Document:

Prepared by MERRILL CORPORATION

Exhibit

10.9

 

AGREEMENT

 

 

                This

Agreement is entered into as of the 13th day of November 2001 by and between

Hispanic Television Network, Inc. ("HTVN"), a Delaware corporation,

and Urban Television Network Corporation ("UTVN"), a Texas

corporation.

 

RECITALS AND REPRESENTATIONS

 

                HTVN  certain rights and interests in American

Independent Network (AIN) including all rights and interests in AIN network

affiliate agreements.

 

                HTVN

represents that it owns the AIN Network and has the ability to assign the affiliate

agreements.

 

                UTVN

represents that UTVN has full corporate authority to enter into this Agreement

under the following terms.

 

                The

Recitals and Representations are an integral part of this Agreement.

 

                NOW

THEREFORE, HTVN and UTVN agree as follows:

 

1.             For certain rights and interests in

AIN Network as delineated in this Agreement, the AIN affiliate base, and HTVN’s

agreement to provide UTVN master control services and satellite services to be

set forth in a Satellite Transponder Service Agreement UTVN will;

 

(a)   Cause to be issued to HTVN

shares of the common stock of UTVN, which represent ten percent (10%) of the

issued and outstanding common shares of UTVN. 

Such shares shall have full anti-dilution protection until a transaction

resulting in UTVN becoming a public company is completed;

 

(b)   Pay

HTVN the sum of One Million Five Hundred Thousand Dollars ($1,500,000.00) with

$100,000 payable as a down payment at closing with the balance represented by a

promissory note (the “Note”) bearing interest at 12% per annum and be paid as

follows:  beginning seven months from

the date of the Note, $25,000 per month for three months and $50,000 per month

thereafter until the Note ahs been paid in full including any accrued interest

owing.  Payments shall first be applied

to accrued and unpaid interest and fees and then to the outstanding principal

balance of the Note (See Exhibit A; and

 

(c)   Pay to HTVN thirty percent

(30%) of its advertising revenues, net of commissions, that exceeds $100,000

per month beginning in month three, until a total of $1,000,000 in advertising

revenue share has been paid to HTVN, at which time the 30% drops to five

percent (5%).  All advertising revenue

sharing to HTVN shall terminate the earlier of three years from the date of

this Agreement or the date that HTVN unilaterally discontinues providing the

services per the Satellite Transponder Space Service Agreement (See Exhibit B).

 

2.        HTVN agrees to provide UTVN with

full-time digitally compressed channel protected with special Preemptive

provision service on its satellite transponder number 4 leased from GE American

Communications, Inc. located at 87°

W.L. orbital position.  HTVN will

provide the equipment necessary to input UTVN’s programming into the digital

uplink system that goes to the satellite transponder space and provide the

necessary personnel to edit UTVN’s programming tapes, including insertion of

commercial Spots provided by UTVN and insert the tapes into the playing

equipment on a 24-hour per day, 7 days per week basis, provided that UTVN

provides the said programming tapes and commercial spots on a format required

by HTVN.   UTVN will pay HTVN a monthly

recurring service charge of One Hundred Thousand U.S. Dollars ($100,000.00) for

the satellite space and services, due and payable beginning on the first day of

the month that is three full months after the initiation of services under this

Agreement and on the first day of each month thereafter during the term of the

Satellite Transponder Space Service Agreement (See Exhibit B).

 

Because

UTVN would incur irreparable damages due to the interruption of services,

should HTVN cease to exist as an operating company and thereby fail to provide

services, the shares of UTVN common stock issued to HTVN shall be cancelled by

UTVN or the public company that UTVN might merge into and the Promissory Note

shall be considered paid in full and all future obligations for payment under

the Promissory Note shall be terminated.  

For purposes of this Agreement “HTVN’s failure to provide services” is

defined in the Satellite Transponder Space Agreement attached hereto as Exhibit

B.

 

3.             UTVN

agrees that by its election of the $100,000 down payment option under

provision  1(b) above, that if HTVN

ceases to exist as an operating company before HTVN has received a total of

$500,000 from UTVN, HTVN shall have the right to repurchase the assets sold to

UTVN for the total amount paid by UTVN to HTVN.  Should HTVN elect to exercise its right to repurchase the assets,

UTVN shall have the right to pay an additional amount so that HTVN will have

received a total of $500,000 and thus void HTVN’s repurchase option.

 

4.             UTVN

shall have the right to use the AIN Network name for 6 months after the date of

the closing of this Agreement, at which time it shall revert back to HTVN.

 

5.            

HTVN agrees to assign the AIN affiliates to UTVN to become affiliates of UTVN,

with the understanding that the affiliates have an option under their affiliate

agreement to cancel the affiliate agreement.  

HTVN further agrees that it, its successors or its assigns will not in

the future approach any of UTVN’s affiliates to become affiliates of HTVN.

 

6.             UTVN

agrees that should it fail to fulfill any of its obligations under the

Promissory Note, all rights previously sold or assigned by HTVN to UTVN, after

the prescribed notice and cure period has lapsed, shall immediately revert back

to HTVN and all parties shall be relieved of any further liability or

obligation.

 

7.             HTVN

agrees that Marc Pace shall be given a proxy to vote the UTVN shares owned by

HTVN for matters involving UTVN becoming a public company only.

 

8.             UTVN

and HTVN agree to execute all documents relative to the transaction within 30

days of the execution of this agreement.

 

9.             UTVN

and HTVN agree that the laws of the state of Texas shall apply excepting those

that are preempted by Federal statute or Delaware General Corporation Law.

 

10.           This

Agreement is subject to approval of the boards of directors of HTVN and UTVN.

 

Executed as of the first date above written.

 

 

	

  Hispanic Television

  Network, Inc.

  	

   

  	

  Urban Television Network

  Corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  /s/ Michael G. Fletcher

  	

   

  	

  /s/ Randy Moseley

  
	

  Michael G. Fletcher, Chief

  Operating Officer

  	

   

  	

  Randy Moseley, PresidentPrepared by MERRILL CORPORATION

Exhibit 10.10

 

PROMISSORY

NOTE

 

 

	

  DATE:

  	

   

  	

  October  29, 2001

  
	

   

  	

   

  	

   

  
	

  MAKER:

  	

   

  	

  Urban

  Television Network Corporation

  
	

   

  	

   

  	

   

  
	

  MAKER’S

  MAILING ADDRESS:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  213 Palomino Ct.

  
	

   

  	

   

  	

  Fort Worth, Texas   76126

  
	

   

  	

   

  	

   

  
	

  PAYEE:

  	

   

  	

  Hispanic

  Television Network, Inc.

  
	

   

  	

   

  	

   

  
	

  PLACE FOR

  PAYMENT:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  6125 Airport Frwy  #200

  
	

   

  	

   

  	

  Fort

  Worth, Texas   76117

  

 

PRINCIPAL

AMOUNT:   One Million Four Thousand and

No/100 Dollars  ($1,400,000.00)

 

ANNUAL

INTEREST RATE ON UNPAID

PRINCIPAL

BALANCE FROM DATE OF NOTE:      12% per annum

 

ANNUAL

INTEREST RATE ON MATURED UNPAID AMOUNTS:   14% per annum

 

TERMS OF

PAYMENT:

 

Maker promises to pay to the

order of Payee the sum of One Million Four Hundred Thousand and No/100 Dollars

($1,400,000.00), together with interest on the principal amount hereof

remaining unpaid from time to time computed from the date hereof as

follows:  beginning seven months from

the date of this Note; $25,000 per month for three months and $50,000 per month

until the note has been paid in full including any accrued interest owing.  Payments shall first be applied to accrued

and unpaid interest and fees and then to the outstanding principal balance of

this note.

 

                Should

Payee fail to provide services per the Satellite Transponder Space Agreement

(Exhibit A) or cease to exist as an operating company before this note is paid

in full, the remaining balance of this note owing on the date Payee fails to

provide services per Exhibit A or ceases to exist as an operating company, the

principal balance and accrued interest owing on this note at such date, which

ever occurs at the earliest date, shall be considered paid in full and Maker’s

future obligations for payment of this note shall be terminated.

 

Maker reserves the right to

prepay the outstanding principal balance of this Note, in whole or in part, at

any time and from time to time, without premium or penalty.

 

Maker waives presentment,

demand, protest, notice of protest and non-payment or other notice of default,

notice of acceleration and intention to accelerate or other notice of any kind,

and agree that their liability under this Note shall not be affected by any

renewal or extension in the time of payment hereof, or in any indulgences, or

by any release or change in any security for the payment of this Note, and

hereby consent to any and all renewals, extensions, indulgences, releases or

changes, regardless of the number of such renewals, extensions, indulgences,

releases or changes.

 

No waiver by Payee of any of

its rights or remedies hereunder or under any other document evidencing or securing

this Note or otherwise, shall be considered a waiver of any other subsequent

right or remedy of Payee; no delay or omission in the exercise or enforcement

by Payee or any rights or remedies shall ever be construed as a waiver of any

right or remedy of Payee; and no exercise or enforcement of any such rights or

remedies shall ever be held to exhaust any right or remedy of Payee.

 

If Maker defaults in the

payment of this Note and the default continues after Payee gives Maker twenty

(20) days written notice of the default and such default has not been cured

within such 20-day time period, then Payee may declare the unpaid principal

balance on this Note immediately due and may exercise all rights, powers, and

remedies available to Payee under this Note or at law.  Maker waives all demands for payment,

presentations for payment, notices of intention to accelerate maturity, notices

of acceleration of maturity, protests, and notices of protest, to the extent

permitted by law.

 

Any notice required to the

Maker shall be in writing and shall be deemed to have been duly given if

delivered personally or sent by registered or certified mail, return receipt

requested, postage prepaid, or overnight air courier guaranteeing next day

delivery to the address hereinabove specified. 

Notice will commence three (3) days after being placed in the United

States mail, postage prepaid or when received if delivered personally or by

overnight air courier.  The Maker may

designate a new address for purposes of notice if such change of address is in

writing and delivered to the Payee.

 

If this Note is given to an

attorney for collection or enforcement, or if suit is brought for collection or

enforcement, or if it is collected or enforced through probate, bankruptcy, or

other judicial proceeding, then Maker shall pay Payee all costs of collection

and enforcement, including reasonable attorney’s fees and court costs, in

addition to other amounts due. 

Reasonable attorney’s fees shall be 10% of all amounts due unless either

party pleads otherwise.

 

Interest on the debt

evidenced by this Note shall not exceed the maximum amount of non-usurious

interest that may be contracted for, taken, reserved, charged, or received

under law; any interest in excess of that maximum amount shall be credited on

the principal of the debt or, if that has been paid, refunded.  On any acceleration or required or permitted

prepayment, any such excess shall be canceled automatically as of the

acceleration or prepayment or, if already paid, credited on the principal of

the debt or, if the principal of the debt has been paid, refunded.  This provision overrides other provisions in

this and all other instruments concerning the debt.

 

                This

Note shall be interpreted, construed and enforced under and in accordance with

the laws of the State of Texas.  Any

action to enforce same shall be brought in a court of competent jurisdiction

located in Tarrant County, Texas.  For

the purposes of any such action, the parties hereto agree and consent to

jurisdiction in the courts of Texas.

 

When the context requires,

singular nouns and pronouns include the plural.

 

Time is of the essence in

all obligations of the Maker herein contained.

 

IN WITNESS WHEREOF, the

undersigned Maker has duly executed this Note a Fort Worth, Texas as of the

date and year first above written.

 

 

 

	

   

  	

  MAKER:

  
	

   

  	

  URBAN

  TELEVISION NETWORK CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  S/s Randy Moseley

  
	

   

  	

  Randy Moseley, President

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