Document:

Exhibit
10.30

 

FORBEARANCE
AGREEMENT

 

This Forbearance
Agreement (“Agreement”) is entered into as of the 14th day of July, 2003, by
and among Amerivision Communications, Inc., an Oklahoma corporation
(“Borrower”); and Continental Business Credit (“Continental”); Textron
Financial Corporation (“Textron”); Republic Financial Corporation, a Colorado
corporation and LINC Credit, L.L.C. (hereafter Republic and LINC are
collectively referred to as “LINC” or “Agent”), a Delaware limited liability
company and successor-in-interest to Coast Business Credit (“Coast”), a
division of Southern Pacific Bank (“SPB”), a California corporation
(Continental, Textron, and LINC are, together, the “Lenders”).

 

A. Borrower is indebted
to Lenders, as evidenced by (i) that Loan and Security Agreement, and (ii) that
Schedule to Loan and Security Agreement, both dated February 4, 1999, and as
amended from time to time, executed by Borrower in favor of Coast and the
various other parties thereto.

 

B. The loan documents
described in the foregoing Recital, together with any documents executed
pursuant thereto or hereto, are referred to collectively as the “Loan
Documents”; the credit facility and related obligation(s) described in the Loan
Documents are referred to collectively as the “Loan”.

 

C. The Federal Deposit
Insurance Corporation was appointed receiver of SPB on or about February 7,
2003. On or about May 13, 2003, Coast’s position in the Loan was sold to LINC.

 

D. The Loan matured by
its terms on May 31, 2003 (the “Maturity Date”), and all outstanding principal
and accrued and unpaid interest and expenses thereunder (the “Obligations”) are
currently due and payable in full. Under the terms of the Loan Documents,
Lenders are presently entitled to exercise any or all of the rights and
remedies provided in the Loan Documents, including without limitation,
demanding payment of all Obligations, refusing to provide additional financial
accommodations to the Borrower and/or enforcement of the Lenders’ liens on and
security interest in the Collateral.

 

E. Borrower has requested
that Lenders conditionally and temporarily forbear in the exercise of remedies
on certain terms and conditions. Borrower has brought a lawsuit against Lenders
in the Oklahoma County District Court, case number CJ-2003-5886, State of
Oklahoma, in which it seeks legal and equitable relief against the Lenders for
various alleged unlawful and unauthorized acts against the Borrower and its
interests and the interests of others, as outlined the Borrower’s Verified
Petition. Lenders, while denying the jurisdiction and venue of the Oklahoma
County District Court, deny the allegations of the Borrower and deny that
Borrower is entitled to the requested relief.

 

1

 

 

NOW, THEREFORE, in
consideration of the mutual agreements set forth herein, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

1.            Definitions. Unless otherwise
defined herein, capitalized terms used herein that are defined in the Loan
Documents are used herein as therein defined.

 

“Affiliate” means, with
respect to any Person, another Person who (i) owns an equity interest in the
first Person, of any degree, (ii) is owned, as to equity interest, by the first
Person, in any degree, (iii) Controls the first Person, (iv) is Controlled by
the first Person, or (v) is Controlled by a Person who also Controls the first
Person.

 

“Claims” means any and
all accounts, covenants, agreements, obligations, claims, debts, liabilities,
offsets, demands, costs, expenses, actions or causes of action of every nature,
character and description, whether arising at law or equity or under statute,
regulation or otherwise, and whether liquidated or unliquidated, contingent or
noncontingent, known or unknown, suspected or unsuspected, including without
limitation, the claims asserted by Borrower in the Lawsuit.

 

“Control” means the
ability to substantially direct the policies of a Person, whether directly or
indirectly, and whether such influence exists by right or by economic
compulsion.

 

“Forbearance Period”
means the period commencing on the date hereof and terminating on the earlier
of (i) September 30, 2003, unless extended pursuant to the terms of paragraph 8
of this Agreement; or (ii) the occurrence of a Termination Event.

 

“Lawsuit” means the case
filed by Borrower in the District Court of Oklahoma County, Oklahoma, styled Amerivision
Communications, Inc. v. LINC Credit, L.L.C., et al., Case No.
CJ-2003-5886.

 

“Lender Parties” means
Lenders, their participants, predecessors, successors and assigns and their
present and previous agents, attorneys, representatives, Affiliates, officers,
directors, and each of them.

 

“Permitted Event of
Default” means the present Event of Default arising under the Loan Documents
from Borrower’s failure to make payment when due under the Loan Documents.

 

“Person” means any
natural person and any legal entity with the ability to enter into contracts.

 

“Termination Event” means
the occurrence of any one or more of: (i) the breach of any warranty or
representation made to Lenders under this Agreement, (ii) the failure of
Borrower to comply strictly with all covenants and obligations under this
Agreement, (iii) the existence of any Event of Default under the Loan Documents
(other than the Permitted Event of Default), and (iv) Borrower’s direct
collection of or redirection of any payment due to Borrower by a third party
(unless such payment is immediately delivered to Lenders and Borrower provides
the third party

 

2

 

immediate notice to forward all
future payments to the Collection Account (as defined herein)); provided,
however, Termination Event shall not include Borrower’s default under Sections 10.1(r),
(s), (t) or (u) of the Loan and Security Agreement dated February 4, 1999.

 

2. Borrower’s
Affirmation of Loan. Borrower acknowledges, warrants and represents that
(i) pursuant to the Loan Documents, its obligations to repay the Loan are
absolute and unconditional, and there exists no right of deduction, setoff,
recoupment, counterclaim or defense of any nature whatsoever to payment of the
Loan that has not been released herein, (ii) the Loan has matured and that
Lenders have been under no obligation to fund advances under the Loan Documents
since the Maturity Date, (iii) the Loan Documents are valid and enforceable
against Borrower in accordance with their terms and grant Lenders valid and
perfected security interests in the collateral described therein (the
“Collateral”), with the priority required by the Loan Documents, and (iv) the
amount outstanding under the Loan, including principal and interest but
excluding expenses, as of July 7, 2003, totaled approximately $12,073,683.77.
Without limiting the foregoing, Borrower specifically agrees that the Lockbox
Agreement dated February 4, 1999, among Borrower, Coast and Bank of Oklahoma,
N.A. remains in full force and effect, that Borrower will continue to
immediately deposit all cash, checks, drafts or other orders for payment of
money relating to or constituting payments made in respect of any and all
Collateral in deposit account number 208319181 (“Deposit Account”), and that
Borrower will instruct its customers to continue to send payments directly to
the Deposit Account. Borrower further agrees that Lenders have “control” over
the Deposit Account, as such term is defined in Section 9104 of the California
Commercial Code.

 

3. Lenders’ Agreement
of Forbearance. Lenders agree to forbear in the exercise of any remedies
with respect to the Loan during the Forbearance Period. Upon the expiration or
termination of the Forbearance Period, Lenders shall be entitled to pursue all
remedies provided for under the Loan Documents, except as provided herein.

 

4. Interest Rate.
From May 31, 2003 (the maturity date of the Loan) through the expiration or
termination of the Forbearance Period, interest shall accrue on the Loan at the
default rate as provided in the Loan Documents.

 

5. Advances to
Borrower During Forbearance Period. From the date of execution hereof until
expiration or termination of the Forbearance Period, no advances shall be made
on the Loan except as follows:

 

a. Upon the effectiveness
of this Agreement and Borrower’s payment of all accrued interest, Lenders shall
advance a sum equal to the net amount of the cash collected by Lenders on
account of Borrower’s operations from June 19, 2003 through July 14, 2003, less
the sum of $300,000.00, which shall be retained by Lenders to be applied to the
Loan in accordance with the Loan Documents.

 

b. For the period
commencing July 15, 2003, and ending on the earlier of the expiration or
termination of the Forbearance Period, Lenders shall readvance amounts of cash
collected by Lenders on account of Borrower’s

 

3

 

operations during such
period, less a retention amount that shall become due from such
collections beginning on the first (1st) business day of each week and which
shall be applied to the Loan in accordance with the Loan Documents. The
retention amount shall be determined as follows: (i) for the week beginning on
Tuesday, July 15, and ending on Friday, July 18, 2003, and for each subsequent
week through and including the week of August 29, 2003, the retention amount
shall be $35,000.00 per week, (ii) for the week beginning September 1, 2003,
and for each subsequent week through and including the “short” week of
September 29 and 30, 2003, the retention amount shall be $40,000.00 per week,
(iii) if the Forbearance Period is extended pursuant to paragraph 8 of this
Agreement, no additional retention shall be due for the week ending October 3,
2003, and for each subsequent week through October 31, 2003, the retention
amount shall be $40,000.00 per week, and (iv) for the week beginning on Monday,
November 3, 2003, and ending on November 28, 2003, the retention amount shall
be $45,000.00 per week. Borrower must pay each week’s retention amount through
collections or separate payment by the end of the week in which the retention
amount is imposed, and its failure to do so shall permit Lenders, at their
option, to terminate the Forbearance Period.

 

Advances shall be made by Agent by 2:00 p.m. Mountain
Time the next business day following Agent’s receipt of a formal draw request
from Borrower in the manner specified in the Loan Documents and in form and
content acceptable to Agent; provided, such draw request is received by Agent
before 10:00 a.m. Mountain Time on a regular business day.

 

6. Reports. Not
later than fifteen (15) days following the execution hereof, Borrower shall
deliver to Lenders Borrower’s final FYE 2002 audited financial statements
prepared by an accounting firm acceptable to Lenders. No later than September
1, 2003, Borrower shall deliver to Lenders a detailed list of Borrower’s fixed
assets, inventory and equipment and specific physical location of same.
Additionally, not later than five (5) days following the execution hereof,
Borrower shall deliver to Lenders: (i) accounts receivable aging for all Borrower’s
accounts for the period ending June 30, 2003, (ii) accounts payable aging for
all Borrower’s accounts for the period ending June 30, 2003, and (iii)
Borrower’s financial statements as of May 31, 2003, including profit and loss
statements, balance sheet, and statement of cash flows. Further, on July 15,
2003, and the first day of each successive week thereafter, Borrower shall
provide to Lenders: (i) weekly accounts receivable agings for all of its
accounts, (ii) weekly accounts payable agings for all of its accounts; (iii)
summarized weekly billing and collection information (iv) detailed listing of
inventory and equipment held for sale or lease, (v) summary listing of new
connections, customer disconnections (with service), and customer disconnections
(without service), and (vi) any other information which Lenders may request.
Finally, on or before the twelfth (12th) business day of each month during the
Forbearance Period, Borrower shall provide to Lenders financial statements as
of the end of the preceding month, including a profit and loss statement,
balance sheet, and statement of cash flows, and comparable information for the
same period during the prior year. During the Forbearance Period, all reports
and/or information provided to Lenders from Borrower, under this or any other
provision in this Agreement or the Loan Documents, shall remain strictly
confidential and shall

 

4

 

not be disclosed to any other third party without
Borrowers written consent, except when such information is disclosed by Lenders
to further the legitimate business interests of Lenders, and the party to whom
such information is disclosed agrees to be bound by the terms of this sentence.

 

7. Refinance,
Re-capitalization or Sale of Borrower. Borrower has advised Lenders that
Borrower’s strategy to repay Lenders is based upon the intended refinancing,
recapitalization or sale of Borrower. Lenders’ agreement to enter into this
Agreement is in material part based upon Borrower’s representations to Lenders
in this regard and upon Borrower’s diligent and continuous work to arrange such
refinancing, re-capitalization or sale. In this regard, Borrower hereby
covenants that it will perform the following as evidence of its work to arrange
such a transaction:

 

a. By the date this
Agreement is executed, Borrower will retain a restructuring consultant or chief
restructuring officer acceptable to Lenders. Lenders acknowledge that Borrower
has retained Blumberg Investments as such restructuring consultant/chief
restructuring officer, and hereby accepts such retention and acknowledges that
requirements of this subsection have been satisfied.

 

b. ensure that
Blumberg Investments, or a replacement chief restructuring officer reasonably
acceptable to Lenders, and Borrower’s president provide weekly written and
verbal updates to Lenders regarding the status of their work, including, but
not limited to, detail on company operations, persons contacted relative to
refinancing, re-capitalization and sale proposals, status of discussions with
those persons, and plans for further action.

 

c. reasonably accommodate
Lenders’ auditors who shall review the books and records of Borrower in a
manner that does not materially interfere with Borrower’s normal operations.

 

Notwithstanding the
foregoing, Borrower acknowledges that Lenders are under no obligation to
release their security interest in Borrower’s assets or to compromise any of
their indebtedness in connection with any refinancing, re-capitalization or
sale of Borrower (unless any such transaction will involve the payment in full
of the Obligations or any such arrangement which is acceptable to the parties
or is ordered by a court of competent jurisdiction).

 

8. Extension of
Forbearance Period. Provided it has not terminated prior to September 30,
2003, the Forbearance Period shall be extended to November 30, 2003, on the
following conditions:

 

a. Payment to Lenders of
an extension fee in the sum of $150,000.00, which fee shall be deemed earned by
Lenders as of October 1, 2003, but which will be payable by Borrower on
December 1, 2003, or a date earlier which is mutually agreed to by the parties
in writing. Borrower’s payment obligation under this

 

5

 

paragraph shall be
excluded from any calculation regarding any covenant under the Loan Documents.

 

b. Lenders’ receipt of a
signed Letter of Intent agreement between Borrower and one or more third
parties an investor, group, or organization with assets and capabilities
necessary to close by December 1, 2003 (or such other date as agreed in writing
between the parties) a transaction of at least $15 million that provides for
payment of the Loan to Lenders in full, and which is supported by evidence,
satisfactory to Lenders, of the third party(s)’ financial ability to close such
a transaction, including financial statements, bank statements, references and
such other information as Lenders may reasonably request. While Lenders may
agree to a compromise of the Obligations if they so elect in writing in their
absolute discretion, Lenders shall not otherwise be obligated to release their
security interest in Borrower’s assets except upon payment in full of the
Obligations.

 

9. Use of Collateral. During the Forbearance
Period, Borrower shall not (i) use or dispose of any of the Collateral outside
the ordinary course of business, (ii) make any payment or distribution to any
shareholder of Borrower, (iii) purchase treasury stock, or (iv) sell, lease or
otherwise dispose of any equipment (including equipment held for sale or lease)
without the prior written consent of Agent regardless of whether such sale,
lease or disposition is in the ordinary course of business. All proceeds from
Borrower’s sale, lease or other disposition of equipment (including equipment
held for resale) shall be paid to Lenders.

 

10. Foreclosure. Lenders agree to provide
Borrower two (2) business days notice of Lenders’ intention to foreclose on and
remove any Equipment or Inventory (as such terms are defined in the Loan
Documents) located at Borrower’s offices in Oklahoma City and Talequah,
Oklahoma. Borrower agrees that, following the expiration or earlier termination
of the Forbearance Period, Lenders may dispose of some or all of the personal
property included in the Collateral at one or more private sales or public
foreclosure sales (each a “Foreclosure Sale”), upon ten (10) days notice to
Borrower. Borrower agrees that it will cooperate with Lenders in an orderly
transfer of the personal property collateral pursuant to any such Foreclosure
Sale. Borrower agrees that Lenders may convene any public Foreclosure Sale in
the State of Oklahoma, provided that arrangements are made for the
participation of interested parties by telephone conference. Any other requirements
of prior notice with respect to the Foreclosure Sale, and any other requirement
relating to the method, timing, advertisement or conduct of such Foreclosure
Sale, are hereby waived, it being acknowledged that the Loan is in default.
Borrower agrees that, following the expiration or earlier termination of the
Forbearance Period, Borrower shall, if requested by Lenders, execute a deed in
lieu of foreclosure in favor of Lenders in a form reasonably acceptable to
Lenders. Borrower agrees that it will cooperate with Lenders in assembling the
Collateral for the benefit of Lenders and in showing the Collateral to
potential purchasers and in providing information to prospective purchasers
regarding Borrower’s

 

6

 

operations and its use of the Collateral. The provisions of this
paragraph shall not constitute a waiver of Borrowers rights under applicable
Bankruptcy Law.

 

11. Lenders’ Right of Access. During the
Forbearance Period, Borrower shall, during normal business hours, permit
Lenders’ officers, auditors, outside consultants and other representatives (i)
full and complete access to the books and records of Borrower, wherever located
(but Borrower warrants and represents that all such records are and shall be maintained
at Borrower’s main office), (ii) to discuss matters relevant to the Loan with
Borrower’s present employees, accountants and other representatives, (provided
that (A) such discussions are solely for purposes of verifying information
relevant to the Loan, (B) such discussions are first approved by the Chief
Executive Officer or the Chief Financial Officer of Borrower, which approval
will not be unreasonably withheld, and (C) Lenders’ employees, accountants and
representatives agree to keep such discussions confidential as required by
paragraph 6, above), (iii) to review any records or information that Lenders
may deem relevant to the assessment of the status of the Loan and the
Collateral, and (iv) to otherwise assess and investigate the status of the
Collateral and the financial condition of Borrower.

 

12. No Conflicting Law or Agreement. Borrower
warrants and represents that its execution, delivery and performance of this
Agreement does not constitute a breach of or default under, and will not violate
or conflict with, any provisions of the constituent documents of Borrower; of
any contract, financing agreement, lease, or other agreement to which Borrower
is a party or by which its properties may be affected; or any law, regulation,
judgment, order or decree to which Borrower is subject or by which its
properties may be affected; nor will the same result in the creation or
imposition of any encumbrance upon any properties of Borrower, other than those
in favor of Lenders.

 

13. No Consent Required. Borrower warrants and
represents that its execution, delivery, and performance of this Agreement does
not require the consent or approval of or the giving of notice to any person or
entity except for those consents which have been duly and finally obtained and
are in full force and effect.

 

14. Conditions to
Closing. Borrower shall deliver the following documents to Agent, fully
executed by all parties other than Agent and in form and substance acceptable
to Agent and its counsel, as conditions to the effectiveness of the
transactions described in this Agreement:

 

a.                                        This
Agreement;

 

b.                                       An
order entered by the Court in the Lawsuit dissolving the Temporary Restraining
Order entered on July 8, 2003, and dismissing all of Borrower’s Claims in the
Lawsuit with prejudice to refiling the same; and

 

c.              Such other documents as Lenders
may reasonably require.

 

15.              Unconditional Full Release of
All Claims and Defenses. In consideration of Lenders’ execution of this
Agreement, the sufficiency of which is acknowledged, and excepting

 

7

 

only the contractual obligations respecting future performance by
Lenders arising under the Loan Documents and this Agreement, Borrower hereby
releases and forever discharges the Lender Parties, the Federal Deposit
Insurance Corporation in its receivership capacity, Coast, and SPB, their
agents, employees, officers, servants, and directors and all persons and
entities in privity with them or any of them, of and from any and all Claims
that Borrower may have against them as of the execution of this Agreement. As
of the date of this Agreement, Borrower further agrees that it shall forever
refrain and forbear from commencing, instituting or prosecuting any lawsuit,
action, or other proceeding, whether judicial, administrative or otherwise, or
otherwise attempting to collect or enforce, any such released Claim and agrees
to indemnify, defend (with counsel satisfactory to Lenders) and hold harmless
Lenders against any and all loss, liability, claim or expense, including
attorneys’ fees, that it might incur as a result of any breach of this Section
by Borrower or the assertion of any Claim or defense that exists by Borrower.
As of the date of this Agreement, Borrower further waives any presently existing
defenses against the payment and performance of all obligations (of every
nature, character and description) to Lenders under the Loan Documents.
Additionally, Borrower acknowledges that Borrower is familiar with Section 1542
of the Civil Code of the State of California, which provides as follows:

 

A general release does
not extend to claims which the creditor does not know or suspect to exist in
his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.

 

The Borrower hereby waives and relinquishes any rights and benefits
which it may have under Section 1542.

 

16. No Alienation of Claims. Borrower warrants
and represents to Lenders that Borrower has not granted or purported to grant to
any other person or entity any interest whatsoever in any Claim, as security or
otherwise, and that its execution hereof does not require the consent of or
notice to any third party in order to be fully effective as to any Claim that
may have existed in favor of Borrower at any time.

 

17. Valid Consideration: Binding Agreement.
Borrower warrants, represents and acknowledges that absent this Agreement
Lenders are not obligated to Borrower to forbear in the exercise of remedies;
that Lenders have agreed to forbear in reliance upon the binding effect,
validity and enforceability of this Agreement; that this Agreement has been
executed and delivered by Borrower for adequate consideration and value under
all applicable laws; and that this Agreement is valid, binding and enforceable
in accordance with its terms.

 

18.        Recitals. The Parties warrant and
represent that the statements contained in the above recitals are true.

 

19. Notices. Any communications concerning this
Agreement or the credit described herein shall be addressed as provided in the
Loan Documents, except that notices to Lenders or Agent shall be addressed as
follows:

 

8

 

LINC Credit, L.L.C.

c/o Republic Financial Corporation 

Attn: Vice President-Documentation
3300 S. Parker Rd., Suite 500

Aurora, CO 80014-3522

Telecopier: (303)
338-9360

 

With a copy (which shall
not constitute notice) to:

 

Boult, Cummings,
Conners & Berry

Attn: John W.
Myers II

414 Union Street,
Suite 1600

Nashville, TN
37219

Telecopier: (615)
252-6349

 

LINC Credit,
L.L.C.

Attn: Dan Rouse

3300 S. Parker
Rd., Suite 500

Aurora, CO
80014-3522

Telecopier: (303
923-2197

 

Notices to Borrower:

 

Amerivision
Communications Inc.

Attn: Mr. Robert
Cook, President

5900 Mosteller
Drive

Oklahoma City, OK
73112

Telecopier:
(405)-600-3880

 

20. Construction of Agreement. Except as
expressly provided herein, the Loan Documents shall remain in full force and
effect in accordance with their respective terms, and this Agreement shall not
be construed to (i) impair the validity, perfection, or priority of any
security interest granted therein, or (ii) waive or impair any rights, powers,
or remedies of Lenders under the Loan Documents. This Agreement has been
reviewed fully by all parties and shall not be construed against any party as
author.

 

21. Voluntary
Agreement. The Parties warrant and represent that they are represented by legal
counsel of their choice; have investigated fully their alternatives to the
execution and performance of this Agreement; have, had ample time to review
this Agreement and consult with their counsel; are fully aware of the terms
contained in this Agreement; and have knowingly, voluntarily and without
coercion or duress of any kind entered into this Agreement and the documents
executed in connection with this Agreement.

 

9

 

22. Not
Partners No Third Party Beneficiaries. Nothing contained herein or in any
related document shall be deemed to render Lenders a partner of Borrower for
any purpose. This Agreement has been executed for the sole benefit of Lenders
and Borrower and there. are no third party beneficiaries hereof.

 

23. Indulgence Not Waiver. Lenders’ indulgence
in any other departure from the terms of this Agreement or any other Loan
Document shall not prejudice Lenders’ right to demand strict compliance
therewith.

 

24. Assignment rent. This Agreement shall be
binding upon and inure to the benefit of the respective heirs, successors and
assigns of Borrower and Lenders, except that Borrower may not assign any rights
or delegate any obligations arising hereunder without the prior written consent
of Lenders. Any attempted assignment or delegation by Borrower without the
required prior consent shall be void.

 

25. Entire Agreement. This Agreement and the
other written agreements among the parties represent the entire agreement
between the parties concerning the subject matter hereof, and all oral
discussions and prior agreements are merged herein. Lenders are under no
obligation to extend or consider the extension of the Forbearance Period. In
the event of an inconsistency between this Agreement and the provisions of the
Loan Documents, the provisions of this Agreement shall control.

 

26. Exhibits and Schedules. All exhibits and
schedules referred to in this Agreement are incorporated herein by reference.
Borrower warrants and represents that all information presented in schedules
hereto is complete and accurate.

 

27. Amendment and Waiver in Writing. No
provision of this Agreement can be amended, modified, or waived, except by a
statement in writing signed by the party against which enforcement of the
amendment, modification, or waiver is sought.

 

28.      Severability. Should any provision
of this Agreement be invalid or unenforceable for any reason, the remaining
provisions hereof shall remain in full effect.

 

29.    Gender and Number. Words used herein
indicating gender or number shall be read as context may require.

 

30. Captions Not Controlling. Captions and
headings have been included in this Agreement for the convenience of the
parties, and shall not be construed as affecting the content of the respective
sections.

 

31. Counterparts. This Agreement may be
executed in counterparts with all signatures or by counterpart signature pages,
and it shall not be necessary that the signatures of all parties be contained
on any one document. Each counterpart shall be deemed an original, but all of
them together shall constitute one and the same instrument.

 

10

 

32. Facsimiles. This Agreement may be executed
by facsimile signatures, and shall be effective when Agent has received
original or telecopy transmissions of the signature pages executed by all
parties hereto; provided, however, that all parties shall deliver original
executed documents to Agent promptly following the execution hereof.

 

33. Applicable Law. The validity, construction
and enforcement of this Agreement shall be determined according to the laws of
California applicable to contracts executed, delivered and performed entirely
within that state, and Borrower specifically confirms that Section 11.16 of the
Loan and Security Agreement dated February 4, 1999, remains in force and effect
with respect to this Agreement.

 

34. Expenses. Borrower agrees to pay any and
all costs and expenses (including, without limitation, reasonable attorneys’
fees and litigation expenses) incurred by Lenders with respect to (i) attending
to Borrower’s default, (ii) the preparation and negotiation of this Agreement
and the documents described herein, (iii) the future administration of the
Loan, including, but not limited to, the costs and expenses of Lenders’
auditors and (iv) any future breaches of this Agreement by Borrower. All such
costs and expenses shall be added to the balance of the Loan. Lenders’ costs of
preparation and negotiation of this Agreement and the documents described
herein through July 14, 2003, and Lenders’ litigation costs, including travel
expenses and attorney’s fees incurred from the date of filing of the Lawsuit
through July 14, 2003, shall not exceed the sum $75,000.00.

 

35. Joinder of Lenders. Lenders have joined
with Agent in the execution of this Agreement to evidence their consent and
agreement to the terms and conditions hereof, to the extent (if any) that their
consent or agreement may be required by the applicable Loan Documents. Lenders’
joinder in the execution hereof does not evidence or create any obligation of
Agent to obtain Lenders’ consent or agreement as to this or any future matter,
except as may be required under the Loan Documents.

 

 

[The remainder of this page is
intentionally left blank]

 

11

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  LINC CREDIT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REPUBLIC FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL BUSINESS CREDIT

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  AMERIVISION COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

12

 

IN THE DISTRICT
COURT OF OKLAHOMA COUNTY COURT

STATE OF OKLAHOMA

 

AMERIVISION COMMUNICATIONS, INC.,

d/b/a LIFELINE COMMUNICATIONS,

an Oklahoma corporation,

 

Plaintiff,

 

Case No. CJ-2003-5886

VS.

 

LINC CREDIT, L.L.C., a Colorado Limited

Liability Company, REPUBLIC FINANCIAL

CORPORATION, a Colorado corporation; and

THE BANK OF OKLAHOMA, N.A., an

Oklahoma corporation,

 

ORDER DISSOLVING TEMPORARY
RESTRAINING ORDER

AND
DISMISSING PLAINTIFF’S CLAIMS WITH PREJUDICE

 

This matter came before the Court on the oral motion
of plaintiff Amerivision Communications, Inc. (“Plaintiff”) for an order
dissolving the Temporary Restraining Order obtained by Plaintiff without notice
and entered herein on July 8, 2003, and dismissing Plaintiff’s claims in this
case with prejudice to refiling of the same

 

Having heard the statements of counsel for Plaintiff
and having reviewed the court file, the Court finds that Plaintiff’s oral
motion should be, and hereby is, granted.

 

IT IS THEREFORE ORDERED that the Temporary Restraining
Order entered herein on July 8, 2003, is hereby dissolved in all respects and
is of no longer of any force or effect.

 

IT IS FURTHER ORDERED that Plaintiff s claims in this
case against defendants LINC Credit, L.L.C., and Republic Financial Corporation
and Bank of Oklahoma, N.A. are hereby dismissed with prejudice to the refiling
of the same.

 

ENTERED this 15th day of July 2003.

 

	
   

  	
   

  	
   

  
	
   

  	
  DAVID M. HARBOUR

  
	
   

  	
  DISTRICT JUDGE OF OKLAHOMA COUNTY

  

 

 

IN THE DISTRICT
COURT OF OKLAHOMA COUNTY

STATE OF OKLAHOMA

 

AMERIVISION COMMUNICATIONS, INC. d/b/a LIFELINE COMMUNICATIONS,

an Oklahoma Corporation,

 

Plaintiff,

Case No. CJ-2003-5886

v.

LINC CREDIT, L.L.C., a Colorado Limited

Liability Company, REPUBLIC FINANCIAL

CORPORATION, a Colorado Corporation,

and THE BANK OF OKLAHOMA, N.A.

an Oklahoma Corporation,

 

Defendants.

 

 

DISMISSAL WITH
PREJUDICE

 

COME NOW-the Plaintiff herein, Amerivision
Communications, Inc., d/b/a Lifeline Communications, by and through their
attorney of record, Jon McLanahan of Lester, Loving & Davies, P.C., and
hereby dismiss the above filed and numbered cause with prejudice to the
re-filing of a future action thereon.

 

Dated
this           day of
July, 2003

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Jon McLanahan, OBA No. 12777

  
	
   

  	
  LESTER, LOVING & DAVIES, P.C.

  
	
   

  	
  1505 S. Renaissance Boulevard

  
	
   

  	
  Edmond OK 73013-9958

  
	
   

  	
  Telephone: (405) 844-9900

  
	
   

  	
  Facsimile: (405) 844-9958

  
	
   

  	
  ATTORNEYS FOR PLAINTIFF

  

 

 

	
  APPROVED:

  
	
   

  
	
  Attorneys for Plaintiff

  
	
   

  
	
   

  	
   

  
	
  Jon McLanahan, OBA No. 12777

  	
   

  
	
  Andrew W. Lester, OBA No. 5388

  	
   

  
	
  LESTER, LOVING & DAVIES, P.C.

  	
   

  
	
  1505 Renaissance Blvd.

  	
   

  
	
  Edmond, OK 73013

  	
   

  
	
  Telephone: (405) 844-9900

  	
   

  
	
  Facsimile: (405) 844-9958Exhibit 10.31

 

AMENDMENT NO. 17

 

SPECIAL ACCESS BASED BILLING RATES

 

 

This Amendment No. 17
(the “Special
Rate Amendment”) is made by and between Amerivision Communications
(“Customer”) and MCI WORLDCOM Network Services, Inc. d/b/a UUNET® (“UUNET”) and
is a part of the Telecommunications Services Agreement, including the Program
Enrollment Terms and all applicable Attachments and existing amendments made by
and between Customer and UUNET dated March 1, 1999 (collectively, the “TSA”).
In the event of any conflict between the terms of the TSA and the terms of this
Special Rate Amendment, the terms of this Special Rate Amendment shall control.
Capitalized terms not defined herein shall have the meaning ascribed to them in
the TSA.

 

The parties agree for
good and valuable consideration, intending legally to be bound, as follows:

 

1.             Special Rates. Commencing within ten (10)
business days following the date this Special Rate Amendment is executed by
UUNET, Customer’s rate(s) (hereinafter referred to as “Special Rates”)  for
the jurisdiction(s) and ACCESS BASED BILLING Service(s) checked below will be
as set forth on the Schedule(s) indicated, which Special Rate(s) will not be
subject to any discount. Further, Customer’s rates for any ACCESS BASED BILLING
Service not checked below or not described on the applicable Schedule
(including rates that are left blank) will be as set forth in the TSA or in the
latest applicable Amendment. Notwithstanding anything to the contrary contained
in the TSA, UUNET reserves the right to modify the Special Rates described
herein which charge modifications shall not exceed then-current generally
available UUNET charges for comparable services, upon not less than thirty (30)
calendar days’ prior notice to Customer (facsimile being acceptable), which
notice will state the effective date for the charge modification.

 

	
  ý

  	
   

  	
  INTERSTATE Service

  	
   

  	
  SEE Schedule _1

  
	
   

  	
   

  	
  (within the 48
  contiguous United States)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CARRIER TERMINATION
  Service

  	
   

  	
  CARRIER ORIGINATION
  Service

  
	
   

  	
   

  	
  ý

  	
  SWITCHLESS 1+ Service

  	
  -

  	
  SWITCHLESS TOLL FREE
  Service

  
	
   

  	
   

  	
   

  	
  END USER DEDICATED 1+
  Service

  	
   

  	
  END USER DEDICATED TOLL
  FREE Service

  
	
  ý

  	
   

  	
  INTRASTATE Service

  	
   

  	
  SEE Schedule 2

  
	
   

  	
   

  	
  (within the 48
  contiguous United States)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CARRIER TERMINATION
  Service

  	
   

  	
  CARRIER ORIGINATION
  Service

  
	
   

  	
   

  	
  ý

  	
  SWITCHLESS 1+ Service

  	
   

  	
  SWITCHLESS TOLL FREE
  Service

  
	
   

  	
   

  	
   

  	
  END USER DEDICATED 1+
  Service

  	
   

  	
  END USER DEDICATED TOLL
  FREE Service

  

 

CONFIDENTIAL

 

1

 

2.                                       Other Terms and Conditions :- Except to the extent specifically
described in this Special Rats Amendment, the terms and conditions set forth in
the TSA will continue in full force and effect throughout the Service Term.

 

IN WITNESS WHEREOF, the parties have executed this Special  Rate
Amendment as of the dates set forth below.

 

	
  AMERIVISION
  COMMUNICATIONS, INC.

  	
   

  	
  MCI WORLDCOM

  
	
  NETWORK

  	
   

  	
   

  	
  SERVICES,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  (Signature)

  	
   

  	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Print Name)

  	
   

  	
   

  	
   

  	
  (Print Name)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Title)

  	
   

  	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Date)

  	
   

  	
   

  	
   

  	
  (Date)

  

 

2

 

4/14/02- Without
discount

 

Special ABB Rate Amendment

Schedule 1

Interstate Switchless 1+  *

 

3

 

Special ABB Rate Amendment

Schedule 2

Intrastate Switchless
1+ *

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]