Document:

PROMISSORY NOTE

SECURED DEMAND

PROMISSORY NOTE

 

US$50,000

April 15, 2002

 

FOR VALUE RECEIVED, ROLLTECH, INC. (the "Borrower"), a Nevada corporation with offices at 15411 N.E. 95th Street, Redmond, Washington, U.S.A., promises to pay to the order of TALY KEREN (the "Lender"), ON DEMAND, at Suite 811, 938 Howe Street, Vancouver, British Columbia, Canada, the sum of FIFTY THOUSAND DOLLARS ($50,000) of lawful money of the United States of America (the "Principal Sum") together with simple interest thereon as herein provided. 
1.The Principal Sum shall bear interest at 15% per annum both before and after each of maturity, default and judgment. It is the intention of the Borrower and the Lender to conform strictly to any applicable usury laws and any laws prohibiting a criminal rate of interest. Accordingly, nothing herein shall be construed in such manner as shall result in the Lender having been deemed to have contracted for or charged interest in excess of the maximum lawful interest rate.

2.The Borrower may, at any time and from time to time, prepay all or any part of the amount owing hereunder without notice, penalty or bonus.

3.The Borrower hereby waives demand and presentment for payment, notice of non-payment, protest and notice of protest of this Note and agrees to pay and completely indemnify the Lender for all costs and expenses (including legal fees and costs) paid or incurred in collecting any monies due hereunder.

4.Extension of time of payment of all or any part of the amount owing hereunder at any time or times and failure of the Lender to enforce any of their rights or remedies hereunder shall not release the Borrower from its obligations hereunder or constitute a waiver of the rights of the Lender to enforce any rights and remedies thereafter.

5.As security for the payment of the principal and interest under this Note, the Borrower hereby grants a security interest on all of the Borrower's present and after acquired personal property and a floating charge over all of its present and after acquired real property, in accordance with and subject to the provisions of this Note. The security constituted under this Note is general and continuing security for the repayment of all debts, liabilities and performance of all obligations of the Borrower, present and future, absolute or contingent, direct or indirect, matured or not, extended or renewed pursuant to the terms of the Note. It is hereby declared that until the security of this Note is enforced, as provided hereunder, the creation and existence of the security interest shall in no way hinder or prevent the Borrower from:
(a)borrowing upon the security of its book debts, inventory or other property of the Borrower as may from time to time be necessary in the ordinary course of its business and for the purpose of carrying on or extending the same;

(b)pledging, assigning or giving security on its assets to its bankers;

(c)pledging, assigning or giving security on its assets to any director, officer or shareholder of the Borrower in connection with a loan, provided that the aggregate amount of all such loans (other than the loan evidenced by this Note) does not exceed $500,000; or

(d)assuming or granting any obligations, mortgage or charge on any property acquired after the date hereof, to secure the whole or any part of the purchase price to be paid for such property.

6.Except as otherwise agreed in writing by the Lender, the security interests created hereby will attach, in the case of after acquired property forming part of the collateral, upon the Borrower obtaining rights in such property and, in all other cases, upon the execution of this Note.

7.The security hereby granted will not extend or apply to, and the collateral will not include:
(a)the last day of any term created by any lease or agreement therefor (but the Borrower will stand possessed of the reversion thereof remaining upon trust for the Lender to assign or dispose thereof as the Lender may direct); or

(b)any lease or other agreement requiring the consent or approval of the lessor or other party thereto to the security hereby granted, unless and until such consent or approval has been obtained.

8.The Borrower hereby authorizes the Lender to file such financing statements and other documents and to do such acts, matters and things as the Lender may deem appropriate to perfect and continue the security constituted hereby, to protect and preserve the property charged hereunder and to realize upon the security constituted hereby; and the Borrower hereby irrevocably constitutes and appoints the Lender the true and lawful attorney of the Borrower, with full power of substitution, to do any of the foregoing in the name of the Borrower whenever and wherever it may be deemed necessary or expedient by the Lender.

9.If the Borrower fails to perform any of its obligations hereunder, then the Lender may, but is not obliged to, perform any or all of such obligations without prejudice to any other rights and remedies of the Lender hereunder; and any payments made and any costs, charges and expenses incurred in connection therewith will be payable by the Borrower to the Lender on demand.

10.The Borrower shall not, without the prior written consent of the Lender:
(a)except as permitted under clause 5(a), 5(b), 5(c) or 5(d), grant any mortgage or create any charge, lien or encumbrance on its property subject to the charge hereby granted which is capable of ranking in priority to or pari passu with the security constituted under this Note; or

(b)sell or dispose of any of the property subject to the charge hereby granted otherwise than in the ordinary course of its business.

11.The principal money hereby secured and accrued interest shall immediately become due and payable and the security hereby constituted shall become enforceable:
(a)upon demand; or

(b)if the Borrower defaults in the observance or performance of any term, covenant or condition contained in this Note and such default is not remedied within fifteen (15) business days after service on the Borrower by the Lender of a notice in writing requiring that such default be remedied; 

(c)if the Borrower becomes bankrupt or insolvent or goes into liquidation, either voluntarily or under any order of a court of a competent jurisdiction, or makes a general assignment for the benefit of its creditors, or otherwise acknowledges its insolvency;

(d)the Borrower ceases or threatens to cease to carry on business;

(e)a receiver, receiver and manager or receiver-manager of any property, assets or undertaking of the Borrower is appointed;

(f)any execution, sequestration or other process of any kind becomes enforceable against the Borrower, or a distress or analogous process is levied upon any property or asset of the Borrower;

(g)the Borrower defaults in or under any obligation or agreement, other than this Note, which requires payment by the Borrower of any amount in excess of Fifty Thousand Dollars in the lawful money of the United States of America (US$50,000);

(h)the holder of any encumbrance against any property or asset of the Borrower does anything to enforce or realize on such encumbrance;

(i)the Borrower permits any sum which has been admitted as due and payable by it, or which is not disputed to be due and payable by it, to remain unpaid for 90 days after legal proceedings have been taken to compel payment thereof;

(j)the Borrower loses its certificate of incorporation by expropriation, forfeiture or otherwise; or

(k)the Lender in good faith believes, and has commercially reasonable grounds to believe, that the prospect of payment or performance of any of the obligations of the Borrower is impaired.

12.The Lender may, at any time after the security hereby constituted becomes enforceable, and while such money remains unpaid, take any action permitted by law or in equity as it may deem expedient.

13.Any notice required or permitted to be given to any of the parties to this Note will be in writing and may be given by prepaid registered mail, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of such party first above stated or such other address as any party may specify by notice in writing to the other party, and any such notice will be deemed to have been given and received by the party to whom it was addressed if mailed, on the third day following the mailing thereof, if by facsimile or other electronic communication, on successful transmission, or, if delivered, on delivery; but if at the time of mailing or between the time of mailing and the third business day thereafter there is a strike, lockout, or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

14.This Note shall be governed by and construed in accordance with the laws of the State of Washington and the laws of the United States of America applicable therein. 

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

	
ROLLTECH, INC.

Per:

/s/ Dr. Michael Scheglov

Authorized Signatory
	
 

 

	
EXECUTED BY TALY KEREN in the presence of:

/s/ Jim Stanley

Signature

Jim Stanley

Print Name

4320 196th SW #B141

Address

Lynnwood, WA 98036

Chief Operating Officer

Occupation
	
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ACCEPTED AND SIGNED BY THE LENDER:

/s/ Taly Keren

TALY KERENEXHIBIT 10.8

                               LADENBURG THALMANN

                                                                   April 8, 2002

Ms. Alie Chang
Chief Executive Officer and President
EarthNetMedia, Inc.
222 Amalfi Drive
Santa Monica, CA 90402

Dear Ms. Chang:

         This letter agreement (this "Agreement") will confirm that Ladenburg
Thalmann & Co. Inc. ("Ladenburg") has been retained as a financial advisor to
EarthNetMedia, Inc. (the "Company") to perform such financial consulting
services as the Company may reasonably request. The term of this agreement (the
"Agreement") shall extend through April 8, 2003, provided, however, that either
the Company or Ladenburg may terminate this Agreement prior to such date and as
of the end of any month after the first six (6) months upon no less than 30
days' prior written notice.

         As compensation for Ladenburg's services, the company will pay
Ladenburg a nonrefundable fee of $75,000 upon the execution of this Agreement.
The Company agrees to reimburse Ladenburg for all reasonable out-of-pocket
expenses incurred in carrying out the terms of this Agreement, including travel,
telephone, facsimile, courier, computer time charges, attorneys' fees and
disbursements. These out-of-pocket expenses will be payable from time to time
promptly upon invoicing by Ladenburg therefor.

         It is contemplated that from time to time the Company may request
Ladenburg to perform investment banking services (as distinguished from
financial consulting services) in connection with matters involving the Company,
such as the private placement of securities; mergers; acquisitions;
divestitures; valuations; or corporate reorganizations. Any fees which Ladenburg
shall become entitled to receive from the Company in connection with the
performance of any such investment banking services shall be set forth in a
separate agreement between the Company and Ladenburg and shall be in addition to
the compensation provided for under this Agreement. Ladenburg, however, will
have no obligation to enter into any separate agreement, the terms and
conditions of which must be negotiated between Ladenburg and the Company.

<PAGE>

         In order to enable Ladenburg to render its services hereunder, the
Company agrees to provide to Ladenburg, among other things, all information
reasonably requested or required by Ladenburg including, but not limited to,
information concerning historical and projected financial results and possible
and known litigious, environmental and other contingent liabilities. The Company
also agrees to make available to Ladenburg such representatives of the Company,
including, among others, directors, officers, employees, outside counsel and
independent certified public accountants, as Ladenburg may reasonably request.
The Company will promptly advise Ladenburg of any material changes in its
business or finances. The Company represents that all information made available
to Ladenburg by the Company will be complete and correct in all material
respects and will not contain any untrue statements of a material fact or omit
to state a material fact necessary in order to make the statements therein not
misleading in light of the circumstances under which such statements are made.
In rendering its services hereunder, Ladenburg will be using and relying
primarily on such information without independent verification thereof or
independent appraisal of any of the Company's assets. Ladenburg does not assume
responsibility for the accuracy or completeness of the information to which
reference is made hereto.

         The services herein provided are to be rendered solely to the Company.
They are not being rendered by Ladenburg as an agent or as a fiduciary of the
shareholders of the Company and Ladenburg shall not have any liability or
obligation with respect to its services hereunder to such shareholders or any
other person, firm or corporation.

         The Company and Ladenburg hereby agree to the terms and conditions of
the Indemnification Agreement attached hereto as Appendix A with the same force
and effect as if such terms and conditions were set forth at length herein.

         This Agreement sets forth the entire understanding of the parties
relating to the subject matter hereof and supersedes and cancels any prior
communications, understandings and agreements between the parties. This
Agreement cannot be terminated or changed, nor can any of its provisions be
waived, except by written agreement signed by all parties hereto or except as
otherwise provided herein. This Agreement shall be binding upon and inure to the
benefit of any successors and assigns of the Company and Ladenburg.

         This Agreement shall be governed by and construed to be in accordance
with the laws of the State of New York applicable to contracts made and to be
performed solely in such state by citizens thereof. Any dispute arising out of
this Agreement shall be adjudicated in the courts of the State of New York or in
the federal courts sitting in the Southern District of New York, and the Company
hereby agrees that service of process upon it by registered or certified mail at
its address set forth above shall be deemed adequate and lawful. The parties
hereto shall deliver notices to each other by personal delivery or by registered
or certified mail (return receipt requested) at the addresses set forth above.

<PAGE>

         Please confirm that the foregoing is in accordance with your
understanding by signing upon behalf of the Company and returning an executed
copy of this Agreement, and the warrant or warrants described herein, whereupon
after execution by Ladenburg this Agreement shall become binding between the
Company and Ladenburg. A telecopy of a signed original of this Agreement shall
be sufficient to bind the parties whose signatures appear hereon.

                                          Very truly yours,

                                          LADENBURG THALMANN & CO. INC.

                                          By:/s/ ROBERT KROPP
                                             ______________________________
                                             Robert Kropp
                                             Director of Investment Banking

ACCEPTED AND AGREED TO:

EARTHNETMEDIA, INC.

By:/s/ ALIE CHANG
   ______________
Name & Title:  ALIE CHANG, PRESIDENT & CEO
               ___________________________

Date: APRIL 10, 2002
      ______________

<PAGE>

                                                                      APPENDIX A

                            INDEMNIFICATION AGREEMENT

         Appendix A to Letter Engagement Agreement (the "Agreement") dated
April 8, 2002 by and between EarthNetMedia, Inc. (the "Company") and Ladenburg
Thalmann & Co. Inc. {"Ladenburg").

         The Company agrees to indemnify and hold Ladenburg and its affiliates,
control persons, directors, officers, employees and agents (each an "Indemnified
Person") harmless from and against all losses, claims, damages, liabilities,
costs or expenses, including those resulting from any threatened or pending
investigation, action, proceeding or dispute whether or not Ladenburg or any
such other Indemnified Person is a party to such investigation, action,
proceeding or dispute, arising out of Ladenburg's entering into or performing
services under this Agreement, or arising out of any matter referred to in this
Agreement. This indemnity shall also include Ladenburg's and/or any such other
Indemnified Person's reasonable attorneys' and accountants' fees and
out-of-pocket expenses incurred in, and the cost of Ladenburg's personnel whose
time is spent in connection with, such investigations, actions, proceedings or
disputes which fees, expenses and costs shall be periodically reimbursed to
Ladenburg and/or to any such other Indemnified Person by the Company as they are
incurred; provided, however, that the indemnity herein set forth shall not apply
to the Indemnified Person where a court of competent jurisdiction has made a
final determination that such Indemnified Person acted in a grossly negligent
manner or engaged in willful misconduct in the performance of the services
hereunder which gave rise to the loss, claim, damage, liability, cost or expense
sought to be recovered hereunder (but pending any such final determination the
indemnification and reimbursement provisions hereinabove set forth shall apply
and the Company shall perform its obligations hereunder to reimburse Ladenburg
and/or each such other Indemnified Person periodically for its, his or their
fees, expenses and costs as they are incurred). The Company also agrees that no
Indemnified Person shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to the Company for or in connection with any act
or omission to act as a result of its engagement under this Agreement except for
any such liability for losses, claims, damages, liabilities or expenses incurred
by the Company that is found in a final determination by a court of competent
jurisdiction to have resulted from such Indemnified Person's gross negligence or
willful misconduct.

         If for any reason, the foregoing indemnification is unavailable to
Ladenburg or any such other Indemnified Person or insufficient to hold it
harmless, then the Company shall contribute to the amount paid or payable by
Ladenburg or any such other Indemnified Person as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect not only the
relative benefits received by the Company and its shareholders on the one hand

<PAGE>

and Ladenburg or any such other Indemnified Person on the other hand, but also
the relative fault of the Company and Ladenburg or any such other Indemnified
Person, as well as any relevant equitable considerations; provided that in no
event will the aggregate contribution by Ladenburg and any such other
Indemnified Person hereunder exceed the amount of fees actually received by
Ladenburg pursuant to this Agreement. The reimbursement, indemnity and
contribution obligations of the Company hereinabove set forth shall be in
addition to any liability which the Company may otherwise have and these
obligations and the other provisions hereinabove set forth shall be binding upon
and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Company, Ladenburg and any other Indemnified Person.

         The terms and conditions hereinabove set forth in this Appendix A shall
survive the termination and expiration of this Agreement and shall continue
indefinitely thereafter.

                                                   LADENBURG THALMANN & CO. INC.

                                                   By: /s/ ROBERT KROPP
                                                       ________________
                                                           Robert Kropp

EARTHNETMEDIA, INC. AND ITS AFFILIATES AND RELATED ENTITIES

By: /s/ ALIE CHANG
    ______________
        Alie Chang

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