EXHIBIT 10.3
TIME BROKERAGE AGREEMENT
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This Time Brokerage Agreement ("Agreement") is made and entered into as
of this ________ day of April, 1997, by and between POWER SURGE, INC., a
Delaware corporation (the "Licensee") and ALTA CALIFORNIA BROADCASTING, INC.,
a California corporation ("Programmer").
R E C I T A L S
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WHEREAS, Licensee is the licensee of radio broadcast stations KNRO(AM),
Redding, California and KARZ(FM), Burney, California (each a "Station" and
collectively the "Stations");
WHEREAS, Programmer desires, in conformity with the rules and policies of
the Federal Communications Commission ("FCC") and this Agreement, to produce
and present radio programming over the Stations; and
WHEREAS, Licensee desires to accept the programming produced by
Programmer and to make broadcasting time on the Stations available to
Programmer on terms and conditions which conform to FCC rules and policies and
to this 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.
SALE OF STATIONS' AIR TIME
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1.1. SCOPE.
Beginning April 1, 1997 ("Commencement Date"), Licensee shall make
available to Programmer substantially all the Stations' air time, as set forth
in this Agreement, for broadcast of programming produced by Programmer.
Programmer shall provide entertainment programming of its selection, together
with commercial matter, news, public service announcements, and other suitable
programming for broadcast on the Stations. Licensee may set aside such time
as it may require (up to eight hours per week on the Stations) during the
hours of midnight to 6 a.m. Monday through Saturday and midnight to 9 a.m.
Sunday, for the broadcast of its own regularly scheduled news, public affairs,
and other programming.
1.2. TERM.
This Agreement shall commence on the Commencement Date and, unless
earlier terminated pursuant to Section 6.1 of this Agreement, shall expire one
(1) year from the Commencement Date.
1.3. CONSIDERATION.
Programmer shall pay Licensee a monthly fee (the "Monthly Fee")
each month during the term of this Agreement of Five Thousand Dollars
($5,000).
1.4. CERTIFICATIONS.
Pursuant to Section 73.3555(a)(3)(ii) of the FCC's rules, Licensee
certifies that it maintains ultimate control over the Stations' facilities,
including specifically control over station finances, personnel and
programming, and Programmer certifies this Agreement complies with the
provision of Section 73.3555(a) of the FCC's rules.
SECTION 2.
OPERATION
2.1. LICENSEE'S RESPONSIBILITIES AND OPERATIONAL EXPENSES.
(a) EXPENSES.
Licensee shall be responsible for, and pay in a timely manner,
all costs of operating the Stations, including, but not limited to, music
license fees (i.e., ASCAP, BMI and SESAC), production music license fees and
software license fees, utilities, tower rent, and reasonable maintenance costs
for the Stations' transmitters and antenna systems and their main studios
("Operating Expenses"); provided, however, no payroll or related expenses with
respect to any employee of Programmer (as provided in Section 2.1(c) hereof)
shall be considered an "Operating Expense."
(b) REGULATORY COMPLIANCE.
Licensee shall be responsible for the Stations' compliance with
all applicable provisions of the Communications Act of 1934, as amended, the
rules and policies of the FCC and all other applicable laws, including,
without limitation, laws relating to equal employment opportunity, human
exposure to radiofrequency radiation, and the safety of air navigation.
Licensee shall at all times be solely responsible for meeting all of the
Commission's requirements with respect to public service programming, for
maintaining the political and public inspection files and the Stations' logs,
and for the preparation of issues/programs lists; provided, however, that
Programmer shall use its best efforts to assist Licensee in complying with
such requirements, to the extent reasonably requested by Licensee. Licensee
shall, on a regular basis, assess the needs of its community and address those
needs in connection with the preparation of its public affairs programming.
Licensee shall also record those needs and place the issue/programs list in
Stations' public inspection files. Further, promptly upon Licensee's request,
Programmer shall provide Licensee with all information reasonably available to
Programmer with respect to Programmer's programs which are responsive to
public needs and interests so as to assist Licensee in the preparation of
required programming in the satisfaction of its community service needs.
Programmer shall also provide upon Licensee's reasonable request such other
information necessary to enable Licensee to prepare any other records and
reports required by the FCC and local, state or other federal governmental
authorities.
(c) LICENSEE PERSONNEL.
Licensee shall employ, at minimum, its own general manager, who
shall be responsible for overseeing the operation and programming of the
respective Stations, and its own chief operator, who shall be responsible for
the Stations' compliance with all engineering requirements. Such general
manager shall report solely to and be accountable solely to Licensee.
Licensee shall be responsible for the salaries, taxes, insurance, and related
costs of all personnel employed by Licensee, and such costs shall be expressly
included in the Operating Expenses for which Seller shall be responsible,
pursuant to Section 2.1(a) hereof.
(d) STUDIOS.
To facilitate the production of Programs for Stations, Licensee
shall permit Programmer and its employees to utilize such space and such
equipment and furnishings at Stations' studios and offices as it may
reasonably request; provided that all such activity shall be conducted by
Programmer under the full supervision and authority of Licensee's General
Manager. The main studio shall be adequate to accommodate program origination
facilities, the Stations' general manager and such other employees of Licensee
who are necessary for the operation of the Stations in accordance with FCC
rules and policies, including, without limitation, the FCC's main studio rule.
(e) FCC LICENSES.
Licensee shall maintain all authorizations required for the
operation of the Stations in full force and effect during the term of this
Agreement, unimpaired by any acts or omissions of Licensee.
(f) LICENSEE ASSETS.
During the term of this Agreement, Licensee shall not sell, or
otherwise dispose of, any of the assets used for the operation of the Stations
if such action would adversely affect Licensee's performance hereunder or the
business and operations of Programmer permitted hereby. Programmer shall have
access to the main studio 24 hours a day every day of the year. Licensee
shall cooperate with Programmer, at Programmer's expense, in making such
arrangements as Programmer shall reasonably request to deliver Programmer's
programming from any remote location to the Stations' transmitter sites.
2.2. PROGRAMMER'S RESPONSIBILITIES.
Programmer shall employ and be responsible for the salaries, taxes,
insurance, and related costs for all personnel used in the production of the
programs supplied to the Stations hereunder, and all other costs incurred by
Programmer for the production of such programs. Programmer shall be
responsible for any expenses incurred in the origination and/or delivery of
programming from any remote location to the Stations' transmitter sites, and
for any publicity or promotional expenses incurred by Programmer. Programmer
shall use due care in the use of any equipment or other property of Licensee.
Programmer shall reimburse Licensee for any damage (normal wear and tear
excepted) to Licensee's equipment or other property caused by Programmer or
any employee, contractor, agent or guest of Programmer. Such reimbursement
shall be made within five (5) business days of Licensee's written notice to
Programmer of the cost of such damage. In lieu of reimbursement, Programmer,
at its entire expense, may repair or replace the damaged property within five
(5) business days of Licensee's above-referenced written notice. Such repair
or replacement shall be subject to the approval of Licensee, which approval
shall not be unreasonably withheld.
2.3. ANCILLARY BROADCAST RIGHTS AND MISCELLANEOUS INCOME.
Licensee shall reserve the right to transmit, or permit third
parties to transmit, over the Stations' subcarriers. Licensee shall be
entitled to all revenues generated by such subcarrier transmissions and from
all other income generated by the Stations or their facilities other than the
sale of air time during Programmer's programming, including income for lease
of space on the Stations' transmission towers.
2.4. ADVERTISING AND PROGRAMMING.
Programmer shall be entitled to all revenue from the sale of
advertising or programming broadcast on the Stations on or after Commencement
Date, except for revenues from advertising or program time sold by Licensee
for broadcast during the hours reserved for Licensee's programming. Effective
as of the Commencement Date, Programmer shall assume all obligations of
Licensee under any contract for the broadcast of advertising or programming
over the Stations entered into on or before the Commencement Date.
2.5. LICENSEE'S LIABILITIES.
Programmer shall not assume any of Licensee's liabilities, including
without limitation any liability under any single or multi-employer "employee
pension benefit plan" as defined in ERISA or for taxes.
2.6. POLITICAL TIME.
At least ninety (90) days before the start of any primary or general
election campaign, Programmer shall clear with Licensee the rates to be
charged political candidates for public office to be sure that the rate is in
conformance with applicable law and policy. Programmer shall provide Licensee
with access to all its books and records regarding the pricing of advertising
sold on any of the Stations in order to confirm that the political rate is
correct. Within twenty-four (24) hours of any request to purchase time on any
of the Stations on behalf of a candidate for public office or to support or
urge defeat of an issue on an election ballot, Programmer shall report the
request, and its disposition, to Licensee so that appropriate records can be
placed in the public inspection file for the Stations. In the event that
Programmer fails to provide adequate broadcast time for the broadcast of
programming or advertising by political candidates, Licensee shall have the
right to preempt Programmer programming to make time available to these
political candidates.
2.7. LICENSEE'S ACCOUNTS RECEIVABLE.
On the Commencement Date, Licensee shall assign to Programmer for
purposes of collection only, all of the Licensee's accounts receivable.
Programmer shall use such efforts as are reasonable and in the ordinary course
of business to collect the accounts receivable for a period of one hundred
twenty (120) days following the Commencement Date (the "Collection Period").
This obligation, however, shall not extend to the institution of litigation,
employment of counsel, or any other extraordinary means of collection. All
payments received by Programmer during the Collection Period from any person
or entity obligated with respect to any of the accounts receivable shall be
applied first to Licensee's account and only after full satisfaction thereof
to Programmer's account; provided, however, that if during the Collection
Period any account debtor contests in writing the validity of its obligation
with respect to any account receivable, then Programmer shall return that
account receivable to Licensee after which Licensee shall be solely
responsible for the collection thereof. Within ten (10) days after the end of
each calendar month during the Collection Period (or if such day is a weekend
or holiday, on the next business day), Programmer shall furnish Licensee with
a list of the Accounts Receivable collected during such month accompanied by a
payment equal to the amount of such collections, less any salesperson's,
agency and representative commissions applicable thereto that are deducted and
paid by Programmer from the proceeds of such collections.
3. PRORATIONS.
3.1. APPORTIONMENT OF INCOME AND EXPENSE.
Licensee shall be entitled to all income attributable to, and
shall be responsible for all expenses arising out of the operation of the
Stations until 12:01 a.m. on the Commencement Date. Programmer shall be
entitled to all income attributable to, and shall be responsible for all
expenses arising out of, the operation of the Stations after 12:01 a.m. on the
Commencement Date. All overlapping items of income or expense shall be
prorated or reimbursed, as the case may be, as of 12:01 a.m. on the
Commencement Date.
3.2. EMPLOYEE COMPENSATION.
Licensee shall pay all compensation owed to its employees up to
and including the Commencement Date. Programmer may, after the Commencement
Date, employ those of Licensee's employees as Programmer may elect on terms
and conditions determined by Programmer in Programmer's sole discretion.
SECTION 4.
COMPLIANCE WITH REGULATIONS
4.1. LICENSEE'S AUTHORITY.
Nothing in this Agreement shall abrogate the unrestricted authority
of the Licensee to discharge its obligations to the public and to comply with
the law, including the rules and policies of the FCC. Without limiting the
generality of the foregoing, Programmer recognizes that Licensee will have
certain obligations to broadcast programming which covers issues of public
importance in the service areas of Stations. The parties intend that Licensee
will use a substantial portion of the air time reserved to it under Section
1.1 above to satisfy its programming obligations.
4.2. STATION IDENTIFICATION ANNOUNCEMENTS/EAS TESTS/DUTY OPERATORS.
During all hours when Programmer is delivering the programming for
broadcast over the Stations, Programmer shall include in its programming, at
the appropriate times, the hourly station identification announcements
required to be broadcast over the Stations. During all hours when the
Stations are in operation, Programmer shall provide and compensate a duty
operator for the Stations who shall be subject to the supervision and
direction of the Licensee. Additionally, during all hours when Programmer's
programming is being broadcast over the Stations, Programmer shall take all
steps necessary to comply with the FCC rules concerning the Emergency Alert
System ("EAS"), and if an EAS test or alert is received Programmer shall cause
the appropriate EAS test or alert message to be transmitted over the Stations
and shall, in the event of an actual activation of the EAS, cause all steps
that the Stations are required to take in such an event to be taken, and shall
be responsible for assuring that the receipt and broadcast of all EAS tests
and alerts are properly recorded in the station log.
4.3. ADDITIONAL LICENSEE OBLIGATIONS.
Licensee retains the right to cut into Programmer's programming in
case of an emergency, although both parties shall cooperate in the broadcast
of emergency information over the Stations. Licensee shall coordinate with
Programmer the Stations' hourly station identification announcements so that
such announcements are aired in accord with FCC rules. In addition, Licensee
and Programmer shall coordinate the broadcast of such sponsorship
identification announcements as are necessary and appropriate concerning the
programming supplied by Programmer hereunder. Licensee shall maintain main
studios within the principal community contours of the Stations and shall also
maintain the Stations' local public files in their communities of license.
4.4. REGULATORY CHANGES.
In the event of any order or decree of an administrative agency or
court of competent jurisdiction, including without limitation any material
change or clarification in FCC rules, policies, or precedent, that would cause
this Agreement to be invalid or violate any applicable law, and such order or
decree has become effective and has not yet been stayed, the parties will use
their respective best efforts and negotiate in good faith to modify this
Agreement to the minimum extent necessary so as to comply with such order or
decree without material economic detriment to either party, and this
Agreement, as so modified, shall then continue in full force and effect.
SECTION 5.
STATIONS' BROADCASTS
5.1. STATIONS' BROADCAST GUIDELINES.
Licensee has adopted and will enforce certain guidelines
("Guidelines"), a copy of which appears as Attachment A hereto. Programmer
agrees and covenants to comply in all material respects with the Guidelines
and to all rules and policies of the FCC with respect to the programming
supplied to the Stations by Programmer.
5.2. LICENSEE CONTROL OF PROGRAMMING.
Programmer recognizes that the Licensee has full authority to
control the operation of the Stations. The parties agree that Licensee's
authority includes, but is not limited to, the right to reject or refuse such
portions of Programmer's programming which Licensee reasonably believes to be
contrary to the public interest; provided, however, that Licensee shall use
its best efforts to give Programmer prior notice of Licensee's objection to
Programmer's proposed programming, including the basis for such objection, and
a reasonable opportunity to substitute acceptable programming.
5.3. PREEMPTION OF PROGRAMMING.
Programmer may elect to terminate this Agreement at any time during
the term hereof in the event that Licensee preempts Programmer's programs
during ten percent (10%) or more of the total hours of operation of the
Stations during any calendar month. In the event Programmer elects to
terminate this Agreement pursuant to this provision, it shall give Licensee
notice of such election at least thirty (30) days prior to the termination
date.
5.4. INTERRUPTION OF NORMAL OPERATIONS.
Programmer shall notify Licensee if either of the following (a
"Specified Event") shall occur: (i) the regular broadcast transmissions of a
Station in the normal and usual manner are interrupted or discontinued (except
for regular maintenance pursuant to Section 4.4); or (ii) a Station is
operated at less than its authorized antenna height above average terrain or
at less than ninety percent (90%) of its authorized effective radiated power.
If Specified Events persist for more than seventy-two (72) hours (or, in the
event of force majeure or utility failure affecting generally the market
served by the Stations, ninety-six (96) hours), whether or not consecutive,
during any period of thirty (30) consecutive days, then Programmer may, at its
option, terminate this Agreement by written notice given to Licensee not more
than ten (10) days after the expiration of such thirty (30) day period,
provided, however, that if Licensee is making good faith efforts to correct
promptly such Specified Event, Programmer may not terminate this Agreement if
the Specified Event is corrected to the reasonable satisfaction of Programmer
within forty (40) days after the expiration of the thirty (30) day period
noted above. In the event of termination of this Agreement by Programmer
pursuant to this Section, the parties shall be released and discharged from
any further obligation hereunder.
SECTION 6.
TERMINATION
6.1. CIRCUMSTANCES PERMITTING TERMINATION.
In addition to other remedies available at law or equity, this
Agreement may be terminated as set forth below by either Licensee or
Programmer by written notice to the other, if the party seeking to terminate
is not then in material default or breach hereof, upon the occurrence of any
of the following:
(a) This Agreement is declared invalid or illegal in whole or
substantial part by an order or decree of an administrative agency or court of
competent jurisdiction, if such order or decree has gone into effect and has
not been stayed, and if the parties are unable, after negotiating in good
faith pursuant to Section 4.5 for a period of at least thirty (30) days, to
modify this Agreement to comply with applicable law.
(b) The other party is in material breach of its obligations
hereunder and has failed to cure such breach within ten (10) days after
receiving written notice thereof from the non-breaching party; provided,
however, that if the breach is one that cannot be cured with reasonable
diligence within ten (10) days, but could be cured within an additional thirty
(30) days and the breaching party is diligently attempting to cure the breach,
then the non-breaching party may not terminate this Agreement on account of
such breach until such additional thirty (30) day period has elapsed without a
cure; and provided further that with respect to the interruption of normal
operations, Section 5.4. shall apply and not this Section 6.1(b).
(c) As provided in Sections 5.3. and 5.4.
(d) The mutual consent of both parties.
6.2. LIABILITIES UPON TERMINATION.
Upon any termination of this Agreement, Licensee shall cooperate
reasonably with Programmer to the extent permitted to enable Programmer to
fulfill advertising or other programming contracts then outstanding upon
termination of this Agreement; provided, however, that Licensee shall receive
as compensation for the carriage of such advertising and programming the net
amounts which otherwise would have been received by Programmer hereunder
(payments to Programmer minus commissions, agency fees, station rep fees and
the like). Thereafter, neither party shall have any liability to the other
except as provided by this Agreement and the Asset Purchase Agreement.
SECTION 7.
INDEMNIFICATION
7.1. PROGRAMMER'S INDEMNIFICATION.
Programmer shall indemnify, defend, and hold harmless Licensee from
and against any and all claims, losses, costs, liabilities, damages, FCC
forfeitures, and expenses (including reasonable legal fees and other expenses
incidental thereto) or every kind, nature, and description, arising out of (i)
Programmer's broadcasts under this Agreement; (ii) Programmer's use of
Licensee's equipment or other property; (iii) any misrepresentation or breach
of any warranty of Programmer contained in this Agreement; and (iv) any breach
of any covenant, agreement, or obligation of Programmer contained in this
Agreement.
7.2. LICENSEE'S INDEMNIFICATION.
Licensee shall indemnify, defend, and hold harmless Programmer from
and against any and all claims, losses, costs, liabilities, damages, FCC
forfeitures, and expenses (including reasonable legal fees and other expenses
incidental thereto) of every kind, nature and description, arising out of (i)
Licensee's broadcasts under this Agreement; (ii) any misrepresentation or
breach of any warranty of Licensee contained in this Agreement; and (iii) any
breach of any covenant, agreement or obligation of Licensee contained in this
Agreement.
7.3. PROCEDURE FOR INDEMNIFICATION.
The party seeking indemnification under this Section ("Indemnitee")
shall give the party from whom it seeks indemnification ("Indemnitor") prompt
notice, pursuant to Section 8.6, of the assertion of any such claim, provided,
however, that the failure to give notice of a claim within a reasonable time
shall only relieve the Indemnitor of liability to the extent it is materially
prejudiced thereby. Promptly after receipt of written notice, as provided
herein, of a claim by a person or entity not a party to this Agreement, the
Indemnitor shall assume the defense of such claim.
7.4. DISPUTE OVER INDEMNIFICATION.
If upon presentation of a claim for indemnity hereunder, the
Indemnitor does not agree that all, or part, of such claim is subject to the
indemnification obligations imposed upon it pursuant to this Agreement, it
shall promptly so notify the Indemnitee. Thereupon, the parties shall attempt
to resolve their dispute, including where appropriate, reaching an agreement
as to that portion of the claim, if any, which both concede is subject to
indemnification. To the extent that the parties are unable to reach some
compromise, the parties agree to submit the matter for binding arbitration
pursuant to the rules and procedures of the American Arbitration Association
and to share equally in the costs of such arbitration.
SECTION 8.
MISCELLANEOUS
8.1. ASSIGNMENT.
Neither party may assign its rights or obligations hereunder without
the prior written consent of the other party, such consent not to be
unreasonably withheld.
8.2. COUNTERPARTS.
This Agreement may be executed in one or more counterparts, each of
which will be deemed an original but all of which together will constitute one
and the same instrument.
8.3. ENTIRE AGREEMENT.
This Agreement and the Attachments hereto embody the entire
agreement and understanding of the parties and supersede any and all prior
agreements, arrangements, and understandings relating to the matters provided
for herein. No amendment, waiver of compliance with any provision or
conditions hereof, or consent pursuant to this Agreement, will be effective
unless evidenced by an instrument in writing signed by the party to be charged
therewith.
8.4. HEADINGS.
The headings are for convenience only and will not control or affect
the meaning or construction of the provisions of this Agreement.
8.5. GOVERNING LAW.
The obligations of Licensee and Programmer are subject to applicable
federal, state and local law, rules and regulations, including, but not
limited to, the Communications Act of 1934, as amended (the "Act"), and the
rules and regulations of the FCC. The construction and performance of the
Agreement will be governed by the laws of the State of California except for
the choice of law rules used in that jurisdiction.
8.6. NOTICES.
All notices, requests, demands, and other communications pertaining
to this Agreement shall be in writing and shall be deemed duly given when
delivered personally or mailed by certified mail, return receipt requested,
postage prepaid, or by an overnight carrier that provides a written
confirmation of delivery, addressed as follows:
(a) If to Licensee:
POWER SURGE, INC.
P.O. Box 3458
Carefree, AZ 85377
(b) If to Programmer:
ALTA CALIFORNIA BROADCASTING, INC.
P.O. Box 3463
Carefree, AZ 85377
Any party may change its address for notices by written notice to the
other given pursuant to this Section.
8.7. ATTORNEYS' FEES.
If any party initiates any litigation against another involving this
Agreement, the prevailing party in such action shall be entitled to receive
reimbursement from such other party for all reasonable attorneys' fees and
other costs and expenses incurred by the prevailing party in respect of that
litigation, including any appeal, and such reimbursement may be included in
the judgment or final order issued in that proceeding.
8.8. VENUE.
Any litigation seeking to enforce any provision of, or based on any
right arising out of this Agreement shall be brought either in a court of the
State of California or in the United States District Court serving Redding,
California if it has or can acquire jurisdiction. The parties agree that
those courts shall be the exclusive forums for all such actions, and hereby
waive any objection to venue in those courts based on the doctrine of forum
non conveniens or otherwise.
8.9. LICENSEE'S REPRESENTATIONS, WARRANTIES AND COVENANTS.
Licensee hereby further represent, warrant and covenant:
(a) AUTHORIZATIONS.
Licensee owns and holds all licenses and other permits and
authorizations necessary for the operation of the Stations as presently
conducted (including licenses, permits and authorizations issued by the FCC)
("Operating Authorizations"). There is not now pending or, to Licensee's
knowledge, threatened any action by the Commission or other party to revoke,
cancel, suspend, refuse to renew or materially and adversely modify any of
such Operating Authorizations and, to Licensee's knowledge, no event has
occurred which allows or, after notice or lapse of time or both, would allow,
the revocation or termination of such Operating Authorizations or the
imposition of any restrictions thereon of such a nature that may limit in any
material respect the operation of the Stations as presently conducted. To the
best of its knowledge, Licensee is not in violation in any material respect of
any statute, ordinance, rule, regulation, policy, order or decree of any
federal, state, local or foreign government entity, court or authority having
jurisdiction over them or their operations or assets, which would have a
material adverse effect on Licensee or on its ability to perform this
Agreement.
(b) FILINGS.
All reports and applications required to be filed with the FCC
(including ownership reports and renewal applications) or any other governmen-
tal entity, department or body in respect of the Stations have been, and in
the future will be, filed by Licensee in a timely manner and are and will be
true and complete in all material respects. All such reports and documents,
to the extent required to be kept in the public inspection files of the
Stations, are and will be kept in such files.
(c) FACILITIES.
The Stations' operating equipment will be maintained and will
comply in all material respects with the maximum facilities permitted by the
Operating Authorizations and will be maintained, in all material respects, in
accordance with good engineering standards necessary to deliver a high quality
technical signal to the areas served by the Stations and, in all material
respects, with all applicable laws and regulations (including the requirements
of the Act and the rules, regulations, policies and procedures of the FCC
promulgated thereunder).
(d) RETENTION OF PROPERTY.
Licensee will not dispose of, transfer, assign or pledge any
asset, except with the prior written consent of Programmer, if such action
would affect materially and adversely Licensee's performance hereunder or the
business and operations of Programmer permitted hereby.
(e) INSURANCE.
Licensee will maintain in full force and effect throughout the
term of this Agreement insurance with responsible and reputable insurance
companies or associations covering such risks (including fire, and other risks
insured against by extended coverage, public liability insurance, insurance
for claims against personal injury or death or property damage, and such other
insurance as may be required by law and as is customary and usual in the
broadcast industry) and in such amounts and on such terms as is conventionally
carried by broadcasters operating radio stations with facilities comparable to
those of the Stations. Any insurance proceeds received by Licensee in respect
of damaged property will be used to repair or replace such property so that
the operation of Stations conforms with this Agreement.
8.10. NO PARTNERSHIP OR JOINT VENTURE CREATED.
Nothing in this Agreement shall be construed or interpreted to make
Licensee and Programmer partners or joint venturers, or to make one an agent
or representative of the other, or to afford any rights to any third party
other than as expressly provided herein. Neither Programmer nor Licensee is
authorized to bind the other to any contract, agreement or understanding.
Programmer and Licensee acknowledge that call letters, trademarks and other
intellectual property shall at all times remain the property of the respective
parties, and that no party shall obtain any ownership interest in any other
party's intellectual property by virtue of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Time Brokerage
Agreement on the day and year first written above.
PROGRAMMER: LICENSEE:
ALTA CALIFORNIA BROADCASTING, INC. POWER SURGE, INC.
By: ____________________________ By: _____________________________
Don Griffin, Chief Operating John C. Power, President
Officer
Attachment A
PROGRAM AND OPERATING STANDARDS
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Licensee and Programmer shall cooperate in the broadcasting of programs
of the highest possible standard of excellence. Without limiting the
generality of the foregoing, they shall observe the following policies in the
preparation, writing and production of their own (non-syndicated or network)
programs:
1. RESPECTFUL OF FAITHS. The subject of religion and references to
particular faiths and tenets shall be treated with respect at all times.
2. CONTROVERSIAL ISSUES. Programmer shall exercise care to ensure that,
during any discussion of controversial issues of public importance, no
attacks on the honesty, integrity or like personal qualities of any
person or group of persons shall be made. During the course of political
campaigns, Stations programs (other than public forum or talk features)
are not to be used as a forum for editorializing about individual
candidates without the express permission of Licensee. If such events
occur, Licensee may require that responsive programming be aired. In the
event that a statute, regulation or policy is adopted that requires the
airing of responsive programming, Programmer shall comply with such
statute, regulation or policy, and shall provide such responsive
programming.
3. DONATION SOLICITATION. Requests for donations in the form of a specific
amount shall not be made if there is any suggestion that such donation
will result in miracles, physical cures or life-long prosperity.
However, statements generally requesting donations to support a broadcast
or Church are permitted.
4. TREATMENT OF PARAPSYCHOLOGY. The advertising or promotion of fortune-
telling, occultism, astrology, phrenology, palm reading or numerology,
mind-reading, character readings or subject of the like nature shall not
be broadcast.
5. NO MINISTERIAL SOLICITATIONS. No invitations by a minister or other
individual appearing on the program to have listeners come and visit him
or her for consultation or the like shall be made if such invitation
alleges that the listeners will necessarily receive monetary gain or
total physical cures for illness as the result of a payment made in the
course of such visit.
6. NO VENDING OF MIRACLES. Any exhortation to listeners to bring money to a
Church affair or service is prohibited if the exhortation, affair or
service contains any suggestion that miracles, total physical cures or
life-long prosperity will result.
7. NO ENRICHMENT SOLICITATION. Any invitation to listeners to meet at
places other than a Church and/or to attend other than regular services
of a Church is prohibited if the invitation, meeting or service contains
any claim that life-long prosperity will result.
8. SALE OF RELIGIOUS ARTIFACTS. The offering for sale of religious
artifacts or other items for which listeners would send money is
prohibited unless such items are normally available in ordinary commerce
or are clearly being sold for proper fund-raising purposes.
9. LOTTERIES. Announcements giving any information about lotteries or games
prohibited by federal or state law or regulation are prohibited.
10. NO "DREAM BOOKS". References to "dream books," the "straight line" or
other direct or indirect descriptions or solicitations relative to the
"numbers game," or the "policy game," or any other form of gambling are
prohibited.
11. NO NUMBERS GAMES. References to chapter and verse paragraphs, paragraphs
numbers or song numbers, which involve three digits should be avoided
and, when used, must reasonably relate to a non-gambling activity.
12. COMMERCIAL LIMITATIONS. With respect to any given segment of air time
hereunder, the amount of commercial matter shall not normally exceed
sixteen (16) minutes during any sixty (60) minute segment, except during
political broadcast period when eighteen (18) minutes shall not normally
be exceeded. Programmer shall provide to Licensee a list of all
commercial announcements during its programming.
13. REQUIRED ANNOUNCEMENTS. Programmer shall broadcast (i) an announcement
in form satisfactory to Licensee at the beginning of each hour to
identify the Stations, (ii) an announcement at the beginning of each
broadcast day or appropriate broadcast period to indicate that program
time has been purchased by Programmer, and (iii) any other announcement
that may be required by law, regulation or Station policy.
14. NO ILLEGAL ANNOUNCEMENTS. No announcement or promotion prohibited by
federal or state law or regulation of any lottery or game shall be made
over the Stations.
15. LICENSEE DISCRETION PARAMOUNT. In accordance with Licensee's
responsibility under the Communications Act of 1934, as amended, and the
Rules and Regulations of the Federal Communications Commission, Licensee
reserves the right to reject or terminate any advertising or programming
being presented over the Stations which is in conflict with Station
policy or which in Licensee's sole but reasonable judgment would not
serve the public interest.
16. PROGRAMMING PROHIBITIONS. Programmer shall not knowingly broadcast any
of the following programs or announcements:
(a) FALSE CLAIMS. False or unwarranted claims for any product or
service.
(b) OBSCENITY. Any programs or announcements that are obscene either
in theme or treatment.
(c) DESCRIPTIONS OF BODILY FUNCTIONS. Any continuity which describes
in a repellent manner bodily functions.
The parties may jointly waive any of the foregoing policies in specific
instances if, in the opinion of both Licensee and Programmer, good
broadcasting in the public interest is served.
In any cases where obvious questions of policy or interpretation arise,
Programmer shall attempt in good faith to submit the same to Licensee for
decision before making any commitments in connection therewith, and Licensee
shall use its best efforts to reach a timely decision taking into due
consideration the business objectives of Programmer.