EXHIBIT 10.20
 
 
AMENDMENT TO SECURITIES PURCHASE AGREEMENT

 
This Amendment (the "Amendment"), dated as of June 30, 2008, is by and among
Shelter Island Opportunity Fund, LLC (the "Holder"), EMTA Holdings, Inc., a
Nevada corporation (the “Company”), and EMTA Production Holdings, Inc. a Nevada
corporation ("EMTA Production").

RECITALS
 
A.   The Holder, EMTA Production and the Company entered into a certain
Securities Purchase Agreement, dated as of June 30, 2007 (together with any
previous amendments, the "Agreement").
 
B.    The Holder, EMTA Production and the Company desire to amend the Agreement.

AGREEMENT
 
1.     Definitions.  Capitalized terms used but not defined in this Amendment
shall have the meaning given to them in the Agreement.
 
2.     Amendments.  The Agreement is hereby amended as follows:
 
2.1       From and after the date hereof, the term “Term Note” (or any variation
thereof referring to the Term Note), shall mean the Term Note, dated as of the
date of this Amendment, from EMTA Production to the Holder in the principal
amount of $1,336,692, the form of which is attached to this Amendment as Exhibit
A. It is understood and agreed that the principal amount of the Term Note
includes $1,310,482 in respect of the current outstanding principal amount
thereof and $26,210 in respect of the  amendment fee referred to in Section 8.

2.2       The following is added as Section 5.28 of the Agreement:
 
5.28.    Operating Income. The Company shall have operating income (determined
in accordance with GAAP) in amounts not less than the amounts indicated below
for the respective periods indicated:
 

Period
Operating Income
Three-months ended March 31, 2009
$1,000,000
Six-months ended June 30, 2009
$2,000,000
Nine-months ended September 30, 2009
$3,000,000
12-months ended March 31, 2009
$4,000,000
For each calendar quarter thereafter, measured on a 12-month trailing basis
$4,000,000

 
 

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3.    Representations and Warranties.  The Company and EMTA Production represent
and warrant to the Holder that:  (a) there is no event which is, or with notice
or lapse of time or both would be, an Event of Default under the Term Note, (b)
the representations and warranties in the Agreement are true as of the date of
this Amendment as if made on the date of this Amendment, (c) this Amendment does
not conflict with any law, agreement, or obligation by which the Company or EMTA
Production is bound, and (d) this Amendment is within the Company's and EMTA
Production’s powers, has been duly authorized, and does not conflict with any of
the Company's or EMTA Production’s governing documents.
 
4.    Reaffirmation of Obligations and Grant of Security Interest.  The Company
and EMTA Production hereby expressly acknowledge and reaffirm their obligations
under the Agreement, as amended hereby, and acknowledge and agree that all
collateral, security interests, liens and pledges heretofore or hereafter
granted to the Holder, and all documents executed in connection therewith or
referred to or incorporated therein, extend to and cover all of the Company’s
and EMTA Production’s obligations to the Holder, now existing or hereafter
arising, including without limitation, those arising in connection with the Term
Note and the Agreement, as amended by this Amendment, upon the terms set forth
in such agreements, all of which security interests, liens and pledges are
hereby ratified, reaffirmed, confirmed and approved.
 
5.    Effect of Amendment.  Except as provided in this Amendment, all of the
terms and conditions of the Agreement shall remain in full force and
effect.  All references to the Term Note or to the Agreement in all documents
executed in connection with the Agreement or referred to or incorporated
therein, shall be deemed to mean the Term Note (as defined above) and the
Agreement, as amended by this Amendment.
 
6.    Counterparts.  This Amendment may be executed in counterparts, each of
which when so executed shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.
 
7.    Governing Law.  This Amendment is governed by the laws of the State of New
York.
 
8.   Shares; Amendment Fee and Expenses.  Upon execution and delivery of this
Amendment, the Company shall deliver to the Holder, as additional consideration
for Holder entering into this Amendment, 500,000 shares of its common stock,
registered in such name as the Holder shall specify (the “Shares”). The Company
hereby represents and warrants that the Shares will be saleable by the Holder
under Rule 144(k) on the date that is six months from the date of delivery of
such shares to the Holder and that such shares have been duly authorized and are
validly issued, fully-paid and are non-assessable.  The Company and /or EMTA
Production shall pay (i) to Holder an amendment fee of $26,210 in connection
with this Amendment, which fee shall be added to the principal balance of the
Note and (ii) all of Holder’s legal fees and expenses, up to a maximum amount of
$5,000, in connection with the preparation, negotiation, execution and delivery
of this Amendment.

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9.   FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES
THAT:  (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS
RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET
OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE
CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND
(D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

This Amendment is executed as of the date stated at the beginning of this
Amendment.
 

 
Shelter Island Opportunity Fund, LLC
By: Shelter Island GP, LLC
                   
By
/s/   Michael Coiley      

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      Typed Name:   Michael Coiley        Title:  Managing Director  

 

  EMTA Holdings, Inc.                    
By
/s/   Edmond L. Lonergan        

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      Typed Name:  Edmond L. Lonergan       Title:  CEO  

 

  EMTA Production Holdings, Inc.                    
By
/s/   Edmond L. Lonergan        

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      Typed Name:  Edmond L. Lonergan       Title:  CEO  

 

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CONSENT AND REAFFIRMATION
OF GUARANTOR AND PLEDGOR

The undersigned, as a guarantor of EMTA Production’s obligations to the Holder
under the Agreement and a pledgor of assets to the Holder to secure such
obligations, hereby (i) acknowledges and consents to the foregoing Amendment,
(ii) reaffirms its obligations under the Subsidiary Guaranty, dated June 30,
2007, in favor of the Holder, (iii) reaffirms the security interest granted by
the undersigned to the Holder under the Stock Pledge, dated June 30, 2007, as
collateral security for the obligations of EMTA Production under the Agreement,
as amended by the foregoing Amendment, and the Term Note and (iv) confirms that
each of such Subsidiary Guaranty and Stock Pledge remains in full force and
effect, without defense, offset, or counterclaim.  (Capitalized terms used
herein shall have the meanings specified in the foregoing Amendment.)

Although the undersigned has been informed of the terms of the Amendment, the
undersigned understands and agrees that the Holder has no duty to so notify it
or any other guarantor or to seek this or any future acknowledgment, consent or
reaffirmation, and nothing contained herein shall create or imply any such duty
as to any transactions, past or future.

Dated as of June 30, 2008

  EMTA Holdings, Inc.                    
By
/s/   Edmond L. Lonergan        

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      Typed Name:  Edmond L. Lonergan       Title:  CEO  

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