Document:

Exhibit
10.7

 

AMENDED
AND RESTATED TIME BROKERAGE AGREEMENT

 

THIS AMENDED AND RESTATED TIME BROKERAGE AGREEMENT
(this “Agreement”) is entered into as of the 2nd day of May, 2003, by
and between HBC ILLINOIS, INC., a Delaware corporation (“Programmer”), and BIG CITY RADIO-CHI, L.L.C., a Delaware limited liability company
(“Licensee”).

 

RECITALS:

 

WHEREAS, Licensee and Programmer have entered into a
Time Brokerage Agreement, dated as of January 10, 2003, and mutually desire to
amend and restate said agreement;

 

WHEREAS, Licensee is the licensee pursuant to
authorizations by the Federal Communications Commission (“FCC”) of radio broadcast station WVIV-FM, licensed to
Highland Park, Illinois (FCC Facility ID No. 74177) (the “Station”);

 

WHEREAS, during the term of this Agreement, Licensee
wishes to retain Programmer to provide programming and related services for the
Station, all in conformity with Licensee’s policies and procedures, FCC rules,
regulations and policies for time brokerage arrangements, and the provisions
hereof;

 

WHEREAS, Programmer agrees to use the Station to
broadcast such programming of Programmer’s selection that is in conformity with
the Communications Act of 1934, as amended and all rules, regulations and
policies of the FCC (collectively, the “FCC Requirements”), subject to
Licensee’s full authority to manage and control the operation of the Station;

 

WHEREAS, Programmer and Licensee have entered into an
Asset Purchase Agreement dated as of January 2, 2003 (as amended to date,
the “Purchase Agreement”), pursuant to which Licensee has agreed to sell to Programmer, and Programmer has
agreed to purchase from Licensee, certain of the radio station properties and
assets relating to the Station as described therein under the terms and
conditions set forth in the Purchase Agreement; and

 

WHEREAS, Programmer and Licensee agree to cooperate to
make this Agreement work to the benefit of the public and both parties and as
contemplated by the terms set forth herein.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the above
recitals, and mutual promises and covenants contained herein, the parties
intending to be legally bound, agree as follows:

 

SECTION 1                               USE
OF STATION AIR TIME.

 

1.1                                 Scope.
During the Term (as defined in Section 1.2 below), Licensee shall
make available to Programmer broadcast time on the Station as set forth in this
Agreement.

 

 

Programmer shall deliver such programming, at Programmer’s expense, to
the Station’s transmitters or other authorized remote control points designated
by Licensee.  Programmer shall provide
such programming of Programmer’s selection complete with commercial matter,
news, public service announcements and other suitable programming to the
Station.  Except as otherwise provided
in this Agreement, Licensee agrees to broadcast such programming in its
entirety, including commercials at the times specified, on the facilities of
the Station without interruption, deletion, or addition of any kind.  Licensee may use such time as Licensee may
require up to two (2) hours per week, for the broadcast of Licensee’s own
regularly-scheduled news, public affairs, and other non-entertainment
programming on the Station, to be scheduled at mutually agreeable times.  Licensee may elect to set aside additional
air time (up to two (2) hours per week) (the “Additional Time”) to be
scheduled at a mutually agreeable time, for the broadcast of specific
non-entertainment programming on issues of importance to the local
community.  Licensee shall provide
Programmer with as much notice as possible, but in no event less than three (3)
weeks’ notice, of its intention to set aside such Additional Time.  All program time not reserved by or
designated for Licensee shall be available for use by Programmer.  Licensee agrees that Programmer may sell, or
engage a third party to sell, commercial time during the programming provided
by Programmer to the Station for Programmer’s account.

 

1.2                                 Term.  The initial term of this Agreement (the “Initial
Term”) shall commence at 12:01 a.m. on May 2, 2003 (the “Effective Date”),
and, unless terminated earlier pursuant to any of the provisions of Section 5
hereof, shall end on the earlier of (i) the Closing Date (as defined in the
Purchase Agreement) or (ii) May 1, 2008; provided, however, that
the Programmer shall have the right to elect the extend the Initial Term for
three (3) consecutive five (5) year terms (“Renewal Terms” and together
with the Initial Term, the “Term”) by giving notice to Licensee in
writing at least thirty (30) days prior to the expiration of the Initial Term
or any Renewal Term.

 

SECTION 2                               STATION
OPERATIONS.

 

2.1                                 Licensee
Control Over Station Operations.

 

(a)                                  Licensee
shall retain ultimate authority, power and control over the operations of the
Station during the Term, including specifically, control over the personnel,
programming and finances of the Station.

 

(b)                                 Subject
to Licensee’s ultimate authority, power and control over the operations of the
Station, Programmer agrees to provide programming and related services to the
Station.  Such related services shall
include:  (i) the sale of
advertising time on the Station; (ii) coordination of traffic and billing
functions; (iii) maintenance, repair and replacement of the Station’s
transmitting or studio equipment and the other assets used or held for use in
the business and operation of the Station, other than the FCC Licenses (as such
term is defined in the Purchase Agreement) and (iv) other administrative
or operational functions as Licensee and Programmer may agree to, consistent
with FCC Requirements relating to time brokerage agreements.  Programmer shall provide and perform
Programmer’s obligations hereunder,

 

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including all related services, diligently and in a manner consistent
in all material respects with broadcast industry practices.

 

(c)                                  When
on the Licensee’s premises, all employees of Programmer used to provide
Programmer’s programming or other services to the Station shall be subject to
the overall supervision of management personnel under Licensee’s control.  Subject to Licensee’s ultimate authority,
power and control over the operations of the Station, Programmer’s employees
shall be solely accountable to Programmer.

 

2.2                                 Station
Expenses.  During the Term, Licensee
shall be responsible for paying directly those expenses necessary to maintain
compliance with the FCC Requirements and the terms of this Agreement.   Programmer shall employ and be responsible
for the salaries, taxes, programming costs, insurance and related costs for all
personnel used in the production of the Programmer’s programming (including,
without limitation, salespeople, traffic personnel, administrative and
programming staff).

 

2.3                                 Fee.  The fee payable by Programmer to Licensee in
consideration for the airtime made available hereunder and the other
agreements of the parties made hereunder, shall be in the amount and manner as
set forth in Schedule 2.3 hereto.

 

2.4                                 Call
Letters.  Licensee hereby grants to
Programmer a non-exclusive license to use the call letters “WVIV-FM” in
connection with the provision of programming and related services for the
Station in accordance with the terms and conditions of this Agreement.  The license granted by the foregoing
sentence shall terminate and be of no further force or effect upon the earlier
of the expiration of the Term or the termination of this Agreement.  Licensee hereby covenants not to change such
call letters.

 

2.5                                 Facilities
Upgrade Activities.   With
Programmer’s concurrence, Licensee shall prosecute the pending application for
modification of the Station, FCC File No. BPH-20030204ABU (the “FCC
Modification Application”), and shall prosecute amendments to the FCC
Modification Application and/or file and prosecute other application(s) for
modification of the Station as requested by Programmer and consented to by
Licensee (which such consent shall not be unreasonably withheld) and (ii)
supervise the relocation of the Station’s facilities to acceptable “turn-key”
broadcast transmission facilities constructed by Programmer or a third party in
conformance with the specifications set out in the FCC Modification Application
or such other authorization of the FCC for modified facilities of the Station
and leased to Licensee; provided, however, that Licensee shall not be
required to expend any funds or incur any legal or engineering expenses in
connection with such activities or lease unless Programmer reimburses Licensee
in advance for such expenditures as reasonably estimated by Licensee.

 

SECTION 3                               STATION
PUBLIC INTEREST OBLIGATIONS.

 

3.1                                 Licensee
Authority.  Subject to Programmer’s
obligations hereunder, Licensee shall be responsible for the Station’s
compliance with all FCC Requirements and all other applicable laws.  Programmer shall cooperate with Licensee, at
Programmer’s expense, in taking such actions as Licensee may reasonably request
to assist Licensee in maintaining the Station’s

 

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compliance with the FCC Requirements and all other applicable
laws.  Notwithstanding any other
provision of this Agreement, Programmer recognizes that Licensee has certain
obligations to operate the Station in the public interest, and to broadcast
programming to meet the needs and interests of the Station’s community of
license and service area.  From time to
time Licensee shall air, or if Licensee requests, Programmer shall air,
programming on issues of importance to the local community.  Nothing in this Agreement shall abrogate or
limit the unrestricted authority of Licensee to discharge Licensee’s
obligations to the public and to comply with the FCC Requirements, and Licensee
shall have no liability or obligation to Programmer, for taking any action that
Licensee reasonably and in good faith believes to be necessary or appropriate
to discharge such obligations or comply with such laws, rules, regulations or
policies.

 

3.2                                 Additional
Licensee Obligations.  Although both
Licensee and Programmer shall cooperate in the broadcast of emergency
information over the Station, Licensee shall retain the right, without any
liability or obligation to Programmer, to interrupt Programmer’s programming in
case of an emergency or for programming which, in the good faith judgment of
Licensee, is of greater local or national public importance.  In all such cases, Licensee shall use
Licensee’s commercially reasonable efforts to provide Programmer prior written
notice of Licensee’s intention to interrupt Programmer’s programming.  Licensee shall coordinate with Programmer
the Station’s hourly station identification and any other announcements
required to be aired by FCC Requirements. 
Licensee shall (a) maintain the Station’s local public inspection
file within the Station’s community of license or at the Station’s main studio,
and (b) prepare and place in such inspection file in a timely manner all
material required by Section 73.3526 of the FCC’s Requirements, including
the Station’s quarterly issues and program lists.  Programmer shall, upon request by Licensee, promptly provide
Licensee with such information concerning Programmer’s programs and advertising
as is necessary to assist Licensee in the preparation of such information or to
enable Licensee to verify independently the Station’s compliance with any other
laws, rules, regulations or policies applicable to the Station’s operation.

 

SECTION
4                               STATION
PROGRAMMING & OPERATIONAL POLICIES.

 

4.1                                 Broadcast
Station Programming Policy Statement. 
Licensee has adopted a Broadcast Station Programming Policy Statement
(the “Policy Statement”), a copy of which appears as Schedule 4.1
hereto and which may be amended from time to time in order to comply with FCC
Requirements by Licensee upon written notice to Programmer.  Programmer agrees and covenants to comply in
all material respects with the Policy Statement, with all FCC Requirements, and
with all changes subsequently made by Licensee (in good faith) or the FCC.  Programmer shall furnish or cause to be
furnished the artistic personnel and material for the programs as provided by
this Agreement and all programs shall be prepared and presented in conformity
in all material respects with FCC Requirements and with the Policy
Statement.  All advertising spots and
promotional material or announcements shall comply in all material respects
with all applicable federal, state and local laws, regulations and policies and
the Policy Statement, and shall be produced in accordance with quality
standards established by Programmer.  If
Licensee determines that a program, commercial announcement or promotional
material supplied by Programmer is for any reason, in Licensee’s reasonable
discretion, contrary to the public interest, or does not comply with the Policy
Statement, Licensee may, upon written

 

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notice to Programmer (to the extent time permits such notice), and
without any liability or obligation to Programmer, suspend or cancel such
program, commercial announcement or promotional material and substitute its own
programming or, if Licensee requests, Programmer shall provide promptly
suitable programming, commercial announcement or other announcement or
promotional material.

 

4.2                                 Licensee
Control of Station Programming. 
Notwithstanding any contrary provision contained in this Agreement, and
consistent with Licensee’s obligations pursuant to the FCC Requirements,
Licensee shall have the right, without any liability or obligation to
Programmer, to delete or preempt any material contained in any programming or
commercial matter furnished by Programmer for broadcast over the Station that
Licensee reasonably and in good faith believes to be unsuitable for broadcast
or the broadcast of which Licensee reasonably and in good faith believes would
be contrary to the public interest. 
Licensee shall have the right, without any liability or obligation to
Programmer to broadcast Licensee’s own programming in place of such deleted or
preempted material.  Licensee expressly
agrees that Licensee’s right to reject or preempt any of the programming will
be exercised only for cause and will not be exercised in an arbitrary manner,
for the commercial advantage of Licensee, or to cause harm to the business or
operations of Programmer.

 

4.3                                 Political
Advertising.  Licensee shall oversee
and shall take ultimate responsibility for the Station’s compliance with the
political broadcasting rules of the FCC and Sections 312 and 315 of
the Communications Act of 1934, as amended (the “Act”), including the
provision of equal opportunities, compliance with lowest unit charge
requirements, and the provision of reasonable access to federal political
candidates.  Programmer shall cooperate
with Licensee, at Programmer’s expense, to assist Licensee in complying with
the political broadcasting rules of the FCC. 
Programmer shall supply such information promptly to Licensee as may be
necessary to comply with the lowest unit charge and other applicable political
broadcast requirements of federal law. 
To the extent that Licensee reasonably and in good faith believes
necessary or appropriate, Programmer shall release advertising availabilities
to Licensee to permit Licensee to comply with the political broadcasting rules
of the FCC and Sections 312 and 315 of the Act.  Programmer shall be entitled to all revenues
received by Licensee for such advertising.

 

4.4                                 Advertising
of Credit Terms.  To the extent
prohibited by the rules of the Federal Trade Commission, no advertising of
credit terms shall be made over broadcast material supplied hereunder by
Programmer beyond mention of the fact that credit terms are available.

 

4.5                                 Payola/Plugola.  In order to enable Licensee to fulfill
Licensee’s obligations under Section 317 of the Act, Programmer, in
compliance with Section 507 of the Act, will, in advance of any scheduled
broadcast by the Station, disclose to Licensee any information of which
Programmer has knowledge or which has been disclosed to Programmer as to any
money, service, or other valuable consideration that any person has paid or
accepted, or has agreed to pay or to accept, for the inclusion of any matter as
a part of the programming or commercial matter to be supplied to Licensee
pursuant to this Agreement.  Programmer
will cooperate with Licensee, at Programmer’s expense, as necessary to ensure
compliance with this provision. 
Commercial matter with obvious sponsorship identifications shall not
require disclosure in addition to that contained in the commercial copy.

 

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4.6                                 Programmer
Compliance with Copyright Act. 
Programmer represents and warrants that Programmer will have full
authority to broadcast the programming on the Station; that Programmer shall
not broadcast any material in violation of the Copyright Act; and the
performing rights to all music contained in broadcast material supplied
hereunder by Programmer are licensed by BMI, ASCAP, or SESAC, are in the public
domain, are controlled by Programmer, or are cleared at the source by
Programmer.

 

SECTION 5                               TERMINATION.

 

5.1                                 Termination
by Programmer.  This Agreement may
be terminated by Programmer by written notice to Licensee, if Programmer is not
then in material default or breach hereof or of the Purchase Agreement, if
Licensee is in material breach of Licensee’s material obligations hereunder and
has failed to cure such breach within thirty (30) days of written notice of the
breach from Programmer.

 

5.2                                 Termination
by Licensee.  In the event that
Programmer is in material breach of any of Programmer’s material obligations
hereunder, the following procedures shall be applicable:

 

(a)                                  Licensee
shall be entitled to commence a legal action against Programmer for specific
performance of such material obligations. 
Programmer hereby waives the defense that Licensee has an adequate
remedy at law and acknowledges that the remedy of specific performance is
appropriate to cure such material breach.

 

(b)                                 If
Programmer has failed to cure such material breach within three hundred sixty
(360) days after written notice of such material breach, Licensee may terminate
this Agreement upon the payment in cash to Programmer of the fee paid by
Programmer pursuant to Section 2.3 hereof plus all costs incurred by
Programmer pursuant to its activities described in Section 2.5 hereof.

 

5.3                                 Termination
by Mutual Consent.  This Agreement
will terminate upon the mutual written consent of both parties.

 

5.4                                 Severability.  The parties hereto intend that the
transactions contemplated hereunder comply in all respects with FCC
Requirements.  If any provision of this
Agreement shall be declared void, illegal, or invalid by any governmental
authority with jurisdiction thereof, the remainder of this Agreement shall
remain in full force and effect without such offending provision so long as
such remainder substantially reflects the intent and economic or other benefits
of the original agreement of the parties hereunder.  Furthermore, in such event, the parties shall use their
commercially reasonable efforts to reach agreement promptly on lawful
substitute provisions in place of said offending provision so as to effectuate
more closely their intent as expressed hereunder.  If any governmental authority grants to any other entity or
individual rights which are not contained in this Agreement, then the parties
shall use their commercially reasonable efforts to amend this Agreement to
provide the parties hereto such

 

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lawful provisions which comport with any rules, regulations and
policies adopted after the date of this Agreement.

 

5.5                                 Force
Majeure.  Any failure or impairment
of the assets of the Station or any delay or interruption in the broadcast of
programs, or failure at any time to furnish facilities, in whole or in part,
for broadcast, due to acts of God, restrictions by any governmental authority,
civil riot, fire, strike, labor unrest, floods or any other similar cause not
reasonably within the control of Licensee or Programmer, shall not constitute a
breach of this Agreement and Licensee will not be liable to Programmer nor will
Programmer be liable to Licensee for any liability or obligation with respect
thereto.

 

5.6                                 Insurance;
Risk of Loss.  From January 10,
2003, through the end of the Term, Programmer shall maintain with reputable
insurance companies reasonably acceptable to Licensee, insurance in such
amounts and with respect to such risks reasonably acceptable to Licensee,
including broadcast liability insurance naming Licensee as an additional
insured, and general comprehensive insurance, also naming Licensee as an
additional insured, each with a commercially reasonable amount of coverage as
is conventionally carried by broadcasters operating radio stations in the area
comparable to those of the Station.  The
risk of any loss, damage, impairment, confiscation, or condemnation of any
equipment or other personal property owned or leased and used by Programmer in
the performance of its obligations hereunder shall be borne by Programmer at
all times throughout the Term.

 

SECTION 6                               INDEMNIFICATION.

 

6.1                                 Indemnification
by Programmer.  Programmer shall
indemnify and hold harmless Licensee from and against any and all claims,
losses, costs, liabilities, damages, expenses, including any FCC fines or
forfeitures (including reasonable legal fees and other expenses incidental
thereto), of every kind, nature and description (collectively “Damages”)
arising or resulting from or relating to (a) Programmer’s breach of any
representation, covenant, agreement or other obligation of Programmer contained
in this Agreement, (b) any action taken by Programmer or Programmer’s
employees and agents with respect to the Station, or any failure by Programmer
or Programmer’s employees and agents to take any action with respect to the
Station, including Damages relating to violations of FCC Requirements, slander,
libel, defamation or other claims relating to programming provided by
Programmer or Programmer’s broadcast and sale of advertising time on the
Station, except to the extent directed by or caused by Licensee or its
officers, employees, agents or Affiliates, or (c) the business or
operations of the Station conducted by Programmer from and after January 10,
2003.

 

6.2                                 Indemnification
by Licensee.  Licensee shall
indemnify and hold harmless Programmer from and against any and all Damages
arising or resulting from or relating to (a) Licensee’s breach of any
representation, covenant, agreement or other obligation of Licensee contained
in this Agreement, or (b) any action taken by Licensee or Licensee’s
employees and agents with respect to the Station, including Damages relating to
violations of FCC Requirements, slander, libel, defamation or other claims
relating to programming provided by Licensee.

 

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SECTION
7                               REPRESENTATIONS,
WARRANTIES, AND COVENANTS.

 

7.1                                 Representations,
Warranties and Covenants of Licensee. 
Licensee represents, warrants and covenants that:

 

(a)                                  The execution, delivery and performance by
Licensee of this Agreement, the fulfillment of and the compliance with the
terms and provisions hereof, and the consummation by Licensee of the
transactions contemplated hereby have been duly authorized by all requisite
corporate action (which authorization has not been modified or rescinded and is
in full force and effect), and do not and will not: (i) conflict with, or
violate any provision of, any Law having applicability to Licensee or any
affiliate of Licensee; (ii) conflict with, or result in any breach of, or
constitute a default under, any agreement to which Licensee is a party or by
which Licensee is bound; or (iii) result in or require the creation or
imposition of or result in the acceleration of any indebtedness, or of any
mortgage, lien, pledge, encumbrance, security interest, deed of trust, option,
encroachment, reservation, order, decree, judgment, restriction, charge,
agreement, claim or equity of any kind (“Encumbrance”) of any nature
upon, or with respect to, Licensee or any of the assets now owned or hereafter
acquired by Licensee.  No other action
is necessary for Licensee to enter into this Agreement and to consummate the
transactions contemplated hereby.

 

(b)                                 This Agreement constitutes a valid and binding
obligation of Licensee, enforceable in accordance with its terms.

 

(c)                                  Licensee currently is the holder of the
authorizations related to the Station listed on Schedule 7.1 attached
hereto.

 

7.2                                 Representations,
Warranties and Covenants of Programmer. 
Programmer represents, warrants and covenants that:

 

(a)                                  The execution, delivery and performance by
Programmer of this Agreement, the fulfillment of and the compliance with the
respective terms and provisions hereof, and the consummation by Programmer of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action (which authorization has not been modified or rescinded and is
in full force and effect), and do not and will not: (i) conflict with, or
violate any provision of, any Law having applicability to Programmer or any
affiliate of Programmer or any provision of the organizational documents of
Programmer; (ii) conflict with, or result in any breach of, or constitute a
default under, any agreement to which Programmer is a party or by which
Programmer is bound; or (iii) result in or require the creation or imposition
of or result in the acceleration of any indebtedness, or of any Encumbrance of
any nature upon, or with respect to, Programmer or any of the assets now owned
or hereafter acquired by Programmer.  No
other corporate action is necessary for Programmer to enter into this Agreement
and to consummate the transactions contemplated hereby.

 

(b)                                 This Agreement constitutes a valid and binding
obligation of Programmer, enforceable in accordance with its terms.

 

8

 

SECTION 8                               MISCELLANEOUS.

 

8.1                                 Further
Assurances.  Each of the parties
hereto hereby agrees to take or cause to be taken such further actions, to
execute, deliver and file or cause to be executed, delivered and filed such
further documents, and will obtain such consents, as may be necessary or as may
be reasonably requested in order to fully effectuate the purposes, terms and
conditions of this Agreement.

 

8.2                                 Expenses.  Each party hereto will pay its own expenses
incurred by such party in connection with the negotiation, preparation,
execution and consummation of this Agreement and the transactions contemplated
hereby, including all legal and accounting fees and disbursements.

 

8.3                                 Assignment.  Programmer may assign this Agreement to any
third party which becomes the assignee of Programmer’s rights in accordance
with the assignment provisions of the Purchase Agreement.  Licensee will assign this Agreement to any
third party which becomes the successor licensee of the Station pursuant to the
authorization of the FCC and in accordance with the assignment provisions of
the Purchase Agreement.  Except as
aforesaid, no party shall assign its rights and obligations under this
Agreement, in whole or in part, whether by operation of law or otherwise,
without the prior written consent of the other party hereto, and any such
assignment contrary to the terms hereof shall be null and void and of no force
and effect.  In no event shall the
assignment by any party of its respective rights or obligations under this
Agreement release such party from its respective liabilities and obligations
hereunder.

 

8.4                                 Entire
Agreement; Amendments.  This
Agreement constitutes the entire agreement among the parties hereto with
respect to the transactions contemplated herein and, except for the Purchase
Agreement, and documents delivered pursuant thereto, supersede all prior oral
or written agreements, commitments or understandings with respect to the
matters provided for herein.  No
amendment, modification or discharge of this Agreement shall be valid or
binding unless set forth in writing and duly executed and delivered by the
party against whom enforcement of the amendment, modification, or discharge is
sought.

 

8.5                                 Waiver.  No delay or failure on the part of any party
hereto in exercising any right, power or privilege under this Agreement or
under any other documents furnished in connection with or pursuant to this
Agreement shall impair any such right, power or privilege or be construed as a
waiver of any default or any acquiescence therein.  No single or partial exercise of any such right, power or
privilege shall preclude the further exercise of such right, power or
privilege, or the exercise of any other right, power or privilege.  No waiver shall be valid against any party
hereto unless made in writing and signed by the party against whom enforcement
of such waiver is sought and then only to the extent expressly specified
therein.

 

8.6                                 Consent
to Jurisdiction.

 

(a)                                  This
Agreement and the duties and obligations of the parties hereunder and under
each of the documents referred to herein shall be enforceable against any party
in the courts of the United States of America and of the State of New
York.  For such purpose, each

 

9

 

party hereto hereby irrevocably submits to the non-exclusive
jurisdiction of such courts, and agrees that all claims in respect of this
Agreement and such other documents may be heard and determined in any of such
courts.

 

(b)                                 Each
party hereto hereby irrevocably agrees that a final judgment of any of the
courts specified above in any action or proceeding relating to this Agreement
or to any of the other documents referred to herein or therein shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

 

8.7                                 Governing
Law.  This Agreement, the rights and
obligations of the parties hereto, and any claims or disputes relating thereto,
shall be governed by and construed in accordance with the laws of the State of
New York (excluding the choice of law rules thereof).

 

8.8                                 Notices.  All notices, demands, requests, or other
communications which may be or are required to be given, served, or sent by any
party to any other party pursuant to this Agreement shall be in writing and
shall be hand delivered, sent by overnight courier or mailed by first-class,
registered or certified mail, return receipt requested, postage prepaid, or
transmitted by telegram, telecopy or telex, addressed as follows:

 

(a)                                  If
the notice is to Programmer:

 

Hispanic Broadcasting
Corporation

3102 Oak Lawn Avenue, Suite
215

Dallas, Texas  75219

Attention: Jeffrey T.
Hinson, Senior Vice President

Telephone:  (214) 525-7711

Facsimile:  (214) 525-7750

 

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

 

Hallett & Perrin, P.C.

2001 Bryan Street, Suite
3900

Dallas, Texas  75201

Attention: Bruce H. Hallett

Telephone: (214) 922-4120

Facsimile: (214) 922-4170

 

or to such other address as Programmer may from time to time designate.

 

10

 

(b)         If to Licensee:

 

Big City Radio, Inc.

c/o Metromedia Company

One Meadowlands Plaza

East Rutherford, New
Jersey  07073-2137

Attention:  David A. Persing

Telephone:  (201) 531-8022

Facsimile:  (201) 531-2803

 

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

 

Hogan & Hartson L.L.P.

8300 Greensboro Drive

Suite 1100

McLean, Virginia  22102

Attention:  Thomas E. Repke

Telephone:  (703) 610-6138

Facsimile:  (703) 610-6200

 

or to such other address
as Licensee may from time to time designate.

 

Each party may designate by notice in writing a new
address to which any notice, demand, request or communication may thereafter be
so given, served or sent.  Each notice,
demand, request, or communication which shall be hand delivered, sent, mailed
or faxed in the manner described above, shall be deemed sufficiently given,
served, sent, received or delivered for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt, or
confirmation of facsimile transmission being deemed conclusive, but not
exclusive, evidence of such delivery) or at such time as delivery is refused by
the addressee upon presentation.

 

8.9                                 Interpretation.
Section headings contained in this Agreement are inserted for convenience of
reference only, shall not be deemed to be a part of this Agreement for any
purpose, and shall not in any way define or affect the meaning, construction or
scope of any of the provisions hereof. 
Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation”.

 

8.10                           Counterparts.  To facilitate execution, this Agreement may
be executed in as many counterparts as may be required.  It shall not be necessary that the
signatures of, or on behalf of, each party, or that the signatures of all
persons required to bind any party, appear on each counterpart; but it shall be
sufficient that the signature of, or on behalf of, each party, or that the
signatures of the persons required to bind any party, appear on one or more of
the counterparts.  All counterparts
shall collectively constitute a single agreement.  It shall not be necessary in making proof of this Agreement to
produce or account for more than a number of counterparts containing the
respective signatures of, or on behalf of, all of the parties hereto.

 

11

 

8.11                           Limitation
on Benefits.  The covenants,
undertakings and agreements set forth in this Agreement shall be solely for the
benefit of, and shall be enforceable only by, the parties hereto and their
respective successors, heirs, executors, administrators, legal representatives
and permitted assigns.

 

8.12                           Binding
Effect.  Subject to any provisions
hereof restricting assignment, this Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors,
heirs, executors, administrators, legal representatives and assigns.

 

8.13                           Taxes.  Licensee and Programmer shall each pay its
own ad valorem taxes, if any, which may be assessed on such party’s personal
property for the periods that such items are owned by such party.

 

8.14                           No
Joint Venture or Partnership. 
Programmer shall act as an independent contractor in rendering its
services hereunder.  Neither party shall
have any power or authority to act for or on behalf of the other or to bind the
other in any manner whatsoever, except as and to the extent expressly provided
for in this Agreement.  The parties
hereto agree that nothing herein shall constitute a joint venture or
partnership between them.

 

[SIGNATURE
PAGE TO FOLLOW]

 

12

 

IN WITNESS WHEREOF, the parties hereto have executed
this Time Brokerage Agreement as of the date first above written.

 

 

	
   

  	
  PROGRAMMER:

  
	
   

  	
   

  
	
   

  	
  HBC ILLINOIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald J. Ryan

  	
   

  
	
   

  	
  Name:

  	
  Gerald J.Ryan

  	
   

  
	
   

  	
  Title:

  	
   Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LICENSEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BIG CITY RADIO-CHI, L.L.C.

  
	
   

  	
  By:

  	
  BIG CITY RADIO, INC.,

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul R. Thomson

  	
   

  
	
   

  	
  Name:

  	
   Paul R. Thomson

  	
   

  
	
   

  	
  Title:

  	
   Vice President

  	
   

  
											

 

13Exhibit
10.8

 

TIME BROKERAGE AGREEMENT

 

This Time Brokerage
Agreement, dated as of March 17, 2003, is made by and between Simmons Lone Star
Media, Ltd. (“Licensee”) and HBC Broadcasting Texas, L.P. (“Broker”).

 

W
I T N E S S E T H:

 

WHEREAS, Licensee has available
broadcasting time and is engaged in the business of radio broadcasting on radio
station KTND(FM), licensed to Georgetown, Texas (the “Station”); and

 

WHEREAS, Broker desires to
avail itself of Station’s broadcast time for the presentation of programming
services, including the sale of advertising time; and

 

WHEREAS, Licensee is the
holder of all licenses issued by governmental authorities used in the operation
of the Station; and

 

WHEREAS, Licensee and Broker
are parties to an Asset Purchase Agreement, of even date herewith (the
“Purchase Agreement”), pursuant to which Broker and its affiliate have agreed
to purchase the governmental licenses and other principal assets relating to
the Station;

 

NOW, THEREFORE, for and in
consideration of the mutual covenants herein contained, the parties hereto have
agreed and do agree as follows:

 

1.                                       Facilities.  Licensee agrees to make
broadcasting transmission facilities available to Broker and to broadcast on
the Station, or cause to be broadcast, Broker’s programs.

 

2.                                       Term of Agreement. 
This Agreement shall commence at 12:01 a.m., Dallas, Texas time, on the
Time Brokerage Date (as defined in the Purchase Agreement) and, subject to the
terms and conditions of this Agreement, shall continue until the earliest of (i)
1:00 p.m., Dallas, Texas time, on the 12th month anniversary of the
Time Brokerage Date, (ii) the closing of the transactions contemplated by the
Purchase Agreement or (iii) the termination of the Purchase Agreement.

 

3.                                       Payments.

 

3.1                                 Amount of Payments. 
Broker hereby agrees to pay Licensee for the broadcast of the programs
hereunder the “Monthly Sum” (defined hereinbelow), prorated (using a 30-day
month) for any partial months during the term. 
As used herein, “Monthly Sum” shall mean $55,000.

 

3.2                                 Manner of Payments.  The
Monthly Sum shall be due and payable in full on the Time Brokerage Date and
each subsequent monthly anniversary thereof and shall be prorated for partial
months.  The failure of Licensee to
demand or insist upon prompt payment in accordance herewith shall not
constitute a waiver of its right to do so. 
If Broker shall have produced and made available programming to air on
the Station as provided herein and such programming does not air due to Licensee
preempting such programming other than in

 

 

accordance
with Section 10 or 11 below, or if for any reason Licensee is unable to
broadcast such programming through no fault of Broker, or if this Agreement is
terminated for any reason (other than a breach of this Agreement by Broker) prior
to the end of a month, then Broker shall receive a payment credit to be
determined by multiplying (i) the Monthly Sum by (ii) the ratio of the amount
of time not aired to the total number of broadcast hours allotted to Broker
each month pursuant to Section 5.1 below.

 

4.                                       Programs.  Broker shall furnish or cause
to be furnished the artistic personnel and material for the programs as
provided by this Agreement, and all programs shall be in accordance with the
requirements and regulations of the Federal Communications Commission
(“FCC”).  All programs shall be prepared
and presented in conformity with the regulations of the FCC.  All advertising spots and promotional
material or announcements shall comply with all applicable federal, state and
local regulations and policies and shall be produced in accordance with quality
standards established by Licensee.

 

5.                                       Station Facilities and Operations.

 

5.1                                 Operation of Station. 
Throughout the term of this Agreement, Licensee shall make the Station
available to the Broker for operation with the authorized facilities 24 hours a
day, seven days a week, except for (i) at least two hours each week on Sunday
morning between the hours of 7:00 a.m. and 11:00 a.m. during which Licensee
will be responsible for public affairs programming dealing with issues
affecting the Station’s service area and (ii) downtime occasioned by routine
maintenance (which in the case of routine maintenance will be scheduled, to the
extent practicable, to not exceed two hours each Monday morning between the
hours of 1:00 a.m. and 5:00 a.m). 
Licensee will use its reasonable efforts to perform any maintenance work
affecting the operation of the Station at off-peak hours.  It is further understood and agreed that
Licensee shall continue to retain full authority and control over operation of
the Station during the course of this Agreement; to be responsible for
assessment of the needs and interests of the community; and to determine that
the programs presented are responsive to such needs and interests, and that all
programming continues to meet all federal, state and local laws, including
those that govern political broadcast time, presentation of lottery material,
proper sponsor identification, and other programming in the public interest.  Broker also agrees that all such programming
as presented by Broker will be in full compliance with all such applicable
rules and regulations.  Licensee shall
also continue to be responsible for maintenance of the Station’s public file in
good order as required by the FCC, including timely placement of a copy of this
Agreement in that file; to prepare and timely file in such file the quarterly
issues/programs list as required by the FCC’s rules; to timely file with the
FCC all required reports or other records as required by the FCC; and to
otherwise comply in all respects with the FCC rules and regulations, including
those rules and regulations regarding requests for political advertising.  Broker agrees to cooperate fully in the
gathering, compilation and completion of all such reports as may be required by
Licensee.  Broker agrees that Licensee
will not owe any payment credit pursuant to Section 3.2(i) for any maintenance
performed on the Station between the hours of 
1:00 a.m. to 5:00 a.m., Monday through Sunday.

 

5.2                                 Interruption of Normal Operations.  If
the Station suffers loss or damage

 

2

 

of
any nature to its transmission facilities which results in the interruption of
service or the inability of the Station to operate with its authorized
facilities, Licensee shall notify Broker, and shall undertake (or authorize
Broker to undertake on Licensee’s behalf and at Licensee’s expense) such
repairs as necessary to restore the full-time operation of the Station with its
authorized facilities as soon as practicable.

 

5.3                                 Studio Location. 
Licensee shall maintain a main studio (“Main Studio”) capable of
providing a broadcast quality signal to the Station’s transmission facility and
located in accordance with the rules and regulations of the FCC.  To facilitate delivery of programming by
Broker to Licensee hereunder, Licensee hereby grants to Broker the
non-exclusive right for the term of this Agreement to use the equipment located
in the Main Studio and currently used by Licensee for broadcasting programs on
the Station pursuant to this Agreement (the “Broadcast Equipment”).  In addition, Broker shall have, and Licensee
hereby grants to Broker, a nonexclusive license to enter the Main Studio for
purposes of producing its programming hereunder. Such licenses shall apply only
to the Station and may not be assigned by Broker. Broker shall maintain the
Broadcast Equipment free and clear of liens, claims or encumbrances of any
third party claiming by, through or under Broker.

 

5.4                                 Transmission Facility. 
Licensee shall operate the Station’s transmission facility in accordance
with the authorizations issued to Licensee by the FCC.

 

5.5                                 Call Letters. Licensee hereby grants to Broker a
non-exclusive license to utilize the call letters of the Station during the
term of this Agreement solely for the purpose of delivering programming and
selling advertising in connection therewith, in accordance with this
Agreement.  Broker, however, shall not
be required to use such call letters. 
At Broker’s request and sole expense, Licensee shall submit an
application for and pursue a change in the Station’s call letters, as
reasonably directed by Broker.

 

6.                                       Handling of Mail. 
Except as required to comply with FCC rules and policies, including
those regarding the maintenance of the public inspection file (which shall at
all times remain the responsibility of Licensee), Licensee shall not be
required to receive or handle mail, cables, telegraph or telephone calls in
connection with programs broadcast hereunder unless Licensee at the request of
Broker has agreed in writing to do so.

 

7.                                       Programming and Operations Standards. 
Broker understands that broadcast program content must comply with
certain proscriptions including but not limited to those governing the
broadcast of obscenity and indecency; presentation of contests; lottery
information; credit terms; broadcast of telephone conversations; and political
equal access, and covenants that any such programming supplied by Broker will
be in full compliance with such restrictions. 
In addition, Broker will promptly notify Licensee of any violation of
any such restriction that takes place and agrees to hold Licensee harmless for
any damages, fines or other liability or loss that might result from any such
broadcast program.  Broker further
agrees to cooperate fully with Licensee in complying with the FCC’s applicable
rules and regulations that govern the sale and placement of political
advertising.

 

3

 

8.                                       Responsibility for Employees and Expenses.

 

8.1                                 Employees.  Broker shall employ and be
responsible for the salaries, taxes, insurance and related costs for all
personnel used in the production and transmission of its programming (including
without limitation salespeople, traffic personnel, board operators and
programming staff).  Broker agrees to
abide by any and all legal provisions relating to its own employees, including
any equal employment policies contained in Title VII of the Civil Rights Act of 1964 or in any other
applicable federal, state or local statute or regulation.  Licensee will provide and be responsible for
the Station personnel specified in Section 10 hereof.  All personnel shall be subject to the overall supervision of
Licensee consistent with the Broker’s right to the use of the Station’s
facilities as provided hereunder.

 

8.2                                 Operating Expenses. 
Broker shall be responsible for all costs associated with the production
and delivery to the Station’s transmitter site of Broker’s programming and shall
also pay for all telephone calls associated with production and listener
responses, for all fees to ASCAP, BMI and SESAC, license fees and for any other
copyright fees attributable to its programming broadcast or revenues generated
on the Station.

 

8.3                                 Transmitter Site Expenses. 
Licensee shall remain responsible for the costs associated with the
transmission of all programming at the Station’s transmitter site (including
but not limited to rent, utilities, taxes and insurance).

 

9.                                         Advertising and Program Revenues.  Broker shall retain all revenues for the
sale of advertising time on the programs it delivers to the Station and may
sell such advertising in combination with the sale of advertising on any other
broadcast stations of its choosing. 
Licensee shall retain the revenue from the sale of any advertising on
the Station on programs not produced or delivered to it by Broker.

 

10.                                 Control of Station. 
Notwithstanding anything to the contrary in this Agreement, Licensee
shall have full authority and power over the operation of the Station during
the period of this Agreement.  Licensee
shall provide and pay for a management level employee and another employee who
shall report solely to and be accountable solely to Licensee and who shall
direct the day-to-day operation of the Station.  Licensee shall retain control over the policies, programming and
operations of the Station, including, without limitation, the right to decide
whether to accept or reject any programming or advertisements, the right to preempt
any programs in order to broadcast a program deemed by Licensee to be of
greater national, regional or local interest, and the right to take any other
actions necessary for compliance with the laws of the United States; the State
of Texas; the rules, regulations, and policies of the FCC (including the
prohibition on unauthorized transfers of control); and the rules, regulations
and policies of other federal governmental authorities.  From time to time as requested by Licensee,
Broker shall provide Licensee with information to enable Licensee to prepare
records, reports and logs required by the FCC or other local, state or federal
governmental agencies.

 

11.                                 Special Events. 
Licensee reserves the right, in its discretion, to preempt any of the
broadcasts of the programs referred to herein, and to use part or all of the
time contracted for

 

4

 

herein
by Broker for the broadcast of events of special importance.  In all such cases, Licensee will use its
best efforts to give Broker reasonable notice of its intention to preempt such
broadcast or broadcasts.

 

12.                                 Force Majeure.  Any
failure or impairment of the Station facilities or any delay or interruption in
broadcasting programs, or the failure at any time to furnish facilities, in
whole or in part, for broadcasting, due to acts of God, strikes, or threats
thereof, force  majeure, or to causes beyond the control of
Licensee, shall not constitute a breach of this Agreement, and Licensee will
not be liable to Broker, except to the extent allowing in each such case an
appropriate payment credit for time not provided or broadcasts not carried
based upon a pro  rata adjustment to amounts due as specified in
Section 3 calculated upon the length of time during which the failure  or impairment exists or continues.

 

13.                                 Right to Use the Programs.  The
right to use the programs produced by Broker and to authorize their use in any
manner and in any media whatsoever shall be, and remain, vested solely in
Broker.  Broker shall retain all
copyrights to programs, slogans, trade names, logos and all other rights
associated with the programs produced by Broker.

 

14.                                 Payola.  Broker agrees that it will
not accept any compensation or any kind of gift or gratuity of any kind
whatsoever, regardless of its value or form, including, but not limited to, a
commission, discount, bonus, materials, supplies or other merchandise, services
or labor, whether or not pursuant to written contracts or agreements between
Broker and merchants or advertisers, unless the payer is identified in the
program as having paid for or furnished such consideration in accordance with
the FCC’s requirements.

 

15.                                 Compliance with Law. 
Broker agrees that, throughout the term of this Agreement, Broker will
comply with all laws and regulations applicable in the conduct of Licensee’s
business and Broker acknowledges that Licensee has not urged, counseled or
advised the use of any unfair business practice.  In the event that any new law or regulation is adopted which results
in a material change in the terms of this arrangement (for example, but not
limited to, a restriction on the number of hours which may be brokered), the
parties agree to negotiate in good faith to modify this Agreement to conform as
closely as possible to the interests of both Broker and Licensee and, in the
event of their inability to so modify the Agreement, Broker or Licensee may
without penalty terminate the Agreement on 60 days’ notice to the other, or
such earlier time as the FCC may require.

 

16.                                 Indemnification; Warranty. 
Broker will indemnify and hold Licensee harmless against all liability
for libel, slander, illegal competition or trade practice, infringement of
trade marks, trade names, or program titles, violation of rights of privacy,
and infringement of copyrights and proprietary rights resulting from the
broadcast or programming furnished by Broker. 
Further, Broker warrants that the broadcasting of its programs will not
violate any rights of others and Broker agrees to indemnify and hold Licensee,
the Station, and their respective officers, directors, agents, stockholders,
employees, and subsidiaries, harmless from any and all claims, damages,
liability, costs and expenses, including reasonable attorneys’ fees, arising
from the broadcasting of such programs. 
Licensee reserves the right to refuse to broadcast any and all

 

5

 

programs
containing matter which is, or in the reasonable opinion of Licensee may be, or
which a third-party claims to be, violative of any right of theirs or which may
constitute a personal attack as the term is and has been defined by the
FCC.  Licensee will indemnify and hold
Broker harmless against any and all liability for libel, slander, illegal
competition or trade practice, infringement of trade marks, trade names, or
program titles, violation of rights of privacy, and infringement of copyrights
and proprietary rights arising from Licensee’s preemption and broadcast of
Licensee’s own programs.  Further,
Broker’s and Licensee’s obligation to hold each other harmless against the
liabilities specified above shall survive any termination of this Agreement
until the expiration of all applicable statutes of limitation.  Unless an indemnifying party assumes the
defense of a claim for which indemnity is sought hereunder on behalf of the
indemnified party, the indemnified party shall have the right to employ its own
counsel to conduct such defense (which shall be at the expense of the
indemnifying party).  The indemnified
party shall render to the indemnifying party and its counsel such assistance as
they may reasonably require in order to ensure the proper and adequate defense
of any claim for which indemnity is sought hereunder.  Neither party will settle any claim for which indemnity is sought
or owed under this Section 16 in a manner which imposes any cost or penalty on
the other party without the other party’s prior written consent.

 

17.                                 Events of Default; Cure Periods and Remedies.

 

17.1                           Events of Default.  The
following shall, after the expiration of the applicable cure periods,
constitute Events of Default under the Agreement:

 

17.1.1                  Non-Payment.  Broker’s failure to timely
pay the consideration provided for in Section 3 hereof (“Payment Default”) for
a period of three business days after written notice of such non-payment.

 

17.1.2                  Covenant Default.  The
failure of either party to observe a material provision hereunder for a period
of thirty (30) days after written notice of such non-observance.

 

17.1.3                  Insolvency Events.  The
occurrence of any of the following events:

 

(i)                                     the entry of a decree or order for relief by
a court having jurisdiction in the premises in respect of Broker in an
involuntary case under the federal bankruptcy laws, as now or hereafter
constituted, or any other applicable federal or state bankruptcy, insolvency or
other similar law, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of Broker or for any substantial
part of its property, or ordering the winding up or liquidation of its affairs
and the continuance of any such decree or order unstayed and in effect for a
period of 30 consecutive days; or

 

(ii)                                  the commencement by Broker of a voluntary
case under the federal bankruptcy laws, as now constituted or hereafter
amended, or any other applicable federal or state bankruptcy, insolvency or
other similar law, or the consent by it to the appointment to or taking
possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of Broker or for any substantial part
of its property,

 

6

 

or the making by Broker of
any assignment for the benefit of creditors, or the admission by Broker in
writing of its inability to pay its debts generally as they become due.

 

17.2                           Termination Upon Default.  If
an Event of Default occurs, this Agreement shall automatically terminate
(unless the non-defaulting party otherwise elects in writing), and the
non-defaulting party may take all action necessary to remove Broker’s access to
Licensee’s broadcasting transmission facilities and receive from the defaulting
party such damages or other remedies as are available at law or at equity.

 

17.3                           Liabilities Upon Termination. 
Broker shall be responsible for all liabilities, debts and obligations
of Broker accrued from the purchase of air time and transmission facilities
including, without limitation, accounts payable, barter agreements and unaired
advertisements.  Upon termination,
Broker shall return to Licensee any Broadcast Equipment or other property of
the Station used by Broker, its employees or agents, in substantially the same
condition as such Broadcast Equipment or other property existed on the Time
Brokerage Date, ordinary wear and tear excepted.

 

17.4                           Termination upon Order of Judicial or
Governmental Authority.  In the event that any court of competent
jurisdiction or any federal, state or local governmental authority designates a
hearing with respect to the continuation or renewal of the main license held by
Licensee for the operation of the Station, or orders the termination of this
Agreement, Licensee shall seek administrative or judicial appeal of, or relief
from, such order(s).  If the FCC
designates the renewal application of the Station for a hearing as a
consequence of this Agreement or for any other reason, Licensee shall be
responsible for its expenses incurred as a consequence of the FCC proceeding;
provided however, that Broker shall cooperate and comply with any reasonable
request of Licensee to assemble and provide to the FCC information relating to
Broker’s performance under this Agreement. 
In the event of termination upon such governmental order(s), Broker
shall pay to Licensee any fees due but unpaid as of the date of termination as
may be permitted by such order(s), and Licensee shall reasonably cooperate with
Broker to the extent permitted to enable Broker to fulfill advertising or other
programming contracts then outstanding, in which event Licensee shall receive
as compensation for the carriage of such programming that which otherwise would
have been paid to Broker thereunder.

 

18.                                 Time Brokerage Challenge.  If
this Agreement is challenged at the FCC, Licensee and Broker will jointly
defend this Agreement. If portions of this Agreement do not thereafter receive
the approval of the FCC staff, the parties shall reform this Agreement, or at
Broker’s option and expense, seek reversal of the staff decision and approval
from the full FCC on appeal.

 

19.                                 Modification and Waiver.  No
modification or waiver of any provision of this Agreement shall in any event be
effected unless the same shall be in writing and signed by the party adversely
affected by the waiver or modification, and then such waiver and consent shall
be effective only in the specific instance and for the purpose for which given.

 

20.                                 No Waiver; Remedies Cumulative.  No
failure or delay on the part of Licensee or Broker in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any

 

7

 

single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of Licensee and
Broker herein provided are cumulative and are not exclusive of any right or
remedies which it may otherwise have.

 

21.                                 Construction. 
This Agreement shall be construed in accordance with the laws of the
State of Texas, and the obligations of the parties hereto are subject to all
federal, state or municipal laws or regulations now or hereafter in force and
to the regulations of the FCC and all other governmental bodies or authorities
presently or hereafter to be constituted.

 

22.                                 Headings.  The headings contained in
this Agreement are included for convenience only and no such heading shall in
any way alter the meaning of any provision.

 

23.                                 Successors and Assigns. 
This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and assigns; provided, however, that
Broker may not assign this Agreement to any party unaffiliated with Hispanic
Broadcasting Corporation without the prior written consent of Licensee.

 

24.                                 Counterpart Signatures. 
This Agreement may be signed in one or more counterparts, each of which
shall be deemed a duplicate original, binding on the parties hereto
notwithstanding that the parties are not signatory to the original or the same
counterpart.

 

25.                                 Notices. All notices and other communications hereunder shall be in writing
and shall be deemed given if mailed by certified mail, return receipt
requested, or delivered by nationally recognized “next-day” delivery
service, to the parties at the addresses set forth below (or at such other
address for a party as shall be specified by like notice), or sent by facsimile
to the number set forth below (or such other number for a party as shall be
specified by proper notice hereunder):

 

If to Broker:

 

c/o Hispanic Broadcasting
Corporation

3102 Oak Lawn Avenue, Suite
215

Dallas, Texas 75201

Attn: President

Fax: (214)  525-7750

 

If to Licensee:

 

Simmons Media Group, LLC

515 South 700 East, #1C

Salt Lake City, Utah 84102

Attn:  David E.
Simmons

Fax:  (801)
323-9316

 

8

 

26.                                 Entire Agreement. 
This Agreement (together with the Purchase Agreement) embodies the
entire agreement between the parties and there are no other agreements,
representations, warranties, or understandings, oral or written, between them
with respect to the subject matter hereof. 
No alterations, modification or change of this Agreement shall be valid
unless by like written instrument.

 

27.                                 Severability.  In
the event that any of the provisions contained in this Agreement is held to be
invalid, illegal or unenforceable shall not affect any other provision hereof,
and this Agreement shall be construed as if such invalid, illegal or
unenforceable provisions had not been contained herein.

 

28.                                 Intended Beneficiaries.  The
rights and obligations contained in this Agreement are hereby declared by the
parties hereto to have been provided expressly for the exclusive benefit of
such entities as set forth herein and shall not benefit, and do not benefit,
any unrelated third parties.

 

29.                                 Mutual Contribution.  The
parties to this Agreement and their counsel have mutually contributed to its
drafting.  Consequently, no provision of
this Agreement shall be construed against any party on the ground that such
party drafted the provision or caused it to be drafted or the provision
contains a covenant of such party.

 

30.                                 FCC Certification. 
Licensee hereby certifies that it will maintain ultimate control over
the Station’s facilities, including specifically control over station finances,
personnel and programming. 
Notwithstanding the foregoing, Licensee shall have no power to set the
terms and conditions of employment for on-air personnel utilized for or in connection
with programming broadcast on the Station originated by or in conjunction with
Broker.  Broker hereby certifies that
this Agreement complies with Section 73.3555(a)(1) of the FCC’s rules, 47
C.F.R. 73.3555(a)(1).  In addition,
neither Broker nor any person or entity associated with Broker shall have the
ability to set the terms and conditions for on-air personnel utilized for
programming originated by Licensee and broadcast on the Station during the term
of this Agreement.

 

9

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written.

 

 

	
   

  	
  Simmons Lone Star Media, Ltd.

  
	
   

  	
  By Simmons Media Group, LLC (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David E.
  Simmons

  	
   

  
	
   

  	
   

  	
  David E.
  Simmons, Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HBC Broadcasting Texas, L.P.

  
	
   

  	
  By HBC GP Texas, Inc. (general partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey T.
  Hinson

  	
   

  
	
   

  	
   

  	
  Jeffrey T.
  Hinson, Senior Vice President

  
					

 

10

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