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Unassociated Document

    ASSET
      PURCHASE AGREEMENT

     

    This
      ASSET PURCHASE AGREEMENT (this “Agreement”),
      made
      as of this 3rd
      day of
      April, 2008, is by and between EBC SOUTHWEST FLORIDA, INC., an Arkansas
      corporation (“Seller”),
      LUKEN
      COMMUNICATIONS, LLC, a Tennessee limited liability company (“Buyer”),
      and
      Henry Luken, an individual, for the limited purpose set forth under Section
      4.8.

     

    PRELIMINARY
      STATEMENT

     

    Seller
      owns and operates the following television broadcast station (collectively,
      the
“Stations”)
      pursuant to FCC Licenses issued by the Federal Communications Commission (the
      “FCC”):

     

    WUVF-CA
      (Facility ID No. 71138), licensed to Naples, Florida;

     

    WLZE-LP
      (Facility ID No. 41376), licensed to Fort Myers, Florida;

     

    WBSP-CA
      (Facility ID No. 64580), licensed to Naples, Florida;

     

    WEVU-CA
      (Facility ID No. 64579), licensed to Fort Myers, Florida; and

     

    WTLE-LP
      (Facility ID No. 36967), licensed to Fort Myers, Florida.

     

    Subject
      to the terms and conditions set forth herein, Seller desires to assign to Buyer,
      and Buyer desires to acquire from Seller, all of the assets used or useful
      in
      the business and operation of the Stations on the terms and subject to the
      conditions set forth herein.

     

    AGREEMENT

     

    In
      consideration of the statements above and the mutual agreements and covenants
      contained in this Agreement, the parties to this Agreement, intending to be
      bound legally, hereby agree as follows:

     

    SECTION
      1 - DEFINITIONS

     

    1.1 Certain
      Defined Terms.
      The
      terms set forth on Exhibit
      A
      hereto,
      as used in this Agreement, have the meanings set forth in Exhibit
      A.

     

    1.2 Rules
      of Construction.
      A
      reference to one gender shall include any other gender. The parties agree that
      any rule of construction to the effect that ambiguities are to be resolved
      against the drafting party shall not be applied in the construction or
      interpretation of this Agreement. Except as specifically otherwise provided
      in
      this Agreement, a reference to a Section, the Schedules or any Exhibit is a
      reference to a Section of this Agreement or the Schedules or Exhibits hereto,
      and the terms “hereof,” “herein,” and other like terms refer to this Agreement
      as a whole, including the Schedules and Exhibits to this Agreement. All
      references to “Dollars” and “$” refer to the currency of the United
      States.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.3 Sections.
      The
      division of this Agreement into sections and the insertion of headings are
      for
      convenience of reference only and shall not affect the construction or
      interpretation of this Agreement.

     

    SECTION
      2 - PURCHASE
      AND SALE

     

    2.1 Purchase
      and Sale of the Assets. Subject
      to the terms and conditions set forth in this Agreement, Seller hereby agrees
      to
      transfer, convey, assign and deliver to Buyer on the Closing Date, and Buyer
      agrees to acquire, substantially all of the assets used or useful in the
      business or operation of the Stations, but excluding the Excluded Assets (such
      assets being conveyed being collectively referred to herein as the “Assets”),
      free
      and clear of any Lien, except for Permitted Liens, including, without
      limitation, the following:

     

    (a) the
      Tangible Personal Property;

     

    (b) the
      Real
      Property;

     

    (c) the
      Assumed Contracts;

     

    (d) the
      FCC
      Licenses;

     

    (e) the
      Intangibles;

     

    (f) the
      Internet Websites;

     

    (g) the
      deposits and prepaid expenses related to the Stations as allocated in accordance
      with Section
      2.5(a);

     

    (h) the
      FCC
      logs and all records required by the FCC to be kept by the Stations, all other
      books and records relating to the Stations, including, without limitation,
      executed copies of the Assumed Contracts and account books;

     

    (i) the
      claims and rights against third parties if and to the extent they relate to
      or
      affect the business or operation of the Stations after the Effective Time,
      including, without limitation, all rights under manufacturers' and vendors'
      warranties relating to the Assets; and

     

    (j) all
      goodwill related thereto.

     

    2.2 Excluded
      Assets.
      The
      Assets shall not include the following assets and properties of Seller (the
      “Excluded
      Assets”):

     

    (a) cash
      and
      cash equivalents;

     

    (b) Accounts
      Receivable;

     

    (c) contracts
      of insurance and insurance plans;

     

    (d) Employee
      Contracts and other Contracts that are not Assumed Contracts (collectively,
      the
“Excluded
      Contracts”);

     

    
      
        
        

      

      
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    (e) Seller's
      corporate records that pertain to internal corporate matters of
      Seller;

     

    (f) the
      Employee Plans and Employee Benefits; and

     

    (g) the
      assets of Seller located at Seller’s or Seller’s Affiliate’s master control
      facility located in Little Rock, Arkansas.

     

    2.3 Assumption
      of Liabilities and Obligations.

     

    (a) As
      of the
      Closing Date, Buyer shall assume and undertake to pay, discharge and perform
      only the obligations and liabilities of Seller under the Assumed Contracts
      and
      the FCC Licenses that relate to the period on and after the Effective Time
      and
      arise out of events related to Buyer's ownership of the Assets or Buyer's
      operation of the Stations on and after the Effective Time (the “Assumed
      Liabilities”):

     

    (b) Seller
      shall retain all liabilities of Seller not expressly assumed by Buyer as an
      Assumed Liability (the “Retained
      Liabilities”).

     

    2.4 Purchase
      Price. As
      consideration for the sale of the Assets pursuant to the terms and subject
      to
      the conditions hereof, at the Closing, Buyer shall pay to, and for the benefit
      of Seller, by wire transfer of immediately available funds to such account
      for
      which instructions are delivered by Seller to Buyer not less than three (3)
      days
      prior to the Closing, a total aggregate amount equal Eight Million Dollars
      and
      No/100s ($8,000,000.00), subject to adjustment pursuant to Section
      2.5
      and
2.6
      hereof
      (the “Purchase
      Price”).
      In
      addition, the Purchase Price will be increased and paid by Buyer to Seller
      based
      on the performance and/or future sale of the Stations as follows:

     

    (a) If,
      within the first 12 month period following Closing, Buyer enters into an
      agreement to assign the Stations, collectively or individually, to an
      unaffiliated third party, fifty percent (50%) of the proceeds of the purchase
      price from that transaction that are of an amount greater than the Purchase
      Price referenced herein shall be paid to Seller within three (3) business days
      after closing on the future sale.

     

    (b) If,
      within the second 12 month period following Closing, Buyer enters into an
      agreement to assign the Stations, collectively or individually, to an
      unaffiliated third party, twenty five percent (25%) of the proceeds of the
      purchase price from that transaction that are of an amount greater than the
      Purchase Price referenced herein shall be paid to Seller within three (3)
      business days after closing on the future sale.

     

    2.5 Prorations
      and Adjustments at Closing.

     

    (a) All
      revenues and all expenses arising from the Assets shall be allocated between
      Buyer and Seller in accordance with generally accepted accounting principles,
      consistently applied, and to effect the principle that Seller shall receive
      all
      revenues and shall be responsible for all expenses, costs and liabilities
      related to the period prior the Effective Time, or arising out of events related
      to Seller's ownership of the Assets or Seller's operation of the Stations prior
      the Effective Time, and Buyer shall receive all revenues and shall be
      responsible for all expenses, costs and obligations related to the period on
      and
      after the Effective Time and arising out of events related to Buyer's ownership
      of the Assets or Buyer's operation of the Stations on or after the Effective
      Time.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      anything else in this Section
      2.5
      to the
      contrary, there shall be no prorations or adjustment pursuant to Section
      2.5(a)
      for, and
      Seller shall remain solely liable with respect to, the Excluded Assets and
      Retained Liabilities.

     

    2.6 Post-Closing
      Adjustment.

     

    (a) Not
      less
      than ten (10) Business Days prior to the Closing Date, Seller shall deliver
      to
      Buyer its good faith estimate of the prorations and adjustments to be made
      with
      respect to the Purchase Price calculated in accordance with Section
      2.5
      hereof,
      including all estimated accrued liabilities and the deposits and prepaid
      expenses allocated in accordance with Section
      2.5(a)
      (the
“Preliminary
      Adjustment Statement”).
      Seller shall, upon delivery of such Preliminary Adjustment Statement, permit
      Buyer and its representatives reasonable access to the accounting records and
      accountant work papers (if any) used in connection with the preparation of
      the
      Preliminary Adjustment Statement. The Preliminary Adjustment Statement shall
      be
      prepared in accordance with generally accepted accounting principles,
      consistently applied.

     

    (b) Within
      thirty (30) days after the Closing Date, Seller shall prepare and deliver to
      Buyer an itemized list of the final prorations and adjustments calculated in
      accordance with Section
      2.5
      (the
“Closing
      Adjustment Statement”).
      The
      Closing Adjustment Statement shall include a description of the net amount
      payable by Buyer or Seller as an adjustment pursuant to Section
      2.5
      hereof
      (the “Closing
      Adjustment Amount”).
      The
      Closing Adjustment Statement shall be prepared in accordance with generally
      accepted accounting principles, consistently applied. Seller shall, upon
      delivery of such Closing Adjustment Statement, permit Buyer and its
      representatives reasonable access to the accounting records and accountant
      work
      papers (if any) used in connection with the preparation of the Closing
      Adjustment Statement.

     

    (c) Within
      thirty (30) days after the date the Closing Adjustment Statement is delivered
      to
      Buyer, Buyer shall complete its examination of the Closing Adjustment Statement
      and shall deliver to Seller either (i) the written acknowledgement of its
      acceptance of the Closing Adjustment Statement and the Closing Adjustment
      Amount, or (ii) a written report setting forth any proposed adjustments to
      the
      Closing Adjustment Statement and the Closing Adjustment Amount (the
“Adjustment
      Report”).
      In
      the event Buyer, within such thirty (30) day period, fails to deliver an
      Adjustment Report, the Closing Adjustment Statement shall be deemed to be
      correct and the Closing Adjustment Amount to have been finally determined for
      purposes of Section
      2.6(e)
      hereof.

     

    (d) In
      the
      event Seller and Buyer fail to agree on any or all of the proposed adjustments
      to the Closing Adjustment Amount contained in the Adjustment Report within
      thirty (30) days after Buyer receives the Adjustment Report, then any party
      hereto may retain a nationally-recognized independent certified public
      accounting firm as may be mutually agreed upon by the parties of the need for
      its services as an independent auditor and not for Seller or Buyer (the
“Independent
      Auditor”).
      The
      Independent Auditor shall be instructed to make the final determination with
      respect to the correctness of the Adjustment Report in accordance with the
      terms
      and provisions of this Agreement within thirty (30) days after the submission
      thereof. The decision by the Independent Auditor as to the adjustments that
      should be made to the Closing Adjustment Statement (the “Final
      Adjustment”)
      shall
      be final and binding on Seller and Buyer. Buyer and Seller shall share equally
      the costs and expenses of the Independent Auditor but each party hereto shall
      bear its own legal and other expenses, if any.

     

    
      
        
        

      

      
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    (e) The
      term
“Final
      Adjustment Statement”
shall
      mean the Closing Adjustment Statement delivered by Buyer pursuant to
Section
      2.6(b),
      as
      adjusted, if at all, pursuant to this Section
      2.6;
      the
      term “Final
      Adjustment Amount”
shall
      mean the amount determined from the Final Adjustment Statement; and the date
      on
      which the Final Adjustment Statement is finally determined pursuant to this
      Section
      2.6(e)
      shall
      hereinafter be referred to as the “Adjustment
      Settlement Date.”
The
      Final Adjustment Amount shall be paid by the party owing the debt to the party
      owed the debt within five (5) Business Days after the Adjustment Settlement
      Date.

     

    (f) Any
      payments required pursuant to Section
      2.6(e)
      shall be
      made by wire transfer of immediately available funds for credit to the party
      hereto owed the debt in accordance with wire transfer instructions provided
      by
      such recipient in writing.

     

    (g) If
      either
      Buyer or Seller fails to pay when due any amount under this Section
      2.6,
      interest
      on such amount will accrue from the date payment was due and be payable until
      paid at the per annum rate of the “prime rate” as published in the Money Rates
      column of the Eastern Edition of The
      Wall Street Journal
      (or the
      average of such rates if more than one rate is indicated) plus two percent
      (2%)
      and shall be payable upon demand.

     

    2.7 Allocation
      of Purchase Price.
      Seller
      shall prepare an allocation of the Purchase Price among the Assets (the
“Allocation”),
      no
      later than ten (10) days prior to the Closing Date. The Allocation shall be
      subject to Buyer’s consent, which consent shall not be unreasonably withheld.
      Seller and Buyer hereby agree that the Allocation shall be final and conclusive
      with respect to the allocation of the Purchase Price among the Assets, and
      Seller and Buyer hereby further agree (a) to use the Allocation for all
      accounting, financial reporting and Tax purposes; (b) that any Tax Returns
      or
      other Tax information they may file or cause to be filed with any governmental
      agency or fiscal intermediary shall be prepared and filed in a manner consistent
      with such Allocation; and (c) in furtherance of the foregoing and to the extent
      required, they will each properly and timely file Form 8594 in accordance with
      Section 1060 of the Code.

     

    2.8 Transfer
      Taxes.
      All
      recordation, transfer, documentary, excise, sales, value added, use, stamp,
      conveyance or other similar Taxes, duties or governmental charges, and all
      recording or filing fees or similar costs, imposed or levied by reason of,
      in
      connection with or attributable to this Agreement or the transactions
      contemplated hereby but excluding all income taxes and other fees based upon
      gain realized by Seller as a result of the sale of the Assets (collectively,
      “Transfer
      Taxes”)
      shall
      be borne equally by Buyer on the one hand, and Seller on the other
      hand.

     

    
      
        
        

      

      
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    SECTION
      3 - REPRESENTATIONS
      AND WARRANTIES OF SELLER

     

    Seller
      hereby represents and warrants to Buyer as follows:

     

    3.1 Organization,
      Qualification and Authority. Seller
      is
      a corporation, duly organized, validly existing and in good standing under
      the
      laws of the State of Arkansas and duly qualified to do business and is in good
      standing as a foreign corporation in the State of Florida. Seller has the
      requisite power and authority to own and operate the Assets, to carry on the
      business and operation of the Stations and to execute, deliver and perform
      this
      Agreement and the documents contemplated hereby according to their respective
      terms.

     

    3.2 Authorization
      and Binding Obligation.
      The
      execution, delivery and performance of this Agreement, and the consummation
      of
      the transactions contemplated hereby, by Seller have been duly and validly
      authorized by all necessary action on the part of Seller. This Agreement has
      been duly executed and delivered by Seller and constitutes the legal, valid
      and
      binding obligation of Seller enforceable against Seller 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.

     

    3.3 Absence
      of Conflicting Agreements; Consents.
      Except
      as set forth in Schedule
      3.3,
      subject
      to the receipt of the FCC Consent, the execution, delivery and performance
      by
      Seller of this Agreement (with or without the giving of notice, the lapse of
      time, or both), and the consummation by Seller of the transactions contemplated
      hereby: (a) does not require the consent of any third party; (b) will not
      conflict with the Certificate of Incorporation and Bylaws of Seller; (c) will
      not conflict in any material respect with, result in a material breach of or
      constitute a material default under (i) any Applicable Law of any Governmental
      Authority applicable to Seller or (ii) any Contract; and (d) will not result
      in
      the creation of any Lien on the Assets other than Permitted Liens. Seller is
      not
      a party to, nor is Seller bound by, any agreement or commitment that prohibits
      the execution and delivery by Seller of this Agreement or the consummation
      of
      the transactions by Seller contemplated hereby.

     

    3.4 FCC
      Licenses.

     

    (a) Schedule
      3.4 identifies
      and includes an accurate and complete list of all FCC Licenses. Each FCC License
      is in full force and effect and the Seller is the authorized legal holder
      thereof. The FCC Licenses listed on Schedule
      3.4 constitute
      all of the licenses and authorizations required under the Communications Act
      or
      the current rules, regulations and policies of the FCC for the Stations. The
      conduct of the business and operation of the Stations is in accordance with
      the
      FCC Licenses and the Communications Act or the current rules, regulations and
      policies of the FCC for the Stations.

     

    (b) Schedule
      3.4 sets
      forth a true, correct and complete list of any and all material pending
      applications filed with the FCC with respect to the Stations, true, correct
      and
      complete copies of which have been delivered by Seller to Buyer.

     

    (c) There
      is
      not pending or, to Seller's Best Knowledge, threatened investigation or
      proceeding by or before the FCC, nor any pending or, to Seller's Best Knowledge,
      threatened order to show cause, notice of violation, notice of apparent
      liability, notice of forfeiture or complaint by, before or with the FCC with
      respect to Seller or any or all the Stations. There are no facts, conditions
      or
      events relating to Seller or the Stations that would disqualify Seller under
      the
      Communications Act or the existing rules, regulations and policies of the FCC
      as
      assignor of the FCC Licenses as provided in this Agreement or from obtaining
      the
      FCC Consent to the transactions contemplated herein within the times
      contemplated herein.

     

    
      
        
        

      

      
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    (d) All
      returns, reports and statements that Seller is required to file with FCC or
      Federal Aviation Administration have been filed in a timely manner and such
      returns, reports and statements are true, correct and complete.

     

    (e) The
      Stations is in compliance with all rules and regulations of the Federal Aviation
      Administration. Each Class A Station license held by Seller is in compliance
      with the requirements of Section 73.6001(b) of the FCC’s rules.

    

    3.5 Real
      Property.

     

    (a) Schedule
      3.5
      contains
      an accurate and complete list of all Real Property. There is no owned Real
      Property used or useful in the operation of the Stations. Seller has good
      leasehold title to the leasehold interests included in the Real Property, free
      and clear of all Liens, except Permitted Liens.
      The
      Real Property listed in Schedule
      3.5 includes
      all real property used or useful in the business and operation of the
      Stations.

     

    (b) There
      are
      (i) no actual, pending or, to Seller's Best Knowledge, threatened impositions
      or
      assessments for public improvements with respect to any Real Property for which
      Seller would be liable or which would be a Lien on the Real Property, other
      than
      Permitted Liens; (ii) no improvements constructed or, to Seller's Best
      Knowledge, planned that would be paid for by means of public assessments upon
      any Real Property for which Seller would be liable or which would be a Lien
      on
      the Real Property; and (iii) no completed, pending or, to Seller's Best
      Knowledge, threatened or contemplated condemnation proceeding affecting any
      Real
      Property or any part thereof or of any sale or any disposition of any Real
      Property or any portion thereof in lieu of condemnation.

     

    (c) All
      buildings, towers, fixtures, fittings, antenna and other improvements owned
      or
      leased by Seller included within the Assets are in good working order for the
      purposes for which they are currently used by Seller (ordinary wear and tear
      excepted) and are located on the Real Property.

     

    (d) The
      Real
      Property is accessible directly by a public right of way. The current use by
      Seller of the Real Property is in compliance with applicable zoning and land-use
      laws.

     

    3.6 Tangible
      Personal Property. Schedule
      3.6
      lists
      all items of Tangible Personal Property included in the Assets. Seller owns
      and
      has good title to the Tangible Personal Property listed thereon and none of
      the
      Tangible Personal Property is subject to any conditional sale or other title
      retention agreement or any Liens, except for Permitted Liens. All items of
      Tangible Personal Property are in good operating condition (ordinary wear and
      tear excepted).
      The
      Tangible Personal Property included in the Assets includes all tangible personal
      property used or useful in the business and operation of the
      Stations.

     

    
      
        
        

      

      
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    3.7 Assumed
      Contracts. Schedule
      3.7 includes
      a complete list of all Assumed Contracts. Except as set forth in Schedule
      3.7,
      the
      Assumed Contracts constitute all Contracts used or useful in the business and
      operation of the Stations. Seller has delivered or made available to Buyer
      true,
      correct and complete copies of all written Assumed Contracts listed on
Schedule
      3.7 and
      accurate descriptions of all oral Assumed Contracts listed on Schedule
      3.7.
      Seller
      is not in default under any Assumed Contract (and no event has occurred that
      with the giving of notice or passage of time, or both, would constitute such
      a
      default) and, to Seller's Best Knowledge, no other party to any such Assumed
      Contract is in default thereunder (and, to Seller's Best Knowledge, no event
      has
      occurred that with the giving of notice or passage of time, or both, would
      constitute such a default). The Assumed Contracts (and Excluded Contracts)
      constitute all of the contracts used or useful in the business and operation
      of
      the Stations. Schedule
      3.7
      includes
      a complete list of all Excluded Contracts.
      Each
      Assumed Contract is legal, valid, binding, enforceable and in full force and
      effect.

     

    3.8 Intangibles.
      Schedule
      3.8
      is a
      complete list of all of the Intangibles (exclusive of the FCC Licenses). Seller
      has provided or made available to Buyer copies of all documents establishing
      or
      evidencing the Intangibles listed on Schedule
      3.8.
      Seller
      has not received any notice or demand alleging that Seller or the Stations
      is
      infringing upon any trademarks, trade names, service marks, service names,
      copyrights or similar intellectual property rights owned by any other Person
      and, to Seller's Best Knowledge, there is no basis for any such notice or
      demand.
      The
      Intangibles include all of the intangibles used or useful in the business and
      operation of the Stations.

     

    3.9 Financial
      Statements.
      Attached hereto as Schedule
      3.9
      are
      true, correct and complete copies of the financial statements of Seller with
      respect to its operation at the Stations as at December 31, 2007, the statement
      of income with respect to its operation at the Stations as at and for the twelve
      (12) month period ended December 31, 2007, and the balance sheet and statement
      of income for the two months ended February 29, 2008 (collectively, the
“Financial
      Statements”).
      Except as set forth on Schedule
      3.9,
      the
      Financial Statements have been prepared in accordance with generally accepted
      accounting principles, consistently applied, and present fairly in all material
      respects the financial condition of Seller with respect to the Stations as
      at
      their respective dates and the results of operations for the periods then
      ended.

     

    3.10 Taxes
      and Tax Returns.
      All Tax
      Returns have been timely filed with the appropriate governmental agencies in
      all
      jurisdictions in which such Tax Returns are required to be filed and all Taxes
      shown on such Tax Returns have been properly accrued or timely paid in full
      to
      the extent such Taxes have become due. There are no Liens on any of the Assets
      in connection with any failure (or alleged failure) to pay any Tax related
      to
      the Stations.

     

    3.11 Insurance.
      Schedule
      3.11
      is a
      true, correct and complete list of all insurance policies with respect to the
      Stations. All policies of insurance listed in Schedule
      3.11
      are in
      full force and effect.

     

    
      
        
        

      

      
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    3.12 Personnel.
      The
      written or oral contract of employment (“Employee
      Contracts”)
      with
      any employee of Seller employed in connection with the Stations (collectively,
      the “Employees”)
      are
      listed and described in Schedule
      3.12.
      Seller
      is not a party to or subject to any collective bargaining agreements with
      respect to the Stations and no labor union or other collective bargaining unit
      represents or, to Seller's Best Knowledge, claims to represent any of the
      employees of the Stations. Except for those Employee Plans described on
Schedule
      3.12,
      Seller
      maintains no other Employee Plans for the benefit of the Employees.
      Schedule 3.12
      includes
      a true, correct and complete list of all Employees, and their compensation
      (including bonuses) and accrued vacation and sick days, if any (collectively,
      the “Employee
      Benefits”). The
      Employee Contracts, Employee Plans and Employee Benefits described in
Schedule
      3.12
      are
      Excluded Assets and Retained Liabilities.

     

    3.13 Claims
      and Legal Actions.
      There
      is no claim, legal action, counterclaim, suit, arbitration, or other legal,
      administrative or tax proceeding, nor any order, decree or judgment, in progress
      or pending, or to Seller's Best Knowledge threatened, against Seller, the Assets
      or the Stations.

     

    3.14 Compliance
      with Laws.
      Except
      as
      otherwise set forth herein, and to Seller’s Best Knowledge, Seller
      is
      in compliance
      in all
      material respects
      with the
      FCC Licenses and all Applicable Law with respect to the Stations.

     

    3.15 Conduct
      of Business in Ordinary Course.
      Except
      as set forth on Schedule
      3.15,
      from
      February 29, 2008 through the date of this Agreement, to Seller's Best
      Knowledge, Seller's operation with respect to the Stations has been in the
      ordinary course and Seller has not:

     

    (a) made
      any
      sale, assignment, lease or other transfer of any of Seller's properties other
      than in the normal course of business
      with
      suitable replacements being obtained therefore;

     

    (b) incurred
      loss of, or injury to, any of the Assets or waived any rights of material
      value;

     

    (c) mortgaged,
      pledged or subjected to any Lien any of its Assets, other than Permitted
      Liens;

     

    (d) made
      any
      change in any method of accounting or accounting practice;

     

    (e) incurred
      any liability except in the ordinary course of business or as expressly
      permitted or disclosed elsewhere in this Agreement;

     

    (f) conducted
      business and operation of the Stations in any manner inconsistent with its
      past
      practices;

     

    (g) transferred
      to any Affiliate of Seller any right, property or interest which is necessary
      or
      useful in the operation of the Stations; or

     

    (h) suffered
      or incurred any event or circumstance that has had or would be reasonably
      expected to result in a Material Adverse Effect on (i) the ability of Seller
      to
      perform its obligations under this Agreement or (ii) the Stations or the
      Assets.

     

    
      
        
        

      

      
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    3.16 Environmental
      Matters.

     

    (a) Seller
      has delivered to Buyer true, correct and complete copies of all environmental
      assessments, reports, studies, and investigations related to the Real Property
      that Seller has received or caused to be conducted.

     

    (b) (i) To
      Seller's Best Knowledge, no Hazardous Substances are located on or under the
      Real Property.

     

    (ii)
      There
      are, to Seller's Best Knowledge, no underground storage tanks on the Real
      Property and any removal by Seller of any underground storage tanks which
      existed on the Real Property was pursuant to and in compliance with the
      Applicable Environmental Laws.

     

    (iii)
      To
      Seller's Best Knowledge, the equipment or improvements on the Real Property
      do
      not contain any asbestos or polychlorinated biphenyls that would constitute
      a
      violation of, or noncompliance with, any Applicable Environmental
      Law.

     

    (iv)
      Seller
      is
      subject to no agreements, consent orders, decrees, judgments, license or permit
      conditions or other directives of any Governmental Authority or Person that
      are
      based on or arise out of Applicable Environmental Laws and relate to the Assets
      or the Stations.

     

    (v)
      Seller
      has given to pertinent Governmental Authorities all notices required pursuant
      to
      Applicable Environmental Laws in connection with the Stations and the Real
      Property. Seller has not received any claim, order or notice of violation or
      noncompliance from, or been the subject of any regulatory audit or investigation
      (other than any periodic investigation or inspection of a routine nature) by,
      any Governmental Authority or Person in connection with the Stations and the
      Real Property that is based on or arise out of Applicable Environmental
      Laws.

     

    (vi)
      No
      consent or approval is needed from any Governmental Authority under any
      Applicable Environmental Laws for the transfer of the Assets from Seller to
      Buyer. Neither the execution of this Agreement nor the closing of the
      transactions contemplated hereby will violate any Applicable Environmental
      Laws
      in any material respect.

     

    (vii)
      Seller's
      ownership and operation of the Assets has been and is in compliance with all
      Applicable Environmental Laws.

     

    3.17 No
      Broker.
      Except
      for Patrick Communications L.L.C., neither Seller nor any other Person acting
      on
      its behalf has incurred any liability for any finders' or brokers' fees or
      commissions in connection with the transactions contemplated by this
      Agreement.
      Seller
      shall pay all fees, expenses and commissions of Patrick Communications
      L.L.C.

     

    3.18 Transactions
      with Affiliates.
      Except
      as set forth in Schedule
      3.18,
      Seller
      is not a party, directly or indirectly, to any contract, lease, arrangement
      or
      transaction which is material to the Stations, whether for the purchase, lease
      or sale of property, for the rendition of services or otherwise, with any
      Affiliate of Seller, or any officer, director, employee, proprietor, partner
      or
      shareholder of Seller and no such Person has any interest in or right to any
      of
      the Assets. The terms and conditions of the transactions involving Seller and
      any Affiliate of Seller which are identified on Schedule
      3.18
      are
      described briefly therein.

     

    
      
        
        

      

      
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    3.19 Good
      Title Conveyed; Required Consents.
      Subject
      to the receipt of the FCC Consent and the Required Consents, Seller has complete
      and unrestricted power and the unqualified right to sell, transfer, assign,
      convey and deliver to the Buyer, and upon consummation of the transaction
      contemplated by this Agreement Buyer will acquire, good title to the Assets,
      and
      good and marketable title to the Real Property, in each case free and clear
      of
      all Liens other than Permitted Liens.
      All
      Required Consents are listed in Schedule
      3.19.
      Except
      as noted on Schedule
      3.19,
      Seller
      is and always has been in sole and exclusive possession, and the sole and
      exclusive owner of, the Assets, free and clear of any restrictions on transfer,
      taxes, Liens, purchase rights, contracts, commitments, equities, claims, or
      demands. 

     

    3.20 Assets
      of the Business.
      The
      Assets, together with the Excluded Assets, comprise all of the assets used
      and
      useful in the business and operation of the Stations.

     

    3.21 No
      Restrictions.
      Other
      than as listed and described in Schedule
      3.21,
      there
      are no Contracts or other arrangements to which Seller is a party that prohibit
      or restrict (i) the Stations’ ability to compete in any business anywhere in any
      geographic area, (ii) the customers with which the Stations may do business,
      or
      (iii) the prices the Stations may charge

     

    3.22 Untrue
      Statements.
      No
      statement by Seller contained in this Agreement (including the Exhibits and
      Schedules hereto) and no written statement contained in any certificates
      required to be delivered pursuant to or in connection herewith contains or
      will
      contain any untrue statement of a material fact, or is incomplete in any
      material respect.

     

    SECTION
      4 - REPRESENTATIONS
      AND WARRANTIES OF BUYER

     

    Buyer
      hereby represents and warrants to Seller as follows:

     

    4.1 Organization,
      Standing and Authority.
      Buyer
      is a limited liability company duly organized, validly existing and in good
      standing under the laws of the State of Tennessee. Buyer is or as of Closing
      will be duly qualified to conduct business in each jurisdiction in which such
      qualification is necessary for Buyer to own the Assets and operate the Stations
      and conduct the business of the Stations. Buyer has the requisite power and
      authority to (a) execute, deliver and perform this Agreement and consummate
      the
      transactions contemplated hereby, (b) own the Assets, subject to obtaining
      the
      FCC Consent,
      and (c)
      hold the FCC Licenses, subject to obtaining the FCC Consent.

     

    4.2 Authorization
      and Binding Obligation.
      The
      execution, delivery and performance of this Agreement and the consummation
      of
      the transactions contemplated hereby by Buyer have been duly and validly
      authorized by all necessary action on the part of Buyer. This Agreement has
      been
      duly executed and delivered by Buyer and constitutes a 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. 

     

    
      
        
        

      

      
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    4.3 Absence
      of Conflicting Agreements and Required Consents.
      Subject
      to the receipt of the FCC Consent, the execution, delivery and performance
      by
      Buyer of this Agreement and the documents contemplated hereby (with or without
      the giving of notice, the lapse of time or both): (a) do not require the consent
      of any other Person; (b) will not conflict with the Certificate of Incorporation
      or the Bylaws of Buyer; and (c) will not conflict in any material respect with,
      result in a material breach of or constitute a material default under any
      Applicable Law or any material contract or agreement to which Buyer is a party.
      

     

    4.4 Buyer
      Qualifications.
      To
      Buyer's Knowledge, no fact or circumstance exists relating to the FCC
      qualifications of Buyer that (a) could reasonably be expected to prevent or
      delay the FCC from granting the Assignment Application or (b) would otherwise
      disqualify Buyer as the licensee of the Stations.

     

    4.5 Bankruptcy.
      No
      insolvency proceedings of any character, including bankruptcy, receivership,
      reorganization, composition or arrangement with creditors, voluntary or
      involuntary, affecting Buyer are pending or, to Buyer's Best Knowledge,
      threatened, and Buyer has not made any assignment for the benefit of creditors
      or taken any action in contemplation of, or which would constitute the basis
      for, the institution of such insolvency proceedings.

     

    4.6 No
      Broker.
      Neither
      Buyer nor any other Person acting on behalf of Buyer has incurred any liability
      for any finders' or brokers' fees or commissions in connection with this
      Agreement or the transactions contemplated hereby.

     

    4.7 Untrue
      Statements.
      No
      statement by Buyer contained in this Agreement and no written statement
      contained in any certificates required to be delivered pursuant to or in
      connection herewith contains or will contain any untrue statement of a material
      fact, or is incomplete in any material respect.

     

    4.8 Guaranty. Henry
      Luken, by his execution of this Agreement, hereby absolutely and unconditionally
      guarantees the full performance by the Buyer of its obligations concerning
      payment of the Purchase Price as set forth under Section
      2.4,
      herein.

     

    SECTION
      5 - OPERATION
      OF THE STATION PRIOR TO CLOSING

     

    5.1 Generally.

     

    (a) During
      the period commencing on the date hereof and ending on the earlier of the
      Closing Date or the Termination Date, Seller shall operate and control the
      Stations in all material respects in the ordinary course of business and refrain
      from any extraordinary transactions (except where such conduct would conflict
      with the other covenants set forth in this Section
      5.1
      or with
      Seller's other obligations under this Agreement) in all cases in accordance
      with
      the covenants contained in this Section
      5.

     

    (b) Seller
      shall maintain and repair the Assets, maintain inventory of supplies, parts
      and
      other materials and keep books of account, records and files, in each case
      in
      the ordinary course of business consistent with past practice.

     

    
      
        
        

      

      
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    (c) Seller
      shall continue to operate and control the FCC Licenses in accordance with the
      terms thereof and in compliance with all Applicable Law. Seller shall execute
      and file promptly all necessary applications for renewal of the FCC Licenses
      and
      timely file with the FCC all required reports and pay all required annual
      regulatory fees for the operation of the Stations. Seller will deliver to Buyer,
      within ten (10) Business Days after filing, copies of any reports, applications
      or responses to the FCC related to the Stations which are filed prior to the
      Closing Date.

     

    (d) Prior
      to
      the Closing Date, except as otherwise permitted by any provision of this
Section
      5,
      Seller
      shall not, without the prior written consent of Buyer:

     

    (i)
      incur
      any
      receivables relating to the Stations other than in the ordinary course of the
      Stations consistent with past practice, including, without limitation, in
      respect of the amount and nature of such receivables;

     

    (ii)
      apply
      to
      the FCC for or seek to amend any construction permit or other pending
      application that would restrict the Stations’ operation or make any material
      change in the Stations' buildings, leasehold improvements or fixtures that
      is
      not in the ordinary course of business, except when such change is necessary
      to
      maintain or continue the transmission of the Stations' signal at substantially
      the same power and strength and interference level as transmitted on the date
      hereof,

     

    (iii)
      enter
      into, renew, amend or modify any contract, lease, license or other agreement
      unless such document is either (1) subject to termination on thirty (30) days
      notice, (2) will be fully performed and satisfied on or prior to the date thirty
      (30) days following its execution or (3) an Excluded Contract;

     

    (iv)
      assign,
      lease or otherwise transfer or dispose of any of the Assets, except in
      connection with the acquisition of replacement property of equivalent kind
      and
      use; or

     

    (v)
      except
      as
      required by Applicable Law or existing contract, (A) hire any employee except
      in
      the ordinary course of business, or (B) enter into, renew, amend or modify
      any
      contract of employment, collective bargaining agreement or other labor
      contract.

     

    (e) Prior
      to
      the Closing Date, Seller will deliver copies of all Contracts entered into
      by
      Seller with respect to the Stations between the date of this Agreement and
      the
      Closing Date; such delivery to be made promptly after such Contracts are entered
      into.

     

    5.2 Insurance.
      Seller
      shall maintain the existing insurance policies on the Assets or other policies
      providing substantially similar coverages until the Closing.

     

    5.3 Financial
      Information.
      Seller
      shall furnish Buyer, within thirty (30) days after the end of each month ending
      between the date of this Agreement and the Closing, an unaudited statement
      of
      income and expense for the Stations and such other financial information
      relating to the Stations as Buyer may reasonably request.

     

    5.4 Notice
      of Certain Matters.
      Seller
      shall give prompt written notice to Buyer and Buyer shall give prompt written
      notice to Seller of any failure of Seller or Buyer, as the case may be, to
      comply with or satisfy any representation, warranty, covenant, condition or
      agreement to be complied with or satisfied by it hereunder.

     

    
      
        
        

      

      
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    5.5 Notice
      of Proceedings.
      Seller
      and Buyer shall promptly notify the other in writing upon becoming aware of
      any
      order or decree or any complaint praying for an order or decree restraining
      or
      enjoining the consummation of this Agreement or the transactions contemplated
      hereunder, or upon receiving any notice from any Governmental Authority of
      its
      intention to institute an investigation into, or institute a suit or proceeding
      to restrain or enjoin the consummation of this Agreement or the transactions
      contemplated hereby. Seller and Buyer will each use commercially reasonable
      efforts to contest, defend and resolve any such suit, proceeding or injunction
      brought against it so as to permit the prompt consummation of the transactions
      contemplated hereby. Seller shall notify Buyer promptly of any material action
      filed or threatened against the Stations or the Assets.

     

    5.6 Employees.
      Buyer
      is not required to assume any Employees. No later than thirty (30) days prior
      to
      the Closing Date, Seller shall provide to Buyer a list of all Employees then
      employed at the Stations. Buyer shall, prior to the Closing Date, (i) notify
      Seller in writing of the names of the Employees that Buyer intends to hire,
      and
      (ii) in the sole discretion of Buyer, offer employment to such Employees. Each
      employee who accepts Buyer's offer of employment shall be referred to herein
      as
      a “Buyer
      Employee”.
      Seller
      shall, immediately prior to the Closing Date, terminate each Employee with
      respect to their employment as it relates to the Assets and the Stations.
      Notwithstanding anything to the contrary contained herein, unless otherwise
      provided under the terms of a written employment agreement, each Buyer Employee
      shall be employed by Buyer on an at-will basis and nothing shall prohibit Buyer
      from terminating such employment at any time after the Closing.
      Buyer
      shall provide such benefits to the Buyer Employees as Buyer, in its sole
      discretion, determines.

     

    5.7 WARN
      Act.
      Buyer
      and Seller agree to cooperate in good faith to determine whether any
      notification may be required under the WARN Act, as a result of the transactions
      contemplated under the Agreement and, if such notices are required, to provide
      such notice in a manner that is reasonably satisfactory to each of the parties
      hereto.

     

    SECTION
      6 - SPECIAL
      COVENANTS AND AGREEMENTS

     

    6.1 FCC
      Consent.

     

    (a) The
      assignment of the FCC Licenses from Seller to Buyer as contemplated by this
      Agreement is subject to the prior consent and approval of the FCC.

     

    (b) Within
      five (5) Business Days after the date hereof, Seller and Buyer shall prepare
      and
      file with the FCC the Assignment Application. The parties shall thereafter
      prosecute the Assignment Application with commercially reasonable diligence
      and
      otherwise use their commercially reasonable efforts to obtain the grant of
      the
      Assignment Application as expeditiously as practicable. Each party hereto will
      promptly provide to the other party hereto a copy of any pleading, order or
      other document served on them relating to such Assignment Application.

     

    
      
        
        

      

      
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    (c) Each
      party hereto agrees to comply with any condition imposed on it by any FCC
      Consent, except that no party hereto shall be required to comply with a
      condition if compliance with the condition would have a material adverse effect
      upon it. Buyer and Seller shall oppose any petitions to deny or other objections
      filed with respect to the application for any FCC Consent and, to the extent
      agreed upon by Buyer and Seller any requests for reconsideration or review
      of
      any FCC Consent.

     

    (d) If
      the
      Closing shall not have occurred for any reason within the original effective
      period of any FCC Consent, and none of the parties shall have terminated this
      Agreement under Section
      9,
      the
      parties hereto shall jointly request an extension of the effective period of
      such FCC Consent. No extension of the effective period of any FCC Consent shall
      limit the exercise by any party hereto of its right to terminate the Agreement
      under Section
      9
      hereof.
      All FCC filing fees shall be paid equally by Buyer and Seller.

     

    6.2 Third
      Party Consents.
      Seller
      shall obtain the Required Consents in a form and substance reasonably acceptable
      to Buyer, together with any other third party consent that may be necessary
      in
      connection with the transactions contemplated herein. In addition, Seller shall
      obtain from the lessors under all leases that are Assumed Contracts estoppels
      and consents in the form attached hereto as Exhibit
      B.
      If a
      Required Consent is not obtained, or if an attempted assignment of the related
      Assumed Contract would be ineffective, Seller shall provide to Buyer the
      benefits of such Assumed Contract and, to the extent Buyer is provided with
      the
      benefits of such Assumed Contract, Buyer shall perform or discharge on behalf
      of
      Seller the obligations and liabilities under such Assumed Contract in accordance
      with the provisions thereof.

     

    6.3 Confidentiality.

     

    (a) None
      of
      the parties hereto will use or disclose to any other Person (except as may
      be
      necessary for the consummation of the transactions contemplated hereby, or
      as
      required by Applicable Law, and then only with prior notice to the other party
      hereto) this Agreement or any information received from the other party hereto
      or their agents in the course of investigating, negotiating and performing
      the
      transactions contemplated by this Agreement; provided,
      however,
      that
      each party hereto may disclose such information to such party's officers,
      directors, employees, lenders, advisors, attorneys, accountants and financial
      advisors who need to know such information in connection with the consummation
      of the transactions contemplated by this Agreement and who are informed by
      such
      party of the confidential nature of such information. Nothing shall be deemed
      to
      be confidential information that: (i) is already in such party's possession,
      provided that such information is not known by such party to be subject to
      another confidentiality agreement with or other obligation of secrecy to the
      other party hereto or another party, or (ii) becomes generally available to
      the
      public other than as a result of a disclosure by such party or such party's
      officers, directors, employees, lenders, advisors, attorneys or accountants,
      or
      (iii) becomes available to such party on a nonconfidential basis from a source
      other than another party or its advisors, provided that such source is not
      known
      by such party to be bound by a confidentiality agreement with, or other
      obligation of secrecy to, any of the other party hereto or another party, or
      (iv) is developed independently by any party hereto without resort to the
      confidential information of the other party hereto. In the event this Agreement
      is terminated and the transactions contemplated hereby abandoned, each party
      hereto will return to the other party hereto all information, including, without
      limitation, all documents and other written confidential material, obtained
      by
      such party from the other party hereto in connection with the transactions
      contemplated by this Agreement.

     

    
      
        
        

      

      
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    6.4 Cooperation.
      Buyer
      and 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 Seller shall
      execute such other documents as may be necessary or desirable to implement
      and
      consummate this Agreement, and otherwise use their commercially reasonable
      efforts to consummate the transactions contemplated hereby and to fulfill their
      obligations under this Agreement.

     

    6.5 Control
      of the Stations.
      Prior
      to the Closing Date, Buyer shall not, directly or indirectly, control, supervise
      or direct or attempt to control, supervise or direct, the operation of the
      Stations.

     

    6.6 Access
      to Information.
      Seller
      shall provide Buyer, and its representatives, agents and employees, access
      to
      and the right to copy, if applicable, any Assets and any books and records
      related to the Assets or the business and operation of the Stations as
      reasonably requested by Buyer or its representatives, agents or employees.
      Prior
      to the Closing and for two (2) years after the Closing, Seller shall provide
      to
      Buyer copies of such accounting information and reports relating to the Stations
      that are reasonably available to Seller in the ordinary course of business
      as
      Buyer deems reasonably necessary to enable Buyer to satisfy disclosure
      requirements of lenders or other reasonable business purposes. Seller agrees
      to
      use commercially reasonable efforts to make its outside independent accountants
      available to Buyer and its accountants.

     

    6.7 Further
      Assurances.
      From
      and after the Closing, each party hereto shall from time to time, at the request
      of any other party hereto and without further cost or expense to such requesting
      party, execute and deliver such other instruments of conveyance and transfer
      and
      take such other actions as such other party hereto may reasonably request in
      order more effectively to carry out this Agreement and the other agreements
      specified in this Agreement and to vest in the Buyer good title to the Assets,
      and good and marketable title to the Real Property, in all cases free and clear
      of all Liens, except Permitted Liens.

     

    6.8 Environmental
      or Engineering Issues.
      Within
      forty-five (45) days of the date hereof, Buyer may cause to be conducted a
      Phase
      I environmental audit (the “Environmental
      Audit”)
      with
      respect to the Real Property by an environmental consultant reasonably
      acceptable to Buyer (the “Environmental
      Consultant”).
      Buyer
      and Seller shall reasonably cooperate in scheduling such Environmental Audit
      and
      providing reasonable access to the Real Property for such Environmental Audit.
      If the Environmental Consultant recommends further investigation of any
      potential environmental conditions with respect to the Real Property, Buyer
      shall promptly notify Seller and the parties shall reasonably cooperate with
      respect to the completion of such investigation as soon as practicable (the
      “Environmental
      Investigation”).
      Seller shall, prior to the Closing, make all reasonable attempts to remedy
      any
      and all environmental and engineering issues identified by Buyer with respect
      to
      the Real Property by written notice to Seller within ten (10) days of the
      Buyer’s receipt of the Environmental Audit and completion of the Environmental
      Investigation, and such remedies shall be to Buyer's satisfaction, in Buyer's
      sole discretion, provided, however, that in the event that the costs for such
      remedy exceed Twenty
      Five Thousand
      Dollars
      ($25,000.00),
      Seller
      may decide not to undertake such remedies. In the event that Seller does not
      undertake to perform the remedies as set forth herein, or the remedies are
      not
      to Buyer's satisfaction, in Buyer's sole discretion, then Buyer may elect to
      terminate this Agreement upon thirty (30) days prior written notice to Seller,
      and this Agreement shall be null and void,
      or
      Buyer may elect to proceed to consummate the transactions contemplated in this
      Agreement and complete the remediation after the Closing, in which event, the
      Parties shall agree upon a Person to prepare an estimate of the costs and
      expenses of such remediation, and the Purchase Price shall be adjusted downward
      to reflect the estimate of such remediation.

     

    
      
        
        

      

      
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    SECTION
      7 - CONDITIONS
      TO OBLIGATIONS OF BUYER AND SELLER

     

    7.1 Conditions
      to Obligations of Buyer.
      All
      obligations of Buyer at the Closing are subject at Buyer's option to the
      satisfaction or waiver on or prior to the Closing Date of each of the following
      conditions:

     

    (a) All
      representations and warranties of Seller contained in this Agreement, if
      specifically qualified by materiality, shall be true and accurate in all
      respects, and, if not so qualified, shall be true and accurate in all material
      respects, at and as of the Closing Date as though made at and as of that
      time.

     

    (b) 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.

     

    (c) There
      shall not have been any modification of any FCC License that could have a
      Material Adverse Effect. Excluding any proceeding relating to the FCC Consent
      or
      disclosed on Schedule
      3.4,
      no
      proceeding shall be pending the effect of which could be to revoke, cancel,
      fail
      to renew, suspend or modify adversely any FCC License.

     

    (d) Except
      for the Permitted Liens, the Real Property shall not be subject to any
      exceptions that interfere with the permitted or intended use of the Real
      Property by Buyer.

     

    (e) Seller
      has remedied any and all environmental and engineering issues identified by
      Buyer pursuant and subject to the terms and conditions of Section
      6.8.

     

    (f) Seller
      shall have delivered the items required to be delivered pursuant to Section
      8.3.

     

    (g) No
      injunction, order, judgment or decree of any nature of any Governmental
      Authority of competent jurisdiction shall be in effect that restrains or
      prohibits the consummation of the transactions contemplated by this
      Agreement.

     

    (h) There
      shall not have been a material adverse change to any of the Assets, Assumed
      Liabilities or the Stations.

     

    (i) The
      FCC
      Consent shall have been granted by Final Order.

     

    
      
        
        

      

      
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    7.2 Conditions
      to Obligations of Seller.
      All
      obligations of Seller at the Closing hereunder are subject at Seller's option
      to
      the satisfaction or waiver on or prior to the Closing Date of each of the
      following conditions:

     

    (a) All
      representations and warranties of Buyer contained in this Agreement, if
      specifically qualified by materiality, shall be true and accurate in all
      respects, and, if not so qualified, shall be true and accurate in all material
      respects, at and as of the Closing Date as though made at and as of that
      time.

     

    (b) 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.

     

    (c) Buyer
      shall have delivered the items required to be delivered pursuant to Section
      8.4.

     

    (d) No
      injunction, order, judgment or decree of any nature of any Governmental
      Authority of competent jurisdiction shall be in effect that restrains or
      prohibits the consummation of the transactions contemplated by this
      Agreement.

     

    SECTION
      8 - CLOSING
      AND CLOSING DELIVERIES

     

    8.1 Closing.

     

    (a) Subject
      to the satisfaction or waiver (by the party for whose benefit the condition
      is
      imposed) of the conditions described in Article 7, the parties hereto shall
      consummate the transactions contemplated hereby at the Closing, which shall
      take
      place as of 12:01a.m. Little Rock, Arkansas time on a date that is within ten
      (10) Business Days following the date the FCC Consent becomes a Final Order
      (or,
      upon waiver of such Final Order condition by Buyer, in its sole discretion,
      within ten (10) Business Days following the publication of the grant of the
      FCC
      Consent) and as Buyer shall specify in writing to Seller at least five (5)
      Business Days in advance or, if Buyer fails to so specify, on the last date
      in
      the time period provided for in the foregoing (the “Closing
      Date”).

     

    (b) The
      risk
      of any loss, damage, impairment, confiscation or condemnation of any of the
      Assets from any cause whatsoever shall be borne by Seller at all times prior
      to
      the Closing. If the regular broadcast transmission in the normal and usual
      manner is interrupted for a continuous period of seventy-two
      (72) hours
      or
      more at any time prior to the Closing solely as a result of the actions of
      Seller, then Buyer, in its sole discretion, by providing written notice to
      Seller, may (i) terminate this Agreement with no further liability or obligation
      owed between the Parties, or (ii) postpone the Closing to a date that is fifteen
      (15) days after the end of such interruption and, if applicable, Seller's
      completion of the restoration and replacement of any Assets at Seller's sole
      expense. If any Asset shall suffer any material damage or destruction prior
      to
      the Closing Date, Seller shall promptly notify Buyer in writing of such damage
      and destruction, and shall advise Buyer in writing of the estimated cost to
      complete such restoration, repair or replacement. If such restoration, repair
      or
      replacement exceeds $100,000
      and
      is
      not accomplished prior to the Closing Date, as the same may be extended by
      the
      parties, Buyer may terminate this Agreement in its sole and absolute
      discretion,
      postpone the Closing until the restorations, repair or replacements are
      accomplished to Buyer’s satisfaction, or proceed to consummate the transactions
      contemplated in this Agreement and complete the restorations, repair or
      replacements after the Closing, in which event, the Parties shall agree upon
      a
      Person to prepare an estimate of the costs and expenses of such restorations,
      repair or replacements, and the Purchase Price shall be adjusted downward to
      reflect the estimate of such restorations, repair or replacements.

     

    
      
        
        

      

      
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    8.2 Closing
      Place.
      The
      Closing shall be held at such place that is agreed in writing by Buyer and
      Seller, and in the absence of agreement, as determined by Buyer.

     

    8.3 Deliveries
      by Seller.
      Prior
      to or on the Closing Date, Seller shall deliver to Buyer the following, in
      form
      and substance reasonably satisfactory to Buyer and its counsel:

     

    (a) Duly
      executed assignments and other conveyancing documents to convey and vest good
      title in and to the Assets to Buyer, free and clear of all Liens, except for
      Permitted Liens. Such documents shall include, without limitation, the
      following:

     

    (i)
      An
      Assignment and Assumption Agreement (the “Assignment
      and Assumption Agreement”),
      duly
      executed by Seller;

     

    (ii)
      An
      Assignment and Acceptance Agreement of the FCC Licenses (the “Assignment
      and Acceptance Agreement”),
      duly
      executed by Licensee; and

     

    (iii)
      A
      Bill of
      Sale (the “Bill
      of Sale”),
      duly
      executed by Seller.

     

    (b) The
      Required Consents in a form and substance acceptable to Buyer in Buyer’s sole
      discretion, together with any other consents received prior to
      Closing;

     

    (c) A
      certificate, dated as of the Closing Date, executed by Seller, certifying to
      the
      fulfillment of the conditions set forth in Sections
      7.1(a)
      and
(b);

     

    (d) A
      certificate, dated as of the Closing Date, executed by Seller, certifying that
      the resolutions, as attached to such certificate, were duly adopted by the
      Board
      of Directors of Seller, authorizing and approving the execution of this
      Agreement and the consummation of the transactions contemplated hereby and
      that
      such resolutions remain in full force and effect;

     

    (e) Certificates
      of incumbency for the officers of Seller duly authorized to execute and deliver
      this Agreement and the agreements contemplated hereby;

     

    (f) Standard
      documentation (including, without limitation, certain affidavits of Seller)
      that
      may be reasonably requested of Seller by Buyer in connection with Buyer
      obtaining a title insurance policy relating to the Real Property;

     

    (g) Termination
      statements and such other documentation as Buyer may reasonably require and
      in
      form reasonably acceptable to Buyer evidencing the discharge and release of
      any
      Liens (other than Permitted Liens) on the Assets;

     

    (h) An
      Acknowledgement of the Purchase Price;

     

    
      
        
        

      

      
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    (i) If
      applicable, all forms and other documents required by the State or County in
      which the Real Property is located to effectuate the transactions contemplated
      hereby;
      and

     

    (j) Such
      other documents as may reasonably be requested by Buyer

     

    8.4 Deliveries
      by Buyer.
      Prior
      to or on the Closing Date, Buyer shall deliver to Seller and Seller the
      following, in form and substance reasonably satisfactory to Seller and its
      counsel:

     

    (a) The
      Purchase Price, in accordance with Section
      2.5
      hereof,

     

    (b) Appropriate
      assumption and acceptance agreements pursuant to which Buyer shall assume and
      undertake to perform Seller's obligations under the Assumed Contracts and under
      the FCC Licenses to the extent such obligations arise after Closing, including,
      without limitation, the following:

     

    (i)
      The
      Assignment and Assumption Agreement, duly executed by Buyer;

     

    (ii)
      The
      Bill
      of Sale, duly executed by Buyer.

     

    (iii)
      Such
      other documents as may reasonably be requested by Seller.

    

    (c) A
      certificate, dated as of the Closing Date, executed by Buyer, certifying to
      the
      fulfillment of the conditions set forth in Sections
      7.2(a)
      and
(b);

     

    (d) A
      certificate, dated as of the Closing Date, executed by Buyer, certifying that
      the resolutions, as attached to such certificate, where duly adopted by the
      Board of Directors of Buyer, authorizing and approving the execution of this
      Agreement and the consummation of the transactions contemplated hereby and
      that
      such resolutions remain in full force and effect;

     

    (e) Certificates
      of incumbency for the officers of Buyer duly authorized to execute and deliver
      this Agreement and the agreements contemplated hereby; and

     

    (f) Such
      other documents as may be reasonably requested by Seller.

     

    SECTION
      9 - TERMINATION

     

    9.1 Termination
      of Agreement.
      This
      Agreement may be terminated only as follows:

     

    (a) at
      any
      time by mutual written consent of Seller, on the one hand, and Buyer, on the
      other;

     

    (b) by
      Buyer
      in the event of a breach by Seller of any representation, warranty, covenant
      or
      other obligation contained herein that (i) would give rise to the failure of
      a
      condition set forth in Section
      7.1(a)
      or
7.1(b)
      and (ii)
      has not been cured within thirty (30) days after the giving of written notice
      to
      Seller of such breach; provided,
      however,
      that the
      Buyer is not then in default or breach in any material respect of its
      obligations under this Agreement;

     

    
      
        
        

      

      
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    (c) by
      Seller
      in the event of a breach by Buyer of any representation, warranty, covenant
      or
      other obligation contained herein that (i) would give rise to the failure of
      a
      condition set forth in Section
      7.2(a)
      or
7.2(b)
      and (ii)
      cannot be or has not been cured within thirty (30) days after the giving of
      written notice to Buyer of such breach; provided,
      however,
      that the
      Seller is not then in default or breach in any material respect of its
      obligations under this Agreement;

     

    (d) by
      any
      party hereto, upon written notice to the other party, if any Governmental
      Authority of competent jurisdiction shall have issued a final and permanent
      order enjoining or otherwise prohibiting the consummation of the transactions
      contemplated by this Agreement;

     

    (e) by
      Buyer,
      in the event that Seller becomes or is declared insolvent or bankrupt, makes
      an
      assignment for the benefit of all or substantially all of its creditors, enters
      into an agreement for the composition, extension or readjustment of all or
      substantially all or of its obligations, or becomes the subject of any
      proceeding related to its liquidation or insolvency or for the appointment
      of a
      receiver or similar officer and such proceeding is not dismissed within sixty
      (60) days;

     

    (f) by
      Seller, in the event that Buyer becomes or is declared insolvent or bankrupt,
      makes an assignment for the benefit of all or substantially all of its
      creditors, enters into an agreement for the composition, extension or
      readjustment of all or substantially all or of its obligations, or becomes
      the
      subject of any proceeding related to its liquidation or insolvency or for the
      appointment of a receiver or similar officer and such proceeding is not
      dismissed within sixty (60) days; 

     

    (g) by
      Buyer
      in accordance with Sections
      6.8
      or
8.1(b);
      or

     

    (h) by
      Buyer,
      upon written notice to Seller, in the event that the Closing has not taken
      place
      on or before the date that is twelve (12) months from the date on which the
      Assignment Application was accepted for filing by the FCC. (other than as a
      result of any failure on the part of Buyer to comply with or perform in any
      material respect any covenant or obligations set forth in this
      Agreement).

     

    (i) In
      addition, Seller may terminate this Agreement for any reason prior to the
      Closing Date upon providing ten (10) days written notice to Buyer, if it is
      otherwise not in breach or default of its obligations under this Agreement,
      provided, however, that Seller shall reimburse Buyer within a reasonable period
      of time for any and all reasonable and documented expenses Buyer incurred in
      entering into this Agreement, including but not limited to attorneys fees and/or
      bank processing fees. Seller agrees to exercise its right to terminate under
      this section if it refinances its debt with its current lender.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    9.2 Procedure
      and Effect of Termination.

     

    (a) In
      the
      event of termination of this Agreement by any party or parties hereto pursuant
      to Section
      9.1,
      written
      notice thereof shall be given promptly to the other party and this Agreement
      shall terminate and the transactions contemplated hereby shall be abandoned
      without further action by any of the parties hereto, but subject to and without
      limiting any of the rights of the parties specified herein in the event a party
      hereto is in default or breach in any material respect of its obligations under
      this Agreement. In the event that this Agreement is terminated pursuant to
      the
      terms and subject to the conditions hereof, upon the Termination
      Date:

     

    (i)
      Except
      as
      otherwise provided herein, none of the parties hereto nor any of their
      respective partners, directors, officers, shareholders, employers, agents or
      Affiliates (each, a “Related
      Party”)
      shall
      have any liability or further obligation to the other party or any of their
      respective Related Parties pursuant to this Agreement with respect to which
      termination has occurred, except for the obligations of Seller and Buyer as
      stated in Sections
      6.3
      and
10
      and this
Section
      9.2;
      and

     

    (ii)
      All
      filings, applications and other submissions relating to the transactions
      contemplated hereby as to which termination has occurred shall, to the extent
      practicable, be withdrawn from the agency or other Person to which
      made.

     

    (b) Upon
      the
      event of Termination, neither Party shall be liable to the other for any special
      or punitive damages.

    

    9.3 Attorneys'
      Fees, Costs and Expenses.
      If
      Buyer
      or Seller commences an action against the other to enforce any of the terms
      of
      this Agreement or because of the breach by Buyer or Seller of any of the terms
      of this Agreement, the non-prevailing party shall pay to the prevailing party
      its reasonable attorneys' fees, costs and expenses incurred in connection with
      the prosecution or defense of such action. The term “prevailing party” means the
      party obtaining substantially the relief sought, whether by compromise,
      settlement or judgment.

     

    SECTION
      10 - SURVIVAL
      OF REPRESENTATIONS AND WARRANTIES;

    INDEMNIFICATION;
      CERTAIN REMEDIES

     

    10.1 Survival.
      The
      representations and warranties contained herein shall survive the Closing for
      a
      period of twelve (12) months after the Closing Date and shall terminate on
      such
      date except to the extent that any claims for indemnification in respect of
      a
      breach of any such representation or warranty is made on or before such date,
      in
      which case such representation or warranty shall survive until the resolution
      of
      such claim. Any claim for indemnification in respect of a covenant or agreement
      hereunder to be performed before the Closing shall be made before the date
      that
      is twelve months after the Closing Date. The covenants and agreements contained
      herein and to be performed to any extent after the Closing Date shall survive
      the Closing for a period of twelve months year after the Closing Date and shall
      terminate on such date and any claims for indemnification in respect of a breach
      of such covenants to be performed in any respect after the Closing Date must
      be
      made on or before such date. The covenants and agreements that survive for
      any
      other period as specifically provided in this Agreement shall survive for the
      period so specified.
      Notwithstanding anything in the foregoing to the contrary, the twelve month
      limitation shall not be applicable to claims arising under the Seller
      Fundamental Representations which shall survive until the expiration of the
      applicable statute of limitations for each respective claim.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    10.2 Indemnification
      by Seller.

     

    (a) Subject
      to paragraph (b) below, after the Closing, Seller hereby agrees to indemnify,
      defend and hold Buyer, harmless against and with respect to, and shall reimburse
      Buyer for, any and all Damages which Buyer may suffer or incur as a result
      of or
      in connection with:

     

    (i)
      any
      breach or inaccuracy of any representation or warranty of Seller made in this
      Agreement or any certificate, document or instrument prepared by Seller and
      delivered to Buyer pursuant to the terms and subject to the conditions
      hereof;

     

    (ii)
      any
      failure by Seller to carry out, perform or otherwise fulfill or comply with
      any
      covenant, agreement, undertaking or obligation of Seller under this
      Agreement;

     

    (iii)
      the
      Retained Liabilities;

     

    (iv)
      any
      Person claiming a broker’s or finder’s fee or commission, or similar payment or
      remuneration in respect of the transactions contemplated herein;
      and

     

    (v)
      any
      suit,
      action or other proceeding brought by any Governmental Authority or any other
      Person arising out of, or related to, any of the matters referred to in the
      foregoing clauses (i) through (iv) of this Section
      10.2(a).

     

    (b) Seller's
      obligation to indemnify Buyer pursuant to Section
      10.2(a)
      shall be
      subject to all of the following limitations:

     

    (i)
      Buyer
      shall be entitled to indemnification only for those Damages arising with respect
      to any claim as to which Buyer has given Seller written notice within the
      appropriate time period set forth in Section
      10.1
      hereof
      for such claim.

     

    (ii)
      The
      parties agree that the payment of any and all claims made by Buyer for
      indemnification hereunder, for whatever reason, other than for claims for
      indemnification with respect to any Retained Liabilities, shall be limited
      to an
      aggregate amount equal to the Purchase Price.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    10.3
      Indemnification
      by Buyer.

    (a)
      After
      the
      Closing, Buyer hereby agrees to indemnify, defend and hold Seller harmless
      against and with respect to, and shall reimburse Seller for, any and all Damages
      which Seller may suffer or incur as a result of or in connection
      with:

     

    (i)
      any
      breach or inaccuracy of any representation or warranty of Buyer made in this
      Agreement or any certificate, document or instrument prepared by Buyer and
      delivered to Seller pursuant to the terms and subject to the conditions
      hereof;

     

    (ii)
      any
      failure by Buyer to carry out, perform or otherwise fulfill or comply with
      any
      covenant, agreement, undertaking or obligation of Buyer under this
      Agreement;

     

    (iii)
      the
      Assumed Liabilities;

     

    (iv)
      any
      Person claiming a broker’s or finder’s fee or commission, or similar payment or
      remuneration in respect of the transactions contemplated herein;
      and

     

    (v)
      any
      suit,
      action or other proceeding brought by any Governmental Authority or any other
      Person arising out of, or related to, any of the matters referred to in the
      foregoing clauses (i) through (iv).

     

    (b) Seller
      shall be entitled to indemnification pursuant to Section
      10.3(a)
      only for
      those Damages arising with respect to any claim as to which Seller have given
      Buyer written notice within the appropriate time period set forth in
Section
      10.1
      hereof
      for such claim.

     

    10.4 Procedure
      for Indemnification.
      The
      procedure for indemnification shall be as follows:

     

    (a) The
      party
      claiming indemnification (the “Claimant”)
      shall
      promptly give notice to the party or parties hereto from which indemnification
      is claimed (the “Indemnifying
      Party”)
      of any
      claim, specifying in reasonable detail the factual basis for the claim, the
      amount thereof, estimated in good faith, all with reasonable particularity
      and
      containing a reference to the provisions of this Agreement in respect of which
      such indemnification claim shall have occurred. If the claim relates to an
      action, suit or proceeding filed by another Person against Claimant, such notice
      shall be given by Claimant within ten (10) Business Days after written notice
      of
      such action, suit or proceeding was given to Claimant.

     

    (b) With
      respect to claims solely between the parties, following receipt of notice from
      the Claimant of a claim, the Indemnifying Party shall have thirty (30) days
      to
      make such investigation of the claim as the Indemnifying Party deems necessary
      or desirable, and the Claimant agrees to make available to the Indemnifying
      Party and its authorized representatives the information relied upon by the
      Claimant to substantiate the claim. If the Claimant and the Indemnifying Party
      agree at or prior to the expiration of the thirty (30)-day period to the
      validity and amount of such claim, the Indemnifying Party shall immediately
      pay
      to the Claimant the full amount of the claim, subject to the terms hereof.
      If
      the Claimant and the Indemnifying Party do not agree within the thirty (30)-day
      period, the Claimant may seek appropriate remedy at law or equity, as
      applicable, subject to the limitations hereof.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (c) With
      respect to any claim by any other Person against the Claimant (a “Third
      Party Claim”),
      the
      Indemnifying Party shall have the right at its own expense, to participate
      in or
      assume control of the defense of such claim, and the Claimant shall cooperate
      fully with the Indemnifying Party, subject to reimbursement for actual
      out-of-pocket expenses incurred by the Claimant as the result of a request
      by
      the Indemnifying Party. If the Indemnifying Party elects to assume control
      of
      the defense of any Third Party Claim, the Claimant shall have the right to
      participate in the defense of such claim at its own expense. If the Indemnifying
      Party does not elect to assume control or otherwise participate in the defense
      of any Third Party Claim, then the Claimant may defend through counsel of its
      own choosing and (so long as it gives the Indemnifying Party at least ten (10)
      Business Days notice of the terms of the proposed settlement thereof and permits
      the Indemnifying Party to then undertake the defense thereof) settle such claim,
      action or suit and to recover from the Indemnifying Party the amount of such
      settlement or of any judgment and the costs and expenses of such defense. The
      Indemnifying Party shall not compromise or settle any Third Party Claim without
      the prior written consent of the Claimant, which consent will not be
      unreasonably withheld or delayed.

     

    (d) If
      a
      claim, whether between the parties or by any other Person, requires immediate
      action, the parties will make every effort to reach a decision with respect
      thereto as expeditiously as possible.

     

    (e) Subject
      to the limitations set forth herein and without expanding the total liability
      of
      Buyer or Seller hereunder, the indemnification rights provided in this
Section
      10
      shall
      extend to the Related Parties although for the purpose of the procedures set
      forth in this Section
      10.4,
      any
      indemnification claims by such Related Parties shall be made by and through
      the
      Claimant.

     

    SECTION
      11 - MISCELLANEOUS

     

    11.1 Fees
      and Expenses.
      Except
      as otherwise provided in this Agreement, each party hereto shall pay its own
      expenses incurred in connection with the authorization, preparation, execution
      and performance of this Agreement, including, without limitation, all fees
      and
      expenses of counsel, accountants, agents and representatives.

     

    11.2 Notices.
      All
      notices, demands and requests required or permitted to be given under the
      provisions of this Agreement shall be (i) in writing, (ii) delivered by personal
      delivery or sent by commercial delivery service or certified mail, return
      receipt requested, (iii) deemed to have been given the date of personal delivery
      or the date set forth in the records of the delivery service or on the return
      receipt and (iv) addressed as follows:

     

    (a) If
      to
      Seller:

     

    
       
        EBC Southwest Florida, Inc.

      
         
#1
          Shackleford Dr., Suite 400

        
           
            Little Rock, AR

          
             
              Attention: Greg Fess, President

          

        

      

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (b) If
      to
      Buyer:

    
       

       
        Luken Communications, LLC

    

     

    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
      11.2.

     

    11.3 Benefit
      and Binding Effect.
      No
      party hereto may assign this Agreement without the prior written consent of
      the
      other party hereto. This Agreement shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors, heirs and
      permitted assigns.

     

    11.4 Further
      Assurances.
      Subject
      to the terms and conditions of this Agreement, from time to time prior to,
      at
      and after the Closing Date, each party hereto will use commercially reasonable
      efforts to take, or cause to be taken, all such actions and to do or cause
      to be
      done, all things necessary, proper or advisable under Applicable Law to
      consummate and make effective the transactions contemplated by this
      Agreement.

     

    11.5 Governing
      Law; Venue.
      This
      Agreement and the rights and obligations of the parties hereunder shall be
      governed by, and construed and enforced in accordance with, the laws of the
      State of New York without regard to its conflict of law rules. 

     

    11.6 Waiver
      of Compliance; Consents.
      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 hereto entitled to the benefits
      thereof only by a written instrument signed by the party or parties granting
      such waiver, but such waiver 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 hereto, 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
      11.6.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    11.7 Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable to any extent,
      the
      remainder of this Agreement and the application of such provision to other
      Persons or circumstances shall not be affected thereby and shall be enforced
      to
      the greatest extent permitted by Applicable Law so long as the economic or
      legal
      substance of the transactions contemplated hereby is not affected in any manner
      materially adverse to any party. Upon such determination that any term or other
      provision is invalid or unenforceable, the parties hereto shall negotiate in
      good faith to modify this Agreement so as to effect the original intent of
      the
      parties as closely as possible in an acceptable manner to the end that the
      transactions contemplated hereby are fulfilled to the greatest extent
      possible.

     

    11.8 Specific
      Performance.
      The
      parties recognize and agree that the Assets are unique and that if, prior to
      Closing, Seller breaches this Agreement and refuses to perform under the
      provisions hereof, Buyer would be damaged irreparably and the award of monetary
      damages alone would not be adequate to compensate Buyer for its injury. Buyer
      shall therefore be entitled to obtain specific performance of the terms of
      this
      Agreement, and to injunctive or other equitable relief as remedies or any such
      breach or failure to perform. If any action for specific performance is brought
      by Buyer to enforce this Agreement, Seller shall waive the defense that there
      is
      adequate remedy at law.

     

    11.9 Entire
      Agreement.
      This
      Agreement, the Schedules and Exhibits 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 Seller with
      respect to the subject matter of this Agreement. This Agreement supersedes
      all
      prior negotiations between the parties and cannot be amended, supplemented
      or
      changed except by an agreement in writing that is signed by the parties
      hereto.

     

    11.10 Counterparts.
      This
      Agreement maybe executed in two or more counterparts, each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      document. Each party hereto agrees that the delivery of the Agreement by
      facsimile or other electronic transmission will be deemed to be an original
      of
      the Agreement so transmitted.

     

    11.11 Knowledge.
      Buyer
      or Seller, as applicable, will be deemed to have “knowledge” of a particular
      matter, and the particular matter will be deemed to be “known” by Buyer or
      Seller, as applicable, if any director, manager or officer of Buyer or Seller,
      as applicable, or any Affiliate of Buyer or Seller, as applicable, providing
      services to or for the benefit of the Assets, has actual knowledge of such
      matter or would reasonably be expected to have knowledge of such matter
      following reasonable inquiry of the appropriate employees and agents of Buyer
      or
      Seller, as applicable.

     

    11.12 Interpretation
      The
      language used in this Agreement shall be deemed to be the language chosen by
      the
      parties to express their mutual intent. In the event that an ambiguity or
      question of intent or interpretation arises, this Agreement shall be construed
      as if drafted jointly by the parties, and no presumption or burden of proof
      shall arise favoring or disfavoring any person or entity by virtue of the
      authorship of any of the provisions of this Agreement.

     

    [The
      Remainder Of This Page Is Intentionally Left Blank]

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      this
      Asset Purchase Agreement has been executed by the duly authorized officers
      of
      Buyer and Seller.

     

    
      	
              LUKEN
                COMMUNICATIONS, LLC

            	 	
              EBC
                SOUTHWEST FLORIDA, INC.

            
	 	 	 
	
              By:
                Henry G. Luken

            	 	
              By:
                Gregory Fess

            
	
              Name:
                Henry G. Luken

            	 	
              Name:
                Gregory Fess

            
	
              Title:
                Member

            	 	
              Title:
                President  

            

    

     

    For
      the
      limited purpose of his obligations under Section 4.8

     

    
      	
              HENRY
                LUKEN

            
	 
	
              
                /s/
                  Henry G. Luken

              

            
	 
	
              By:
                Henry G. Luken

            

    

     

    [Signature
      page to Asset Purchase Agreement]

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    DEFINED
      TERMS

     

    Accounts
      Receivable means
      the
      rights of Seller as of the Closing Date to payment for the sale of advertising
      time and other goods and services by the Stations prior to the Effective
      Time.

     

    Adjustment
      Report has
      the
      meaning ascribed thereto in Section
      2.6(c).

     

    Adjustment
      Settlement Date
      has the
      meaning ascribed thereto in Section
      2.6(e).

     

    Affiliate
      means,
      with respect to any Person, any other Person that, directly or indirectly
      through one or more intermediaries, Controls, is Controlled by or is under
      common Control with such Person.

     

    Agreement
      has
      the
      meaning ascribed thereto in the preamble.

     

    Allocation
      has
      the
      meaning ascribed thereto in Section
      2.7.

     

    Applicable
      Environmental Laws means
      any
      and all laws, statutes, regulations and judicial interpretations thereof of
      the
      United States, of any state in which the Assets, or any portion thereof, or
      the
      Stations are located, and of any other government or quasi-government authority
      having jurisdiction, that relate to the prevention, abatement and elimination
      of
      pollution and/or protection of the environment, including the federal
      Comprehensive Environmental Response, Compensation, and Liability Act, the
      Resource Conservation and Recovery Act, the Clean Water Act, the Clean Air
      Act,
      the Safe Drinking Water Act, the Toxic Substances Control Act and the Hazardous
      Materials Transportation Act, together with all state statutes serving any
      similar or related purposes, as in effect on or prior to the date of this
      Agreement.

     

    Applicable
      Law
      means
      any applicable constitution, treaty, statute, rule, regulation, ordinance,
      order, directive, code, interpretation, judgment, decree, injunction, writ,
      determination, award, permit, license, authorization, directive, requirement,
      ruling or decision of, agreement with, or by a Governmental
      Authority.

     

    Assets
      has
      the
      meaning ascribed thereto in Section
      2.1.

     

    Assignment
      and Acceptance Agreement has
      the
      meaning ascribed thereto in Section
      8.3(a)(ii).

     

    Assignment
      and Assumption Agreement
      has the
      meaning ascribed thereto in Section
      8.3(a)(i).

     

    Assignment
      Application means
      the
      application to be filed with the FCC in order to obtain the consent of the
      FCC
      to the assignment of the FCC Licenses from Seller to Buyer.

     

    Assumed
      Contracts means
      (i)
      all Contracts listed on Schedule
      3.7 and (ii)
      any
      Contracts entered into by Seller between the date of this Agreement and the
      Closing Date that Buyer agrees in writing to assume; provided,
      however,
      that
      Assumed Contracts shall in no event include Excluded Contracts and, provided,
      further,
      that the
      Assumed Contracts shall in no event include any Employee Contract.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    Assumed
      Liabilities has
      the
      meaning ascribed thereto in Section
      2.3(a).

     

    Bill
      of Sale
      has the
      meaning ascribed thereto in Section
      8.3(a)(iv)
      hereof.

     

    Business
      Day means
      any
      day excluding Saturdays, Sundays and any day that is a legal holiday under
      the
      laws of the United States or is a day on which federal banking institutions
      located in or around Ft. Myers, Florida are authorized or required by law or
      other governmental action to close.

     

    Buyer
      has
      the
      meaning ascribed thereto in the Preamble.

     

    Buyer
      Employee
      has the
      meaning ascribed thereto in Section
      5.8.

     

    Claimant
      has
      the
      meaning ascribed thereto in Section
      10.4(a).

     

    Closing
      means
      the
      consummation of the purchase and sale of the Assets pursuant to this Agreement
      in accordance with the provisions of Section
      8.

     

    Closing
      Adjustment Amount has
      the
      meaning ascribed thereto in Section
      2.6(b).

     

    Closing
      Adjustment Statement has
      the
      meaning ascribed thereto in Section
      2.6(b).

     

    Closing
      Date has
      the
      meaning ascribed thereto in Section
      8.1.

     

    Code
      means
      the
      Internal Revenue Code of 1986, as amended.

     

    Communications
      Act
      means
      the Communications Act of 1934, as amended, and the rules, regulations, and
      policies of the FCC promulgated thereunder.

     

    Contracts
      means
      all
      contracts, leases, non-governmental licenses and other agreements (including,
      without limitation, leases for personal or real property and employment
      agreements), written or oral (including, without limitation, any amendments
      and
      other modifications thereto).

     

    Control
      means
      having the power to direct the affairs of a Person by reason of either (i)
      owning or controlling the right to vote a sufficient number of shares of voting
      stock or other voting interest of such Person or (ii) having the right to direct
      the general management of the affairs of such Person by contract or
      otherwise.

     

    Damages
      means
      all
      claims, demands, actions, causes of action, assessments, losses, investigations,
      proceedings, damages, penalties, fines, costs, payments, expenses and judgments,
      including, without limitation, interest and penalties and reasonable attorneys'
      fees, disbursements and expenses. Notwithstanding any provision of this
      Agreement to the contrary, Damages shall not include, and neither party shall
      be
      liable hereunder for, any incidental or consequential damages, or loss of
      profits or opportunities, or any exemplary or punitive damages, regardless
      of
      the circumstances from which such damages arose.

     

    Effective
      Time
      means
      12:01 a.m., Little Rock, Arkansas time, on the Closing Date.

     

    Employee
      Contracts
      has the
      meaning ascribed thereto in Section
      3.12.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Employee
      Plan
      means
      any retirement, severance, medical, disability, life insurance or any other
      employee benefit plan as defined in Section 3(3) of ERISA to which either of
      the
      Seller or any entity related to Seller (under the terms of Sections 414(b)
      or
      (c) of the Code) contributes or which Seller or any entity related to Seller
      (under the terms of Sections 414(b) or (c) of the Code) sponsors or
      maintains.

     

    Employees
      has the
      meaning ascribed thereto in Section
      3.12.

     

    Environmental
      Consultant
      has the
      meaning ascribed thereto in
      Section 6.8(a).

     

    ERISA
      means
      the Employee Retirement Income Security Act of 1974, as amended.

     

    Excluded
      Assets shall
      have the meaning ascribed thereto in Section
      2.2.

     

    Excluded
      Contracts shall
      have the meaning ascribed thereto in Section
      2.2(d).

     

    FCC
      shall
      have the meaning ascribed thereto in the Preliminary Statement.

     

    FCC
      Consent means
      action by the FCC granting its consent to the Assignment Application and the
      consummation of the transactions contemplated thereby.

     

    FCC
      Licenses means
      (i)
      all licenses, permits, construction permits and other authorizations issued
      by
      or pending before the FCC necessary or useful for the business or operation
      of
      the Stations or the conduct of the Stations (including, without limitation,
      the
      rights in and to the Stations’ call signs), and (ii) those items listed in
Schedule
      3.4.

     

    Final
      Adjustment
      has the
      meaning ascribed thereto in Section
      2.6(d).

     

    Final
      Adjustment Amount has
      the
      meaning ascribed thereto in Section
      2.6(e).

     

    Final
      Adjustment Statement has
      the
      meaning ascribed thereto in Section
      2.6(e).

     

    Final
      Order means
      an
      action by the FCC or other regulatory authority having jurisdiction (i) with
      respect to which action no timely request for stay, motion or petition for
      reconsideration or rehearing, application or request for review or notice of
      appeal or other judicial petition for review is pending and (ii) as to which
      the
      time for filing any such request, motion, petition, application, appeal or
      notice and for the entry of orders staying, reconsidering or reviewing on the
      FCC's or such other regulatory authority's own motion has expired.

     

    Financial
      Statements has
      the
      meaning ascribed thereto in Section
      3.9.

     

    Governmental
      Authority means
      any
      government, any governmental entity, department, commission, board, agency
      or
      instrumentality and any court, tribunal or judicial or arbitral body, whether
      federal, state or local.

     

    Hazardous
      Substance
      means
      petroleum, petroleum hydrocarbons or petroleum products, petroleum by-products,
      radioactive materials, asbestos or asbestos-containing materials, gasoline,
      diesel fuel, pesticides, lead or lead-containing materials, polychlorinated
      biphenyls, and any other chemicals, materials, substances, or wastes which
      are
      defined as or included in the definitions of “hazardous substances,” “hazardous
      materials,” “hazardous wastes,” or words of similar import under Applicable
      Environmental Laws.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Holdings
      has the
      meaning ascribed thereto in the Preamble.

     

    Indemnifying
      Party
      has the
      meaning ascribed thereto in Section
      10.4(a).

     

    Independent
      Auditor
      has the
      meaning ascribed thereto in Section
      2.6(d).

     

    Intangibles
      means
      (i)
      all copyrights (including registrations and any applications for registration),
      trademarks, trade names, service marks, service names, franchises, licenses,
      software, computer programs and computer license interests, patents, permits,
      jingles, logos, proprietary information, technical information and data and
      other similar intangible property rights and interests applied for, issued
      to or
      owned by Seller or under which Seller is licensed or franchised and that are
      used or useful in the business or operation of the Stations, and (ii) those
      items listed on Schedule
      3.8.

     

    Internet
      Websites means
      all
      domain leases, URLs and domain names of the Station, the right to use those
      domain names in accordance with Applicable Law, the content located and publicly
      accessible from those domain names that is not proprietary to Seller.

     

    Licensee
      has the
      meaning ascribed thereto in the Preamble.

     

    Lien
      means,
      with respect to any asset, any mortgage, lien, pledge, charge, security
      interest, restriction or encumbrance of any kind, whether statutory or
      otherwise, in respect of such asset.

     

    Material
      Adverse Effect means
      an
      adverse effect that is material to business or operation of the Stations and
      the
      Assets, taken as a whole, financially or otherwise.

     

    Seller
      has the
      meaning ascribed thereto in the Preamble.

     

    Permitted
      Liens
      means
      (i) liens for Taxes not yet due and payable; (ii) liens for property Taxes
      not
      delinquent; and (iii) any Liens disclosed in Schedule
      3.5
      or
      3.6.

     

    Person
      means an
      individual, corporation, association, partnership, joint venture, trust, estate,
      limited liability company, limited liability partnership or other entity or
      organization.

     

    Preliminary
      Adjustment Statement
      has the
      meaning ascribed thereto in Section
      2.6(a).

     

    Purchase
      Price has
      the
      meaning ascribed thereto in Section
      2.4.

     

    Real
      Property
      means
      (i) all real property (owned or leased) and all improvements, fixtures and
      fittings (such as towers and antennae) thereon used or useful in the business
      and operation of the Stations, and (ii) the real property listed on Schedule
      3.5.

     

    Related
      Party
      has the
      meaning ascribed thereto in Section
      9.2(b)(i).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    Required
      Consents
      means
      consents, approvals, waivers, clearances and estoppels, if applicable, to those
      certain Assumed Contracts that may require consent to assign to Buyer or its
      designee and such other consents, approvals, waivers, or clearances from
      Governmental Authorities or third parties.

     

    Retained
      Liabilities
      has the
      meaning ascribed thereto in Section
      2.3(b).

     

    Seller
      has the
      meaning ascribed thereto in the Preamble.

     

    Seller
      Fundamental Representations
      shall
      mean Sections
      3.1,
      3.2,
      3.3,
      3.4,
      3.10,
      3.16
      and
3.19.

     

    Stations
      has the
      meaning ascribed thereto in the Preliminary Statement.

     

    Tangible
      Personal Property
      means
      (i) all machinery, equipment, computers, tools, vehicles, fixtures, furniture,
      office equipment, inventory, spare parts, products, customer lists relating
      to
      the Stations, proprietary information, technical information, data, maps,
      computer discs and tapes, plans, diagrams, blueprints and schematics and other
      tangible personal property that is used or useful in the business or operation
      of the Stations, and (ii) those items listed on Schedule
      3.6.

     

    Tax
      means
      any federal, state, local or foreign income, gross receipts, windfall profits,
      severance, property, production, sales, use, license, excise, franchise,
      capital, transfer, employment, withholding or other tax or governmental
      assessment, together with any interest, additions or penalties with respect
      thereto and any interest in respect of such additions or penalties.

     

    Tax
      Return
      means
      any tax return, declaration of estimated tax, tax report or other tax statement
      or any other similar filing required to be submitted by Seller relating to
      the
      Stations to any governmental authority with respect to any Tax.

     

    Termination
      Date means
      the
      date on which a termination of this Agreement pursuant to the terms and subject
      to the conditions of this Agreement shall be effective.

     

    Third
      Party Claim
      has the
      meaning ascribed thereto in Section
      10.4(c).

     

    Transfer
      Taxes has
      the
      meaning ascribed thereto in Section
      2.8.

     

    WARN
      Act
      means
      the Worker Adjustment and Retraining Notification Act.

     

    
      
        
        

      

      
        33Exhibit 10.1 - Executive Officer Compensation and Responsibilities

       The Temecula Valley Bank ("Bank") Board of Directors, upon the
recommendation of the Executive Officer Compensation Committee, approved the
following:

               1.   James W. Andrews
                    Effective June 1, 2008, change from Executive Vice
                    President/Real Estate Manager to Senior Executive Vice
                    President/Chief Lending Officer; base salary change from
                    $231,000 to $275,000; a bonus change to 75 basis points of
                    pre-tax profits; and severance change from 6 to 12 months of
                    base salary upon termination without cause. These changes
                    are subject to an amendment to the employment agreement of
                    Mr. Andrews.

               2.   Stephen H. Wacknitz
                    Upon execution, an amended and restated split dollar
                    agreement for Mr. Wacknitz will move the retirement age from
                    70 to 80 years of age, as long as Mr. Wacknitz remains as a
                    Board member, and the agreement will be a director agreement
                    and not an employment agreement. Expenses will accrue until
                    80 years of age, then from 80 to 85 years of age, expenses
                    will reverse.

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