Document:

Takedown Entertainment Inc.: Exhibit 10.1- Filed by newsfilecorp.com

TAKEDOWN ENTERTAINMENT//ADVERTISING AGREEMENT

THIS AGREEMENT dated May 7, 2011 is between:

	                                       Takedown
      Fight Media Inc., a Nevada company with executive  
	               
                         
         offices at Suite 450 – 9107 Wilshire Boulevard 
	               
                         
         Beverly Hills, California, USA, 90210 
	               
                         
                         
                         
                         
                         
                         
                         
                         
             ("Takedown") 
	AND 
	               
                         
         Dr. Diego Allende, a businessperson with offices at
      6234 North First Street 
	               
                         
         Fresno, CA 93710, United States 
	               
                         
                         
                         
                         
                         
                         
                         
                         
                     ("Sponsor")
    
	               
                         
         (Takedown and Sponsor are sometimes collectively referred to
      herein as the 
	               
                         
         “Parties” and each as a “Party.”

BACKGROUND

A. Takedown is engaged in the development, production,
distribution, marketing and licensing of mixed martial arts (“MMA”)
content, programming and merchandise for North American and International
markets (collectively the "MMA Business").

B. Dr. Allende is a physician engaged in the development and
provision of nutritional products and therapies for the enhancement of health
and athletic performance.

C. Takedown has agreed to provide, and the Sponsor has agreed
to purchase, subject to the terms of this Agreement, certain advertising
services in promotion of the Sponsor Property (as defined below) in connection
with the MMA Business. 

AGREEMENTS

     For good and valuable
consideration, the receipt and sufficiency of which each Party acknowledges, the
Parties agree as follows:

PART 1

ADVERTISING SERVICES

1.1 Sponsor Property. Takedown’s services hereunder
shall relate to the products, services, brands, trade names, logos, trademarks
and copyrighted materials designated by Sponsor from time to time during the
Term (as defined in below Section 5.1), and which are referred to herein as the
“Sponsor Property”. 

1.2 Advertising Services. Upon the terms and subject to
the conditions of this Agreement, Takedown agrees to provide the following
advertising services (the “Advertising Services”) to Sponsor during the
Term:

	 	(a) 	
      meaningfully consult and jointly develop with Sponsor, on
      an ongoing basis during the Term, an advertising and general media
      strategy for the Sponsor Property in the context of Takedown’s MMA
      Business (collectively the “Media Plan”);

	 	 	 
	 	(b) 	
      design and prepare, or arrange for the design and
      preparation of the advertising materials and advertisements (the
      “Advertising Materials”) required for the execution of the Media
      Plan; and

	 	 	 
	 	(c) 	
      arrange for the placement of the Advertising Materials in
      furtherance of the Media Plan in the media placement categories offered by
      Takedown from time to time during the Term which may include, subject to
      then current availability, any of the placement categories listed in
      Schedule “A” hereto (collectively the “Advertising Placements”)
      .

1.3 Allocation of Compensation: Sponsor acknowledges and
agrees that, unless otherwise mutually agreed by the parties in writing, the
Advertising Services hereunder shall be limited to a selection of services
falling within the budget afforded by the Compensation payable in accordance
with below section 1.4. To that effect, Sponsor agrees that costs in respect of
the Advertising Services shall be allocated as follows:

	20% of the Compensation shall be allocated to Takedown overhead and
  ongoing consultation services in respect of the Media Plan; 

  
	cost allocated to the production of Advertising Materials shall be
  determined according to actual costs incurred by Takedown in respect of the
  Advertising Materials, exclusive of Takedown overhead costs, but inclusive of
  all expenses payable to third parties, including but not limited to cost of
  materials, labour, storage, and shipping. 

	
costs allocated to the Advertising Placements shall be determined according to the then current rates charged by Takedown, which rates shall be subject to change from time and time.

Notwithstanding the foregoing, Sponsor agrees that no portion of the Compensation shall be refundable or fail to become due by reason of any failure by Sponsor to apply any portion of the Compensation toward Advertising Services made available by
Takedown in Takedown’s sole discretion. However, should Takedown fail to offer sufficient Advertising Services during the Term to account for any portion of the Compensation, the balance of unallocated Compensation shall either be refundable to
Sponsor within 30 days following the completion of the Term or, subject to the mutual written agreement of Sponsor and Takedown, allocated to Advertising Services provided subsequent to the initial Term. 

1.4 Non-Exclusivity. Takedown’s services hereunder shall be provided on a non-exclusive basis to Sponsor.

1.5 Compensation. In full consideration of the Advertising Services Sponsor shall pay to Takedown aggregate compensation in the amount of $300,000 (the “Compensation”) for each 12 month period during the Term, payable in
four equal quarterly instalments of $75,000 beginning on the execution of this Agreement and every 90 days thereafter. The Compensation shall be inclusive of all taxes, and costs in respect of the Advertising Materials.

1.6 Account Statements. Takedown will provide to Sponsor advertising account statements within twenty (20) days following completion of each quarterly period during the Term. All account statements shall include a summary of Advertising
Services rendered during the applicable period and associated costs incurred by Takedown in relation to such services. Takedown may, but shall not be required to itemize or allocate any overhead costs in respect of the services hereunder.

1.7 Special Projects. In the event that Takedown undertakes, at Sponsor’s requests, any special advertising project not described in this Agreement or falling outside of the budget afforded by the Compensation, Takedown shall provide to
Sponsor an estimate of total charges in respect of such special project, including any charges for materials or services required from third parties and, subject to Sponsor’s prior approval of such estimate, Takedown shall execute the special
project according to the estimate. Unless otherwise agreed by the Parties, all costs in respect of any special project shall be payable by Sponsor within 30 days following receipt of any partial or final invoice in respect thereof. 

1.8 Advertising Standards. Takedown has the continuing right to edit and modify any and all Advertising Materials or elements of the Sponsor Property to the extent that Takedown deems necessary to conform to the public interest and to the
programming and operating policies of Takedown, in its sole discretion. Takedown reserves the right to refuse to accept for dissemination any Advertising Materials or elements of the Sponsor Property which does not in Takedown’s judgment
conform to the public interest or to such policies and standards, or which in the reasonable opinion of Takedown may violate or threaten to violate the rights of others.

PART 2

REPRESENTATIONS AND COVENANTS OF TAKEDOWN

2.1 Representations. Takedown represents and warrants to
the Sponsor that Takedown is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Nevada, and has the power
and capacity to enter into this Agreement and carry out its terms to the full
extent.

2.2 Full Faith and Diligence. Takedown shall faithfully,
honestly and diligently serve the Sponsor and cooperate with the Sponsor to
ensure that all services rendered hereunder, including the Advertising Services,
are rendered in accordance with prevailing professional standards in the media
and entertainment industry. 

PART 3

REPRESENTATIONS AND COVENANTS OF SPONSOR

3.1 Representations. Sponsor represents and warrants to
Takedown as follows, with the intent that Takedown will rely on these
representations and warranties in entering into this Agreement, and in
concluding the purchase and sale contemplated by this Agreement.

     (a) Sponsor has all necessary
legal power and authority to enter into and perform his obligations under this
Agreement and the consummation of the transactions contemplated hereunder.

     (b) No representation or warranty
made by Sponsor in this Agreement contains any untrue statement of a material
fact or omits any material fact necessary to make the statements contained
herein not materially false or misleading.

     (c) Except to the extent that
such materials are non-proprietary and in the public domain, or duly licensed to
Sponsor by written agreement authorizing the uses contemplated herein, Sponsor
is the sole owner of all right, title, and interest in and to the Sponsor
Property, including but not limited to all rights under trademark and copyright
therein, whether registered or unregistered, and no authorizations or consents
are required from any third party to render lawful the use of the Sponsor
Property as contemplated by this Agreement. 

     (f) Neither Sponsor nor, to the
best of Sponsor’s knowledge, any third party owner or licensor of the Sponsor
Property has received any oral or written claim or cease and desist letter, or
is subject to any outstanding injunction, judgment, order, decree, ruling,
charge, settlement, or other dispute involving the intellectual property rights
or other rights of any third party in relation to the Sponsor Property, and
there are no grounds for any claim: (i) alleging that the Sponsor Property
infringes or misappropriates any third party rights; or (ii) challenging the
title in or alleging misuse of the Sponsor Property.

3.2 Notice of Claim. Sponsor shall notify Takedown
forthwith in writing of any actual, actual, threatened or reputed third party
claim of infringement or misappropriation of any patent, copyright, trademark,
trade secret, confidential information, or other intellectual property, or the
violation of any other right, rule or regulation arising out of, related to, or
in connection with the sale, use, or promotion of the Sponsor Property. Sponsor
acknowledges and agrees that Takedown shall have the right to terminate this
agreement and to cease providing the services hereunder in Takedown’s sole
discretion and without refund or penalty upon the occurrence of any such claim.

PART 4

INDEMNIFICATION

4.1 Indemnification by Sponsor. Sponsor agrees to
defend, indemnify and hold harmless Takedown and each and all of its directors,
officers, employees, agents, affiliates, successors and assigns, together with
each and all of their respective directors, officers, employees, agents,
successors and assigns ( each and all of the foregoing being referred to
collectively as the “Takedown Indemnitees”) from and against any and all
claims, losses, liabilities, damages, costs, obligations, assessments, penalties
and interest, demands, actions, and expenses (including actual attorneys’ fees),
whether direct or indirect, known or unknown, absolute or contingent (including,
without limitation, settlement costs and any legal, accounting, and other
expenses for investigation or defending any actions or threatened actions)
(collectively the “Losses”), which any Takedown Indemnitee may suffer or
incur as a result of or related to any breach by Sponsor of any representation,
warranty or covenant made in this Agreement. 

4.2 Indemnification by Takedown. Takedown shall defend,
indemnify, and hold harmless Sponsor from and against any and all Losses which
Sponsor may suffer or incur by reason of any breach by Takedown of any of its
representations, warranties, agreements, or covenants contained in this
Agreement.

4.3 Survival of Representations and Covenants. All
representations, covenants and agreements made by Takedown or Sponsor in this
Agreement or in any Schedule hereto will, unless otherwise expressly stated,
survive the termination of this Agreement and will continue in full force and
effect for the benefit of Sponsor and of Takedown, as applicable.

PART 5

TERM AND TERMINATION

5.1 Term. The term of this Agreement shall begin upon
the date first written above and shall continue for a period of twelve (12)
months thereafter (the “Term”). The Parties may extend the Term for an
additional period of one year thereafter by mutual agreement in writing.

5.2 Termination of this Agreement. This Agreement may be
terminated in its entirety upon the occurrence of any of the events and by the
Party specified as follows:

          (a) By the non-breaching Party
(the “Non-Breaching Party”)if the Non-Breaching Party gives written
notice to the other Party (the “Breaching Party”) that the Breaching Party breaches in any material respect any material provision
of this Agreement and such breach: (i) is incapable of cure; or (ii) is capable
of cure, but not cured within sixty (60) days of the Breaching Party's receipt
of notice in writing of such breach from the Non-Breaching Party;

          (b)
By either Party upon the bankruptcy of the other Party;

          (c)
By mutual written consent of the Parties,

5.3 Effect of Termination. Upon termination or
expiration of this Agreement, the following shall immediately occur:

          (a)
Sponsor shall pay to Takedown within thirty (30) days after the effective date
of termination or expiration all Compensation due prior to such effective
date;

          (b)
Sponsor shall reimburse Takedown for all expenses incurred by Takedown as of the
effective date for Advertising Services to be provided during future periods for
which Compensation is not yet due; 

          (b)
Takedown shall have the right but not the obligations to continue any
advertising or media placement of the Sponsor Property for a period of six
months following the termination.

          (c)
Within thirty (30) days after the effective date of expiration or termination,
each Party shall return to the other Party all of its Confidential
Information.

5.4 Waiver. The failure of either Party to exercise any
rights or remedies to which it is entitled upon the happening of any of the
events referred to this Part 5, shall not be deemed to be a waiver of or
otherwise affect, impair, or prevent the non-breaching Party from exercising any
rights or remedies to which it may be entitled, arising either from the
happening of any such event, or as a result of the subsequent happening of the
same or any other event or events provided forth herein. 

5.5 Survival.
  Expiration or early termination of this Agreement shall not relieve either Party
  of its obligations incurred prior to the expiration or early termination.

PART 6

CONFIDENTIALITY

6.1 Maintenance of Confidential Information. The Parties
acknowledge and agree that in the course of this Agreement they (each a
“Receiving Party”) will, either directly or indirectly, have access to
and be entrusted with information (whether oral, written or by inspection)
relating to the other (the “Disclosing Party”) or its respective
affiliates, associates or customers (the “Confidential Information”). For
the purposes of this Agreement, “Confidential Information” includes, without
limitation, any and all customer lists, supplier lists, distributor lists,
distribution channels and methods, retailer lists, reseller lists, employee
information, financial information, sales or marketing plans, advertising price
lists, competitive analysis reports and any other thing or information
whatsoever, whether copyrightable or uncopyrightable or patentable or
unpatentable. The Receiving Party acknowledges that the Confidential Information
constitutes a proprietary right, which the Disclosing Party is entitled to protect. Accordingly the
Receiving Party covenants and agrees that during the Term and thereafter until
such time as all the Confidential Information becomes publicly known and made
generally available through no action or inaction of the Receiving Party, the
Receiving Party will keep in strict confidence the Confidential Information and
shall not, without prior written consent of of the Disclosing Party in each
instance, disclose, use or otherwise disseminate the Confidential Information,
directly or indirectly, to any third party. Notwithstanding the foregoing,
Sponsor agrees that nothing in this Agreement shall prohibit Takedown or its
affiliates from making any disclosure required by the Securities Act of 1933,
the Securities and Exchange Act of 1934, or any applicable securities law, rule
or regulation, and no such disclosure shall require the prior approval of
Sponsor. 

6.2 Exceptions. The general prohibition contained in
Section 6.1 against the unauthorized disclosure, use or dissemination of the
Confidential Information shall not apply in respect of any Confidential
Information that:

          (a)
is available to the public generally in the form disclosed; (b) becomes part of
the public domain through no fault of Sponsor;

          (c)
is already in the lawful possession of Sponsor at the time of receipt of the
Confidential Information; or (d) is compelled by applicable law to be disclosed,
provided that Sponsor gives Takedown prompt written notice of such requirement
prior to such disclosure and provides assistance in obtaining an order
protecting the Confidential Information from public disclosure.

PART 7

GENERAL

7.1 Further Assurances. The Parties will execute such
further and other documents and perform such further acts and other things as
may be necessary to carry out and give effect to the intent of this
Agreement.

7.2 Notice. All notices required or permitted to be
given under this Agreement will be in writing and personally delivered to the
address of the intended recipient set out on the first page of this Agreement or
at such other address as may from time to time be notified by any of the Parties
in the manner provided in this Agreement.

7.3 Independent Contractor. The relationship of the
Parties is that of independent contractors. Neither Party nor any of their
respective employees, agents or contractors shall by reason of this Agreement be
deemed an employee, agent or joint venture of the other Party. 

7.4 Force Majeure. Neither Party shall be liable
hereunder by reason of any failure or delay in the performance of its
obligations hereunder (except for the payment of money) for a period not to
exceed ninety (90) days on account of strikes, shortages, riots, insurrection,
fires, flood, storm, explosions, acts of God, war, governmental action, labor
conditions, earthquakes or any other cause which is beyond the reasonable control of such Party. Any
condition enumerated herein continuing beyond ninety (90) days shall constitute
a default under this Agreement.

7.5 Entire Agreement. This Agreement constitutes the
entire agreement between the Parties and there are no representations, express
or implied, statutory or otherwise and no collateral agreements other than as
expressly set out or referred to in this Agreement.

7.6 Time of the Essence. Time will be the essence of
this Agreement.

7.7 Applicable Law. This Agreement will be governed by
and interpreted in accordance with the laws of the State of Nevada. The Parties
hereby attorn to the jurisdiction of the courts located in the City of Las
Vegas, Nevada. 

7.8 Currency. All references to currency hereunder shall
be in United States Dollars. 

7.9 Successors and Assigns. This Agreement will enure to
the benefit of and be binding upon the Parties and their respective successors
and assigns, except that no Party may assign this Agreement without the prior
consent of the other Party.

7.10 Counterparts. This Agreement may be signed by
facsimile or original and executed in any number of counterparts, and each
executed counterpart will be considered to be an original. All executed
counterparts taken together will constitute one agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to
be executed by their duly authorized agents as of the day and year first above
written.

	 	DR. DIEGO ALLENDE 
	 	 
	 	/s/Diego Allende 
	 	Dr. Diego Allende 
	 	  
	 	TAKEDOWN FIGHT MEDIA INC. 
	 	By: /s/Peter E. Wudy 
	 	  
	 	Name: Peter E. Wudy 
	 	Title: President and Director
  

SCHEDULE “A”

Advertising Placement Opportunities

	
      	

	
      LIVE MMA Events

	 	 	 
		
      	

	
      Fight mats, canvas, rings and cages

	 	 	 
		
      	

	
      Arena signage, programs, product placement

	 	 	 
		
      	

	
      Event, promoter and fighter sponsorship

	 	 	 
	
      	

	
      Television Programming

	 	 	 
		
      	

	
      Television and pay-per-view ads

	 	 	 
		
      	

	
      Program and title sponsorship

	 	 	 
		
      	

	
      Product placement and integration

	 	 	 
	
      	

	
      Digital Media

	 	 	 
		
      	

	
      Display ads, rich media, email, re-skins,
  contests

	 	 	 
		
      	

	
      Branded channels, micro-sites, advertorial

	 	 	 
		
      	

	
      Video pre-roll ads, program & title
  sponsorshippxte8k20110506ex10-01.htm

Exhibit 10.01

SECOND ADDENDUM TO

ASSET SALE AGREEMENT

a Nevada corporation

Montecito Offshore, LLC

 

This Second Addendum to Asset Sale Agreement (the “Addendum”) is executed to be effective as of May 2, 2011 by and among Paxton Energy, Inc. a Nevada corporation (“Paxton”), whose principal office is located at 295 Highway 50, Suite 2, Lake Village Professional Building, Stateline, NV 89449 (Mailing Address: P.O. Box 1148 Zephyr Cove, NV89448-1148), Montecito Offshore, L.L.C., a Louisiana limited liability company (“Seller”), whose mailing address is 909 Poydras Street, Ste 2200, New Orleans, LA 70112, and PaxAcq Inc., a Louisiana corporation (“PaxAcq”), a wholly-owned subsidiary of Paxton, whose address 8550 United Plaza Blvd, Bldg II Ste 305, Baton Rouge LA 70809.

 

Recitals

 

A.      On or about March 28, 2011, Paxton and Seller entered into an Asset Sale Agreement (the “Original Agreement”)

 

B.      On or about April 7, 2011, Paxton and Seller entered into the First Addendum to Asset Sale Agreement (the “First Addendum”).

 

C.      On April 29, 2011, Articles of Incorporation of PaxAcq were filed in the Office of the Secretary of State, State of Louisiana creating PaxAcq, which will be a wholly-owned subsidiary of Paxton.

 

D.      On April 29, 2011, Paxton, PaxAcq, Virgin Oil Company, Inc., a Louisiana corporation (“Virgin”), and Virgin Offshore U.S.A., Inc., a Delaware corporation (“Offshore”) entered into an Agreement of Merger.  Subject to satisfaction to a number of conditions described therein, Virgin and PaxAcq will merge in consideration, among other things, of common stock of Paxton to be issued to stockholders of Virgin, and Virgin will be the surviving entity in the statutory merger with PaxAcq.

 

E.      PaxAcq has not yet been qualified by the Bureau of Ocean Energy Management, U.S. Department of Interior (“BOEM”), but the transaction described in the Original Agreement, as amended, will close with Seller executing and delivering an assignment of the assets to be acquired to Paxton and PaxAcq under Louisiana law, and following qualification of PaxAcq by BOEM, Seller shall complete the formal assignment of such assets by the execution and delivery of a BOEM assignment of the lease referred to in the Original Agreement.

 

F.      The parties wish to amend further and modify certain terms of the Original Agreement and First Addendum.

 

NOW, THEREFORE, the parties agree as follows:

 

1.      Pending qualification of PaxAcq by BOEM, PaxAcq and Paxton shall close the transaction contemplated under the Original Agreement, the First Addendum, and this Second Addendum based on an assignment by Seller, as described above, in the form of the Assignment and Assumption Agreement attached hereto as Exhibit A.

 

2.      Once qualified by BOEM, promptly thereafter Seller shall execute and deliver to PaxAcq and Paxton the BOEM form of Assignment of Lease.  If the merger transaction referred in Recital D has closed, the Assignment shall be delivered to Virgin, as successor entity under the statutory merger with PaxAcq.

 

1

  

  

  

 

3.      As part of the closing, PaxAcq and Paxton are obligated to execute a mortgage of the assets being acquired in favor of certain investors who have participated in a Convertible Secured Debenture Offering with Warrants (“Investors”).  Seller agrees to execute a short-form mortgage in favor of the Investors, which shall remain in effect until PaxAcq has been qualified by BOEM and Seller has transferred and assigned the lease under the BOEM-approved form.  Thereupon, the short-form mortgage executed by Seller shall be released.

 

4.      Subparagraph 2.1 of Paragraph 2, entitled PURCHASE PRICE is supplemented to provide that the form of the Subordinated Promissory Note referred to in Section 2.1.2.1.2 of the First Addendum shall be identical to the Subordinated Promissory Note attached as Exhibit B with blanks filled in appropriately.

 

5,      Paragraph 6.2 of the Agreement, as modified under the First Addendum, entitled Closing, is amended to provide that the date of Closing shall be May 4, 2011, subject to an extension of such date for up to four additional business days as may be necessary in order to deliver all of the documentation necessary for the Closing, including documents as counsel for the parties may reasonably request to consummate this transaction in accordance with industry practices or as required under applicable securities and other laws.  All documents shall be subject to the reasonable approval by counsel for each respective party.  The parties agree to execute or re-execute such additional documents and to furnish such additional data as may be necessary or desirable to evidence or consummate the transactions provided for herein and specifically to vest title in PaxAcq (or to better evidence such title) the Assets that are the subject of the Agreement and are to be conveyed.

 

6.      This Addendum may be executed in counterpart originals, each of which together shall constitute one binding agreement.  An executed signature page sent by fax or in PDF format shall be deemed executed by such party and may be relied upon by the receiving party and by third parties with the same effect as if a complete originally executed document were delivered and received.

 

	  	
Paxton:

	
Seller:

	  	
PAXTON ENERGY, INC.

	
MONTECITO OFFSHORE, LLC

	  	
a Nevada corporation

	
a Louisiana limited liability company

	  	  	  
	  	  	  
	  	  	  
	  	
By: /s/ STEPHEN SPALDING

	
By: /s/ ROBERT FREIHEIT

	  	  	  
	  	
Its: Chief Financial Officer

	
Its: Managing Member

	  	  	  
	
 

	  	  
	  	
PaxAcq:

	  
	  	
PAXACQ INC.

	  
	  	
a Louisiana corporation

	  
	  	  	  
	  	  	  
	  	
By: /s/ STEPHEN SPALDING

	  
	  	  	  
	  	
Its: Chief Financial Officer

	  

 

 

2

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