such Seller is a party.
3.14.    Except as set forth on Schedule 3.4(c) with respect to the Licenses held by such Seller (i) such Seller has complied in all material respects with all Laws and all Actions and Governmental Orders of any Governmental Authority in respect of the Licenses of such Seller, the Purchased Assets and the operation of the Stations owned by such Seller and (ii) there are no Actions (exclusive of investigations by or before the FCC) pending or threatened against such Seller with respect to such Licenses, Purchased Assets or Stations. 
3.15.    Except as set forth on Schedule 3.15, such Seller is not currently party to any material Contract with any of its Affiliates as it relates to the Purchased Assets and Stations owned by such Seller.  
3.16.    No representation or warranty made by such Seller in this Agreement, in any Related Agreement to which such Seller is a party or in any certificate, document, or other instrument furnished or to be furnished by such Seller pursuant hereto contains or will contain any untrue statement of a material fact, or omits or will omit to state any material fact and required to make any statement made herein or therein not misleading.
SECTION 4 -    REPRESENTATIONS AND WARRANTIES OF JOHN N. KYLE II
John N. Kyle II ("Kyle") represents and warrants to Buyer as follows, except as disclosed in the pertinent Schedules hereto:
4.1.    Each of the Licenses is held solely by such Seller.  No shareholder, officer, employee or former employee of Seller or any Affiliate thereof, or any other Person, holds or has any proprietary, financial or other interest (direct or indirect) in, or any authority to use, or any other right or claim in or to, any of the Sellers’ Licenses.  Sellers have good, valid and transferable title to, free and clear of all Liens (other than Permitted Liens), all of the Licenses owned by such Seller.
4.2.    Except as set forth on Schedule 4.2, none of the spectrum covered by the Sellers’ Licenses is subject to any lease or other agreement or arrangement with any third party, including any agreement giving any third party any present or future right to lease, use, reserve, modify or restrict such spectrum or any agreement in which any Seller has agreed to permit interference, including any lease or capacity agreement, or any right of first refusal or option to purchase.  No consent, approval, order or authorization of, or registration, declaration or filing with any third party, other than the FCC, is required to be obtained or made by or with respect to any Seller in connection with the assignment of the Sellers’ License to Buyer as contemplated by this Agreement.
4.3.    No amounts (including installment payments consisting of principal and/or interest or late payment fees) are due to the FCC or the United States Department of the Treasury with respect to the Sellers’ Licenses, and none of the Sellers’ Licenses were acquired with bidding credits.  There are no liabilities of such Seller or any Affiliate thereof (whether matured or unmatured, direct 

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or indirect, or absolute, contingent or otherwise), whether related to, associated with, or attached to, any of Sellers’ Licenses or otherwise to which the Buyer or any of its Affiliates will be subject from and after the Closing as a result of the consummation of the transaction contemplated hereby.
4.4.    Each Seller has good, valid and transferable title to, free and clear of all Liens (other than Permitted Liens as set forth on Schedule 3.5), all of the Purchased Assets owned by such Seller.
4.5.    Except as set forth on Schedule 3.15, such Seller is not currently party to any material Contract with any of its Affiliates as it relates to the Purchased Assets and Stations owned by such Seller.
SECTION 5 -    BUYER’S REPRESENTATIONS AND WARRANTIES
Buyer hereby represents and warrants to each Seller as follows:
5.1.    Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware. Buyer has all requisite power and authority to execute and deliver this Agreement and the documents contemplated hereby and to perform and comply with all of the terms, covenants, and conditions to be performed and complied with by Buyer hereunder and thereunder.
5.2.    The execution, delivery, and performance of this Agreement by Buyer have been duly authorized by all necessary actions on the part of Buyer. This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with its terms except as the enforceability of this Agreement may be affected by bankruptcy, insolvency, or similar laws affecting creditors’ rights generally and by judicial discretion in the enforcement of equitable remedies.
5.3.    Except as disclosed in Schedule 5.3, the execution, delivery, and performance by Buyer of this Agreement, the Related Agreements and the documents contemplated hereby and thereby (with or without the giving of notice, the lapse of time, or both): (i) do not require the consent of any third party, other than the FCC; (ii) will not conflict with the articles of incorporation or bylaws (or similar organizational document) of Buyer; (iii) will not conflict with, result in a breach of, or constitute a default under, any law, judgment, order, ordinance, injunction, decree, rule, regulation, or ruling of any Governmental Authority; or (iv) will not conflict with, constitute grounds for termination of, result in a breach of, constitute a default under, or accelerate or permit the acceleration of any performance required by the terms of, any agreement, instrument, license, or permit to which Buyer is a party or by which Buyer may be bound.
5.4.    Neither Buyer nor any person acting on Buyer’s behalf has incurred any liability for any finders or brokers fees or commissions in connection with the transactions contemplated by this Agreement for which any Seller could become liable. 
5.5.    There is no Action pending, or, to Buyer’s knowledge, threatened which may adversely affect Buyer’s ability to perform in accordance with the terms of this Agreement 

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(including, without limitation, performance under the Notes, as applicable), and Buyer is unaware of any facts which could reasonably result in any such proceeding.
5.6.    Buyer has the financial capacity to satisfy all of Buyer’s obligations under this Agreement and the documents to be executed and exchanged at the Closing (including, without limitation, under the Notes, as applicable) and to perform all of Buyer’s obligations at the Closing and all obligations set forth in the Notes.
5.7.    Buyer is not subject to any judgment, award, order, writ, injunction, arbitration decision, decree or Governmental Order which would affect Buyer’s ability to perform its obligations hereunder and the other documents to be executed in connection herewith (including, without limitation, the Notes, as applicable), and there is no litigation or Action pending or, to Buyer’s knowledge, threatened against Buyer in any federal, state or local court, or before any Governmental Authority or arbitrator or before any other tribunal duly authorized to resolve disputes, which seeks to enjoin or prohibit, or otherwise questions the validity of, any action taken or to be taken pursuant to or in connection with this Agreement or which would materially adversely affect Buyer’s ability to perform its obligations under this Agreement and the other documents to be executed in connection herewith (including, without limitation, the Notes, as applicable).
5.8.    Buyer shall cooperate with each Seller, as applicable, in obtaining any Consent described in Schedule 3.3, including but not limited to furnishing any third party with information necessary for that third party to furnish such Consent.
5.9.    To Buyer’s knowledge, Buyer is legally, financially and otherwise qualified under the Communications Laws to be the licensee of, and to acquire, own and operate, the Stations, there are no facts that would, under the Communications Laws, disqualify Buyer as assignee of the Licenses or as the operator of the Stations, and no waiver of any provision of the Communications Laws relating to the qualifications of Buyer is necessary for the FCC Consent to be obtained.
SECTION 6 -    COVENANTS
6.1.    Each Seller hereby severally agrees and covenants that, between the date of this Agreement and the Closing, except as set forth in this Agreement or required by applicable Law or the regulations or requirements of any regulatory organization applicable to such Seller, unless Buyer otherwise consents in writing, such Seller shall:
(a)    operate the Stations owned by such Seller diligently in the ordinary course of business consistent with Communications Laws and in accordance with the covenants in this Section 6.
(b)    not enter into any contract or commitment relating to the Stations or  Purchased Assets owned by such Seller, or amend or terminate any Assumed Contract to which such Seller is a party (or waive any right thereunder), or incur any obligation (including obligations relating to the borrowing of money or the guaranteeing of indebtedness) that will be binding on Buyer after Closing; 

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(c)    not enter into any Contract with any Affiliate of any Seller; 
(d)    not dissolve or liquidate or merge or consolidate with any other entity;
(e)    not make any acquisition (including by merger, consolidation or acquisition of stock) of the capital stock or a material portion of the assets of any third party, excluding acquisitions of capital stock or assets which shall not constitute Purchased Assets or relate to the Stations;
(f)    give immediate written notice to Buyer regarding (i) any notice received or given by such Seller with respect to any alleged breach by such Seller or other Person under any Assumed Contract to which such Seller is a party or (ii) any termination of any such Assumed Contract;
(g)    give immediate written notice to Buyer upon receipt by such Seller of any notice pertaining to litigation or any Action (pending or threatened) relating to the Purchased Assets owned by such Seller in any federal, state or local court, or before any Governmental Authority or arbitrator or before any other tribunal duly authorized to resolve disputes, which would have any material effect upon such Purchased Assets or which seeks to enjoin or prohibit, or otherwise questions the validity of, any action taken or to be taken pursuant to or in connection with this Agreement or any Related Agreement to which such Seller is a party or which would materially adversely affect such Seller’s ability to perform its obligations under this Agreement or any Related Agreement to which such Seller is a party.  
(h)    not sell, assign, lease, or otherwise transfer or dispose of any of the Purchased Assets owned by such Seller or create, assume or permit to exist any Liens upon such Purchased Assets, except for Permitted Liens; 
(i)    perform all of such Seller's obligations under the Assumed Contracts to which such Seller is a party; 
(j)    comply in all material respects with the Laws applicable to the operations of the Stations owned by such Seller and the ownership and use of the Purchased Assets owned by such Seller;
(k)    cooperate with Buyer to file with the FCC all applications and notifications necessary to obtain the FCC Consent;
(l)    cooperate with Buyer in the diligent submission of any additional information requested by the FCC with respect to the FCC Applications and will take all steps necessary and proper to obtain the FCC Consent;
(m)    not take any action to oppose or otherwise impede Buyer with respect to Buyer’s acquisition of such Seller’s Licenses;
(n)    use its reasonable best efforts to eliminate or otherwise mitigate as fully as possible any adverse effect on obtaining such approvals in the event that at any time after the date 

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hereof such Seller takes any action that would have the effect of materially delaying, preventing or otherwise impeding the receipt of any regulatory approvals necessary to effect the transactions contemplated hereby;
(o)    not cause or permit, or agree or commit to cause of permit, by act of failure to act, any of the Licenses held by such Seller to expire or to be revoked, suspended or adversely modified, or take or fail to take any action that would cause the FCC of any other Governmental Authority to institute proceedings (other than proceedings of general applicability) for the suspension, revocation or adverse modification of any of such Licenses; 
(p)    not take any action that is inconsistent with its obligations under this Agreement or that would hinder or delay the consummation of the transactions contemplated by this Agreement (including, without limitation, obtaining the FCC Consent);
(q)    promptly enter into, or comply with the terms of, tolling, assignment and escrow agreements on customary conditions, as necessary and requested by the FCC to facilitate the grant of the FCC Consent;
(r)    maintain all of the Purchased Assets owned by such Seller in their current condition and use, operate and maintain all of such Purchased Assets in a reasonable manner and in accordance with the terms of the FCC Licenses and all applicable rules and regulations of the FCC and any other applicable Governmental Authority; 
(s)    use its best efforts to obtain the Consents without any change in the terms or conditions of any Contract or License owned by such Seller that could be less advantageous than those pertaining under such Contract or License as in effect on the date of this Agreement.  Such Seller shall promptly advise Buyer of any difficulties experienced in obtaining any of such Consents and of any conditions proposed, considered, or requested for any of such Consents; 
(t)    maintain its qualification to hold the Licenses with respect to each Station owned by such Seller and not take any action that would impair such Licenses or such qualification or cause the grant of the FCC Consent to be delayed; and
(u)    not agree, consent or resolve to take any actions inconsistent with any of the foregoing.
6.1.    Until such time as this Agreement shall be terminated pursuant to Section 10, such Seller, its Affiliates, and their respective members, directors, officers, employees investment bankers and agents shall cease any discussions or negotiations with, and shall not, directly or indirectly, solicit, initiate, encourage or entertain any inquiries or proposals from, discuss or negotiate with, provide any nonpublic information to or consider the merits of any inquiries or proposals from any Person (other than Buyer) relating to the sale of all of the Purchased Assets owned by such Seller (whether by sale of assets, equity, or otherwise) or any merger, consolidation, business combination, recapitalization, reorganization or other extraordinary business transaction involving or otherwise relating to the Purchased Assets or the Stations.  Each Seller shall immediately close and cause to be terminated all existing discussions, conversations, negotiations and other communications with 

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any Person conducted with respect to any of the foregoing.  Such Seller shall notify Buyer of any such inquiry or proposal referenced herein within two (2) Business Days of receipt by such Seller of the same.
6.2.    Buyer hereby agrees and covenants that, between the date of this Agreement and the Closing, except as set forth in this Agreement or required by applicable Law or the regulations or requirements of any regulatory organization applicable to such Buyer, unless Sellers otherwise consent in writing, such Buyer shall:
(a)    cooperate with Sellers to file with the FCC all applications and notifications necessary to obtain the FCC Consent;
(b)    cooperate with Sellers in the diligent submission of any additional information requested by the FCC with respect to the FCC Applications and will take all steps necessary and proper to obtain the FCC Consent;
(c)    use its reasonable best efforts to eliminate or otherwise mitigate as fully as possible any adverse effect on obtaining such approvals the event that at any time after the date hereof Buyer takes any action that would have the effect of materially delaying, preventing or otherwise impeding the receipt of any regulatory approvals necessary to effect the transactions contemplated hereby;
(d)    not take any action that is inconsistent with its obligations under this Agreement or that would hinder or delay the consummation of the transactions contemplated by this Agreement (including, without limitation, obtaining the FCC Consent); and
(e)    promptly enter into, or comply with the terms of, tolling, assignment and escrow agreements on customary conditions, as necessary and requested by the FCC to facilitate the grant of the FCC Consent.
6.3.    In consideration of the Purchase Price and other agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of King Forward and Bella Spectra hereby agree to enter into the Non-Competition, Non-Solicitation and Non-Disparagement Agreement in the forms attached hereto as Exhibits D and E, respectively (the "Non-Compete Agreements").
SECTION 7 -    PRIOR TO CLOSING
7.1.    (a)    The assignment of the FCC Licenses in connection with the purchase and sale of the Purchased Assets pursuant to this Agreement shall be subject to the prior consent and approval of the FCC.
(b)    Each Seller and Buyer shall promptly prepare an appropriate application for the FCC Consent pertaining to the FCC Licenses held by such Seller (collectively, the "FCC Applications") and shall file the FCC Applications with the FCC within seven (7) Business Days of the execution of this Agreement. The cost of the FCC filing fees in connection with the FCC 

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Applications shall be borne Fifty Percent (50%) by the Sellers and Fifty Percent (50%) by the Buyer, which such FCC filings fees are not to exceed $4,500 in the aggregate irrespective of whether the transactions contemplated by this Agreement are consummated. Buyer and Seller shall be individually responsible for their respective attorney's fees in connection with the FCC Applications. Buyer and Seller shall prosecute the FCC Applications with all reasonable diligence and otherwise use their commercially reasonable best efforts to obtain the applicable FCC Consent as expeditiously as practicable and shall oppose any objections to the grant of such FCC Consent. Each party hereto agrees to comply with any condition imposed on it by the FCC Consent provided that such conditions of the FCC Consent are similar in all material respects as approved by each Seller's board of directors on June 21, 2017. except that no party shall be required to comply with a condition if (i) the condition was imposed on it as the result of a circumstance the existence of which does not constitute a breach by the party of any of its representations, warranties, or covenants under this Agreement and (ii) compliance with the condition would have a material adverse effect upon it. The parties hereto shall oppose any requests for reconsideration or judicial review of the FCC Consent; provided that if the request for reconsideration or review or other challenge to the grant of such FCC Consent addresses Buyer’s characteristics or conduct, or that of its principals, Buyer shall be responsible for the costs of defending the FCC Applications and if the request for reconsideration or review or other challenge to the grant of such FCC Consent addresses a Seller's characteristics or conduct, or that of its principals, such Seller shall be responsible for the costs of defending the FCC Applications.  If the Closing shall not have occurred for any reason within the original effective period of the applicable FCC Consent, and no party shall have terminated this Agreement under Section 10, the parties shall jointly request an extension of the effective period of such FCC Consent. No extension of such FCC Consent shall limit the exercise by either party of its rights under Section 10.  Buyer and each Seller shall each oppose any petition to deny or other objection filed with respect to the applicable FCC Consent to the extent such petition or objection relates to such party.  Neither any Seller nor Buyer shall take any intentional action, or intentionally fail to take any action, which would reasonably be expected to materially delay the receipt of such FCC Consent.
7.2.    The risk of any loss, damage, impairment, confiscation, condemnation or revocation of any of the Purchased Assets from any cause whatsoever shall be borne by the Seller that owns such Purchased Assets at all times prior to the Closing.
7.3.    Except as necessary for the consummation of the transactions contemplated by this Agreement and except as and to the extent required by law, including, without limitation, disclosure requirements of federal or state securities laws and the rules and regulations of securities markets, each party will keep confidential any information obtained from the other party in connection with the transactions contemplated by this Agreement.  If this Agreement is terminated, each party will return to the other party all information obtained by such party from the other party in connection with the transactions contemplated by this Agreement.
7.4.    Buyer and each Seller shall cooperate fully with each other and their respective counsel and accountants in connection with any actions required to be taken as part of their respective obligations under this Agreement, and Buyer and each Seller shall execute such other documents as may be reasonably necessary and desirable to the implementation and consummation of this Agreement, and otherwise use their commercially reasonable best efforts to consummate the 

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transaction contemplated hereby and to fulfill their obligations under this Agreement. Notwithstanding the foregoing, neither any Seller nor Buyer shall have an obligation to agree to any materially adverse change in any License or Assumed Contract to obtain a Consent required with respect thereto.
7.5.    From the date of this Agreement until the Closing Date, each Seller will afford Buyer, its officers, counsel, accountants and other representatives, upon two (2) business days prior written notice, full access to the Purchased Assets  and Stations owned by such Seller and all of such Seller’s contracts, commitments and other records related to such Purchased Assets, at all reasonable times during business hours, and such representatives will be furnished true and complete copies of the same as such representatives may reasonably request; provided, however, that such review shall be conducted so as to not interfere unreasonably with or disrupt the business and broadcast operations of such Seller. 
7.6.    From the date hereof until the earlier to occur of the Closing Date or the termination of this Agreement in accordance with Article 10, each Seller shall promptly notify the Buyer of:
(a)    any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement;
(b)    (i) the occurrence or non-occurrence of any event which has caused any representation or warranty made by it herein to be untrue or inaccurate in any material respect at any time on or after the date hereof and prior to the Closing and (ii) any material failure on the part of such Seller to comply with or satisfy any covenant, condition or agreement set forth herein to be complied with or satisfied by such Seller hereunder on or after the date hereof and prior to the Closing; and
7.7.    All Transfer Taxes arising out of or in connection with the transactions effected pursuant to this Agreement shall be borne by the applicable Seller. The party which has the primary responsibility under applicable Law for the payment of any particular Transfer Tax shall prepare the relevant Tax Return. If Buyer is required to pay any Transfer Tax, the applicable Seller shall pay to Buyer the amount of such Transfer Taxes by check or wire transfer of immediately available funds no later than the date that is the later of (i) five (5) Business Days after the date Buyer notifies such Seller of the amount of Transfer Taxes required to be paid by Buyer or (ii) two (2) Business Days prior to the due date for such Transfer Taxes.  The applicable Seller and Buyer shall cooperate in the preparation, execution and filing of all Transfer Tax Returns and shall cooperate in seeking to secure any available exemptions from such Transfer Taxes.
7.8.    The applicable Seller shall be liable for payment of and shall prepare and properly file on a timely basis true, complete and accurate Tax Returns and other documentation for any and all Taxes incurred with respect to the Purchased Assets owned by such Seller and the operation of such Purchased Assets for any Pre-Closing Tax Period, and Buyer shall be liable for payment of and shall prepare and properly file on a timely basis true, complete and accurate Tax Returns and other documentation for any and all Taxes incurred with respect to such Purchased Assets and the operation of such Purchased Assets for any Post-Closing Tax Period. Buyer shall prepare and properly file, consistent with past practice, all Tax Returns for any taxable period beginning on or 

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before and ending after the Closing Date (a “Straddle Period”). Notwithstanding anything to the contrary in this Section 7.8, all real property Taxes, personal property Taxes and similar ad valorem obligations levied with respect to the Purchased Assets for any Straddle Period shall be apportioned between the applicable Seller, on the one hand, and Buyer, on the other hand, based on the number of days of such period up to and including the Closing Date and the number of days of such period after the Closing Date, and such Seller shall be liable for the proportionate amount of such Taxes that is attributable to the portion of the Straddle Period up to the Closing Date, and Buyer shall be liable for the proportionate amount of such Taxes that is attributable to the portion of the Straddle Period beginning after the Closing Date.  Other Taxes, if any, shall be allocated between the applicable Seller and the Buyer based on a closing of the books on the Closing Date.
SECTION 8 -    CONDITIONS TO CLOSING
8.1.    Conditions to Obligations of Buyer.  The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver, at or prior to the Closing, of each of the following conditions:
(a)    No provision of any applicable Law and no Governmental Order shall prohibit the consummation of the Closing;
(b)    The transactions contemplated by the Securities Purchase Agreement shall have been consummated; 
(c)    The Non-Compete Agreements shall have been executed and delivered by the Company and King Forward and Bella Spectra;
(d)    A consulting agreement shall have been executed and delivered by the Company and each of King Forward and Bella Spectra, in the forms attached hereto as Exhibits F and G, respectively; 
(e)    An employment agreement shall have been executed and delivered by the Company and each of Humberto Garriga, Irwin Podhajser and Paul Donner, in the forms attached hereto as Exhibits H, I and J, respectively;
(f)    All representations and warranties of each Seller contained in this Agreement, disregarding all qualifiers and exceptions relating to materiality or Material Adverse Effect, shall be true and complete in all material respects at and as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date, in which case such representations and warranties shall have been true and correct, disregarding all qualifiers relating to materiality or Material Adverse Effect, as of such earlier date) as of the Closing Date as though made at and as of the Closing Date, except for changes contemplated by this Agreement.
(g)    Each Seller shall have performed and complied in all material respects with all covenants, agreements, and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date.

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(h)    All Consents on Schedule 3.3 (except as disclosed therein), including the FCC Consent, shall have been obtained and delivered to Buyer without any adverse change in the terms or conditions of any agreement or any governmental license, permit, or other authorization.
(i)    The FCC Consent shall have been granted without the imposition on Buyer of any conditions that need not be complied with by Buyer under Section 7.1 or a material adverse change to the FCC consent as approved by each Seller's board of directors on June 21, 2017 and each applicable Seller shall have complied with any conditions imposed on it.
(j)    Sellers shall be the holders of all Licenses and there shall not have been any modification of any License that would have a Material Adverse Effect on such Licenses, the Purchased Assets or the Stations or the conduct of the business and operations of such Stations. No proceeding shall be pending or threatened the effect of which would be to revoke, cancel, fail to renew, suspend, or modify adversely any License.
(k)    Sellers shall have made or stand willing to make all the deliveries to Buyer set forth in Section 9.2.
(l)    Between the date of this Agreement and the Closing Date, there shall have been no Material Adverse Effect.  
8.2.    Conditions to Obligations of Sellers.  The obligations of Sellers to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or waiver, at or prior to the Closing, of each of the following conditions:
(a)    No provision of any applicable Law and no Governmental Order shall prohibit the consummation of the Closing;
(b)    All representations and warranties of Buyer contained in this Agreement, disregarding all qualifiers and exceptions relating to materiality or Material Adverse Effect, shall be true and complete in all material respects at and as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date, in which case such representations and warranties shall have been true and correct, disregarding all qualifiers relating to materiality or Material Adverse Effect, as of such earlier date) as of the Closing Date as though made at and as of the Closing Date, except for changes contemplated by this Agreement.
(c)    Buyer shall have performed and complied in all material respects with all covenants, agreements, and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date.
(d)    Buyer shall have made or stand willing to make all the deliveries set forth in Section 9.3.
(e)    The FCC Consent shall have been granted without the imposition on Sellers of any conditions that need not be complied with by Sellers under Section 7.1, and Buyer shall have complied with any conditions imposed on it by the FCC Consent.

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SECTION 9 -    CLOSING PROCEDURES
9.1.    The Closing shall take place at the offices of Akerman LLP, Three Brickell City Centre, 98 Southeast Seventh Street, Suite 1100, Miami, FL 33131 at 10:00 a.m. on a date (the "Closing Date"), to be set by Buyer and Sellers, which shall not be later than the fifth (5th) Business Day following the satisfaction or waiver of all of the conditions set forth in Article 7 hereof. 
9.2.    Prior to or on the Closing Date, each Seller shall deliver to Buyer the following, in form and substance reasonably satisfactory to Buyer and its counsel:
(a)    Bill of Sale and Assignment. A duly executed bill of sale and assignment and other transfer documents which shall be sufficient to vest good and marketable title to the Purchased Assets in the name of Buyer, free and clear of all Liens except for Permitted Liens;
(b)    Assumption Agreement. A duly executed assumption agreement (the "Assumption Agreement") pursuant to which Buyer shall assume and undertake to perform Seller’s obligations under the Purchased Assets insofar as they relate to the time on and after the Closing Date or arise out of events occurring on or after the Closing Date;
(c)    Consents. An executed copy of any and all instruments and documents evidencing receipt of each of the Consents;
(d)    Seller’s Certificate. A certificate, dated as of the Closing Date, executed on behalf of such Seller by an officer of such Seller, certifying (i) that all representations and warranties of such Seller contained in this Agreement, disregarding all qualifiers and exceptions relating to materiality or Material Adverse Effect, are true and complete in all material respects at and as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date, in which case such representations and warranties shall have been true and correct, disregarding all qualifiers relating to materiality or Material Adverse Effect, as of such earlier date) as of the Closing Date as though made at and as of the Closing Date, except for changes contemplated by this Agreement; and (ii) that such Seller has performed and complied in all material respects with all of its obligations, covenants, and agreements set forth in this Agreement to be performed and complied with on or prior to the Closing Date;
(e)    Licenses, Contracts, Business Records, Etc. Copies of all Licenses, Assumed Contracts and all files and records used by each Seller in connection with the Purchased Assets; and
(f)    Other Documents. Such other documents and instruments as may be reasonably requested by counsel for Buyer. 
9.3.    Prior to or on the Closing Date, Buyer shall deliver to Sellers the following, in form and substance reasonably satisfactory to Sellers and their counsel:
(a)    Cash Purchase Price. The Cash Purchase Price as provided in Section 2.5(a) by wire transfer of immediately available federal funds;

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(b)    Note.  Executed copies of each Note as provided for in Section 2.5(b);
(c)    Stock Pledge Agreement. An executed copy of the Stock Pledge Agreement as provided in Section 2.5(b).
(d)    Guaranty Agreement. An executed copy of the Guaranty Agreement pursuant to Section 2.5(b). 
(e)    Buyer’s Certificate. A certificate, dated as of the Closing Date, executed on behalf of Buyer by an officer of Buyer, certifying (i) that all representations and warranties of Buyer contained in this Agreement, disregarding all qualifiers and exceptions relating to materiality or Material Adverse Effect, are true and complete in all material respects at and as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date, in which case such representations and warranties shall have been true and correct, disregarding all qualifiers relating to materiality or Material Adverse Effect, as of such earlier date) as of the Closing Date as though made at and as of the Closing Date, except for changes contemplated by this Agreement; and (ii) that Buyer has performed and complied in all material respects with all of its obligations, covenants, and agreements set forth in this Agreement to be performed and complied with on or prior to the Closing Date; and
(f)    Assumption Agreement. The duly executed Assumption Agreement. 
SECTION 10 -    TERMINATION
10.1.    Termination.  This Agreement may be terminated prior to the Closing as follows:  
(a)    by mutual written consent of Buyer and Sellers;
(b)    by written notice of Buyer to a Seller:  
(i)    does not perform the obligations to be performed by it under this Agreement on the Closing Date; or  
(ii)    breaches in any material respect any of their representations or warranties or defaults in any material respect in the performance of any of their covenants or agreements contained in this Agreement and such breach or default is not cured within the Cure Period (defined below). 
(c)    by written notice of Sellers to Buyer if Buyer: 
(i)    does not perform the obligations to be performed by it under this Agreement on the Closing Date; or
(ii)    breaches in any material respect any of its representations or warranties or defaults in any material respect in the performance of any of its covenants or agreements contained in this Agreement and such breach or default is not cured within the Cure Period. 

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(d)     by either Buyer or Sellers upon written notice to the other party if the consummation of the transaction contemplated hereby shall be prohibited by a final, non-appealable order, decree or injunction of a court of competent jurisdiction; provided that the right to terminate this Agreement under this Section 10.1(d) shall not apply to any party whose action or inaction in fulfilling a material obligation under this Agreement shall have been a cause for the failure of the Closing to occur. 
(e)    if FCC Consent is not obtained on or prior to October 31, 2017, provided that in the event that a party has filed with the FCC a formal or informal objection or other pleading that seeks to petition, delay, dismiss or in any way condition the FCC Consent submitted in connection with this Agreement or the transaction contemplated hereby, then this Agreement shall terminate if FCC Consent is not obtained on or prior to December 22, 2017.
The term “Cure Period” as used herein means a period commencing the date Buyer or Sellers receives from the other written notice of breach or default hereunder and continuing until the earlier of (i) fifteen (15) calendar days thereafter or (ii) the Closing Date.  
10.2.    Specific Performance.  In the event of a breach or threatened breach by Sellers of any representation, warranty, covenant or agreement under this Agreement, at Buyer’s election, in addition to any other remedy available to it, Buyer shall be entitled to an injunction restraining any such breach or threatened breach and to enforcement of this Agreement by a decree of specific performance requiring Sellers to fulfill their obligations under this Agreement, in each case without the necessity of showing economic loss or other actual damage and without any bond or other security being required.
10.3.    If this Agreement is terminated pursuant to Section 10.1 and any party is not in material breach of any provision of this Agreement, the parties shall not have any further liability to each other with respect to the purchase and sale of the Purchased Assets. If this Agreement is terminated by a party due to the other party's material breach of any provision of this Agreement, and the terminating party is not in material breach of any provision of this Agreement, then the terminating party shall have all rights and remedies available at law or equity, including the right to seek specific performance of this Agreement.  A termination of this Agreement shall not terminate the confidentiality rights and obligations of the parties set forth in Section 7.3.
SECTION 11 -    SURVIVAL; INDEMNIFICATION
11.1.    Survival. The representations and warranties of the parties hereto contained in or made pursuant to this Agreement or in any certificate or other writing furnished pursuant hereto or in connection herewith shall survive in full force and effect until the second anniversary of the Closing Date, provided that the representations and warranties in Section 3.9 shall remain in full force and effect with respect to any claim based on such representations and warranties until the date which is thirty (30) days after the date upon which the liability to which any such claim may relate is barred by all applicable statutes of limitations (including all periods of extension, whether automatic or permissive) and the representations and warranties in Sections 3.1, 3.2 and 3.12 and Sections 5.1, 5.2 and 5.4 shall survive in perpetuity. No claim may be brought under this Agreement unless written notice describing in reasonable detail the nature and basis of such claim is given on 

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or prior to the last day of the applicable survival period. In the event such notice is given, the right to indemnification with respect thereto shall survive the applicable survival period until such claim is finally resolved and any obligations thereto are fully satisfied.
11.1.    Indemnification by Buyer.  Subject to Section 11.1 Buyer shall indemnify against and hold harmless the Sellers, their Affiliates and their respective employees, directors, officers, managers, members, agents and representatives (collectively, the “Seller Indemnified Parties”) from, and will promptly defend any Seller Indemnified Party from and reimburse any Seller Indemnified Party for, any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including any Action brought by any Governmental Authority or Person and including reasonable attorneys’ fees and expenses reasonably incurred) (collectively, “Losses”), which any Seller Indemnified Party may at any time suffer or incur, or become subject to, as a result of or in connection with:
(i)    Buyer’s breach of any of its representations or warranties contained in this Agreement or in the certificate delivered pursuant to Section 9.3(c);
(ii)    any breach or nonfulfillment of any agreement, obligation, or covenant of Buyer under the terms of this Agreement; 
(iii)    the ownership, business or operation of the Purchased Assets and Stations after the Closing Date; and 
(iv)    the Assumed Liabilities.
11.2.    Notwithstanding any other provision to the contrary, Buyer shall not be required to indemnify and hold harmless any Seller Indemnified Party pursuant to Section 11.2 unless such Seller Indemnified Party has asserted a claim with respect to such matters within the applicable survival period set forth in Section 11.1.
11.3.    Indemnification by Seller.  Subject to Section 11.1, each Seller severally and not jointly shall indemnify against and hold harmless Buyer, its Affiliates, and each of their successors and permitted assigns, and their respective directors, officers, employees, managers, agents and representatives (collectively, the “Buyer Indemnified Parties”) from, and will promptly defend any Buyer Indemnified Party from and reimburse any Buyer Indemnified Party for, any and all Losses which such Buyer Indemnified Party may at any time suffer or incur, or become subject to, as a result of or in connection with:
(i)    such Seller’s breach of, any of the representations or warranties contained in this Agreement or in the certificate delivered pursuant to Section 9.2(d); 
(ii)    any breach by such Seller or nonfulfillment of any agreement or covenant of such Seller under the terms of this Agreement; 
(iii)    the ownership, business or operation of the Purchased Assets before the Closing Date and Stations of such Seller before the Closing Date; 

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(iv)    any fines or penalties (1) issued or assessed prior to the Closing Date by a Governmental Authority (including, without limitation, the FCC) or (2) relating to actions or inactions by such Seller prior to the Closing Date, in each case on any Purchased Asset owned by such Seller, including on any License of such Seller;
(v)    the Excluded Assets; 
(vi)    all Taxes attributable to the Purchase Assets for the Pre-Closing Tax Period;
(vii)    the Excluded Liabilities; and
(viii)    all Taxes of any Seller for any period on the Excluded Liabilities.
11.1.    Indemnification by Kyle.  Subject to Section 11.1, Kyle shall indemnify against and hold harmless any Buyer Indemnified Party from, and will promptly defend any Buyer Indemnified Party from and reimburse any Buyer Indemnified Party for, any and all Losses which such Buyer Indemnified Party may at any time suffer or incur, or become subject to, as a result of or in connection with Kyle's breach of, any of his representations or warranties contained in Section 4 of this Agreement.
11.1.    Notwithstanding any other provision to the contrary, the applicable Seller or Kyle shall not be required to indemnify and hold harmless any Buyer Indemnified Party pursuant to Section 11.4 or Section 11.5, respectively, unless such Buyer Indemnified Party has asserted a claim with respect to such matters within the applicable survival period set forth in Section 11.1.
11.2.    Notification of Claims.
(a)    A party entitled to be indemnified pursuant to Section 11.2, Section 11.4 or 11.5 (the “Indemnified Party”) shall promptly notify the party liable for such indemnification (the “Indemnifying Party”) in writing of any claim or demand that the Indemnified Party has determined has given or could give rise to a right of indemnification under this Agreement; provided, that a failure to give prompt notice or to include any specified information in any notice will not affect the rights or obligations of a party hereunder except and only to the extent that, as a result of such failure, any party that was entitled to receive such notice was damaged as a result of such failure. Subject to the Indemnifying Party’s right to defend in good faith third party claims as hereinafter provided, the Indemnifying Party shall satisfy its obligations under this Section 11 within thirty (30) days after the receipt of written notice thereof from the Indemnified Party.
(b)    If the Indemnified Party shall notify the Indemnifying Party of any claim pursuant to Section 11.7(a), the Indemnifying Party shall have the right to employ counsel of its choosing to defend any such claim asserted by any third party against the Indemnified Party for so long as the Indemnifying Party shall continue in good faith to diligently defend against such claim. The Indemnified Party shall have the right to participate in the defense of any such claim at its own expense. The Indemnifying Party shall notify the Indemnified Party in writing, as promptly as possible (but in any case at least five (5) Business Days before the due date for the answer or response 

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to a claim) after the date of the notice of claim given by the Indemnified Party to the Indemnifying Party under Section 11.7(a) of its election to defend in good faith any such third party claim. So long as the Indemnifying Party is defending in good faith any such claim asserted by a third party against the Indemnified Party, the Indemnified Party shall not settle or compromise such claim without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, and the Indemnified Party shall make available to the Indemnifying Party or its agents all records and other material in the Indemnified Party’s possession reasonably required by it for its use in contesting any third party claim. The Indemnifying Party shall not, without the Indemnified Party's written consent (such consent not to be unreasonably withheld), settle or compromise any claim or consent to any entry of any judgment which settlement, compromise or judgment (i) by its terms does not obligate the Indemnifying Party (or its Affiliates) to pay the full amount of any Losses in connection with such claim, (ii) requires any payment or other action by, or limitation on, any Indemnified Party or contains any covenants or undertakings binding on the Indemnified Party other than customary agreements to keep the terms of such settlement, compromise or judgment confidential or (iii) does not include the giving by the claimant to the Indemnified Party of a full release from all liability in respect of such claim.  Regardless of whether the Indemnifying Party elects to defend any such claim, the Indemnified Party shall have no obligation to do so.  In the event (i) the Indemnifying Party elects not to defend such claim or (ii) the Indemnifying Party elects to defend such claim but fails to diligently defend such claim in good faith, the Indemnified Party shall have the right to conduct the defense thereof and to settle or compromise such claim or action without the consent of the Indemnifying Party, except that with respect to the settlement or compromise of such a claim, the Indemnified Party shall not settle or compromise any such claim without the consent of the Indemnifying Party (such consent not to be unreasonably withheld), unless the Indemnifying Party is given a full and complete release of any and all liability by all relevant parties relating thereto and has no obligation to pay any damages.  
11.1.    Net Losses; Subrogation; Mitigation.
(a)    Notwithstanding anything contained herein to the contrary, the amount of any Losses incurred or suffered by an Indemnified Party shall be calculated after giving effect to (i) any insurance proceeds received by the Indemnified Party (or any of its Affiliates) with respect to such Losses and (ii) any recoveries obtained by the Indemnified Party (or any of its Affiliates) from any other third party, in each case, net of the costs and expenses incurred in obtaining such proceeds and recoveries. Each Indemnified Party shall exercise commercially reasonable efforts to obtain such proceeds, benefits and recoveries (collectively, “Proceeds”). If any such Proceeds are received by an Indemnified Party (or any of its Affiliates) with respect to any Losses after an Indemnifying Party has made a payment to the Indemnified Party with respect thereto, the Indemnified Party (or such Affiliate) shall pay to the Indemnifying Party the amount of such Proceeds (up to the amount of the Indemnifying Party’s payment). With respect to any Losses incurred or suffered by an Indemnified Party, the Indemnifying Party shall have no liability for any Losses to the extent that the same Losses have already been recovered by the Indemnified Party from the Indemnifying Party (because the Indemnified Party may only recover once in respect of the same Loss).

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(b)    Upon making any payment to an Indemnified Party in respect of any Losses, the Indemnifying Party shall, to the extent of such payment, be subrogated to all rights of the Indemnified Party (and its Affiliates) against any third party in respect of the Losses to which such payment relates. Such Indemnified Party (and its Affiliates) and Indemnifying Party shall execute upon request all instruments reasonably necessary to evidence or further perfect such subrogation rights.
(c)    The Indemnified Party and the Indemnifying Party shall use commercially reasonable efforts to mitigate any Losses, whether by asserting claims against a third party or by otherwise qualifying for a benefit that would reduce or eliminate an indemnified matter; provided, that no party shall be required to use such efforts if they would be detrimental in any material respect to such party.
(d)    The rights of the Buyer to indemnification under this Agreement or any other remedy based on any representations, warranties, covenants or agreements set forth in this Agreement or in any document delivered with respect hereto or thereto shall not be impacted or limited by any knowledge that the Buyer may have acquired, or could have acquired, whether before or after the Closing Date, nor by any investigation or diligence by the Buyer. The Sellers hereby acknowledge that, regardless of any investigation made (or not made) by or on behalf of the Buyer, and regardless of the results of any such investigation, the Buyer has entered into this transaction in express reliance upon the representations and warranties of the Sellers made in this Agreement.
11.1.    Computation of Indemnifiable Losses.  Any calculation of Losses for purposes of this Section 11 shall be (a) reduced to take account of any net tax benefit actually realized by the Indemnified Party arising from the deductibility of any such Loss in the year such Loss is incurred; and (b) increased to take account of any net tax liability actually realized by the Indemnified Party arising from the receipt or accrual of any indemnity obligation hereunder; provided that the mitigation provisions hereof shall not require a party to take any action with respect to any tax filing or claim, even if such filing or claim would likely result in a net tax benefit. To the extent permitted by applicable Law, all indemnity payments made pursuant to this Agreement shall be treated by the parties hereto as an adjustment to the Purchase Price.
11.2.    Exclusive Remedies. In the event the transactions contemplated by this Agreement are consummated, the indemnification provisions of this Section 11 shall be the sole and exclusive remedies of Buyer and Sellers for any breach of the representations or warranties or nonperformance of any covenants and agreements of Buyer or Sellers contained in this Agreement or any Related Agreement, and no party shall have any liability to any other party under any circumstances for special, indirect, consequential, punitive or exemplary damages or lost profits, diminution in value or any damages based on any type of multiple of earnings of any Indemnified Party; provided, that nothing contained in this Agreement shall relieve or limit the liability of a party from any liability or Losses arising out of or resulting from fraud or intentional breach in connection with the transactions contemplated in this Agreement or the Related Agreements.
SECTION 12 -    EXPENSES, NOTICES, MISCELLANEOUS

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12.1.    Any federal, state, or local sales or transfer tax arising in connection with the conveyance of the Purchased Assets by Sellers to Buyer pursuant to this Agreement shall be paid by the applicable Seller. The Buyer and the Sellers shall pay all FCC filing fees required by the FCC in connection with the applicable FCC Applications as set forth in Section 7.1(b) of this Agreement. Except as otherwise provided in this Agreement, each Seller and the Buyer shall be responsible for the payment of its own all legal, accounting, advisory and other fees and expenses incurred by it in connection with the negotiation, documentation and consummation of this Agreement.
12.2.    All notices, demands, and requests required or permitted to be given under the provisions of this Agreement shall be (a) in writing, (b) delivered by personal delivery, or sent by commercial delivery service or registered or certified mail, return receipt requested, (c) deemed to have been given on the date of personal delivery or the date set forth in the records of the delivery service or on the return receipt, and (d) addressed as follows:
If to Sellers, to:

c/o John N. Kyle II
1671 NW 144 Terrace, Suite 106
Sunrise, Florida  33323
E-mail: jkyle@bellsouth.net

With a copy to:
Mark B. Denbo, Esq.
Smithwick & Belendiuk, P.C.
5028 Wisconsin Avenue, N.W., Suite 301
Washington, D.C.  20016
E-mail: mdenbo@fccworld.com

If to Buyer, to:

450 Park Avenue, 30th Floor
New York, NY 10022
Attention:  Paul Robinson and Paul Voigt 

With a copy to:

Akerman LLP 
Three Brickell City Centre 
98 Southeast Seventh Street 
Suite 1100 
Miami, FL 33131 
Attention:  Carl D. Roston and Palash I. Pandya 
Fax:  (212) 880-8965 

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and

Hogan Lovells US LLP
555 13th Street, NW
Washington, DC 20004
Attention:  Trey Hanbury
Fax: 202-637-5910

or to any other or additional persons and addresses as the parties may from time to time designate in a writing delivered in accordance with this Section 12.2.
12.3.    No party may assign this Agreement without the prior written consent of the other parties. Upon any permitted assignment by Buyer or Sellers in accordance with this Section 12.3, all references to Buyer herein shall be deemed to be references to Buyer’s assignee and all references to a Seller herein shall be deemed to be references to such Seller's assignees, as the case may be. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.
12.4.    The parties shall take any reasonable actions and execute any other documents that may be necessary or desirable to the implementation and consummation of this Agreement, including, in the case of Sellers, any additional bills of sale, deeds, or other transfer documents that, in the reasonable opinion of Buyer, may be necessary to ensure, complete, and evidence the full and effective transfer of the Purchased Assets to Buyer pursuant to this Agreement.
12.5.    This Agreement shall be governed by and construed in accordance with the laws of the State of Florida applicable to contracts made and to be performed in the State of Florida and without regard to its choice of law principles.  Any action or proceeding arising out of or relating to this Agreement shall be brought in the state and federal courts located in Broward County, and each of the parties hereto or thereto irrevocably submits to the exclusive jurisdiction of each such court in any such action or proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims in respect of the action or proceeding shall be heard and determined only in any such court and agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  The parties hereto agree that any of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained agreement between the parties hereto and thereto irrevocably to waive any objections to venue or to convenience of forum.  Process in any action or proceeding referred to in this Section 12.5 may be served on any party hereto anywhere in the world.  
12.6.    EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS, SCHEDULES, AND APPENDICES ATTACHED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF THE OTHER 

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PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) IT HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) IT MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY, AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

12.7.    The headings in this Agreement are included for ease of reference only and shall not control or affect the meaning or construction of the provisions of this Agreement.
12.8.    Words used in this Agreement, regardless of the gender and number specifically used, shall be deemed and construed to include any other gender, masculine, feminine, or neuter, and any other number, singular or plural, as the context requires.
12.9.    This Agreement, the schedules, hereto, and all documents, certificates, and other documents to be delivered by the parties pursuant hereto, collectively represent the entire understanding and agreement between Buyer and Sellers with respect to the subject matter hereof. This Agreement supersedes all prior negotiations between the parties and cannot be amended, supplemented, or changed except by an agreement in writing that makes specific reference to this Agreement and which is signed by the party against which enforcement of any such amendment, supplement, or modification is sought.
12.10.    Except as otherwise provided in this Agreement, any failure of any of the parties to comply with any obligation, representation, warranty, covenant, agreement, or condition herein may be waived by the party entitled to the benefits thereof only by a written instrument signed by the party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, representation, warranty, covenant, agreement, or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. Whenever this Agreement requires or permits consent by or on behalf of any party, such consent shall be given in writing in a manner consistent with the requirements for a waiver of compliance as set forth in this Section 12.10. 
12.11.    This Agreement may be signed in counterparts with the same effect as if the signature on each counterpart were upon the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or e-mail shall be effective as delivery of a manually executed counterpart of this Agreement.
12.12.    To the fullest extent permitted by applicable law, each party waives compliance with any bulk sale or bulk transfer laws or similar laws, if applicable.
12.13.    The parties have participated jointly in the negotiation and drafting of this Agreement. In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by all parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

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IN WITNESS WHEREOF, the parties have duly executed this Asset Purchase Agreement as of the day and year first above written.
SELLERS:

King Forward, Inc.

By:    /s/ John Kyle II                
Name:  John Kyle II
Title:    President

Tiger Eye Broadcasting Corporation

By:    /s/ John Kyle II                
Name:  John Kyle II
Title:    President

Tiger Eye Licensing, L.L.C.

By:    /s/ John Kyle II                
Name:  John Kyle II
Title:    President

Bella Spectra Corporation

By:    /s/ Kristina Bruni                
Name:  Kristina Bruni
Title:    President

BUYER:

DTV Holding Inc.

By:    /s/ Michael J. Sena            
Name:  Michael J. Sena
Title:    Chief Financial Officer

36Exhibit

Exhibit 10.4
AMENDED AND RESTATED SECURED NOTE 

	
		
	US $2,000,000
	December 23, 2016

	 
	 

FOR VALUE RECEIVED, DTV America Corporation, a Delaware corporation (the “Borrower”), hereby unconditionally promises to pay to the order of Continental General Insurance Company, a Texas corporation (the “Lender”), or its assigns, the aggregate principal sum of Two Million Dollars ($2,000,000), together with interest on the unpaid principal balance of this Amended and Restated Secured Note (this “Note”) outstanding from time to time at a rate equal to fourteen percent (14%) (computed on the basis of the actual number of days elapsed in a 365-day year) per annum (the “Interest Rate”).
1.Definitions. Capitalized terms used herein shall have the meanings set forth in this Section 1.

		
	1.1
	“Affiliate” means as to any Person, any other Person that, directly or indirectly through one or more intermediaries, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly, either to (a) vote ten (10%) percent or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

		
	1.2
	"Asset Sale Notice" means a written notice given by the Borrower to the Lender of Borrower's intention to sell any or all of its assets including all terms and conditions of such sale (including without limitation, copies of any proposed agreements relating to such sale) with all net proceeds being delivered to the Lender and American Financial (as defined below).   

		
	1.3
	"Asset Sale Right of First Refusal" means the Lender's right of first refusal to purchase all of the assets that are the subject of an Asset Sale Notice pursuant to the delivery of a Purchase Notice within fifteen (15) Business Days of the Lender's receipt of a complete Asset Sale Notice so long as such purchase of assets is consummated by the Lender or its Affiliate within fifteen (15) Business Days of the receipt by the Borrower of the Purchase Notice. In no event shall the exercise by  the Lender of an Asset Sale Right of First Refusal be deemed to be the acceptance of any Collateral by the Lender in full or partial satisfaction of the Loan.

		
	1.4
	“Borrower” has the meaning set forth in the introductory paragraph.

		
	1.5
	“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by Law to close.

		
	1.6
	“Capital Lease” means any lease of personal property, the obligations with respect to which are required to be capitalized on a balance sheet of the lessee in accordance with GAAP.

		
	1.7
	“Capital Lease Obligations” means the obligations of lessee relating to a Capital Lease determined in accordance with GAAP.

		
	1.8
	“Collateral” means all assets and property of the Borrower now owned or at any time hereafter acquired or in which the Borrower now has or at any time in the future may acquire any right, title or interests, wherever located, including, but not limited to:

(a)    all accounts, chattel paper, deposit accounts, documents, equipment, general intangibles, payment intangibles, software, commercial tort claims, instruments, inventory, investment 

property, letter of credit rights, letters of credit, money and any supporting obligations related to any of the foregoing (each as defined in the Uniform Commercial Code of the State of New York (“UCC”)), provided, however Collateral does not include licenses with or regulated by the Federal Communications Commission to the extent a security interest in such licenses would violate applicable Law (for the avoidance of doubt, Collateral does include the proceeds derived from such licenses and their sale, lease, assignment or transfer).
(b)    all books and records pertaining to the property described in this Section 1.8.
(c)    all other goods (including but not limited to fixtures) and personal property of the Borrower, whether tangible or intangible and wherever located. 
(d)    all Intellectual Property. 
(e)    to the extent not otherwise included, all proceeds and products of the foregoing in whatever form, including, without limitation any insurance, indemnity, warranty or guaranty payable with respect to any Collateral, any awards or payments due or payable in connection with any condemnation, requisition, confiscation, seizure or forfeiture of any Collateral by any person acting under governmental authority or color thereof, and any damages or other amounts payable to Borrower in connection with any lawsuit regarding any of the Collateral. The proceeds of any sale of the Collateral pursuant to an exercised Asset Sale Right of First Refusal, or otherwise, are Collateral.  
		
	1.9
	“Copyright” means all domestic and foreign copyrights, whether registered or not or the subject of a pending application, owned by the Borrower, all applications, registrations and recordings thereof, and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof.

		
	1.10
	“Default” means any of the events specified in Section 9 which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both pursuant to Section 9 would, unless cured or waived, become an Event of Default.

		
	1.11
	“Default Rate” means, at any time, the lesser of 18% per annum or the highest rate permitted by Law.

		
	1.12
	“Event of Default” has the meaning set forth in Section 9.

		
	1.13
	“Financing” means a loan by Lender (or its Affiliates), in its sole discretion, of up to the maximum  amount permitted under Section 4.11 of that certain Securities Purchase Agreement dated as of July 15, 2015 between the Borrower and purchasers party thereto, but not less than $4,000,000 which shall (i) be fully secured by all of the assets of the Borrower, (ii) mature three (3) years from the closing date of such loan, subject to acceleration upon an event of default, (iii) bear interest at the rate of 14% per annum but allowing for PIK payment of interest of 4% per annum thereof, payable annually, (iv) be pari passu in payment and all other rights with this Note and the American Financial Notes (as defined below) and (v) may also contain, among other customary terms and conditions, leverage, fixed charge coverage and minimum liquidity covenants.

		
	1.14
	“GAAP” means generally accepted accounting principles in effect in the United States of America applied on a consistent basis.

		
	1.15
	“Governmental Authority” means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

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	1.16
	“Indemnified Person” has the meaning set forth in Section 11.1.

		
	1.17
	“Intellectual Property” means all intangible assets, intellectual property, Copyrights, Trademarks, and Patents. 

		
	1.18
	“Interest Rate” has the meaning set forth in the introductory paragraph.

		
	1.19
	“Interest Payment Date” means June 30, 2017.

		
	1.20
	“Law” as to any Person, means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties is subject. 

		
	1.21
	“Lender” has the meaning set forth in the introductory paragraph.

		
	1.22
	“Lien” means any mortgage, pledge, hypothecation, encumbrance, lien (statutory or other), charge or other security interest.

		
	1.23
	“Loan” means the principal amount outstanding under this Note together with accrued interest thereon.

		
	1.24
	“Maturity Date” means the earlier of (a) December 22, 2017, and (b) the date on which all amounts under this Note shall become due and payable.

		
	1.25
	“Note” has the meaning set forth in the introductory paragraph.

		
	1.26
	“Operating Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than ten (10) Business Days prior to the delivery thereof, certificate of incorporation, bylaws, or similar governing agreement with all current amendments or modifications thereto.

		
	1.27
	“Parties” means the Lender and the Borrower.

		
	1.28
	“Patents” means all domestic and foreign letters patent, design patents, utility patents, industrial designs, inventions, trade secrets, and other general intangibles of like nature, whether now existing or hereafter acquired, all applications, registrations and recordings thereof, and all reissues, divisions, continuations, continuations in part and extensions or renewals thereof, in each case, to the extent owned by the Borrower.

		
	1.29
	“Person” means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, Governmental Authority or other entity.

		
	1.30
	“Permitted Liens” means (i) the security interest granted to the Lender pursuant to this Note, (ii) liens of lessors, lessees, sublessors, sublessees, licensors or licensees arising under real estate lease or license arrangements entered into in the ordinary course of business of the Borrower, (iii) inchoate mechanics and similar liens for labor, materials or supplies, (iv) rights existing under Capital Lease Obligations of Six Hundred Thirty Two Thousand Two Dollars ($632,002) as of March 31, 2017, (v) liens under Capital Lease Obligations to the extent permitted under Section 8.2(c) hereof, provided, that (1) any such lien attaches to such property concurrently with the acquisition thereof and (2) such lien attaches solely to the property so acquired in such transaction, (vi) liens pursuant to the (a) Secured Note dated June 27, 2017 between the Borrower and Great American Life Insurance Company  ("GALIC") and (b) Secured Note dated June 27, 2017 between the Borrower and Great American Insurance Company  ("GAIC";  GAIC and GALIC collectively "American Financial")  and (vii) liens pursuant to the Financing. The Secured Notes in favor of 

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American Financial described in this Section 1.30 are herein called the  "American Financial Notes". 
		
	1.31
	“Permitted Indebtedness” means indebtedness of the Borrower or its subsidiaries incurred on or after the date of this Note consisting of (i) subject to Section 6 hereof, Capital Leases with a Person that is not an Affiliate of the Borrower on an arm's length basis, provided, that the total amount of such indebtedness shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000) in the aggregate on terms no more expensive than the terms of this Note, (ii) subject to Section 6 hereof, to the extent the Borrower is subject to a legal suit, action or proceeding against the Borrower related to or arising out of proposed transactions by the Lender and/or its Affiliates (other than this Note) with the Borrower and/or its Affiliates or stockholders, up to One Million Dollars ($1,000,000) in the aggregate, unsecured, with a Person that is not an Affiliate of the Borrower on an arm's length basis, on terms no more expensive than the terms of this Note, (iii) the debt evidenced by the American Financial Notes, and (iv) the Financing.  

		
	1.32
	“PIK Interest” means four percent (4%) per annum of the fourteen percent (14%) per annum constituting the Interest Rate.

		
	1.33
	"Purchase Notice" means a written notice given by the Lender or its Affiliate to the Borrower of Lender's exercise of its Asset Sale Right of First Refusal.

		
	1.34
	“Trademarks” means all domestic and foreign trademarks, service marks, collective marks, certification marks, trade names, business names, d/b/a’s, internet domain names, trade styles, designs, logos and other source or business identifiers and all general intangibles of like nature, which are the subject of a pending application, or now or hereafter owned, by the Borrower, all applications, registrations and recordings thereof, and all reissues, extensions or renewals thereof, together with all goodwill of the business symbolized thereby.

2.    Disbursement Mechanics; Conditions to Disbursement.

2.1    Disbursement. $1,000,000 of the principal amount of the Loan was disbursed on the date of this Note and the balance (also $1,000,000) was disbursed on June 27, 2017 (the "June Disbursement"). Borrower shall not have the right to redraw any amount repaid hereunder.

2.2    Conditions to Disbursement. Lender's obligation to make the June Disbursement is subject to the condition precedent that Lender shall have received, in form and substance satisfactory to Lender, such documents, and the completion of such other matters, as Lender may reasonably deem necessary or appropriate, including, without limitation:

(a)    this Note duly executed.

(b)    the Operating Documents and a long-form good standing certificate of Borrower certified by the Secretary of State of the State of Delaware as of a date no earlier than ten (10) Business Days prior to the June Disbursement, together with duly executed board of directors borrowing resolutions for Borrower in form and substances acceptable to Lender in its sole discretion, certified to Lender by the Secretary or another executive officer of Borrower.  After disbursement, the Borrower shall use its best efforts to obtain long-form good standing certificates of Borrower certified by the Secretary of State of each jurisdiction in which Borrower is, or is required to be, qualified to conduct business. 

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3.    Interest.

		
	3.1
	Interest Rate. Except as otherwise provided herein, the outstanding amount of the Loan shall bear interest at the Interest Rate from the date it was disbursed until the Loan is paid in full, whether at maturity, upon acceleration, or otherwise.

		
	3.2
	Interest Payment.  Interest shall be due and payable as set forth in Section 3.3 on the Interest Payment Date and the balance on the Maturity Date and, in the case of the Maturity Date, including all PIK Interest not added to the principal amount of the Loan.  All interest that may accrue after the Maturity Date shall be payable on demand.

		
	3.3
	PIK Interest.  PIK Interest shall be payable on the Interest Payment Date in kind by increasing the outstanding principal amount of the Loan by the amount of the PIK Interest on the Interest Payment Date.  Any interest so added to the principal amount of the Loan shall bear interest at the Interest Rate from the date on which such interest has been so added.  The obligation of the Borrower to pay PIK Interest shall be automatically evidenced by this Note.  Unless the context otherwise requires, for all purposes hereof, references to "principal amount" of the Loan, "principal amount" outstanding under this Note, "principal amount" of this Note or "principal" refers to the face amount of the Loan and includes any PIK Interest added to the principal amount of the Loan from the date on which such interest has been so added.  

		
	3.4
	Default Interest. If any amount payable hereunder (including, without limitation, interest and principal) is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such overdue amount shall bear interest at the Default Rate from the date of such non-payment until such amount is paid in full.

		
	3.5
	Computation of Interest. All computations of interest shall be made on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed. Interest shall accrue on the date hereof, and shall not accrue on the day on which the Loan is paid.

		
	3.6
	Interest Rate Limitation. In no event whatsoever shall the amount of interest charged, taken or received hereunder exceed the maximum amount permitted by Law.  If at any time and for any reason whatsoever, the interest rate payable under this Note shall exceed the maximum rate of interest permitted to be charged by the Lender to the Borrower under applicable Law, such interest rate shall be reduced automatically to the maximum rate of interest permitted to be charged under applicable Law, and that portion of each sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest permitted by applicable Law shall be deemed a voluntary prepayment of principal.

4.    Final Payment Date; Prepayment.

		
	4.1
	Final Payment Date. The aggregate of the unpaid principal, all accrued and unpaid interest, and all other amounts payable, but unpaid, under this Note shall be due and payable on the Maturity Date.

		
	4.2
	Prepayment.  Unless and until the Financing is consummated and/or in connection with the consummation of the Financing, this Note may be voluntarily prepaid by the Borrower in whole or in part at any time without penalty.  If and after the Financing is consummated, this Note may not be voluntarily prepaid by the Borrower in whole or in part at any time.  

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5.    Payment Mechanics.

		
	5.1
	Manner of Payments. Subject to Section 3.3, all payments of interest and principal shall be made in lawful money of the United States of America on the date on which such payment is due by cashier’s check or wire transfer of immediately available funds to the Lender's account at a bank specified by the Lender in writing to the Borrower from time to time.

		
	5.2
	Application of Payments. All payments made hereunder shall be applied first to the payment of any fees or charges outstanding hereunder, second to accrued but unpaid interest, and third to the payment of the principal amount outstanding under this Note.

		
	5.3
	Business Day Convention. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under this Note.

		
	5.4
	Rescission of Payments. If at any time any payment made by the Borrower under this Note is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, the Borrower’s obligation to make such payment shall be reinstated as though such payment had not been made. 

6.    Right of First Refusal.  In the event Borrower intends to incur indebtedness pursuant to Section 1.31(i) and Section 1.31(ii) hereof, (a) the Lender shall have a right of first refusal to fund such future indebtedness, (b) the Borrower shall provide notice of such indebtedness to the Lender which shall include all terms and conditions of such indebtedness, including without limitation, copies of any proposed agreements relating to such indebtedness, at least fifteen (15) calendar days prior to the consummation of such indebtedness and (c) the Lender shall give written notice of its agreement to fund such indebtedness within fifteen (15) calendar days of written notice from Borrower to the Lender that it intends to incur such indebtedness, and (d) if such notice is not provided by the Lender in accordance with Section 6(c) hereof, such indebtedness may be consummated by the Borrower with a third party other than Lender. 
7.    Security Interest. 
7.1    Grant. The Borrower, as collateral security for the prompt and complete payment and performance when due of the obligations of the Borrower hereunder, whether now existing or hereafter incurred, matured or unmatured, direct or indirect, primary or secondary, related or unrelated or due or to become due, hereby grants to the Lender a lien on and security interest in all of Borrower's right, title and interest in, to and under the Collateral.  
7.2    Filings. The Borrower hereby authorizes the Lender to file, in any filing office as “Secured Party”, (a) financing statements, amendments to financing statements, and continuations thereof without the Borrower’s signature in accordance with the UCC and (b) financing statements and amendments to financing statements describing the Collateral as Lender determines in its sole discretion, including financing statements listing “All Assets” in the collateral description therein.
7.3    Further Assurances; Expenses. The Borrower shall take all action requested by the Lender that may be necessary or desirable to establish and maintain the validity, perfection, enforceability, priority, and continuation of the Lender's security interest in and lien on the Collateral under applicable Law, including, without limitation, (a) executing and delivering any and all financing statements, continuation statements, mortgages, control agreements, pledge agreements, notices, conveyances, certificates, deeds, vehicle titles, 

6

or other papers, in form and substance acceptable to the Lender, which the Lender may deem necessary or desirable to create, perfect, preserve, validate, or otherwise protect the Lender's security interest in the Collateral or to enable the Lender to exercise and enforce the Lender's rights under this Note, (b) immediately discharging all Liens other than as granted under this Note or as Permitted Liens, and (c) delivering to the Lender, endorsed or accompanied by such instruments of assignment as the Lender may specify, and stamping or marking, in such manner as the Lender may specify, any and all chattel paper, instruments, letters of credits, and documents evidencing or forming a part of the Collateral. All reasonable charges, expenses and fees that the Lender may incur in connection with any of the foregoing shall be paid by the Borrower or added to the principal amount borrowed under this Note. Upon payment in full to Lender by Borrower of all of the outstanding obligations of Borrower under this Note, Lender shall take all action and execute and deliver all documents to immediately discharge and release all Liens granted under this Note. 

8.    Covenants and Representations and Warranties. 
8.1    Affirmative Covenants. The Borrower covenants and agrees that it shall:

(a)    pay promptly, when due, all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Borrower’s personal property, equipment and inventory, except to the extent the validity thereof is being contested in good faith by proper proceedings which stay the imposition of any penalty, fine or lien resulting from the non-payment thereof and with respect to which adequate reserves in accordance with GAAP, have been set aside for the payment thereof.
(b)    at its own expense, maintain insurance (including, without limitation, comprehensive general liability and property insurance) with respect to the real and personal property of the Borrower in such amounts, against such risks, in such form and with responsible and reputable insurance companies or associations as is required by any Governmental Authority, contracts to which the Borrower is a party, or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated. Each such policy shall name the Lender as additional insured or a loss payee and provide for at least thirty (30) days' prior written notice of cancellation, lapse, expiration or other adverse change to the Lender. 
(c)    comply with all agreements with the Lender and any of Lender's Affiliates.
(d)    comply with all applicable Laws in all material respects.
(e)    pay all obligations as they become due.
(f)    furnish to the Lender, as soon as available and in any event within (i) thirty (30) days after the end of each month, copies of the unaudited consolidated balance sheet of Borrower as of the end of such monthly accounting period, and the related consolidated statements of income and retained earnings and cash flows for such accounting period and for the portion of the fiscal year then ended, all in reasonable detail and from time to time, such other information or documents (financial or otherwise) as the Lender may reasonably request, and (ii) ninety (90) days after the end of its fiscal year, its financial statements as audited by a firm of regional or national standing.
(g)    permit Lender access to the Collateral and otherwise provide such information as Lender shall reasonably request.

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(h)    use the proceeds of the June Disbursement solely for the purposes set forth on Schedule 8.1(h) hereto. 
(i)    furnish or cause to be furnished to the Lender on or before 12:00 p.m. Eastern time on the Monday of every week, the information in the form set forth on Schedule 8.1(i) hereto.  
(j)    provide evidence in a form satisfactory to the Lender in its sole discretion that (1) the operating Quick Base database and server containing the Customer Relationship Management ("CRM") system (the "Server") developed and maintained by Bella Spectra Corporation (the "Transferor") be made fully available to the Borrower, who will have access to all of the data and use of the operating software, and which such CRM system shall include all of the data related to the Borrower's operating stations, licenses and construction permits, network programming arrangements, market demographics as well as historical information relating to station moves, capital expenditures and filing history with the FCC and (2) the CRM system, the data and the fully operating software that resides on the Server will be  transferred to the Borrower by the Transferor free and clear of all claims, liens and encumbrances by July 31, 2017 (the "Transfer Date").
(k)    following the Transfer Date, the Borrower will promptly cause all future Data to be the sole property of the Borrower free and clear of all claims, liens and encumbrances, such future Data shall not reside on the Server or any server or computer owned by the Transferor, John Kyle or their respective Affiliates and the Transferor, John Kyle or their respective Affiliates shall not retain any copy or reproduction of the Data and the future Data in any form or manner provided that the Transferor may be provided a license revocable at will by the Borrower or, after an Event of Default, by the Lender, which revocation shall be without fee, payment, penalty or obligation on the part of the Borrower or Lender. 
8.2    Restrictions. The Borrower covenants and agrees that it shall not without the prior written consent of the Lender:

(a)    permit any other Lien of any kind to attach to or be imposed upon any of the Collateral except for Permitted Liens. 
(b)    change its legal name, form of legal entity, or jurisdiction of organization.  
(c)    incur any indebtedness, including, without limitation, for borrowed money or purchase money indebtedness, except for Permitted Indebtedness.
(d)    guaranty any obligations of any third party.
(e)    own, hold or acquire any equity interest in any other entity, other than subsidiaries of the Borrower set forth on Schedule 8.2(e) hereto.
(f)    make or pay or declare any dividends, return any capital, or make any other payment of cash or distribution of property to its stockholders.
(g)    except as provided in Section 4.2, make any prepayment of any indebtedness of the Borrower other than as set forth in Section 1 on Schedule 8.1(h) hereto.
(h)    operate outside the ordinary course of business consistent with past practice.
(i)    directly or indirectly enter into or permit to exist any transaction, contract or agreement of any kind with any officer, director, Affiliate or holder of any shares of the outstanding capital stock or 

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options, warrants or other convertible securities of Borrower, except in connection with (1) the Financing, (2) the potential purchase of shares of the Borrower from the stockholders of the Borrower by an Affiliate of the Lender (a "Stock Acquisition"), (3) the potential purchase of any FCC Licenses (as defined below) by the Borrower or the Lender or its Affiliates from King Forward Inc., Tiger Eye Broadcasting Corporation, Tiger Eye Licensing L.L.C. and Bella Spectra Corporation (the "License Purchase"), (4) as set forth on Schedule 8.2(i) hereto, (5) following a Stock Acquisition pursuant to the Securities Purchase Agreement dated as of June 27, 2017 among an Affiliate of the Lender and the signatories party thereto, the potential sale of shares of the Borrower to the stockholders of the Borrower by the Borrower or (6) the Time Brokerage Agreement dated as of April 1, 2017 by and between King Forward, Inc. and the Borrower.
(j)    permit or cause the sale of any assets of the Borrower or its subsidiaries, except as set forth on Schedule 8.2(j) hereto; provided, however, (a) in the event that the Financing does not occur prior September 1, 2017 and (b) the Borrower has provided Lender with an Asset Sale Notice and the Lender has not timely exercised the related Asset Sale Right of First Refusal, then, at any time thereafter, if no Event of Default has occurred and is then continuing, the Borrower may enter into a sale of assets of the Borrower or its subsidiaries (not the subject of an exercised Asset Sale Right of First Refusal) at such price, and pursuant to such conditions, as set forth in the Asset Sale Notice and as may be reasonably acceptable to the Lender (including the determination of the net proceeds and delivery of all net proceeds to the Lender and American Financial) provided the closing of any such sale shall not occur prior to October 31, 2017. If Lender does not timely exercise its Asset Sale Right of First Refusal, and Borrower fails to close its sale of the assets that are subject to an Asset Sale Notice within ninety (90) days of the Asset Sale Notice, then Borrower must deliver another Asset Sale Notice before it can sell such assets. In no event shall compliance or non-compliance with this Section extend the Maturity Date.
(k)    sell, transfer, lease, change the registration, if any, dispose of, attempt to dispose of, modify, amend or abandon the Collateral, including, without limitation, licenses and permits with, or issued or regulated by, the Federal Communications Commission or equivalent state agency (the "FCC Licenses") except to the extent mandated by the FCC pursuant to a consent decree, agreement or order entered into in connection with any FCC violations that may be pending before the FCC at the time of the May Disbursement; provided, however, (a) in the event that the Financing does not occur prior to September 1, 2017 and (b) the Borrower has provided Lender with an Asset Sale Notice and the Lender has not timely exercised the related Asset Sale Right of First Refusal, then, at any time thereafter, if no Event of Default has occurred and is then continuing, the Borrower may enter into a sale of assets of the Borrower or its subsidiaries (not the subject of an exercised Asset Sale Right of First Refusal) at such price, and pursuant to such conditions, as set forth in the Asset Sale Notice  and as may be reasonably acceptable to the Lender (including the determination of the net proceeds and delivery of all net proceeds to the Lender and American Financial) provided the closing of any such sale shall not occur prior to the October 31, 2017. If Lender does not timely exercise its Asset Sale Right of First Refusal, and Borrower fails to close its sale of the assets that are subject to an Asset Sale Notice within ninety (90) days of the Asset Sale Notice, then Borrower must deliver another Asset Sale Notice before it can sell such assets. In no event shall compliance or non-compliance with this Section extend the Maturity Date. 
(l)    in any single transaction or series of transactions, directly or indirectly (1) wind up its affairs, liquidate or dissolve, (2) be a party to any merger or consolidation, (3) change its corporate structure, (4) except as set forth on Schedule 8.1(h) hereto, purchase or otherwise acquire, directly or indirectly, (A) all or substantially all of the assets of any person, or any shares of stock of, or similar interest in, any other Person other than the License Purchase or (B) any FCC Licenses.
(m)    except as set forth on Schedule 8.1(h) hereto, make any expenditure for fixed or capital assets.

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8.3         Representations and Warranties.  As an inducement for the transactions in connection with this Note, Borrower shall cause the following representations and warranties to be true until the indebtedness under this Note is discharged in full:
(a)    Borrower is a corporation, duly organized, validly existing and in good standing under the Laws of Delaware and has the power and authority to own its property and to carry on its business in each jurisdiction in which Borrower does business except as set forth in Schedule 8.3(a) hereto.
(b)     Borrower has full power and authority to execute and deliver this Note and to incur and perform the obligations provided for herein, all of which have been duly authorized by all proper and necessary action of the appropriate governing body of Borrower. No consent or approval of any public authority or other third party is required as a condition to the validity of this Note, and Borrower is in compliance with all Laws and regulatory requirements to which it is subject.
(c)    This Note constitutes the valid and legally binding obligation of Borrower, enforceable against Borrower in accordance with its terms.
(d)    Except as disclosed to Lender in writing and acknowledged by Lender prior to the date of this Note as set forth on Schedule 8.3(d) hereto, (1) there is no action, claim, notice of violation, order to show cause, complaint, investigation, or proceeding involving Borrower pending or, to the knowledge of Borrower, threatened before any court or Governmental Authority, agency or arbitration authority or (2) there is no outstanding decree, decision, judgment, or order that has been issued by any court, Governmental Authority, agency or arbitration authority against the Borrower or its FCC Licenses. 
(e)    There is no charter, bylaw, stock provision, partnership agreement or other document pertaining to the organization, power or authority of Borrower and no provision of any existing agreement, mortgage, indenture or contract binding on Borrower or affecting its property, which would conflict with or in any way prevent the execution, delivery or carrying out of the terms of this Note.
(f)    Except as set forth in Section 1 of Schedule 9, all taxes and assessments due and payable by Borrower have been paid or are being contested in good faith by appropriate proceedings and the Borrower has filed all tax returns which it is required to file.
(g)    The financial statements of Borrower heretofore delivered to Lender have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved and fairly present Borrower’s financial condition as of the date or dates thereof or for the periods covered thereby, and there has been no material adverse change in Borrower’s financial condition or operations since March 31, 2017, except as reflected in documents delivered to Lender prior to the date hereof as set forth on Schedule 8.3(g) hereto.  All factual information furnished by Borrower to Lender in connection with this Note is and will be accurate and complete on the date as of which such information is delivered to Lender and is not and will not be incomplete by the omission of any material fact necessary to make such information not misleading.
(h)    Borrower’s chief executive office is located at its address for notice herein.
(i)    On the date of this Agreement, the capitalization of the Borrower is as set forth on Schedule 8.3(i), which Schedule 8.3(i) shall also include the number of shares of common stock owned beneficially, and of record, by Affiliates of the Borrower as of the date hereof. No Person has any right of first refusal, preemptive right, right of participation, or any similar right in respect of the capital stock of the Borrower or any subsidiary of Borrower except as set forth in the certain Securities Purchase Agreement dated as of July 15, 2015 between the Borrower and purchasers party thereto. Except as set forth on Schedule 8.3(i), 

10

there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of common stock, or contracts, commitments, understandings or arrangements by which the Borrower or any of its subsidiaries is or may become bound to issue additional shares of common stock or Common Stock Equivalents (as defined below). All of the outstanding shares of capital stock of the Borrower are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth on Schedule 8.3(i), there are no stockholders agreements, voting agreements or other similar agreements with respect to the Borrower’s capital stock to which the Borrower is a party or, to the knowledge of the Borrower, between or among any of the Borrower’s stockholders. No Person has any right to cause the Borrower to effect the registration under the Securities Act of any securities of the Borrower or any of its subsidiaries. "Common Stock Equivalents" means any securities of the Borrower or its subsidiaries which would entitle the holder thereof to acquire at any time common stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, common stock.
9.    Events of Default. Except as set forth on Schedule 9 hereto, the occurrence of any of the following shall constitute an Event of Default hereunder:

		
	9.1
	Failure to Pay. The Borrower fails to pay any principal amount of or interest on the Loan when due.

		
	9.2
	Breach of Covenants. Except for matters addressed in Sections 9.1, 9.3, 9.4, 9.5, 9.6 or 9.7 hereof, the Borrower fails to observe or perform any covenant, condition or agreement contained in this Note, or any other agreement with Lender, and such failure continues for thirty (30) days after the Lender provides written notice to the Borrower of such failure.

		
	9.3
	Bankruptcy. The Borrower files a petition in bankruptcy or under any similar insolvency Law, makes of an assignment for the benefit of creditors, if any petition in bankruptcy or under any similar insolvency Law is filed against the Borrower and such petition is not dismissed within thirty (30) days after the filing thereof, or the Borrower is generally not, or shall be unable to, or admits in writing its inability to, pay its debts as they become due.

		
	9.4
	Judgments. One or more judgments, orders, decisions or decrees shall be entered against the Borrower and all of such judgments, orders, decisions or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within thirty (30) days from the entry thereof.

		
	9.5
	Cross-Default. Any default, breach or violation of any material obligation of the Borrower’s Chief Executive Officer to the Borrower, any default, breach or violation of any obligation of the Borrower under the Financing or otherwise to the Lender, or any "Event of Default" as provided in the American Financial Notes.

		
	9.6
	Financial Covenants and Restrictive Covenants.  The Borrower fails to observe or perform any covenant, condition or agreement set forth on Schedule 9.6 hereto or in Section 8.2 hereof.

		
	9.7
	FCC Licenses.  Either (a) the termination, suspension, cancellation or nonrenewal of any of  Borrower's FCC Licenses or the imposition of any penalty or fine by any Governmental Authority other than those terminations and fine anticipated from the FCC, and disclosed in writing to the Lender, prior to the June Disbursement or (b) the FCC consent decree, agreement or order contemplated as of the June Disbursement with regard to the Borrower, and related change of 

11

control application, is not issued and/or granted by the FCC at least 45 days prior to the Maturity Date.
		
	9.8
	Insurance.  With respect to item 2 on Schedule 9 hereto, the Borrower fails to use its best efforts to obtain business interruption insurance and property insurance with responsible and reputable insurance companies on or prior to September 30, 2017.

		
	9.9
	Taxes.    With respect to items 1,3,7 and 9 on Schedule 9 hereto, the Borrower fails to use its best efforts to determine, assess, address, qualify and pay past due taxes, penalties and assessments and file tax returns on or prior to October 31, 2017.   

10.    Remedies. 
10.1    Remedies. Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of Default, the Lender may at its option, (a) declare the entire principal amount of this Note, together with all accrued interest thereon and all other amounts payable hereunder, immediately due and payable, and/or (b) exercise any or all of its rights, powers or remedies under applicable Law, including, without limitation, the rights of a secured party under the UCC; provided, however that, if an Event of Default described in Section 9.3 shall occur, the principal of and accrued interest on the Loan shall become immediately due and payable without any notice, declaration or other act on the part of the Lender. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Lender on which Borrower is liable.
10.2    Other Rights. In addition to all other rights, options and remedies granted to the Lender under this Note (each of which is also then exercisable by the Lender), the Lender may, upon the occurrence of an Event of Default, exercise any other rights granted to the Lender under the UCC and any other applicable Law, including, without limitation, each and all of the following rights and remedies:
(a)    the right to take possession of, send notices, and collect directly the Collateral, with or without judicial process (including, without limitation the right to notify the United States postal authority to redirect all mail addressed to the Borrower to an address designated by the Lender). 
(b)    by Lender's own means or with judicial assistance, enter the Borrower’s premises and take possession of the Collateral, or render it unusable, or dispose of the Collateral on such premises without any liability for rent, storage, utilities or other sums, and the Borrower shall not resist or interfere with such action. 

(c)    require the Borrower at its expense to assemble all or any part of the Collateral and make it available to the Lender at any place designated by the Lender. 
10.3    Notice of Sale; Non-Interference. The Borrower hereby agrees that a notice received by it at least ten (10) days before the time of any intended public sale or of the time after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable notice of such sale or other disposition. The Borrower covenants and agrees not to interfere with or impose any obstacle to the Lender's exercise of its rights and remedies with respect to the Collateral after the occurrence of an Event of Default hereunder. 
10.4    No Obligation. The Lender shall have no obligation to prepare the Collateral for sale, including repair of damaged Collateral or completion of work in progress into finished goods for disposition. 

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10.5    Other Provisions. If the Lender sells any of the Collateral upon credit, the Borrower will only be credited with payments actually made by the purchaser thereof that are received by the Lender. The Lender may, in connection with any sale of the Collateral, specifically disclaim any warranties of title, possession, quiet enjoyment or the like. In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Lender is legally entitled, the Borrower shall be liable for the deficiency, together with interest thereon at the highest rate allowed by applicable Law for interest on overdue principal thereof or such other rate as shall be fixed by applicable Law, together with the costs of collection and the reasonable fees, costs, expenses and other charges of any attorneys employed by the Lender to collect such deficiency.
10.6    Order; Remedies Cumulative. The Lender shall have the right to proceed against all or any portion of the Collateral in any order. All rights and remedies granted the Lender hereunder and under any agreement referred to herein, or otherwise available at law or in equity, shall be deemed concurrent and cumulative, and not alternative remedies, and the Lender may proceed with any number of remedies at the same time until all obligations under this Note are satisfied in full.
10.7    No Duties. The powers conferred on the Lender in this Section 10 are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Lender shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral.
11.    Indemnification.
11.1    Generally. The Borrower hereby agrees to indemnify and hold harmless the Lender and its Affiliates, and each of their respective direct and indirect directors, managers, officers, members, beneficiaries, partners, employees, agents, advisors, representatives, attorneys, successors and assigns (each an “Indemnified Person”) to the fullest extent permitted by Law, against all expenses, liabilities and losses (including, but not limited to, attorney fees, judgments, fines, fees, excise taxes or penalties) incurred or suffered by such Person (or one or more of such Person’s Affiliates) by reason of the fact that such Person is a lender to or equityholder of the Borrower (or an Affiliate thereof) or in connection with, arising under, resulting from, or relating to this Note or the Loan, the use of proceeds of the Loan by the Borrower or its subsidiaries, or the Borrower’s obligations hereunder, including, without limitation, claims of third parties. Expenses, including attorneys’ fees and expenses, incurred by any such Indemnified Person in defending a proceeding shall be paid by the Borrower in advance of the final disposition of such proceeding, including any appeal therefrom, upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that such Indemnified Person is not entitled to be indemnified by the Borrower. The right to indemnification and the advancement of expenses conferred in this Section 11.1 shall survive payment in full of this Note and shall not be exclusive of any other right which the Lender may have or hereafter acquire under any statute, agreement, Law, or otherwise. 
11.2    Savings Clause. If this Section 11 or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Borrower shall nevertheless indemnify and hold harmless each Indemnified Person pursuant to this Section 11 to the fullest extent permitted by any applicable portion of this Section 11 that shall not have been invalidated and to the fullest extent permitted by applicable Law.

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12.    Miscellaneous.

		
	12.1
	Notices. 

(a)    All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing and shall be given by personal delivery or nationally recognized overnight courier, in each case to the address specified below or to such other address as such Party may from time to time specify in writing in compliance with this provision:
		
	(i)
	If to the Borrower:

DTV America Corporation
13450 West Sunrise Blvd, Ste 164
Sunrise, FL 33323 
Attn: John Kyle and Paul DeStefanis
		
	(ii)
	If to the Lender:

c/o HC2 Holdings, Inc.
450 Park Avenue, 30th Floor 
New York, New York 10022 
Attn: Paul Robinson, Paul Voigt, David Watters
  and
                                         Continental General Insurance Company 
                                         11001 Lakeline Blvd., Suite 120 
                                         Austin, TX  78717 
                                         Attn:  Janet Ward     

(b)    Notices are deemed received (i) when delivered, if personally delivered, (ii) on the next Business Day after tender for delivery if delivered by reputable overnight courier service.
		
	12.2
	Governing Law. This Note and any claim, controversy, dispute or cause of action based upon, arising out of or relating to this Note and the transactions contemplated hereby shall be governed by the Laws of the State of New York, without regard to conflicts of law principles which would cause the application of the Laws of any other jurisdiction other than the State of New York.

		
	12.3
	Submission to Jurisdiction. The Borrower hereby irrevocably and unconditionally (i) agrees that any legal action, suit or proceeding arising out of or relating to this Note may be brought in the state and federal courts located in the State of New York, County of New York, Borough of Manhattan and (ii) submits to the jurisdiction of any such court in any such action, suit or proceeding. Final judgment against the Borrower in any action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment. Nothing in this Section 12.3 shall affect the right of the Lender to (i) commence legal proceedings or otherwise sue the Borrower in any other court having jurisdiction over the Borrower or (ii) serve process upon the Borrower in any manner authorized by the Laws of any such jurisdiction. 

		
	12.4
	Venue. The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note in any court referred to in Section 12.3 and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

14

		
	12.5
	Waiver of Jury Trial. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY. 

		
	12.6
	Counterparts; Integration; Effectiveness. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single instrument. This Note constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all previous agreements and understandings, oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Note.

		
	12.7
	Costs. The Borrower agrees to pay to the Lender the costs and expenses incurred by the Lender, including legal fees, in connection with (a) preparation, negotiation, and execution of this Note and any other documents executed in connection herewith, (b) the transactions contemplated by this Note, including, but not limited to amendments to this Note, and any other document executed in connection herewith, (c) monitoring Lender's rights with respect to the obligations under this Note and, if applicable, Lender's investment in the Borrower, (d) enforcement or collection of this Note or any rights hereunder, in each case, including reasonable attorneys’ fees, expenses, and court costs through all appellate proceedings and (e) all other transactions, including financing and the tender offer, contemplated by that certain Confidential Non-Binding Term Sheet dated November 15, 2016 regardless of whether all or any part of said term sheet has expired or been terminated. Notwithstanding the foregoing, if FCC Approval (as defined in the Securities Purchase Agreement (the "SPA") dated as of June 27, 2017 among an affiliate of the Lender and the signatories party thereto), is obtained and the Purchaser (as defined in the SPA) fails to consummate the transactions contemplated by the SPA, which will result in affiliates of the Lender owning greater than 50% of the outstanding shares of the Borrower following the consummation of the transactions contemplated by the SPA, other than because of a material adverse effect on the business, properties, assets, financial (and other) condition or results, of operations of the Borrower or due to the failure of a Seller (as defined in the SPA) to perform his, her or its obligations under the SPA, then the Borrower and the Lender shall each be responsible for 50% of the amounts due under Section 12.7(e) of this Note.

		
	12.8
	Successors and Assigns; Participation.  

(a)  This Note may be assigned or transferred by the Lender to any Person. The Borrower may not assign or transfer this Note or any of its rights hereunder without the prior written consent of the Lender. This Note shall inure to the benefit of, and be binding upon, the Borrower and the Lender's assigns.
(b)  Lender may at any time, without the consent of, or notice to, the Borrower, sell participations to any Person in all or a portion of Lender's rights and/or obligations under this Note (including all or a portion of its the Loan owing to it); provided that (i) Lender's obligations under this Note shall remain unchanged, (ii) Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) Lender shall remain the holder of this Note, and (iv) the Borrower shall continue to deal solely and directly with Lender in connection with Lender's rights and obligations under this Note. 

15

		
	12.9
	Waiver of Notice. The Borrower hereby waives demand for payment, presentment for payment, protest, notice of payment, notice of dishonor, notice of nonpayment, notice of acceleration of maturity and diligence in taking any action to collect sums owing hereunder.

		
	12.10
	Interpretation. For purposes of this Note: (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Note as a whole. The definitions given for any defined terms in this Note shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein: (x) to Schedules, Exhibits and Sections mean the Schedules, Exhibits and Sections of this Note; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Note shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. 

		
	12.11
	Amendments and Waivers. No term of this Note may be waived, modified or amended except by an instrument in writing signed by all of the Parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given. 

		
	12.12
	Headings. The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit any of the terms or provisions hereof.

		
	12.13
	No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising on the part of the Lender, of any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by Law.

		
	12.14
	Severability. If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Note so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

		
	12.15
	Further Assurances. The Parties irrevocably (i) consent to the transactions contemplated hereby and (ii) shall sign (or cause to be signed) all further documents, do (or cause to be done) all further acts, and provide all assurances as may reasonably be necessary or desirable to give effect to the terms of this Note.

		
	12.16
	Amended and Restated.  This Note is given to increase and rearrange, and not given in extinguishment of, the aggregate unpaid principal balance as of the date hereof of that certain Secured Note dated December 23, 2016 in the original principal amount of $1,000,000.00 (the "Original Note").  This Note is a restatement of the Original Note in its entirety and, therefore, whenever the terms, provisions, covenants and conditions of this Note conflict in any way with the terms, provisions, covenants or conditions of said Original Note (or any previous agreements 

16

modifying the Original Note), the terms, provisions, covenants and conditions of this Note shall control and prevail.  Any rights and privileges inuring to the Borrower under the Original Note granted or contained in the Original Note are hereby terminated.
		
	12.17
	Sharing Agreement.  This Note is subject to the terms of a Sharing Agreement dated as of the date hereof between the Lender and American Financial.

[SIGNATURE PAGE FOLLOWS]

17

IN WITNESS WHEREOF, the Borrower has executed this Note as of the date first written above.

	
		
	 
	DTV AMERICA CORPORATION

	 
	By: /s/ Paul DeStefanis                                   
      Name: Paul DeSefanis
      Title: Chairman of the Board

	
		
	Accepted:
 

	CONTINENTAL GENERAL INSURANCE COMPANY

By:  Continental Insurance Group Ltd., on behalf of Continental General Insurance Company as Manager under the Investment Management Agreement dated January 1, 2017
 
	 

	By: /s/ David Watters
      Name:  David Watters 
      Title:  Authorized Signatory    
	 

1

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