Seatac Digital Resources, Inc.
EXHIBIT 10.09
Seatac Digital Resources, Inc.
July 23, 2010
Mr. Robert Cambridge, President
AMHN, Inc.
100 North First Street, Suite 104
Burbank, CA 91502
Ms. Shaneeka James, President
Americas Minority Health Network, Inc.
100 North First Street, Suite 104
Burbank, CA 91502
Re: Proposal to Accept Collateral in Satisfaction of Debt
Dear Bob and Shaneeka:
Reference is made to (i) that certain debt instrument dated April 1, 2010 (the April 2010 Note) issued by AMHN, Inc. (AMHN) in favor of Seatac Digital Resources, Inc. (Seatac) as further outlined on Schedule 1 attached hereto, (ii) that certain Security Agreement dated as of April 1, 2010 executed by AMHN in favor of Seatac (the AMHN Security Agreement), (iii) that certain Stock Pledge and Escrow Agreement dated as of April 1, 2010 executed by AMHN in favor of Seatac (the Pledge Agreement), (iv) that certain Guaranty Agreement (the Guaranty) dated as of April 1, 2010 executed by Americas Minority Health Network, Inc. (Americas Minority Health Network) in favor of Seatac, and (v) that certain Guarantor Security Agreement (the Guarantor Security Agreement and, together with the Note, the AMHN Security Agreement, the Pledge Agreement and the Guaranty, the Loan Documents) dated as of April 1, 2010 executed by the appropriate parties thereto.
As you are aware, AMHN was unable to fulfill its obligation to repay the sum of $925,885.82 of principal and interest on the April 2010 Note that was due on June 30, 2010 and which was demanded to be paid on or before July 11, 2010. As outlined in our previous letter, we assessed a one-time late fee of $55,553.14, bringing the amount payable and past due to $981,438.76.
Pursuant to the Pledge Agreement, AMHN pledged to Seatac a first priority security interest on all of AMHNs personal property and assets existing at the time or acquired after the signing of the transaction documents on April 1, 2010, including the capital stock of AMHNs subsidiary, Americas Minority Health Network, Inc. (Americas Minority Health Network). Subsequently, AMHN acquired another subsidiary, Spectrum Health Network, Inc. (Spectrum).
Robert Cambridge
Shaneeka James
July 23, 2010
Page Two
AMHN and the Guarantor are in default under the Loan Documents for, among other things, failing to make payment to Seatac as required by the Loan Documents. As of July 12, 2010, the amount owing by AMHN and the Guarantor to Seatac under the Note and otherwise is $981,438.76, which amount shall increase from and after the date of this letter in accordance with the terms of the Loan Documents (such amount referred to herein as the Debt). The Debt is secured by a first priority security interest in all of AMHNs and the Guarantors assets.
Seatac hereby proposes to accept the collateral listed on Schedule 2 attached hereto (the Collateral) in full satisfaction of the Debt in the amount of $981,438.76. This settlement, however, does not include and does not satisfy the trade payable to Seatac from AMHN in the amount of $455,061. The acceptance by Seatac of the Collateral shall be effective July 30, 2010 if AMHN signs the attached Agreement, Acknowledgment and Consent and Joint Direction to Escrow Agent to Release Shares and returns it to us by 9:00 a.m. PST on July 30, 2010.
Please fax AMHNs consent and any objections to us at (707)  ###-###-####.
Sincerely,
SEATAC DIGITAL RESOURCES, INC. |
/s/ Robin Tjon |
Robin Tjon |
President |
SCHEDULE 1
THE NOTE AND RELATED CHARGES
Note | Principal Amount | Accrued and Unpaid Interest | Total Value | |||
Accrued and Unpaid Interest on Prior Loans | $17,386.99 (through March 31, 2010) | $17,386.99 | ||||
Secured Promissory Note Dated April 1, 2010 | $800,000.00 | $2,630.14 (through April 30, 2010) | $802,630.14 | |||
Additional Advance on April 30, 2010 under Secured Promissory Note Dated April 1, 2010 | $50,000.00 | $2,909.59 (through May 31, 2010) | $52,909.59 | |||
Additional Advance on May 27, 2010 under Secured Promissory Note Dated April 1, 2010 | $50,000.00 | $2,958.90 (through June 30, 2010) | $52,958.90 | |||
6% Late Fee on Unpaid Balance | $55,553.14 | $55,553,14 | ||||
TOTAL | $955,553.14 | $25,885.62 | $981,438.76 |
SCHEDULE 2
THE COLLATERAL
1. All rights, title and interest of AMHN in the 1,000 shares of common stock of Americas Minority Health Network, Inc. represented by shares certificate number 1, which is held by Smith & Associates as escrow agent pursuant to the Pledge Agreement.
2. All rights, title and interest of AMHN and Americas Minority Health Network, Inc. in the mark Americas Minority Health Network, Inc. and the goodwill associated with such mark.
3. All books and records of Americas Minority Health Network, Inc. held by AMHN.