**Exhibit 10.1**

 
| **350** | **TERM  SHEET** |   |
|---------|-----------------|--------|

 

 
| **350 Group, LLC**  350 Fifth Avenue South  Suite 203  Naples FL 34102  Office 239-282-8300  Fax 239 262 2212 | **DATAMEG CORPORATION  (NORTH ELECTRIC COMPANY, INC.)** |   |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|--------|
| Thursday, March 31,  2005                                                                                |                                                    |

 

 
| ***Goals &  Objectives*** |   | To serve as advisor to the CEO/President of  DataMeg Corporation and its affiliate entity, North Electric Company, Inc.  (“North Electric” and together, “Datameg/NECI”), and apply 350 Group’s  resources including global professional network, operational expertise, and  corporate finance solutions to develop North Electric and respectively,  DataMeg, as a viable and profitable provider of products and services to the  IP telephony industry (including voice, data and video media). |
|------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |
| ***350 Group***                    |   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Strategic Advisor |
| ***Duties***                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | • | Serve as advisor to the proposed “Office of  the CEO” as mentioned in Exhibit A; |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | • | Advise on development of the Datameg/NECI  Strategic Business Plan; |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | • | Implement specific strategic initiatives as  directed by Datameg/NECI CEO and Board; and |
|                               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | • | Generally, provide management guidance in  pursuit of monthly business progress following the points of outlined in Exhibit A,  attached. |
|                                    |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |  |  |  |

 
|   |   | 2.     |   | Investment Banking |
|--------|--------|--------|--------|--------------------|
|   |   |   |   | •             | Develop and implement the Datameg/NECI  fundraising strategy; |
|   |   |   |   | •             | Provide introductions to suitable contacts  through its relationship with high net worth private investors, institutional  investors and investment banks, and manage, in collaboration with DataMeg  Chairman and CEO, the investor interface between the company and the investment  community; and |
|   |   |   |   | •             | Develop as a sales tool, instruments for  equipment lease financing with the objective to facilitate more rapid market  adoption of North Electric products and services. |
|   |   |   |   |               |   |
|   |   | 3.     |   | Operations Support |
|   |   |   |   | •             | Create sales, marketing, distribution and  contract manufacturing relationships to enable routine production and  delivery of products and services; and |
|   |   |   |   | •             | Oversee implementation of appropriate  business systems and reporting tools to facilitate the routine, timely  reporting required of DataMeg/NECI entities. |

 

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| ***DataMeg / North***    |   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Obtain Board of Directors approval for 350  Group Engagement;                                                                                                                                                                                                                                             |
|--------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Electric Duties***    |   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Grant access to the appropriate individuals  in a timely fashion;                                                                                                                                                                                                                                         |
| *** ***             |   | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Provide Business Strategy Content by  submitting business documents, plans, ideas, marketing materials, financial  reports to 350 Group and other content elements in a timely manner;                                                                                                                    |
| *** ***             |   | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Provide monthly management reports to 350  Group (including sales and financial reports) and hold no less frequently  than monthly status meetings; and                                                                                                                                                   |
| *** ***             |   | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Alert 350 Group to all inquires about  partnerships, investment or licensing.                                                                                                                                                                                                                             |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                      |
| ***Engagement  Term***   |   | Thirty six (36) months automatically  renewing in twelve (12) month installments. Exclusive representation  agreement to handle business transactions related to the financing and  capital structure of DataMeg/NECI (Stock Sales, Fundraising, Bridge and  Mezzanine Loans, Joint Ventures, Partnerships, Asset Sales and the like).  Success Fee protection for all contacts within 12 months after termination  and 24 months for 350 Group contacts made prior to termination. |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Cancellation***       |   | Thirty (30) days cancellation notice for  either party, after first 120 days.                                                                                                                                                                                                                                                                                                                                                                                                       |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Primary Staffing***   |   | Tim Cartwright, Managing Director                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *** ***             |   | Craig Lyon, Managing Director                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| *** ***             |   | Reznor Orr, Managing Director                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Success Fees***       |   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Upon signature of Term Sheet, Twenty Five  percent (25%) of DataMeg common stock issued at par value into performance pool;  350 Group to earn stock over time utilizing a vesting schedule and only  upon DataMeg /NECI achieving the specific performance milestones set forth in  Exhibit B; |
| * *                 |   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | During the term of the engagement; 350  Group will receive a Success Fee in the amount 5% payable upon the company’s  receipt of investor funds raised and received by the Company.                                                                                                                  |
| * *                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Business Terms***     |   | Includes standard indemnification and  mutual confidentiality clauses.                                                                                                                                                                                                                                                                                                                                                                                                              |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Expenses***           |   | Out-of-pocket expenses for travel and  related business expenses will be invoiced on a monthly basis and must be  paid in 30 days. All reimbursable travel will be subject to DataMeg/NECI  pre-approval.                                                                                                                                                                                                                                                                           |
| *** ***             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ***Expiration  Notice*** |   | The offer represented in this term sheet  expires in 15 days. Within 20 days of signature of this Term Sheet, an  Engagement Letter detailing the terms herein will be submitted to  DataMeg/NECI.                                                                                                                                                                                                                                                                                  |

 

 
|   | /s/ Andrew Benson   | 4-1-05            |   | /s/ Timothy J Cartwright |   |   Director |
|--------|---------------------|-------------------|--------|--------------------------|--------|----------------------|
|   | Andrew Benson       | Date              |   | Tim Cartwright           | Date   |   4-1-05   |
|   | Chairman            | Managing Director |
|   | DataMeg Corporation | 350 Group, LLC    |

 

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