Document:

EX-10.19 Engagement Letter, dated June 5, 2006

 

Exhibit 10.19

May 15, 2006

Coconut Palm Acquisition Corp.

595 South Federal Highway, Suite 600

Boca Raton, FL 33432

Attention: Richard C. Rochon

Ladies and Gentlemen:

We understand that Coconut Palm Acquisition Corp., a Delaware corporation (“CPAC” or the “Company”)
has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Equity Broadcasting
Corporation, an Arkansas corporation (“EBC” or the “Target”), and certain shareholders of EBC,
pursuant to which EBC will merge with and into CPAC with CPAC remaining as the surviving
corporation (the “Transaction”). Under the terms of the Merger Agreement, the total consideration
is $267.4 million.

The Transaction is subject to, among other things, the approval of the Board of Directors and
shareholders of the Company.

In connection with its review and analysis of the Transaction, the Board of Directors of the
Company has requested Morgan Joseph & Co. Inc. (“MJ”) to advise it and to render a written opinion
(the “Opinion”) as to the fairness to the Company from a financial point of view of the
consideration to be offered in the Transaction. MJ agrees to conduct such financial review of the
Company and its business and operations as MJ shall deem appropriate and feasible, it being
understood that MJ will have no obligation to perform any appraisal of any of the assets or
liabilities of the Company or the Target. The Company agrees to provide MJ with such financial and
other information concerning the Company (and the Target) as MJ may request from time to time in
connection with the services performed or to be performed hereunder. The Company will also make
its management and other personnel and appropriate representatives of its independent public
accountants and its advisors available to MJ for discussions and consultations from time to time as
MJ may request in connection with such services. In rendering the Opinion, MJ will be assuming and
relying upon, without independent verification, the accuracy and completeness of the financial and
other information used by it in arriving at its Opinion and it will not have any responsibility for
the accuracy or completeness of such information. MJ may qualify the Opinion as it may reasonably
deem appropriate.

In consideration for the services to be performed by MJ pursuant to this letter agreement, the
Company agrees to pay MJ a fee of $500,000 which shall be payable upon delivery of the Opinion. In
addition, MJ shall be reimbursed monthly by the Company for its reasonable out-of-pocket expenses
(including legal fees and disbursements) in connection with its services hereunder. Such fees and
reimbursements shall be payable irrespective of either the conclusions reached in the Opinion or
the consummation of the Transaction.

Except as required by law, the Opinion rendered by MJ hereunder may not be included in any
communication by the Company to its shareholders, nor may such Opinion be summarized, excerpted

 

 

or otherwise used or publicly referred to without MJ’s prior written approval. In addition, MJ may
not be otherwise publicly referred to in connection with the Transaction without its prior written
approval.

MJ may reconsider the Opinion upon review of any disclosure document or other document, report or
communication, filed, published or released by or on behalf of the Company in connection with the
Transaction, or of any other information that may be disclosed or otherwise become available to MJ.

The Company agrees to indemnify Morgan Joseph and certain other entities and persons as set forth
in Schedule A attached hereto and incorporated by reference into this agreement.

This letter agreement contains the entire agreement between the Company and MJ concerning the
engagement of MJ by the Company, and no modifications of this agreement or waiver of the terms and
conditions hereof will be binding upon either party, unless approved in writing by both parties.
This letter agreement shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to principles of conflicts of laws. The Company irrevocably and
unconditionally submits to the exclusive jurisdiction of any State or Federal court sitting in New
York City over any action, suit or proceeding arising out of or relating to this letter agreement.
The Company irrevocably and unconditionally waives any objection to the laying of venue of any such
action, suit or proceeding brought in any such court and any claim that any such action, suit or
proceeding has been brought in an inconvenient forum. Each of Morgan Joseph and the Company (on
its own behalf and, to the extent permitted by law, on behalf of its shareholders) waives any right
to trial by jury in any action, suit or proceeding arising out of or relating to this letter
agreement.

Please confirm that the foregoing is in accordance with your understandings and agreements with MJ
by signing and returning to us the duplicate of this letter enclosed herewith.

	 	 	 	 	 
	 	Very truly yours,

MORGAN JOSEPH & CO. INC.

 	 
	 	By:  	/s/ Roger T. Briggs, Jr.
 	 
	 	 	Roger T. Briggs, Jr. 	 
	 	 	Vice Chairman 	 
	 

	 	 	 	 	 
	 	CONFIRMED AND AGREED:

COCONUT PALM ACQUISITION CORP.

 	 
	 	By:  	/s/ Richard C. Rochon
 	 
	 	 	Richard C. Rochon 	 
	 	 	Chairman and Chief Executive OfficerEX-10.20  Consulting Agreement

 

Exhibit 10.20

     This Consulting Agreement (“Agreement”) shall commence upon the 5th day of
June 2006 (the Effective Date), between Jones-Sagansky Broadcast Group, LLC (“JSBG”), a Delaware
Limited Liability Company, and Coconut Palm Acquisition Corporation (“Coconut Palm”), a company
that is publicly traded over-the-counter and is based in Boca Raton, Florida.

     WHEREAS, Coconut Palm has publicly announced it’s intent to acquire Equity Broadcasting
Corporation, and JSBG has expressed an interest in providing certain media advisory services on a
consulting basis in regard to this transaction, and matters relating thereto; and Coconut Palm
desires to utilize the services of JSBG; THEREFORE, in consideration of the premises thereto, the
mutual promises contained herein, and other valuable consideration the receipt and adequacy of
which hereby are acknowledged, the parties agree as follows:

1. Responsibilities. Commencing upon the Effective Date and continuing for a period of
sixty (60) days, JSBG shall provide media advisory and due diligence related services to Coconut
Palm in regard to its announced Equity Broadcasting Corporation acquisition, and shall be available
for consultation with Coconut Palm management on an as needed basis for such purposes. In
consideration for JSBG’s services, Coconut Palm shall pay to JSBG the sum of one hundred thousand
dollars ($100,000.00) payable upon the Effective Date. Additionally, Coconut Palm shall pay to
JSBG a success fee (the Success Fee) in the amount of one hundred fifty thousand dollars ($150,000)
upon the closing day of Coconut Palm’s acquisition of Equity Media Corporation.

2. Expenses. Coconut Palm will provide reimbursement of air travel expenses and hotel
accommodations to JSBG for pre-approved business travel pertaining to this engagement as may be
required from time-to-time through the term of the Agreement. Coconut Palm will not be required to
reimburse JSBG for non-travel related expenses other than professional fees that typically include
legal, tax, and other professional advisers, should they be engaged with Coconut Palm’s prior
consent. JSBG will provide Coconut Palm with reasonably detailed documentation to support all
travel related expenses to be reimbursed by Coconut Palm. Reimbursable expenses will be charged as
incurred and are payable upon the receipt by Coconut Palm of an invoice from JSBG setting forth
such expenses.

3. Independent Contractor Status. JSBG is, and will perform all services under this
Agreement as, an independent contractor. JSBG is not an employee, agent or affiliate of Coconut
Palm, and, as such, JSBG shall have and maintain complete control over, and be responsible for, all
actions and operations. JSBG shall not be, represent itself as, act as, purport to act as, or be
deemed to be, an agent or affiliate of

 

 

COCONUT PALM CONSULTING AGREEMENT

Page 2

Coconut Palm. This Agreement shall not be deemed to create any form of business organization
between JSBG and Coconut Palm. JSBG does not have, and shall not hold itself out as having, any
right, power or authority, express or implied, to assume or create any contract or other obligation
or responsibility for or on behalf of Coconut Palm.

4. Taxes. The payment to be made to JSBG under paragraph 1 of this Agreement has been
established on the basis that JSBG is an independent contractor. JSBG, at its sole cost and
expense, shall pay and be fully liable and responsible for any and all taxes, (“Taxes”) relating to
any and all fees paid hereunder.

5. Indemnification. Coconut Palm agrees to indemnify and hold harmless from and against any
and all claims, demands, judgments, damages, loss, liability, costs, expenses, including attorney’s
fees and costs, interest, payments, or penalties, incurred as a result of any dispute, claim or
controversy resulting from, or pertaining to, its announced transaction to acquire Equity Media
Corporation.

6. Information. JSBG agrees that all information provided by Coconut Palm (“Information”)
— whether written, oral, visual, electronic or otherwise — as well as all extracts, variations,
extensions, compilations, analysis, studies and derivatives thereof (“Derivatives”) are proprietary
and confidential to, and owned by Coconut Palm. JSBG shall receive and keep confidential all the
Information furnished or otherwise disclosed by Coconut Palm or any of its representatives. At any
time upon request by Coconut Palm, JSBG shall deliver to Coconut Palm all originals and copies of
the Information and Derivatives in whatever form provided to JSBG by Coconut Palm or its
representatives, or shall destroy all Information and Derivatives and provide Coconut Palm with an
affidavit of having done so, upon request.

7. Rights and Obligations. The rights and obligations of the parties hereunder shall be
governed by, construed and enforced in accordance with the laws of the State of Florida applicable
to contracts made and performed in Florida. This Agreement constitutes the full and entire
agreement between and among the parties with respect to the entire subject matter hereof and
supersedes any and all prior or contemporaneous agreements and discussions, whether written or
oral, express or implied, all of which are merged herein. This Agreement may be amended only by a
subsequent agreement in writing signed by each of the parties hereto. This Agreement may be
executed in any number of counterparts, each of which shall be deemed an original; however, all
such counterparts shall constitute but one and the same instrument with the effective date hereof
being October 5th, 2006. A facsimile signature to this Agreement shall be deemed to be and may be
relied upon as an original. Likewise, telecopy transmission by the executing party of an executed
counterpart of this Agreement shall be deemed delivery of an original, executed counterpart.

8. Limitation of Liability. JSBG and its affiliates will not be liable to Coconut Palm or
any of its affiliates in connection with this engagement except to the extent of JSBG’s gross
negligence, bad faith, fraud, recklessness, intentional wrongdoing, or material breach of JSBG’s
obligations under this Agreement, and Coconut Palm agrees

 

 

COCONUT PALM CONSULTING AGREEMENT

Page 3

not to commence any action against JSBG or its affiliates in connection with this engagement or
Agreement unless such action is based on such factors.

9. Actions. In the event of any action, suit or proceeding to enforce this Agreement or
any of its terms, a prevailing party shall be entitled to recover its reasonable attorneys’ fees
and costs.

	 	 	 	 	 
	 	AGREED TO AND ACCEPTED:

COCONUT PALM ACQUISITION CORPORATION 

 	 
	 	/s/ Richard Rochon
 	 
	 	By: Richard Rochon                              Date 	 
	 	Chairman & Chief Executive Officer 	 
	 
	 	JONES-SAGANSKY BROADCAST GROUP, LLC

 	 
	 	/s/ Earl L. Jones, Jr.
 	 
	 	By: Earl L. Jones, Jr.                              Date 	 
	 	Chairman & Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]