Document:

Exhibit 10.2

    
      

      

    

     

    EXCHANGE
      AGREEMENT

    

    THIS
      EXCHANGE AGREEMENT (the
      “Agreement”) is
      entered into effective as of the 30th
      day of
      June, 2006 (the “Effective Date”), by and between PALISADES MASTER FUND LP (the
“Purchaser”); and,
      OXFORD
      MEDIA, INC., a Nevada corporation (the “Company”). 

    

    WHEREAS,
      the Company and the Purchaser are parties to that certain Bridge Loan Agreement
      dated in February 2006 (the “Bridge Loan Agreement”) and Extension Agreement
      dated in June 2006 (the “Extension Agreement”). In connection with the Bridge
      Loan Agreement, the Company issued its promissory note in the principal amount
      of $1,666,667.00 in favor of the Purchaser (the “Note”). The Bridge Loan
      Agreement, the Note, the Extension Agreement and all other agreements delivered
      by the Company in connection with the Bridge Loan Agreement are collectively
      referred to herein as the “Loan Agreements;”

    

    WHEREAS,
      the Company and the Purchaser wish to provide for the terms and conditions
      pursuant to which the Purchaser shall exchange $1,000,000.00 principal amount
      of
      the Note (“Note”) and $3,836.00 of accrued interest, for a $1,003,836.00
      principal amount new promissory note, in the form attached hereto as Exhibit
      A,
      (the “New Note”).

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which the parties hereby acknowledge, the parties agree as follows:

    

    1.    AGREEMENT
      TO EXCHANGE.

    

    a.    Exchange.

    

    (i)    Subject
      to the terms and conditions of this Agreement, Purchaser hereby agree that
      $1,000,000 principal amount of the Note and $3,836 of accrued interest shall
      be
      exchanged for $1,003,836 of New Note (the “Transaction”).

    

    b.    Certain
      Definitions. As
      used
      herein, each of the following terms has the meaning set forth below, unless
      the
      context otherwise requires:

    

    “Affiliate”
      means, with respect to a specific Person referred to in the relevant provision,
      another Person who or which controls or is controlled by or is under common
      control with such specified Person.  

    

    “Certificate”
      means the New Note duly executed by the Company and issued on the Closing Date
      in the name of the Purchaser.

    

    

    
      
        
           

        

        
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    “Closing
      Date” means the date of the closing of the Transaction, as provided
      herein. 

    

    “Company
      Control Person” means each current director, executive officer, promoter, and
      such other Persons as may be deemed in control of the Company pursuant to Rule
      405 under the 1933 Act or Section 20 of the 1934 Act (as defined
      below).

    

    “Company’s
      SEC Documents” means all filings made by the Company with the Securities and
      Exchange Commission in compliance with the applicable provisions of the
      Securities Exchange Act of 1934, ass amended, and the Securities Act of 1933,
      as
      amended. 

    

    “Holder”
      means the Person holding the relevant Securities at the relevant
      time.

    

    “Last
      Audited Date” means December 31, 2005.

    

    “Purchaser
      Control Person” means each director, executive officer, promoter, and such other
      Persons as may be deemed in control of the Purchaser pursuant to Rule 405 under
      the 1933 Act or Section 20 of the 1934 Act.

    

    “Material
      Adverse Effect” means an event or combination of events, which individually or
      in the aggregate, would reasonably be expected to (w) adversely affect the
      legality, validity or enforceability of the Securities or any of the Loan
      Agreements, (x) have or result in a material adverse effect on the results
      of
      operations, assets, prospects, or condition (financial or otherwise) of the
      Company and its subsidiaries, taken as a whole, (y) adversely impair the
      Company's ability to perform fully on a timely basis its obligations under
      any
      of the Loan Agreements or the transactions contemplated thereby, or (z)
      materially and adversely affect the value of the rights granted to the Purchaser
      in the Loan Agreements.

    

    “Person”
      means any living person or any entity, such as, but not necessarily limited
      to,
      a corporation, partnership, or trust.

    

    “Principal
      Trading Market” means the Over the Counter Bulletin Board or such other market
      on which the Common Stock is principally traded at the relevant time, but shall
      not included the pink sheets.”

    

    “Securities”
      means the New Note. 

    

    “State
      of
      Incorporation” means Nevada.

    

    “Trading
      Day” means any day during which the Principal Trading Market shall be open for
      business.

     

     

    

    
      
        
           

        

        
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    “Transfer
      Agent” means, at any time, the transfer agent for the Company’s Common
      Stock.

    

    “Loan
      Agreements” means this Bridge Loan Agreement, the Note, the Echange Agreement,
      and includes all ancillary documents referred to in those
      agreements.

    

    c.    Delivery
      of Certificate. 

    

    (ii)   No
      later
      than the Closing Date the Company shall deliver to the Purchaser the
      Certificate, duly executed on behalf of the Company and issued in the name
      of
      the Purchaser.

    

    2.
      PURCHASER REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT
      INVESTIGATION.

    

    The
      Purchaser represents and warrants to, and covenants and agrees with, the Company
      as follows:

    

    a.    Without
      limiting Purchaser's right to sell the Securities pursuant to an effective
      registration statement or otherwise in compliance with the 1933 Act, the
      Purchaser is purchasing the Securities for its own account for investment only
      and not with a view towards the public sale or distribution thereof and not
      with
      a view to or for sale in connection with any distribution thereof.

    

    b.    The
      Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of
      the General Rules and Regulations under the 1933 Act by reason of Rule
      501(a)(3), (ii) experienced in making investments of the kind described in
      this
      Agreement and the related documents, (iii) able, by reason of the business
      and
      financial experience of its officers (if an entity) and professional advisors
      (who are not affiliated with or compensated in any way by the Company or any
      of
      its Affiliates or selling agents), to protect its own interests in connection
      with the transactions described in this Agreement, and the related documents,
      and to evaluate the merits and risks of an investment in the Securities, and
      (iv) able to afford the entire loss of its investment in the
      Securities.

    

    c.    All
      subsequent offers and sales of the Securities by the Purchaser shall be made
      pursuant to registration of the relevant Securities under the 1933 Act or
      pursuant to an exemption from registration.

    

    d.    The
      Purchaser understands that the Securities are being offered and sold to it
      in
      reliance on specific exemptions from the registration requirements of the 1933
      Act and state securities laws and that the Company is relying upon the truth
      and
      accuracy of, and the Purchaser's compliance with, the representations,
      warranties, agreements, acknowledgments and understandings of the Purchaser
      set
      forth herein in order to determine the availability of such exemptions and
      the
      eligibility of the Purchaser to acquire the Securities.

     

    
 

    
      
        
           

        

        
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    e.    The
      Purchaser and its advisors, if any, have been furnished with or have been given
      access to all materials relating to the business, finances, and operations
      of
      the Company and materials relating to the offer and sale of the Securities
      which
      have been requested by the Purchaser, including those set forth on in any annex
      attached hereto. The Purchaser and its advisors, if any, have been afforded
      the
      opportunity to ask questions of the Company and its management and have received
      complete and satisfactory answers to any such inquiries. Without limiting the
      generality of the foregoing, the Purchaser has also had the opportunity to
      obtain and to review the Company's filings on EDGAR.

    

    f.    The
      Purchaser understands that its investment in the Securities involves a high
      degree of risk.

    

    g.    The
      Purchaser hereby represents that, in connection with its purchase of the
      Securities, it has not relied on any statement or representation by the Company
      or any finders or any of their respective officers, directors, and employees
      or
      any of their respective attorneys or agents.

    

    h.    The
      Purchaser understands that no United States federal or state agency or any
      other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities.

    

    i.    This
      Agreement and the other Loan Agreements to which the Purchaser is a party,
      and
      the transactions contemplated thereby, have been duly and validly authorized,
      executed and delivered on behalf of the Purchaser and are valid and binding
      agreements of the Purchaser enforceable in accordance with their respective
      terms, subject as to enforceability to general principles of equity and to
      bankruptcy, insolvency, moratorium and other similar laws affecting the
      enforcement of creditors' rights generally.

    

    3.    COMPANY
      REPRESENTATIONS, ETC. The
      Company represents and warrants to the Purchaser as of the date hereof and
      as of
      the Closing Date that, except as otherwise provided in Annex
      IV, attached hereto,
      or in the Company’s SEC Documents:

    

    a.    Rights
      of Others Affecting the Transactions. There
      are
      no preemptive rights of any shareholder of the Company, as such, to acquire
      the
      Notes. No party other than a Purchaser or an Other Purchaser has a currently
      exercisable right of first refusal, which would be applicable to any or all
      of
      the transactions contemplated by the Loan Agreements.

    

    

    
      
        
           

        

        
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    b.    Status.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Incorporation and has the requisite corporate
      power to own its properties and to carry on its business as now being conducted.
      The Company is duly qualified as a foreign corporation to do business and is
      in
      good standing in each jurisdiction where the nature of the business conducted
      or
      property owned by it makes such qualification necessary, other than those
      jurisdictions in which the failure to so qualify would not have or result in
      a
      Material Adverse Effect. The Company has registered its stock and is obligated
      to file reports pursuant to Section 12 or Section 15(d) of the Securities and
      Exchange Act of 1934, as amended (the A1934
      Act”). The Common Stock is quoted on the Principal Trading Market. The Company
      has received no notice, either oral or written, with respect to the continued
      eligibility of the Common Stock for such quotation on the Principal Trading
      Market, and the Company has maintained all requirements on its part for the
      continuation of such quotation. 

    

    c.    Authorized
      Shares. 

    

    (i)   The
      authorized capital stock and capitalization of the Company is as described
      in
      the most recent applicable filing of the Company’s SEC Documents. 

    

    (ii)   As
      of the
      date hereof and as of the Closing Date, (1) there are no outstanding securities
      which are convertible into shares of Common Stock, whether such conversion
      is
      currently exercisable or exercisable only upon some future date or the
      occurrence of some event in the future and (2) the Company has not issued any
      warrants or other rights to acquire shares of the Common Stock other than those
      referred to in the Company’s SEC Documents. If any such securities are listed on
Annex
      IV,
      the
      number or amount of each such outstanding convertible security and the
      conversion terms thereof or of each such warrant or other right and the terms
      of
      its exercise are set forth in said Annex
      IV.

    

    (iii)  
        All
      issued and outstanding shares of Common Stock have been duly authorized and
      validly issued and are fully paid and non-assessable. 

    

    (iv)      
      As
      of the
      Closing Date, the Certificate shall have been duly authorized by all necessary
      corporate action on the part of the Company, and, when issued on the Closing
      Date or pursuant to other relevant provisions of the Loan Agreements, in each
      case in accordance with their respective terms, will be duly and validly issued,
      fully paid and non-assessable and will not subject the Holder thereof to
      personal liability by reason of being such Holder.

    

    d.    Loan
      Agreements.
      This
      Agreement and each of the other Loan Agreements, and the transactions
      contemplated thereby, have been duly and validly authorized by the Company,
      this
      Agreement has been duly executed and delivered by the Company and this Agreement
      is, and the Notes, and each of the other Loan Agreements, when executed and
      delivered by the Company, will be, valid and binding agreements of the Company
      enforceable in accordance with their respective terms, subject as to
      enforceability to general principles of equity and to bankruptcy, insolvency,
      moratorium, and other similar laws affecting the enforcement of creditors'
      rights generally.

     

    
 

    
      
        
           

        

        
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    e.    Non-contravention.
      The
      execution and delivery of this Agreement, the issuance of the Securities, and
      the consummation by the Company of the other transactions contemplated by this
      Agreement, and the New Note and the other Loan Agreements do not and will not
      conflict with or result in a breach by the Company of any of the terms or
      provisions of, or constitute a default under (i) the certificate of
      incorporation or by-laws of the Company, each as currently in effect, (ii)
      any
      indenture, mortgage, deed of trust, or other material agreement or instrument
      to
      which the Company is a party or by which it or any of its properties or assets
      are bound, including any listing agreement for the Common Stock except as herein
      set forth, or (iii) to its knowledge, any existing applicable law, rule, or
      regulation or any applicable decree, judgment, or order of any court, United
      States federal or state regulatory body, administrative agency, or other
      governmental body having jurisdiction over the Company or any of its properties
      or assets, except such conflict, breach or default which would not have or
      result in a Material Adverse Effect.

    

    f.    Approvals.
      No
      authorization, approval or consent of any court, governmental body, regulatory
      agency, self-regulatory organization, or stock exchange or market or the
      shareholders of the Company is required to be obtained by the Company for the
      issuance and sale of the Securities to the Purchaser as contemplated by this
      Agreement, except such authorizations, approvals and consents that have been
      obtained.

    

    g.    Filings.
      None of
      the Company’s SEC Documents contained, at the time they were filed, any untrue
      statement of a material fact or omitted to state any material fact required
      to
      be stated therein or necessary to make the statements made therein in light
      of
      the circumstances under which they were made, not misleading. Since September
      30, 2005 the Company has timely filed all requisite forms, reports, and exhibits
      thereto required to be filed by the Company with the SEC.

     

    h.    Absence
      of Certain Changes.
      Since
      December 31, 2005 there has been no material adverse change and no Material
      Adverse Effect, except as disclosed in the Company’s SEC Documents. Since the
      Last Audited Date, except as provided in the Company’s SEC Documents, the
      Company has not (i) incurred or become subject to any material liabilities
      (absolute or contingent) except liabilities incurred in the ordinary course
      of
      business consistent with past practices; (ii) discharged or satisfied any
      material lien or encumbrance or paid any material obligation or liability
      (absolute or contingent), other than current liabilities paid in the ordinary
      course of business consistent with past practices; (iii) declared or made any
      payment or distribution of cash or other property to shareholders with respect
      to its capital stock, or purchased or redeemed, or made any agreements to
      purchase or redeem, any shares of its capital stock; (iv) sold, assigned or
      transferred any other tangible assets, or canceled any debts owed to the Company
      by any third party or claims of the Company against any third party, except
      in
      the ordinary course of business consistent with past practices; (v) waived
      any
      rights of material value, whether or not in the ordinary course of business,
      or
      suffered the loss of any material amount of existing business; (vi) made any
      increases in employee compensation, except in the ordinary course of business
      consistent with past practices; or (vii) experienced any material problems
      with
      labor or management in connection with the terms and conditions of their
      employment.

    

    

    
      
        
           

        

        
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    i.    Full
      Disclosure.
      To the
      best of the Company’s knowledge, there is no fact known to the Company (other
      than general economic conditions known to the public generally or as disclosed
      in the Company’s SEC Documents) that has not been disclosed in writing to the
      Purchaser that would reasonably be expected to have or result in a Material
      Adverse Effect.

    

    j.    Absence
      of Litigation.
      There is
      no action, suit, proceeding, inquiry or investigation before or by any court,
      public board or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company before or by any governmental authority or
      nongovernmental department, commission, board, bureau, agency or instrumentality
      or any other person, wherein an unfavorable decision, ruling or finding would
      have a Material Adverse Effect or which would adversely affect the validity
      or
      enforceability of, or the authority or ability of the Company to perform its
      obligations under, any of the Loan Agreements. The Company is not aware of
      any
      valid basis for any such claim that (either individually or in the aggregate
      with all other such events and circumstances) could reasonably be expected
      to
      have a Material Adverse Effect. There are no outstanding or unsatisfied
      judgments, orders, decrees, writs, injunctions or stipulations to which the
      Company is a party or by which it or any of its properties is bound, that
      involve the transaction contemplated herein or that, alone or in the aggregate,
      could reasonably be expect to have a Material Adverse Effect.

    

    k.    Absence
      of Events of Default.
      Except
      as set forth in Section 3(e) hereof, (i) neither the Company nor any of its
      subsidiaries is in default in the performance or observance of any material
      obligation, agreement, covenant or condition contained in any material
      indenture, mortgage, deed of trust or other material agreement to which it
      is a
      party or by which its property is bound, and (ii) no Event of Default (or its
      equivalent term), as defined in the respective agreement to which the Company
      or
      its subsidiary is a party, and no event which, with the giving of notice or
      the
      passage of time or both, would become an Event of Default (or its equivalent
      term) (as so defined in such agreement), has occurred and is continuing, which
      would have a Material Adverse Effect.

    

    l.    Absence
      of Certain Company Control Person Actions or Events.
      To the
      Company’s knowledge, none of the following has occurred during the past two (2)
      years with respect to a Company Control Person:

    

    (1)
      A
      petition under the federal bankruptcy laws or any state insolvency law was
      filed
      by or against, or a receiver, fiscal agent or similar officer was appointed
      by a
      court for the business or property of such Company Control Person, or any
      partnership in which he was a general partner at or within two years before
      the
      time of such filing, or any corporation or business association of which he
      was
      an executive officer at or within two years before the time of such
      filing;

    

    

    
      
        
           

        

        
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    (2)
      Such
      Company Control Person was convicted in a criminal proceeding or is a named
      subject of a pending criminal proceeding (excluding traffic violations and
      other
      minor offenses);

    

    (3)
      Such
      Company Control Person was the subject of any order, judgment, or decree, not
      subsequently reversed, suspended, or vacated, of any court of competent
      jurisdiction, permanently or temporarily enjoining him from, or otherwise
      limiting, the following activities:

    

    (i)
      acting, as an investment advisor, underwriter, broker or dealer in securities,
      or as an affiliated person, director or employee of any investment company,
      bank, savings and loan association or insurance company, as a futures commission
      merchant, introducing broker, commodity trading advisor, commodity pool
      operator, floor broker, any other Person regulated by the Commodity Futures
      Trading Commission ("CFTC") or engaging in or continuing any conduct or practice
      in connection with such activity;

    

    (ii)
      engaging in any type of business practice; or

    

    (iii)
      engaging in any activity in connection with the purchase or sale of any security
      or commodity or in connection with any violation of federal or state securities
      laws or federal commodities laws;

    

    (4)
      Such
      Company Control Person was the subject of any order, judgment or decree, not
      subsequently reversed, suspended or vacated, of any federal or state authority
      barring, suspending or otherwise limiting for more than 60 days the right of
      such Company Control Person to engage in any activity described in paragraph
      (3)
      of this item, or to be associated with Persons engaged in any such activity;
      or

    

    (5)
      Such
      Company Control Person was found by a court of competent jurisdiction in a
      civil
      action or by the CFTC or SEC to have violated any federal or state securities
      law, and the judgment in such civil action or finding by the CFTC or SEC has
      not
      been subsequently reversed, suspended, or vacated.

     

    m.   No
      Undisclosed Liabilities or Events.
      To the
      best of the Company’s knowledge, the Company has no liabilities or obligations
      other than those disclosed in the Loan Agreements or the Company's SEC Documents
      or in the Preferred Stock Transaction or those incurred in the ordinary course
      of the Company's business since the Last Audited Date, or which individually
      or
      in the aggregate, do not or would not have a Material Adverse Effect. No event
      or circumstances has occurred or exists with respect to the Company or its
      properties, business, operations, condition (financial or otherwise), or results
      of operations, which, under applicable law, rule or regulation, requires public
      disclosure or announcement prior to the date hereof by the Company but which
      has
      not been so publicly announced or disclosed. There are no proposals currently
      under consideration or currently anticipated to be under consideration by the
      Board of Directors or the executive officers of the Company which proposal
      would
      (x) change the articles or certificate of incorporation or other charter
      document or by-laws of the Company, each as currently in effect, with or without
      shareholder approval, which change would reduce or otherwise adversely affect
      the rights and powers of the shareholders of the Common Stock or (y) materially
      or substantially change the business, assets or capital of the Company,
      including its interests in subsidiaries.

    

    
      
        
           

        

        
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    n.    No
      Integrated Offering.
      Neither
      the Company nor any of its Affiliates nor any Person acting on its or their
      behalf has, directly or indirectly, at any time since September 30, 2004, made
      any offer or sales of any security or solicited any offers to buy any security
      under circumstances that would eliminate the availability of the exemption
      from
      registration under Regulation D in connection with the offer and sale of the
      Securities as contemplated hereby.

    

    o.    Confirmation.
      The
      Company confirms that all statements of the Company contained herein shall
      survive acceptance of this Agreement by the Purchaser. The Company agrees that,
      if any events occur or circumstances exist prior to the Closing Date or the
      release of the Loan Amount to the Company which would make any of the Company’s
      representations, warranties, agreements or other information set forth herein
      materially untrue or materially inaccurate as of such date, the Company shall
      immediately notify the Purchaser (directly or through its counsel, if any)
      in
      writing prior to such date of such fact, specifying which representation,
      warranty or covenant is affected and the reasons therefore.

    

    4.    CERTAIN
      COVENANTS AND ACKNOWLEDGMENTS.

    

    a.    Transfer
      Restrictions.
      The
      Purchaser acknowledges that (1) the Securities have not been and are not being
      registered under the provisions of the 1933 Act and, except as provided in
      the
      Registration Rights Provisions or otherwise included in an effective
      registration statement, the Issued Shares have not been and are not being
      registered under the 1933 Act, and may not be transferred unless (A)
      subsequently registered thereunder or (B) the Purchaser shall have delivered
      to
      the Company an opinion of counsel, reasonably satisfactory in form, scope and
      substance to the Company, to the effect that the Securities to be sold or
      transferred may be sold or transferred pursuant to an exemption from such
      registration; (2) any sale of the Securities made in reliance on Rule 144
      promulgated under the 1933 Act may be made only in accordance with the terms
      of
      said Rule and further, if said Rule is not applicable, any resale of such
      Securities under circumstances in which the seller, or the Person through whom
      the sale is made, may be deemed to be an underwriter, as that term is used
      in
      the 1933 Act, may require compliance with some other exemption under the 1933
      Act or the rules and regulations of the SEC thereunder; and (3) neither the
      Company nor any other Person is under any obligation to register the Securities
      (other than pursuant to the Registration Rights Provisions) under the 1933
      Act
      or to comply with the terms and conditions of any exemption
      thereunder.

    

     

    
      
        
           

        

        
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    b.    Restrictive
      Legend.
      The
      Purchaser acknowledges and agrees that, until such time as the relevant
      Securities have been registered under the 1933 Act, the Certificate and other
      instruments representing any of the Securities shall bear a restrictive legend
      in substantially the following form (and a stop-transfer order may be placed
      against transfer of any such Securities):

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
      FOR
      SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      OR
      AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED.

    

    c.    Filings.
      The
      Company undertakes and agrees to make all necessary filings in connection with
      the sale of the Securities to the Purchaser under any United States laws and
      regulations applicable to the Company, or by any domestic securities exchange
      or
      trading market, and to provide a copy thereof to the Purchaser promptly after
      such filing.

    

    d.    Reporting
      Status.
      So long
      as the Purchaser beneficially owns any of the Securities and for at least twenty
      (20) Trading Days thereafter, the Company shall file all reports required to
      be
      filed with the SEC pursuant to Section 13 or 15(d) of the 1934 Act, shall take
      all reasonable action under its control to ensure that adequate current public
      information with respect to the Company, as required in accordance with Rule
      144(c)(2) of the 1933 Act, is publicly available, and shall not terminate its
      status as an issuer required to file reports under the 1934 Act even if the
      1934
      Act or the rules and regulations thereunder would permit such termination.
      The
      Company will take all reasonable action under its control to maintain the
      continued listing and quotation and trading of its Common Stock (including,
      without limitation, all Registrable Securities) on the Principal Trading Market
      or a listing on the NASDAQ/Small Cap or National Markets and, to the extent
      applicable to it, will comply in all material respects with the Company’s
      reporting, filing and other obligations under the by-laws or rules of the
      Principal Trading Market and/or the National Association of Securities Dealers,
      Inc., as the case may be, applicable to it at least through the date which
      is
      sixty (60) days after the date on which the Note has been been paid in
      full.

    

    e.    Use
      of Proceeds.
      The
      Company will use 100% of the proceeds received hereunder solely for working
      capital and general corporate purposes.

    

    

    
      
        
           

        

        
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    f.    Publicity,
      Filings, Releases, Etc.
      Each of
      the parties agrees that it will not disseminate any information relating to
      the
      Loan Agreements or the transactions contemplated thereby, including issuing
      any
      press releases, holding any press conferences or other forums, or filing any
      reports (collectively, “Publicity”), without giving the other party reasonable
      advance notice and an opportunity to comment on the contents thereof. Neither
      party will include in any such Publicity any statement or statements or other
      material to which the other party reasonably objects, unless in the reasonable
      opinion of counsel to the party proposing such statement, such statement is
      legally required to be included. In furtherance of the foregoing, the Company
      will provide to the Purchaser drafts of the applicable text of the first filing
      of a Current Report on Form 8-K or a Quarterly or Annual Report on Form 10-Q
      or
      10-K intended to be made with the SEC which refers to the Loan Agreements or
      the
      transactions contemplated thereby as soon as practicable (but at least two
      (2)
      Trading Days before such filing will be made) will not include in such filing
      any statement or statements or other material to which the other party
      reasonably objects, unless in the reasonable opinion of counsel to the party
      proposing such statement, such statement is legally required to be included.
      Notwithstanding the foregoing, each of the parties hereby consents to the
      inclusion of the text of the Loan Agreements in filings made with the SEC as
      well as any descriptive text accompanying or part of such filing which is
      accurate and reasonably determined by the Company’s
      counsel
      to be legally required. Notwithstanding, but subject to, the foregoing
      provisions of this Section 4(i), the Company will, after the Closing Date,
      promptly issue a press release and file a Current Report on Form 8-K or, if
      appropriate, a quarterly or annual report on the appropriate form, referring
      to
      the transactions contemplated by the Loan Agreements.

    

    g.    Independent
      Investment Decision.
      No
      Purchaser has agreed to act with any Other Purchaser for the purpose of
      acquiring, holding, voting or disposing of the Securities purchased hereunder
      for purposes of Section 13(d) under the 1934 Act, and each Purchaser is acting
      independently with respect to its investment in the Securities. The decision
      of
      each Purchaser to purchase Securities pursuant to this Agreement has been made
      by such Purchaser independently of any other purchase and independently of
      any
      information, materials, statements or opinions as to the business, affairs,
      operations, assets, properties, liabilities, results of operations, condition
      (financial or otherwise) or prospects of the Company or its subsidiaries which
      may have made or given by any Other Purchaser or by any agent or employee of
      any
      Other Purchaser, and no Purchaser or any of its agents or employees shall have
      any liability to any Other Purchaser (or any other person) relating to or
      arising from any such information, materials, statements or opinions.

    

    5.    Intentionally
      Omitted. 

    

    6.    CLOSING
      DATE.

    

    a.    The
      Closing Date shall occur on the date which is the first Trading Day after each
      of the conditions contemplated by Sections 7 and 8 hereof shall have either
      been
      satisfied or been waived by the party in whose favor such conditions
      run.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    

    b.    The
      closing of the Transactions shall occur on the Closing Date at the offices
      of
      the Purchaser and shall take place no later than 3:00 P.M., New York time,
      on
      such day or such other time as is mutually agreed upon by the Company and the
      Purchaser.

    

    7.    CONDITIONS
      TO THE COMPANY'S OBLIGATION TO SELL.

    

    The
      Purchaser understands that the Company's obligation to sell the Notes to the
      Purchaser pursuant to this Agreement on the Closing Date is conditioned
      upon:

    

    a.    The
      execution and delivery of this Agreement by the Purchaser;

    

    b.    The
      accuracy on such Closing Date of the representations and warranties of the
      Purchaser contained in this Agreement, each as if made on such date, and the
      performance by the Purchaser on or before such date of all covenants and
      agreements of the Purchaser required to be performed on or before such date;
      

    

    c.    There
      shall not be in effect any law, rule, or regulation prohibiting or restricting
      the transactions contemplated hereby, or requiring any consent or approval
      which
      shall not have been obtained.

    

    8.    CONDITIONS
      TO THE PURCHASER'S OBLIGATION TO PURCHASE.

    

    The
      Company understands that the Purchaser's obligation to purchase the New Notes
      on
      the Closing Date is conditioned upon:

    

    a.    The
      execution and delivery of this Agreement and any other Loan Agreements by the
      Company;

    

    b.    Delivery
      by the Company of the Certificate in accordance with this
      Agreement;

     

    c.    The
      delivery of a legal opinion of Company Counsel, in the form attached hereto
      as
      Annex V, addressed to the Purchaser, no later than July 5, 2006; 

     

    d.    The
      delivery, no later than July 5, 2006, of a certificate, signed by the Secretary
      of the Company, attaching (i) the charter and By-Laws of the Company, and (ii)
      resolutions passed by its Board of Directors to authorize the transactions
      contemplated hereby and by the other Loan Agreements, and certifying that such
      documents are true and complete copies of the originals and that such
      resolutions have not been amended or superseded, it being understood that the
      Purchasers may rely on such certificate as a representation and warranty of
      the
      Company made herein;

     

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    e.    The
      delivery of a
      certificate, no later than July 5, 2006, signed by the Chief Executive Officer
      of the Company, certifying that the conditions specified in this Section have
      been fulfilled as of the Closing, it being understood that such Purchaser may
      rely on such certificate as though it were a representation and warranty of
      the
      Company made herein; and

    

    f.    The
      delivery, no later than July 5, 2006, of a copy of a Press Release or Current
      Report on Form 8-K describing the Loan Agreements.

    

    g.    The
      accuracy in all material respects on the Closing Date of the representations
      and
      warranties of the Company contained in this Agreement, each as if made on such
      date, and the performance by the Company on or before such date of all covenants
      and agreements of the Company required to be performed on or before such date;
      

    

    h.    There
      shall not be in effect any law, rule, or regulation prohibiting or restricting
      the transactions contemplated hereby, or requiring any consent or approval
      which
      shall not have been obtained; 

    

    i.    From
      and
      after the date hereof to and including the Closing Date, each of the following
      conditions will remain in effect: (i) the trading of the Common Stock shall
      not
      have been suspended by the SEC or on the Principal Trading Market; (ii) trading
      in securities generally on the Principal Trading Market shall not have been
      suspended or limited; (iii) no minimum prices shall been established for
      securities traded on the Principal Trading Market; and (iv) there shall not
      have
      been any material adverse change in any financial market.

    

    9.    INDEMNIFICATION
      AND REIMBURSEMENT.

     

    a.    (i)    The
      Company agrees to indemnify and hold harmless the Purchaser and its officers,
      directors, employees, and agents, and each Purchaser Control Person from and
      against any losses, claims, damages, liabilities or expenses incurred
      (collectively, “Damages”), joint or several, and any action in respect thereof
      to which the Purchaser, its partners, Affiliates, officers, directors,
      employees, and duly authorized agents, and any such Purchaser Control Person
      becomes subject to, resulting from, arising out of or relating to any
      misrepresentation, breach of warranty or nonfulfillment of or failure to perform
      any covenant or agreement on the part of Company contained in this Agreement,
      as
      such Damages are incurred, except to the extent such Damages result primarily
      from Purchaser's failure to perform any covenant or agreement contained in
      this
      Agreement or the Purchaser's or its officer’s, director’s, employee’s, agent’s
      or Purchaser Control Person’s gross negligence, recklessness or bad faith in
      performing its obligations under this Agreement.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    

    (ii)    The
      Company hereby agrees that, if the Purchaser, other than by reason of its gross
      negligence, illegal or willful misconduct (in each case, as determined by a
      non-appealable judgment to such effect), (x) becomes involved in any capacity
      in
      any action, proceeding or investigation brought by any shareholder of the
      Company, in connection with or as a result of the consummation of the
      transactions contemplated by this Agreement or the other Loan Agreements, or
      if
      the Purchaser is impleaded in any such action, proceeding or investigation
      by
      any Person, or (y) becomes involved in any capacity in any action, proceeding
      or
      investigation brought by the SEC, any self-regulatory organization or other
      body
      having jurisdiction, against or involving the Company or in connection with
      or
      as a result of the consummation of the transactions contemplated by this
      Agreement or the other Loan Agreements, or (z) is impleaded in any such action,
      proceeding or investigation by any Person, then in any such case, the Company
      shall indemnify, defend and hold harmless the Purchaser from and against and
      in
      respect of all losses, claims, liabilities, damages or expenses resulting from,
      imposed upon or incurred by the Purchaser, directly or indirectly, and reimburse
      such Purchaser for its reasonable legal and other expenses (including the cost
      of any investigation and preparation) incurred in connection therewith, as
      such
      expenses are incurred. The indemnification and reimbursement obligations of
      the
      Company under this paragraph shall be in addition to any liability which the
      Company may otherwise have, shall extend upon the same terms and conditions
      to
      any Affiliates of the Purchaser who are actually named in such action,
      proceeding or investigation, and partners, directors, agents, employees and
      Purchaser Control Persons (if any), as the case may be, of the Purchaser and
      any
      such Affiliate, and shall be binding upon and inure to the benefit of any
      successors, assigns, heirs and personal representatives of the Company, the
      Purchaser, any such Affiliate and any such Person. The Company also agrees
      that
      neither the Purchaser nor any such Affiliate, partner, director, agent, employee
      or Purchaser Control Person shall have any liability to the Company or any
      Person asserting claims on behalf of or in right of the Company in connection
      with or as a result of the consummation of this Agreement or the other Loan
      Agreements, except as may be expressly and specifically provided in or
      contemplated by this Agreement.

    

    b.    All
      claims for indemnification by any Indemnified Party (as defined below) under
      this Section shall be asserted and resolved as follows:

     

    (i)
    In
      the
      event any claim or demand in respect of which any Person claiming
      indemnification under any provision of this Section (an "Indemnified Party")
      might seek indemnity under paragraph (a) of this Section is asserted against
      or
      sought to be collected from such Indemnified Party by a Person other than a
      party hereto or an Affiliate thereof (a "Third Party Claim"), the Indemnified
      Party shall deliver a written notification, enclosing a copy of all papers
      served, if any, and specifying the nature of and basis for such Third Party
      Claim and for the Indemnified Party's claim for indemnification that is being
      asserted under any provision of this Section against any Person (the
      "Indemnifying Party"), together with the amount or, if not then reasonably
      ascertainable, the estimated amount, determined in good faith, of such Third
      Party Claim (a "Claim Notice") with reasonable promptness to the Indemnifying
      Party. If the Indemnified Party fails to provide the Claim Notice with
      reasonable promptness after the Indemnified Party receives notice of such Third
      Party Claim, the Indemnifying Party shall not be obligated to indemnify the
      Indemnified Party with respect to such Third Party Claim to the extent that
      the
      Indemnifying Party's ability to defend has been prejudiced by such failure
      of
      the Indemnified Party. The Indemnifying Party shall notify the Indemnified
      Party
      as soon as practicable within the period ending thirty (30) calendar days
      following receipt by the Indemnifying Party of either a Claim Notice or an
      Indemnity Notice (as defined below) (the "Dispute Period") whether the
      Indemnifying Party disputes its liability or the amount of its liability to
      the
      Indemnified Party under this Section and whether the Indemnifying Party desires,
      at its sole cost and expense, to defend the Indemnified Party against such
      Third
      Party Claim. The following provisions shall also apply.

    
 

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    (x)
      If
      the Indemnifying Party notifies the Indemnified Party within the Dispute Period
      that the Indemnifying Party desires to defend the Indemnified Party with respect
      to the Third Party Claim pursuant to this paragraph (b) of this Section, then
      the Indemnifying Party shall have the right to defend, with counsel reasonably
      satisfactory to the Indemnified Party, at the sole cost and expense of the
      Indemnifying Party, such Third Party Claim by all appropriate proceedings,
      which
      proceedings shall be vigorously and diligently prosecuted by the Indemnifying
      Party to a final conclusion or will be settled at the discretion of the
      Indemnifying Party (but only with the consent of the Indemnified Party in the
      case of any settlement that provides for any relief other than the payment
      of
      monetary damages or that provides for the payment of monetary damages as to
      which the Indemnified Party shall not be indemnified in full pursuant to
      paragraph (a) of this Section). The Indemnifying Party shall have full control
      of such defense and proceedings, including any compromise or settlement thereof;
      provided, however, that the Indemnified Party may, at the sole cost and expense
      of the Indemnified Party, at any time prior to the Indemnifying Party's delivery
      of the notice referred to in the first sentence of this subparagraph (x), file
      any motion, answer or other pleadings or take any other action that the
      Indemnified Party reasonably believes to be necessary or appropriate protect
      its
      interests; and provided further, that if requested by the Indemnifying Party,
      the Indemnified Party will, at the sole cost and expense of the Indemnifying
      Party, provide reasonable cooperation to the Indemnifying Party in contesting
      any Third Party Claim that the Indemnifying Party elects to contest. The
      Indemnified Party may participate in, but not control, any defense or settlement
      of any Third Party Claim controlled by the Indemnifying Party pursuant to this
      subparagraph (x), and except as provided in the preceding sentence, the
      Indemnified Party shall bear its own costs and expenses with respect to such
      participation. Notwithstanding the foregoing, the Indemnified Party may take
      over the control of the defense or settlement of a Third Party Claim at any
      time
      if it irrevocably waives its right to indemnity under paragraph (a) of this
      Section with respect to such Third Party Claim. 

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    

    (y)
      If
      the Indemnifying Party fails to notify the Indemnified Party within the Dispute
      Period that the Indemnifying Party desires to defend the Third Party Claim
      pursuant to paragraph (b) of this Section, or if the Indemnifying Party gives
      such notice but fails to prosecute vigorously and diligently or settle the
      Third
      Party Claim, or if the Indemnifying Party fails to give any notice whatsoever
      within the Dispute Period, then the Indemnified Party shall have the right
      to
      defend, at the sole cost and expense of the Indemnifying Party, the Third Party
      Claim by all appropriate proceedings, which proceedings shall be prosecuted
      by
      the Indemnified Party in a reasonable manner and in good faith or will be
      settled at the discretion of the Indemnified Party (with the consent of the
      Indemnifying Party, which consent will not be unreasonably withheld). The
      Indemnified Party will have full control of such defense and proceedings,
      including any compromise or settlement thereof; provided, however, that if
      requested by the Indemnified Party, the Indemnifying Party will, at the sole
      cost and expense of the Indemnifying Party, provide reasonable cooperation
      to
      the Indemnified Party and its counsel in contesting any Third Party Claim which
      the Indemnified Party is contesting. Notwithstanding the foregoing provisions
      of
      this subparagraph (y), if the Indemnifying Party has notified the Indemnified
      Party within the Dispute Period that the Indemnifying Party disputes its
      liability or the amount of its liability hereunder to the Indemnified Party
      with
      respect to such Third Party Claim and if such dispute is resolved in favor
      of
      the Indemnifying Party in the manner provided in subparagraph(z) below, the
      Indemnifying Party will not be required to bear the costs and expenses of the
      Indemnified Party's defense pursuant to this subparagraph (y) or of the
      Indemnifying Party's participation therein at the Indemnified Party's request,
      and the Indemnified Party shall reimburse the Indemnifying Party in full for
      all
      reasonable costs and expenses incurred by the Indemnifying Party in connection
      with such litigation. The Indemnifying Party may participate in, but not
      control, any defense or settlement controlled by the Indemnified Party pursuant
      to this subparagraph (y), and the Indemnifying Party shall bear its own costs
      and expenses with respect to such participation. 

     

    (z)
      If
      the Indemnifying Party notifies the Indemnified Party that it does not dispute
      its liability or the amount of its liability to the Indemnified Party with
      respect to the Third Party Claim under paragraph (a) of this Section or fails
      to
      notify the Indemnified Party within the Dispute Period whether the Indemnifying
      Party disputes its liability or the amount of its liability to the Indemnified
      Party with respect to such Third Party Claim, the amount of Damages specified
      in
      the Claim Notice shall be conclusively deemed a liability of the Indemnifying
      Party under paragraph (a) of this Section and the Indemnifying Party shall
      pay
      the amount of such Damages to the Indemnified Party on demand. If the
      Indemnifying Party has timely disputed its liability or the amount of its
      liability with respect to such claim, the Indemnifying Party and the Indemnified
      Party shall proceed in good faith to negotiate a resolution of such dispute;
      provided, however, that if the dispute is not resolved within thirty (30) days
      after the Claim Notice, the Indemnifying Party shall be entitled to institute
      such legal action as it deems appropriate. 

     

     

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    

    (ii)    In
      the
      event any Indemnified Party should have a claim under paragraph (a) of this
      Section against the Indemnifying Party that does not involve a Third Party
      Claim, the Indemnified Party shall deliver a written notification of a claim
      for
      indemnity under paragraph (a) of this Section specifying the nature of and
      basis
      for such claim, together with the amount or, if not then reasonably
      ascertainable, the estimated amount, determined in good faith, of such claim
      (an
      "Indemnity Notice") with reasonable promptness to the Indemnifying Party. The
      failure by any Indemnified Party to give the Indemnity Notice shall not impair
      such party's rights hereunder except to the extent that the Indemnifying Party
      demonstrates that it has been irreparably prejudiced thereby. If the
      Indemnifying Party notifies the Indemnified Party that it does not dispute
      the
      claim or the amount of the claim described in such Indemnity Notice or fails
      to
      notify the Indemnified Party within the Dispute Period whether the Indemnifying
      Party disputes the claim or the amount of the claim described in such Indemnity
      Notice, the amount of Damages specified in the Indemnity Notice will be
      conclusively deemed a liability of the Indemnifying Party under paragraph (a)
      of
      this Section and the Indemnifying Party shall pay the amount of such Damages
      to
      the Indemnified Party on demand. If the Indemnifying Party has timely disputed
      its liability or the amount of its liability with respect to such claim, the
      Indemnifying Party and the Indemnified Party shall proceed in good faith to
      negotiate a resolution of such dispute; provided, however, that it the dispute
      is not resolved within thirty (30) days after the Claim Notice, the Indemnifying
      Party shall be entitled to institute such legal action as it deems
      appropriate.

    

    c.    The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar rights of the indemnified party against the indemnifying
      party
      or others, and (ii) any liabilities the indemnifying party may be subject
      to.

    

    10.
         JURY
      TRIAL WAIVER. The
      Company and the Purchaser hereby waive a trial by jury in any action, proceeding
      or counterclaim brought by either of the Parties hereto against the other in
      respect of any matter arising out or in connection with the Loan
      Agreements.

    

    11. 
        GOVERNING
      LAW: MISCELLANEOUS.

    

     

     

     

     

    
 

    

    
      
        
          
            

          

           

        

        
          17

          
            

          

        

        
           

          
            

            

          

        

      

    

    

    a.    (i)    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New York for contracts to be wholly performed in such state and
      without giving effect to the principles thereof regarding the conflict of laws.
      Each of the parties consents to the exclusive jurisdiction of the federal courts
      whose districts encompass any part of the County of New York or the state courts
      of the State of New York sitting in the County of New York in connection with
      any dispute arising under this Agreement or any of the other Loan Agreements
      and
      hereby waives, to the maximum extent permitted by law, any objection, including
      any objection based on
      forum non conveniens,
      to the
      bringing of any such proceeding in such jurisdictions or to any claim that
      such
      venue of the suit, action or proceeding is improper. To the extent determined
      by
      such court, the Company shall reimburse the Purchaser for any reasonable legal
      fees and disbursements incurred by the Purchaser in enforcement of or protection
      of any of its rights under any of the Loan Agreements. Nothing in this Section
      shall affect or limit any right to serve process in any other manner permitted
      by law.

    

    (ii)    The
      Company
      and the Purchaser acknowledge and agree that irreparable damage would occur
      in
      the event that any of the provisions of this Agreement or the other Loan
      Agreements were not performed in accordance with their specific terms or were
      otherwise breached. It is accordingly agreed that the parties shall be entitled
      to seek an injunction or injunctions to prevent or cure breaches of the
      provisions of this Agreement and the other Loan Agreements and to enforce
      specifically the terms and provisions hereof and thereof, this being in addition
      to any other remedy to which any of them may be entitled by law or
      equity.

    

    b.    Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

    

    c.    This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties hereto.

    

    d.    All
      pronouns and any variations thereof refer to the masculine, feminine or neuter,
      singular or plural, as the context may require.

    

    e.    A
      facsimile transmission of this signed Agreement shall be legal and binding
      on
      all parties hereto. 

    

    f.    This
      Agreement may be signed in one or more counterparts, each of which shall be
      deemed an original. 

    

    g.    The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement. 

    

    h.    If
      any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement or the validity or
      enforceability of this Agreement in any other jurisdiction. 

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

    

    

    i.    This
      Agreement may be amended only by an instrument in writing signed by the party
      to
      be charged with enforcement thereof. 

    

    j.    This
      Agreement supersedes all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof.

     

    12. 
        NOTICES.
      Any
      notice required or permitted hereunder shall be given in writing (unless
      otherwise specified herein) and shall be deemed effectively given on the
      earliest of 

    

    (a) 
         the date
      delivered, if delivered by personal delivery as against written receipt
      therefore or by confirmed facsimile transmission,

    

    (b)  
        the fifth Trading
      Day after deposit, postage prepaid, in the United States Postal Service by
      registered or certified mail, or 

    

    (c)  
        the third Trading
      Day after mailing by domestic or international express courier, with delivery
      costs and fees prepaid, 

    

    in
      each
      case, addressed to each of the other parties thereunto entitled at the following
      addresses (or at such other addresses as such party may designate by ten (10)
      day’s advance written notice similarly given to each of the other parties
      hereto):

    

    
      	
              COMPANY:

            	
              Oxford
                Media, Inc.

            

    

    One
      Technology Drive, Building H

    Irvine,
      CA 92618

     

    Tel
      949.341.0050

    

    

    
      
        
          	PURCHASER:	
                  At
                    the address set forth on the signature page of this Agreement.with
                    a copy
                    to:

                

        

      

    

    

    Darrin
      M.
      Ocasio, Esq.

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York,
      NY 10018

    

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    

    13. 
        SURVIVAL
      OF REPRESENTATIONS AND WARRANTIES.
      The
      Company’s and the Purchaser’s representations and warranties herein shall
      survive the execution and delivery of this Agreement and the delivery of the
      Certificates and the payment of the Loan Amount, and shall inure to the benefit
      of the Purchaser and the Company and their respective successors and
      assigns.

    

    14. 
        Broker
      and Similar Fees.
      Each
      party
      to this Agreement represents and warrants that no broker or finder has acted
      for
      it in connection with this Agreement or the Transactions contemplated hereby
      and
      that no broker or finder is entitled to any brokerage or finder’s fee or other
      commission, except as otherwise expressly disclosed by one party to the other.
      Each party to this Agreement agrees to indemnify and hold harmless the other
      parties hereto with respect to any claim for any brokerage or finder’s fee or
      other commission.

     

     

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK.]

     

    IN
      WITNESS WHEREOF,
      with
      respect to the Loan Amount specified below, this Agreement has been duly
      executed by the Purchaser and the Company as of the date set first above
      written.

    

    
      	
              PRINCIPAL
                AMOUNT OF NEW NOTE:

            	
              $1,003,836.00 

            

    

    

    

    PURCHASER:

    

    PALISADES
      MASTER FUND LP

    Harbour
      House, Waterfront Drive

    PO
      Box
      972

    Road
      Town, Tortola

    British
      Virgin Islands

    

    
      	 	
              Printed
                Name of Purchaser

            
	 	 
	 	 
	
              Telephone
                No.

            	
              By:
                __________________________________

            
	
              Telecopier
                No. __________________________

            	
              (Signature
                of Authorized Person)

            
	 	 
	 	
              _____________________________________

            
	
              ______________________________________

            	
              Printed
                Name and Title

            
	
              Jurisdiction
                of Incorporation or Organization

            	 

    

    

    COMPANY

    

    OXFORD
      MEDIA, INC.

    

    By:
      __________________________________

    (Signature
      of Authorized Person)

    

    _____________________________________

    Printed
      Name and Title

    
 

    20Exhibit 10.3

    
      

      

    

    

      

      

      

      

      THESE
        SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
        FOR
        SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
        OR
        AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
        REGISTRATION IS NOT REQUIRED.

      

      US
        $1,003,836.00 [plus interest]

      

      OXFORD
        MEDIA, INC. 

      

      11%
        PROMISSORY NOTE DUE MARCH __, 2007

      

      FOR
        VALUE
        RECEIVED, OXFORD
        MEDIA, INC.,
        a
        corporation organized and existing under the laws of the State of Nevada
        (the
        "Company"), promises to pay to Palisades Master Fund, LP the
        registered holder hereof (the "Holder"), the principal sum of One Million
        Three
        Thousand Eight Hundred and Thirty Six 00/100 Dollars (US $1,003,836.00) on
        the
        Maturity Date (as defined below) and to pay interest on the principal sum
        outstanding from time to time at the rate of eleven percent (11%) per annum
        (computed on the basis of the actual number of days elapsed and a year of
        365
        days), accruing from June ___, 2006, the date of initial issuance of this
        Note
        (the ”Issue
        Date”),
        to the
        date of payment. Such interest shall be payable on the date which is the
        earlier
        of (i) the Maturity Date, or (ii) the date of any prepayment of principal
        permitted hereunder. Accrual of interest shall commence on the Issue Date
        and
        shall continue to accrue on a daily basis until payment in full of the principal
        sum has been made or duly provided for (whether before or after the Maturity
        Date). 

      

      This
        Note
        is being issued pursuant to the terms of the Exchange Agreement, dated as
        of
        June 30, 2006 (the “Loan Agreement”), to which the Company and the Holder (or
        the Holder’s
        predecessor in interest) are parties. Capitalized terms not otherwise defined
        herein shall have the meanings ascribed to them in the Loan
        Agreement.

      

      This
        Note
        is subject to the following additional provisions:

      

      1.    The
        term
“Maturity Date” means March __, 2007.

      

      2.    (i)    This
        Note
        may be prepaid in whole or in part at any time prior to the Maturity Date,
        without penalty. Any payment shall be applied as provided in Section 3. This
        Note may be used as consideration for any financing the Company may enter
        into.

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (ii)    TIME
        IS OF THE ESSENCE WITH RESPECT TO ANY PAYMENT DUE HEREUNDER.
        The
        Company shall be in default hereunder if any payment is not made in a timely
        manner, without any right to cure unless such right to cure is granted by
        the
        Holder in each instance, which consent shall be in the sole discretion of
        the
        Holder and may be withheld for any reason or for no reason
        whatsoever.

      

      3.    Any
        payment made on account of the Note shall be applied in the following order
        of
        priority: (i) first, to any amounts due hereunder other than principal and
        accrued interest, (ii) then, to accrued interest through and including the
        date
        of payment, and (iii) then, to principal of this Note.

      

      4.    All
        payments contemplated hereby to be made “in cash” shall be made in immediately
        available good funds of United States of America currency by wire transfer
        to an
        account designated in writing by the Holder to the Company (which account
        may be
        changed by notice similarly given). For purposes of this Note, the phrase
“date
        of payment” means the date good funds are received in the account designated by
        the notice which is then currently effective.

      

      5.    Subject
        to the terms of the Loan Agreement, no provision of this Note shall alter
        or
        impair the obligation of the Company, which is absolute and unconditional,
        to
        pay the principal of, and interest on, this Note at the time, place, and
        rate,
        and in the coin or currency, as herein prescribed. This Note is direct
        obligations of the Company.

      

      6.    Omitted.

      

      7.    Except
        as
        provided in Section 6 above, no recourse shall be had for the payment of
        the
        principal of, or the interest on, this Note, or for any claim based hereon,
        or
        otherwise in respect hereof, against any incorporator, shareholder, officer
        or
        director, as such, past, present or future, of the Company or any successor
        corporation, whether by virtue of any constitution, statute or rule of law,
        or
        by the enforcement of any assessment or penalty or otherwise, all such liability
        being, by the acceptance hereof and as part of the consideration for the
        issue
        hereof, expressly waived and released.

      

      8.    The
        Holder of the Note, by acceptance hereof, agrees that this Note is being
        acquired for investment and that such Holder will not offer, sell or otherwise
        dispose of this Note except under circumstances which will not result in
        a
        violation of the Securities Act of 1933, as amended, or any applicable state
        Blue Sky or foreign laws or similar laws relating to the sale of
        securities.

      

      9.    Any
        notice given by any party to the other with respect to this Note shall be
        given
        in the manner contemplated by the Loan Agreement in the section entitled
        “Notices”.

      

      10.  
          This
        Note
        shall be governed by and construed in accordance with the laws of the State
        of
        New York. Each of the parties consents to the exclusive jurisdiction of the
        federal courts whose districts encompass any part of the County of New York
        or
        the state courts of the State of New York sitting in the County of New York
        in
        connection with any dispute arising under this Agreement and hereby waives,
        to
        the maximum extent permitted by law, any objection, including any objection
        based on forum
        non coveniens,
        to the
        bringing of any such proceeding in such jurisdictions. To the extent determined
        by such court, the Company shall reimburse the Holder for any reasonable
        legal
        fees and disbursements incurred by the Holder in enforcement of or protection
        of
        any of its rights under any of this Note. 

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      11.    JURY
        TRIAL WAIVER. The
        Company and the Holder hereby waive a trial by jury in any action, proceeding
        or
        counterclaim brought by either of the Parties hereto against the other in
        respect of any matter arising out of or in connection with this Note.

      

      12.     The
        following shall constitute an "Event of Default":

      

      
        	 	
                a.

              	
                The
                  Company shall default in the payment of principal or interest on
                  this Note
                  or any other amount due under the Loan Agreements, including the
                  Extension
                  Agreement dated June 30, 2006, time being of the essence;
                  or

              

      

      

      
        	 	
                b.

              	
                Any
                  of the representations or warranties made by the Company herein,
                  in the
                  Loan Agreement or any of the other Transaction Agreements shall
                  be false
                  or misleading in any material respect at the time made;
                  or

              

      

      

      
        	 	
                c.

              	
                The
                  Company shall (1) make an assignment for the benefit of creditors
                  or
                  commence proceedings for its dissolution; or (2) apply for or consent
                  to
                  the appointment of a trustee, liquidator or receiver for its or
                  for a
                  substantial part of its property or business;
                  or

              

      

      

      
        	 	
                d.

              	
                A
                  trustee, liquidator or receiver shall be appointed for the Company
                  or for
                  a substantial part of its property or business without its consent;
                  or

              

      

      

      
        	 	
                e.

              	
                Any
                  governmental agency or any court of competent jurisdiction at the
                  instance
                  of any governmental agency shall assume custody or control of the
                  whole or
                  any substantial portion of the properties or assets of the Company;
                  or

              

      

      

      
        	 	
                f.

              	
                Bankruptcy,
                  reorganization, insolvency or liquidation proceedings or other
                  proceedings
                  for relief under any bankruptcy law or any law for the relief of
                  debtors
                  shall be instituted by or against the Company.

              

      

      

      If
        an
        Event of Default shall have occurred, then, or at any time thereafter, and
        in
        each and every such case, unless such Event of Default shall have been waived
        in
        writing by the Holder (which waiver shall not be deemed to be a waiver of
        any
        subsequent default) at the option of the Holder and in the Holder's sole
        discretion, the Holder may consider this Note immediately due and payable
        (and
        the Maturity Date shall be accelerated accordingly), without presentment,
        demand, protest or notice of any kinds, all of which are hereby expressly
        waived, anything herein or in any note or other instruments contained to
        the
        contrary notwithstanding, and interest shall accrue on the total amount due
        (the
“Default Amount”) on the date of the Event of Default (the “Default Date”) at
        the rate of 18% per annum or the maximum rate allowed by law, whichever is
        lower, from the Default Date until the date payment is made, and the Holder
        may
        immediately enforce any and all of the Holder's rights and remedies provided
        herein or any other rights or remedies afforded by law. 

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      13.    In
        the
        event for any reason, any payment by or act of the Company or the Holder
        shall
        result in payment of interest which would exceed the limit authorized by
        or be
        in violation of the law of the jurisdiction applicable to this Note, then
        ipso
        facto
        the
        obligation of the Company to pay interest or perform such act or requirement
        shall be reduced to the limit authorized under such law, so that in no event
        shall the Company be obligated to pay any such interest, perform any such
        act or
        be bound by any requirement which would result in the payment of interest
        in
        excess of the limit so authorized. In the event any payment by or act of
        the
        Company shall result in the extraction of a rate of interest in excess of
        a sum
        which is lawfully collectible as interest, then such amount (to the extent
        of
        such excess not returned to the Company) shall, without further agreement
        or
        notice between or by the Company or the Holder, be deemed applied to the
        payment
        of principal, if any, hereunder immediately upon receipt of such excess funds
        by
        the Holder, with the same force and effect as though the Company had
        specifically designated such sums to be so applied to principal and the Holder
        had agreed to accept such sums as an interest-free prepayment of this Note.
        If
        any part of such excess remains after the principal has been paid in full,
        whether by the provisions of the preceding sentences of this Section or
        otherwise, such excess shall be deemed to be an interest-free loan from the
        Company to the Holder, which loan shall be payable immediately upon demand
        by
        the Company. The provisions of this Section shall control every other provision
        of this Note.

      

      IN
        WITNESS WHEREOF, the Company has caused this instrument to be duly executed
        by
        an officer thereunto duly authorized this __th day of June 2006.

      

      

       

       

      

        
          	 	
                  OXFORD
                    MEDIA, INC.

                
	 	 
	 	
                  By:_______________________________________

                
	 	 
	 	 
	 	
                  President

                

        

      

       

       

       

       

       

       

       

      

      4

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