Document:

Exhibit 10.9

    

    SouthPeak
      Interactive, Sales Representative Agreement

    

    This
      Agreement ("Agreement") is made and entered into as of July 21, 2006, by and
      between SouthPeak Interactive LLC., ("Publisher"), a Virginia
      Corporation,
      with an
      address of 2900 Polo Parkway, Suite 104, Midlothian, VA 23113 U.S.A., and
West
      Coast Sales ("Representative"), a
      corporation, with an address of 904
      Manhattan Ave., Ste 2, Manhattan Beach. CA 90266

    

    WHEREAS,
      Representative is engaged in the business of the sales and marketing of
      videogames, software and related products ("Products"), and maintains a sales
      force experienced in such sales;

    

    WHEREAS,
      Publisher is in the business of publishing and distributing the Products;
      and

    

    WHEREAS,
      Representative possesses the expertise and sales marketing knowledge consistent
      with the sales objectives of Publisher.

    

    NOW
      THEREFORE, the parties hereto agree as follows:

    

    1. Appointment

    

    Publisher
      hereby appoints Representative as an exclusive representative to sell the
      Products published by Publisher set forth in Schedule A, which is attached
      hereto and incorporated herein (the "Authorized Products"), solely in the
      territory set forth on Schedule B, attached hereto and incorporated herein
      (the
      "Authorized Territory"). Publisher may modify, discontinue or change the
      Authorized Products, and add or delete Authorized Products from Schedule A,
      in
      its sole discretion, upon written notice to Representative. During the Term
      (as
      defined below) of this Agreement, Representative shall have the right to sell
      the Authorized Products in the Authorized Territory to the account(s)
      specifically identified in Schedule C (the "Authorized Account(s)"). Nothing
      contained in this Agreement shall prohibit Publisher from marketing and selling,
      nor from appointing others to market and sell the Authorized Products to
      accounts other than the Authorized Account(s) or products not identified as
      Authorized Products to any account, including Authorized
      Account(s).

    

    2. Representative
      Obligations

    

    Representative
      hereby agrees to use its best efforts to promote the sale of the Authorized
      Products to Authorized Accounts in the Authorized Territory and to cooperate
      with Publisher in carrying out the Publisher's sales programs. To this end,
      Representative shall, without limitation:

    

    (a) Maintain
      an office and staff in the Authorized Territory sufficient to meet obligations
      under this Agreement;

    

    (b) Contact
      all Authorized Accounts and potential accounts on a regular basis as agreed
      upon
      with the Publisher's sales management;

    

    (c) Cooperate
      at the request of Publisher and furnish such information concerning the credit
      standing and accounts payables of Authorized Accounts in the Authorized
      Territory;

    

    (d) Be
      responsible for assisting Publisher in assuring the prompt payment from
      Authorized Accounts within their terms of credit extended by
      Publisher;

    
      
        
        

      

      
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    (f) Provide
      such sales and lead reports and forecasts and such other information reasonably
      requested by Publisher, including, but not limited to, reports and forecasts
      regarding market conditions, pending business and contacts, problem areas,
      and
      sales plans and programs; and

    

    (g) Provide
      necessary and reasonable customer support and consultation, including
      accommodating customer relations and inquiries.

    

    3. Purchase
      Orders

    

    All
      purchase orders for the Authorized Products received by Representative shall
      be
      promptly forwarded to Publisher and each Authorized Account order submitted
      by
      Representative for the Authorized Products shall be subject to Publisher's
      prior
      approval and acceptance. Representative shall have no authority to accept or
      reject any orders for or in the name of Publisher or in any other way to bind
      or
      to enter into contractual commitments for or on behalf of Publisher and
      Representative will so inform all Authorized Accounts in the Authorized
      Territory. In all cases the documents forwarded to Publisher shall be the
      original order documents received from the Authorized Account. Publisher may
      accept orders by telephone or other electronic means, but in all such cases
      the
      Representative shall promptly forward to Publisher the supporting original
      purchase order document. Unless otherwise agreed upon by Publisher and
      Representative, Publisher shall ship all of the Authorized Products directly
      to
      the Authorized Accounts from such location(s) as Publisher shall
      determine.

    

    4. Terms
      of Sale

    

    Publisher
      shall at prices and upon terms and conditions establish Sale of the Authorized
      Products. At its sole discretion, Publisher shall have the right at any time
      to
      establish or change its prices, account price list, discount rates, terms and
      conditions of sale, warranty, delivery and packaging charges, methods of payment
      and any other matters relating to the sale of the Authorized Products and to
      discontinue offering any Authorized Product without thereby incurring any
      obligation or liability to Representative.

    

    5. OEM
      Accounts and License Transaction

    

    This
      Agreement does not apply to sales to "original equipment manufacturers" now
      or
      hereafter designated by Publisher in its sole discretion, nor does it apply
      to
      transactions with Authorized Accounts or other accounts who obtain rights in
      the
      Authorized Products by license rather than purchase. Representative shall not
      have the right to negotiate or enter into any such agreements with any third
      parties and no commissions and/or compensation shall be payable to
      Representative from sales to, by or through original equipment manufacturers'
      or
      licensees or sublicenses of the Publisher.

     

    6. Records
      and Reports

    

    During
      the Term and for a period of one (1) year thereafter, Representative shall
      maintain complete and accurate books and records and retain originals or copies
      of all correspondence with Authorized Accounts and all other correspondence
      of
      any kind relating to all obligations of Representative under this Agreement.
      Publisher, or its designee, upon reasonable notice shall have the right at
      any
      time during the Term of this Agreement, and for a period of one (1) year
      thereafter, to make an examination of such books, records and correspondence
      maintained by the Representative hereunder.

    
      
        
        

      

      
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    7. Compensation

    

    Publisher
      agrees to compensate Representative at the rate of three percent (3%) of the
      Net
      Receipts (as defined herein) for sales of the Authorized Products made by
      Representative to Authorized Accounts (the "Commission Rate"). In addition,
      Publisher may change the Commission Rate for Authorized Accounts and add
      Authorized Accounts with different Commission Rates to this Agreement from
      time
      to time. Net Receipts are defined as all money actually received by Publisher
      from the Authorized Account(s) for the purchase of Authorized Products, reduced
      by any marketing discount funds, discounts, returns or allowances, price
      protections, credits or other adjustments, applicable taxes, shipping and
      handling. All sales commissions due hereunder shall be payable to Representative
      on the last day of the month following the month in which Publisher receives
      Net
      Receipts from the Authorized Accounts. Commissions shall be considered as earned
      as of the date of payment of Net Receipts to Publisher by Representative's
      Authorized Account.

    

    8. Term

    

    The
      initial term (the "Initial Term") of this Agreement shall commence as of the
      date of this Agreement and continue for a term of one (1) year, unless sooner
      terminated in accordance with Section 9 below. Publisher may extend the term
      for
      an additional one (1) year period (the "Renewal Term") by giving Representative
      written notice thereof within thirty (30) days of the end of the Initial Term.
      The Initial Term and Renewal Term, if any, are hereinafter collectively referred
      to as the Term.

    

    9. Termination

    

    (a) During
      the Term, Publisher may terminate this Agreement or the exclusive nature of
      the
      appointment of Representative as set forth in Section 1, upon either (1)
      immediate written notice if Representative is in material breach of any
      representation, warranty, indemnification or any other provision of this
      Agreement; or, (2) ten (10) days written notice by Publisher, for any other
      reason at Publisher's sole discretion. During the Term, Representative may
      terminate this Agreement upon thirty (30) days prior written notice, if
      Publisher is in material breach of this Agreement, and fails to cure that breach
      within thirty (30) days after receipt of written notice thereof.

    

    (b) Upon
      expiration or termination of this Agreement, representative shall return to
      Publisher all technical, sales, advertising and promotional materials and
      packages, cartons, labels, containers and similar items pertaining to the
      Authorized Products and samples of the Authorized Products or, at Publisher's
      option, shall take such other action with respect to such items as requested
      by
      Publisher. Publisher shall also have the right to inspect and make copies of
      all
      or any portion of any documents regarding fulfillment of Representative's
      obligations assumed under this Agreement as per Section 6 of this Agreement.
      Adjustment and/or payment of all claims between Representative and Publisher
      shall occur no later than one (1) year after the effective date of expiration
      or
      termination of this Agreement, except that no commission shall be paid to
      Representative on account of orders shipped to any Authorized Account if (1)
      any
      proceedings have been threatened or commenced against such account under any
      bankruptcy, insolvency, or debtor's relief law (until such proceeding has been
      vacated or set aside) and (2) any payments received by Publisher from such
      Authorized Account might be required, in Publisher's sole judgment, to be paid
      over to a trustee or other person in connection with such proceeding.
      Representative shall repay any commissions received which are attributed to
      goods paid for if such payments are required to be refunded pursuant to a
      judgment or order issued from such proceeding.

    
      
        
        

      

      
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    (c)
      This
      Agreement and all privileges, rights and obligations herein shall terminate
      except that Representative's obligations under Section 6 and under Sections
      10,
      12, 13, 14, 16, 18, 19, 24 and 25 shall survive the termination or expiration
      of
      this Agreement.

    

    10. Proprietary
      Rights

    

    Ownership
      of all applicable copyrights, trade secrets, patents and other intellectual
      property rights in the Authorized Products shall remain vested in Publisher,
      or
      in Publisher's licensors. Representative shall not remove Publisher's copyright
      and/or trademark notices, restricted rights legends or any other notices from
      the Authorized Products. Representative shall fully cooperate with Publisher
      in
      any action relating to enforcement of Publisher's proprietary
      rights.

    

    11. No
      Representations

    

    Representative
      may not make any contracts or commitments on behalf of Publisher nor make any
      warranties or other representations regarding the Authorized Products other
      than
      those previously authorized by Publisher in writing.

    

    12. Representations
      & Warranties

    

    Representative
      represents, warrants and covenants that: (i) it has full power and authority
      to
      enter into this Agreement and to carry out its obligations hereunder; (ii)
      this
      Agreement has been duly authorized, executed and delivered by Representative
      and
      constitutes a legally enforceable agreement of Representative; (iii) this
      Agreement is not limited or restricted by, and is not in conflict with, any
      commercial arrangements, obligations, contract, agreement or other instrument
      to
      which Representative is either bound or subject; (iv) the performance of this
      Agreement by Representative shall not infringe any intellectual property rights
      of any person; and (v) Representative shall not violate any rules, regulations
      or laws in securing orders of the Authorized Products.

    

    Publisher
      represents and warrants that (i) it is a duly existing corporation under the
      laws of The State of Virginia; (ii) it has full power and authority to enter
      into this Agreement and to carry out its obligations hereunder; and (iii) to
      the
      best of Publisher's knowledge, the Authorized Products will not include any
      content matter or service that will infringe or misappropriate any rights of
      any
      third party.

    

    13. Indemnification

    

    Each
      party hereby agrees to defend, indemnify and hold, the other party, its
      shareholders, directors, officers, employees, parent companies, subsidiaries,
      and affiliates, harmless from and against any and all claims, liabilities,
      judgments, penalties, and taxes, civil and criminal, and all costs, expenses
      (including, without limitation, reasonable attorneys' fees) incurred in
      connection therewith, which any of them may incur or to which any of them may
      be
      subjected, arising out of or relating to a material breach of this Agreement
      or
      a breach of any representation and/or warranty of the other
      party.

    
      
        
        

      

      
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    14. Limitation

    

    ALL
      IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
      MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED,
      THE
      LIABILITY OF PUBLISHER, IF ANY, FOR DAMAGES RELATING TO ANY OF THE AUTHORIZED
      PRODUCTS WILL BE LIMITED TO AMOUNTS OWED PURSUANT TO PARAGRAPH 3 HEREOF AND
      WILL
      IN NO EVENT INCLUDE LOST PROFITS OR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF
      ANY
      KIND EVEN IF PUBLISHER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
      DAMAGES.

    

    15. Independent
      Contractors

    

    It
      is
      expressly agreed that Publisher and Representative are acting hereunder as
      independent contractors and under no circumstances shall any of the employees
      of
      one party be deemed the employees of the other for any purpose. This Agreement
      shall not be construed as authority for either party to act for the other party
      in any agency or other capacity, or to make commitments of any kind for the
      account of or on behalf of the other except to the extent and for the purposes
      provided for herein.

    

    16. Confidentiality

    

    During
      the Term of this Agreement and for a period of three (3) years from the
      expiration or earlier termination of this Agreement, Representative will regard
      and preserve as strictly confidential all information and material, including
      the terms and conditions of this Agreement, marketing information, manufacturing
      information, and customer or client information, provided by Publisher
      (hereinafter "Confidential Information"). Representative further acknowledges
      and agrees that, in the event of a breach or threatened breach of this Section
      16, Publisher shall have no adequate remedy in money or damages and,
      accordingly, shall be entitled to preliminary, permanent and other injunctive
      relief without having to post bond. Representative represents and warrants
      that
      all of its employees and/or contractors who will have access to any Confidential
      Information of Publisher have entered, or will enter, into a confidentiality
      agreement no less restrictive than the terms of this Section 16.

    

    17. Severability

    

    In
      the
      event any portion of this Agreement is declared void by any court or tribunal
      of
      competent jurisdiction then, in that event, that portion shall be deemed severed
      from this Agreement, and the remaining portions hereof shall remain in full
      force and effect.

    

    18. Assignment

    

    Representative
      may not assign this Agreement (including by operation of law) or any obligations
      herein (including, but not limited to, hiring of non-employees and/or
      sub-representatives) without the prior written consent of Publisher. Any
      purported assignment without such written consent shall be unenforceable and
      shall have no force or effect. The provisions of the Agreement shall be binding
      upon and shall inure to the benefit of the parties hereto, their heirs,
      administrators, successors and assigns.

    
      
        
        

      

      
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    19. Notices

    

    All
      notices and statements shall be in writing and shall, together with any
      payments, be delivered personally by hand delivery or by United States Postal
      Service, certified, return receipt requested, Federal Express or other
      internationally recognized receipted overnight or courier service, postage
      prepaid, or sent by a confirmed (confirmation report printed) facsimile
      transmission with follow up copy sent by the aforesaid means (failure to send
      follow up copy by other means shall be deemed failed delivery of notice), to
      the
      intended party at the address set forth at the beginning of this Agreement
      (unless notification of a change of address is given in writing). Notice shall
      be deemed delivered upon the date of personal delivery or facsimile transmission
      or the date of delivery as indicated by Federal Express or other internationally
      recognized receipted overnight or courier service, or the date indicated on
      the
      return receipt from the United States Postal Service.

    

    20. Complete
      Agreement

    

    This
      Agreement, together with the annexed Schedules constitutes the entire agreement
      between the parties with respect to the subject matter hereof and supersedes
      all
      previous proposals, both oral and written, negotiations, representations,
      commitments, writings and all other communications between the parties. This
      Agreement may not be modified except by a writing signed by a duly authorized
      representative of each of the parties.

    

    21. Force
      Majeure

    

    Publisher
      shall not be liable or deemed to be in default for any delay or failure in
      performance under this Agreement resulting directly or indirectly from acts
      of
      God, or any causes beyond the reasonable control of Publisher.

    

    22. No
      Waiver

    

    Failure
      by Publisher or Representative, in any one or more instances, to enforce any
      of
      its rights in connection with this Agreement, or to insist upon the strict
      performance of the terms of this Agreement or its Schedules, shall not be
      construed as a waiver or a relinquishment of any such rights for any other
      breach or enforcement thereof.

    

    23. Counterparts

    

    This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which shall constitute one and the same
      instrument.

    

    24. Governing
      Law

    

    This
      Agreement and the Appendices shall be construed in accordance with the laws
      of
      the United States and the State of Virginia applicable to agreements executed
      and wholly performed therein. The parties hereto agree that any dispute arising
      out of or relating to this Agreement shall be instituted and prosecuted in
      the
      courts of competent jurisdiction of the State of Virginia located in Richmond,
      VA and the parties hereto irrevocably submit to the jurisdiction of said courts
      and waive any rights to object to or challenge the appropriateness of said
      forums. Representative hereby agrees to accept service of process pursuant
      to
      the notice provisions hereunder and waives any and all objections to venue,
      jurisdiction or service of process.

    

    25. Remedies

    

    Except
      as
      otherwise provided in this Agreement, all of Publisher's rights and remedies
      herein or otherwise shall be cumulative and none of them shall be in limitation
      of any other right or remedy in law and/or equity

    
      
        
        

      

      
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    26. No
      Offer

    

    This
      document shall not be deemed an offer and shall not be binding unless signed
      by
      a duly authorized representative or officer of Publisher and
      Representative.

    

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

    

      
        	
                PUBLISHER

              	 	
                REPRESENTATIVE

              
	 	 	 
	
                By:

              	/s/
                Gregory Phillips	 	
                By:

              	/s/
                Dave Gentzler
	
                Duly
                  authorized for SouthPeak Interactive

              	 	
                Duly
                  authorized for West Coast Sales

              
	
                Print
                  Name:    Gregory Phillips

              	 	
                Print
                  Name:     Dave Gentzler

              
	
                Print
                  Title:      Secretary / Treasurer

              	 	
                Print
                  Title:      
                  Partner

              

      

    

     

    
      
        
        

      

      
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    SCHEDULE
      A

    

    

      “AUTHORIZED
        PRODUCTS”

    

     

    New
      video
      software products for:

    

      
        	
              	
                
                  ·

                

              	
                Microsoft
                  Windows PC

              

      

      
        	
              	
                ·

              	
                Microsoft
                  XBOX

              

      

      
        	
              	
                ·

              	
                Microsoft
                  XBOX 360

              

      

      
        	
              	
                ·

              	
                Nintendo
                  Game Boy Advance

              

      

      
        	
              	
                ·

              	
                Nintendo
                  DS

              

      

      
        	
              	
                ·

              	
                Nintendo
                  GameCube

              

      

      
        	
              	
                ·

              	
                Sony
                  PlayStation (PSOne)

              

      

      
        	
              	
                ·

              	
                Sony
                  PlayStation 2

              

      

      
        	
              	
                ·

              	
                Sony
                  PlayStation 3

              

      

    

     

    Excludes
      sales of  “used”,
      “customer
      returns”
      or “defectives”
      to any accounts.

    
      
        
        

      

      
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    SCHEDULE
      B

     

    

      “AUTHORIZED
        TERRITORY”

    

    

    NA

    
      
        
        

      

      
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    SCHEDULE
      C

     

    

      “AUTHORIZED
        ACCOUNT(S)”

    

     

    Amazon.com

     

    Fry's
      Electronics Inc.

     

    GameFly

     

    Game
      Crazy

     

    Hollywood
      Entertainment

     

    Nebraska
      Furniture Mart

     

    Pioneer
      Distributors

     

    Star
      City

     

    SMP

     

    SVG
      Distribution, Inc.

    
      
        
        

      

      
        Page
          10
          of 10

        
          

        

      

      
        
        

      

    

    Amendment
      to Sales Representative Agreement between SouthPeak Interactive and West Coast
      Sales

    

    Please
      replace Schedule C, “Authorized
      Accounts”
      In you original Sales Representative Agreement Dated July 21, 2006 with the
      following

    

    SCHEDULE
      C

    

    

      “AUTHORIZED
        ACCOUNT(S)”

    

     

    Amazon.com

     

    Fry's
      Electronics Inc.

     

    GameFly

     

    Game
      Crazy

     

    Hollywood
      Entertainment

     

    Pioneer
      Distributors

     

    Star
      City

     

    SMP

     

    SVG
      Distribution, Inc.

     

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

    

    
      	
              PUBLISHER

            	 	
              REPRESENTATIVE

            
	 	 	 
	
              By:

            	
              /s/
                Gregory Phillips

            	 	
              By:

            	/s/
              Dave Gentzler
	
              Duly
                authorized for SouthPeak Interactive

            	 	
              Duly
                authorized for West Coast Sales

            
	
              Print
                Name:    Gregory Phillips

            	 	
              Print
                Name:     Dave Gentzler

            
	
              Print
                Title:      Secretary / Treasurer

            	 	
              Print
                Title:      
                Partner

            

    

     

    
      
        
        

      

      
        Page
          1 of
          1

        
          

        

      

      
        
        

      

    

    Amendment
      to Sales Representative Agreement between SouthPeak Interactive and West
Coast
      Sales

     

    Please
      replace Schedule C, “Authorized
      Accounts”
      In you original Sales Representative Agreement Dated July 21, 2006 with the
      following

    

    SCHEDULE
      C 

     

    

      “AUTHORIZED
        ACCOUNT(S)”

    

     

    Amazon.com

     

    Fry's
      Electronics Inc.

     

    GameFly

     

    Game
      Crazy

     

    Hollywood
      Entertainment

     

    Pioneer
      Distributors

     

    Star
      City

     

    SMP

     

    SVG
      Distribution, Inc.

     

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

    

    
      	
              PUBLISHER

            	 	
              REPRESENTATIVE

            
	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Duly
                authorized for SouthPeak Interactive

            	 	
              Duly
                authorized for

            
	
              Print
                Name: Gregory Phillips

            	 	
              Print
                Name:

            
	
              Print
                Title: Secretary / Treasurer

            	 	
              Print
                Title:

            

    

    

    
      
        
        

      

      
        Page
          1 of
          1Exhibit 10.10

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR
      HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS
      NOTE UNDER
      SAID ACT
      AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO SOUTHPEAK INTERACTIVE, L.L.C., THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    SECURED
      TERM NOTE

     

    FOR
      VALUE
      RECEIVED, SOUTHPEAK INTERACTIVE, L.L.C., a Virginia limited liability company
      (the “Borrower”),
      hereby promises to pay to FI Investment Group, LLC, a Virginia limited liability
      company (the “Holder”),
      or
      its registered assigns or successors in interest, the sum of Two Million Dollars
      ($2,000,000) (the “Principal
      Amount”),
      together with any accrued and unpaid interest thereon, on the six month
      anniversary date of this Secured Term Note (the “Note”)
      (the
“Maturity
      Date”),
      if
      not sooner paid; or if this Note becomes convertible in accordance with the
      terms set forth herein, the Principal Amount, together with any accrued and
      unpaid interest, will be payable on demand by the Holder. 

    

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in that certain Securities Purchase Agreement dated as of the date hereof
      between the Borrower and the Holder (the “Purchase
      Agreement”).
       

     

    The
      Borrower entered into that Agreement and Plan of Reorganization (the
“Reorganization
      Agreement”)
      dated
      January 15, 2008 among the Borrower, SouthPeak Interactive Corporation, Global
      Services Partners Acquisition Corp., GSPAC Merger Company and the members of
      the
      Borrower. If the closing of the transactions contemplated under the
      Reorganization Agreement (the “GSPAC
      Closing”)
      fails
      to consummate on or before April 30, 2008 (the “Conversion
      Date”),
      then
      on the Conversion Date, this Note shall become convertible at the option of
      the
      Holder and shall be referred to at such time as a “Secured Convertible Demand
      Note” as more fully described in Section 1.2(b) and Article III (but for
      purposes of this Note, it shall be continued to be referred to herein as the
      “Note”).

     

    ARTICLE I

    INTEREST
      AND INTEREST PAYMENTS

     

    1.1 Interest,
      Rate.
      Subject
      to Section 4.9 hereof, upon issuance this Note shall bear interest, on a monthly
      basis, at a rate equal to fourteen percent (14%) per annum. 

     

    1.2 Payments.
      The
      Principal Amount shall be payable as follows:

     

    (a) If
      the
      GSPAC Closing is consummated on or before the Conversion Date, the Principal
      Amount shall be payable in cash in full on the Maturity Date. Accrued interest
      payments shall be made payable to Holder in cash on a monthly basis, beginning
      on the one (1) month anniversary of the execution of the Note and each month
      thereafter on the same date, until the Maturity Date or until this Note has
      otherwise been paid in full. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b) If
      the
      GSPAC Closing is not consummated on or before the Conversion Date, this Note
      shall convert to a “Secured Convertible Demand Note” on the Conversion Date,
      and, commencing on the Maturity Date, the Principal Amount shall be payable
      in
      cash in full on written demand of the Holder within ten (10) business days
      after
      Holder makes such written demand (“Demand
      Right”).
      Accrued interest payments shall be made payable to Holder in cash on a monthly
      basis, beginning on the one (1) month anniversary of the execution of the Note
      and each month thereafter on the same date, until either (i) the Holder
      exercises its Demand Right, (ii) the Holder exercises its Conversion Option,
      or
      (iii) this Note has otherwise been paid in full. Notwithstanding the foregoing,
      the Holder’s Demand Right, and all other rights to repayment of the Principal
      Amount, terminate upon the Holder’s exercise of its Conversion
      Option.

     

    ARTICLE II

    REPAYMENT

     

    2.1 Optional
      Redemption of Principal Amount.
      

     

    (a) Consummation
      of GSPAC Closing.
      At any
      time after consummation of the GSPAC Closing, the Borrower will have the option
      of prepaying the outstanding Principal Amount (“Optional
      Redemption”),
      in
      whole or in part, by paying to the Holder a sum of money equal to one hundred
      percent (100%) of the portion of the Principal Amount to be redeemed, together
      with accrued but unpaid interest thereon and any and all other sums due, accrued
      or payable to the Holder arising under this Note, the Purchase Agreement or
      any
      Related Agreement (the “Redemption
      Amount”),
      on
      the Redemption Payment Date (as defined below). The Borrower shall deliver
      to
      the Holder a notice of redemption (the “Notice
      of Redemption”)
      specifying the date for such Optional Redemption (the “Redemption
      Payment Date”),
      which
      date shall be not less than ten (10) business days after the date of the Notice
      of Redemption. On the Redemption Payment Date, the Redemption Amount shall
      be
      paid in good funds to the Holder. If the Borrower fails to pay the Redemption
      Amount on the Redemption Payment Date as set forth herein, then such Notice
      of
      Redemption will be null and void.
      If a
      GSPAC Closing fails to occur on or before the Conversion Date, the Borrower’s
      Optional Redemption rights set forth in this Section 2.1(a) shall terminate
      on
      the Conversion Date.

     

    (b) No
      GSPAC Closing.
      

     

    (i) If
      the
      GSPAC Closing fails to occur on or before the Conversion Date, the Borrower
      will
      have the option, at any time after the Maturity Date, to elect to make an
      Optional Redemptionby
      paying
      the Redemption Amount on the Redemption Payment Date. The Borrower shall deliver
      to the Holder the Notice of Redemption, specifying a Redemption Payment Date,
      which date shall be not less than fifteen (15) business days after the date
      of
      the Notice of Redemption. Except
      as
      otherwise provided in Section 2.1(b)(ii), on the Redemption Payment Date, the
      Redemption Amount shall be paid in good funds to the Holder. If the Borrower
      fails to pay the Redemption Amount on the Redemption
      Payment Date as set forth herein, then such Notice of Redemption will be null
      and void. Partial
      payment of the Redemption Amount is not permitted under this Section 2.1(b)(i).
      

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (ii) Notwithstanding
      receipt of the Notice of Redemption under Section 2.1(b)(i), the Holder shall
      have the right
      to
      exercise the Conversion Option by delivering written notice of such exercise
      to
      the Borrower on or before the fifth (5th)
      business day prior to the Redemption Payment Date (the “Conversion
      Deadline”)
      in
      accordance with Section 3.3. The class of Equity Securities (as defined below)
      to be issued to the Holder under this Section 2.1(b)(ii)
      shall be
      common stock or membership interests, as applicable, and the amount to be issued
      shall be determined though utilization of the formula set forth in Section
      3.1(a)(A) below.
      If the
      Holder fails to exercise its Conversion Option on or before the Conversion
      Deadline, the Borrower
      shall
      pay the Redemption Amount in good funds on the Redemption
      Payment Date. If the Borrower fails to pay the Redemption Amount on the
      Redemption Payment Date as set forth herein, then such Notice of Redemption
      will
      be null and void. Partial
      payment of the Redemption Amount is not permitted under this Section
      2.1(b)(ii).

     

    (iii) If,
      after
      the Holder exercises its Conversion Option
      under
      Section 2.1(b)(ii), a Financing Event (as defined below) closes before June
      30,
      2009, the Holder shall have the right to convert the Equity
      Securities
      it
      received under Section 2.1(b)(ii) (which Equity Securities shall be equal in
      value to the total outstanding Principal Amount,
      accrued
      interest and any failed payment fee(s) that was converted under such Section)
      into Tag Along Conversion Stock (as defined below) (the “Securities
      Conversion Option”),
      with
      the number of shares of Tag Along Conversion Stock determined through whichever
      of the methods/formulas set forth in Sections 3.1(a)(A) and 3.1(a)(B) results
      in
      the highest number of shares of Tag Along Conversion Stock issued by the
      Borrower.

     

    2.2 Issuance
      of Replacement Note.
      Upon
      any partial prepayment of this Note, a replacement Note containing the same
      date
      and provisions of this Note (to the extent such provisions remain applicable
      at
      such time) shall, at the written request of the Holder, be issued by the
      Borrower to the Holder for the outstanding Principal Amount of this Note and
      accrued interest which shall not have been paid. Subject to the provisions
      of
      Article IV, the Holder will pay no costs, fees or any other consideration to
      the
      Borrower for the production and issuance of a replacement Note.

     

    ARTICLE III

    CONVERSION
      & DEMAND OF REPAYMENT

     

    3.1 Conversion.
      In the
      event that this Note converts to a “Secured Convertible Demand Note” on the
      Conversion Date, then commencing on the Maturity Date, the Borrower, upon demand
      by the Holder (the “Conversion
      Option”),
      shall
      be required to exchange and convert the Note into fully paid and non-assessable
      shares of the Borrower’s equity
      securities (the “Equity
      Securities”,
      it
      being understood that such Equity Securities may be in the form of membership
      interests if the Company remains a limited liability company at the time of
      conversion
      of this
      Note or stock, if the Company has converted to a corporation at the time of
      the
      conversion of this Note) as follows:

     

    (a) Concurrently
      with the closing of the next round of public or private financing secured by
      the
      Borrower that closes before June 30, 2009 (the “Financing
      Event”),
      the
      class of Equity
      Securities to be issued to Holder shall be of the same class offered as part
      of
      the
      Financing Event, and such Equity Securities shall be issued with accompanying
      rights and privileges materially similar to those offered as part of the
      Financing Event (the “Tag
      Along Conversion Stock”;
      for
      convenience, the use of this term assumes that the Company is a corporation
      at
      the time of conversion, it being understood that if the Equity Securities are
      converted into membership interests at the time of conversion, the term will
      refer to membership interests acquired in such conversion).
      Concurrently with a Financing Event, at the election of the Holder, as an
      alternative to its Demand Right set forth in Section 1.2(b), all amounts due
      under the Note shall convert to the number of shares of Tag Along Conversion
      Stock as determined through whichever of the following methods/formulas set
      forth below results in the highest number of shares of Tag Along Conversion
      Stock issued by the Borrower:

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    A. total
      outstanding Principal Amount and accrued interest due (and failed payment fee(s)
      if incurred)
      /
      ($31,600,000 / total outstanding capital stock of Borrower on an as-converted
      basis on date of conversion); 

     

    or

     

    B. total
      outstanding Principal Amount and accrued interest (and failed payment fee(s)
      if
      incurred) due X the price per share paid (ignoring the effect of any stock
      splits or other mechanisms adopted at the time of conversion to arrive at a
      per
      share value that do not change the economic substance or value of the converted
      Equity Securities) by the investor(s) participating in the Financing
      Event.

     

    (b) In
      the
      event that no Financing Event occurs before June 30, 2009 and the Holder has
      not
      exercised its Conversion Option under Section 2.1(b)(ii), then on June 30,
      2009
      (the “Final
      Conversion Date”),
      provided Holder has given five (5) business days written notice of its desire
      to
      exercise the Conversion Option, the class of Equity Securities to be issued
      to
      Holder shall be common stock or membership interests, as applicable, and the
      amount to be issued shall be determined though utilization of the formula set
      forth in Section 3.1(a)(A) above. 

     

    If
      Holder
      elects not to exercise its Conversion Option
      in
      accordance with Section 2.1(b)(ii) or Section 3.1, the Note shall become due
      and
      payable on the Final Conversion Date.

     

    Borrower
      understands and agrees the Conversion Option set forth herein is provided to
      Holder in addition to any other right or remedy set forth herein, including
      but
      not limited to its Demand Right, and at no time shall such Conversion Option
      be
      deemed a required or automatic obligation of the Holder.

     

    3.2
       Fractional
      Shares.
      No
      fractional Equity Securities shall be issued upon conversion of this Note under
      Section 3.1. In lieu of the Borrower issuing any fractional Equity Securities
      to
      the Holder upon the conversion of this Note, the Borrower shall pay to the
      Holder the amount of the outstanding Principal Amount in cash that is not so
      converted.

     

    3.3 Conversion
      Procedure.
      To
      exercise the Conversion Option or the Securities Conversion Option, Holder
      shall
      surrender this
      Note or
      its Equity Securities, respectively, at the principal corporate office of the
      Borrower and give written notice
      of such
      exercise to the Borrower at its principal corporate office in accordance with
      Section 5.2 and shall state therein the name or names in which the certificate
      or certificates for Equity Securities are to be issued. The Borrower
      shall,
      at its
      expense, as soon as practicable after the Financing Event (in the case of a
      conversion under Section 2.1(b)(iii) or Section 3.1(a)), the Final Conversion
      Date (in the case of a conversion under Section 3.1(b)), or the date that the
      Borrower receives written notice of such exercise (in the case of a conversion
      under Section 2.1(b)(ii))
      issue
      and deliver to the Holder a certificate or certificates (bearing such legends
      as
      are required by the Purchase Agreement and Related Agreements and applicable
      state and federal securities laws in the opinion of counsel to the Borrower)
      for
      the full amount of Equity Securities to which the Holder of this Note shall
      be
      entitled as aforesaid. Such conversion shall be deemed to have been made as
      of
      the date of the Financing Event (in the case of a conversion under
      Section
      2.1(b)(iii) or Section 3.1(a)), as of the Final Conversion Date (in the case
      of
      a conversion under Section 3.1(b)),
      or as of
      the date that the Borrower receives written notice of such exercise (in the
      case
      of a conversion under Section 2.1(b)(ii)),
      and the
      person or persons entitled to receive the Equity Securities issuable upon such
      conversion shall be treated for all purposes as the record holder or holders
      of
      such Equity Securities as of such date.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    ARTICLE IV

    EVENTS
      OF DEFAULT

     

    Upon
      the
      occurrence and continuance of an Event of Default beyond any applicable grace
      period, the Holder may make all sums of principal, interest and other fees
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable. In the event of such an acceleration, the amount due and owing
      to
      the Holder shall be the outstanding Principal Amount of the Note
      (plus
      accrued and unpaid interest and fees, if any) (the “Default
      Payment”).
      The
      Default Payment shall be applied first to any fees due and payable to the Holder
      pursuant to this Note, the Purchase Agreement or the Related Agreements, then
      to
      accrued and unpaid interest due on the Note and then to the outstanding
      Principal Amount of the Note.

     

    The
      occurrence of any of the following events set forth in Sections 4.1 through
      4.8,
      inclusive, is an “Event
      of Default”:

     

    4.1 Failure
      to Make Payments.
      The
      Borrower fails to pay when due any amount hereon in accordance herewith, and
      in
      any such case, such failure shall continue for a period of five (5) business
      days following receipt of notice of default.

     

    4.2 Breach
      of Covenant.
      The
      Borrower breaches any covenant or any other term or condition of this Note
      or
      the Purchase Agreement in any material respect, or the Borrower or any of its
      Subsidiaries breaches any covenant or any other term or condition of any Related
      Agreement in any material respect,
      and, in
      any such case, such breach, if subject to cure, continues for a period of thirty
      (30) days after the Borrower’s receipt of written notice from Holder of such
      breach.

     

    4.3 Breach
      of Representations and Warranties.
      Any
      representation or warranty made by the Borrower in this Note or the Purchase
      Agreement, or by the Borrower or any of its Subsidiaries in any Related
      Agreement, shall, in any such case, be false or misleading in any material
      respect on the date that such representation or warranty was made or deemed
      made.

     

    4.4 Receiver
      or Trustee.
      The
      Borrower or any of its Subsidiaries shall make an assignment for the benefit
      of
      creditors, or apply for or consent to the appointment of a receiver or trustee
      for it or for a substantial part of its property or business; or such a receiver
      or trustee shall otherwise be appointed.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    4.5 Judgments.
      Any
      money judgment, writ or similar final process shall be entered or filed against
      the Borrower or any of its Subsidiaries or any of their respective property
      or
      other assets for more than $150,000, and shall remain unvacated, unbonded or
      unstayed for a period of thirty (30) days.

     

    4.6 Bankruptcy.
      Bankruptcy, insolvency, reorganization or liquidation proceedings or other
      proceedings or relief under any bankruptcy law or any law for the relief of
      debtors shall be instituted by or against the Borrower or any of its
      Subsidiaries and not stayed within thirty (30) days.

     

    4.7 Stop
      Trade.
      A
      Securities and Exchange Commission (the “SEC”)
      stop
      trade order or Principal Market trading suspension of the Equity Securities
      shall be in effect for five (5) consecutive days or five (5) days during a
      period of ten (10) consecutive days, excluding in all cases a suspension of
      all
      trading on a Principal Market, provided that the Borrower shall not have been
      able to cure such trading suspension within thirty (30) days of the notice
      thereof or list the stock on another Principal Market within sixty (60) days
      of
      such notice. The “Principal
      Market”
      for the
      stock shall include the OTC Bulletin Board, NASDAQ Capital Market, NASDAQ
      National Market System, American Stock Exchange, or New York Stock Exchange
      (whichever of the foregoing is at the time the principal trading exchange or
      market for the Equity Securities).

     

    4.8 Default
      Under Related Agreements or Other Agreements.
      The
      occurrence and continuance of any Event of Default (as defined in the Purchase
      Agreement or any Related Agreement) or any event of default (or similar term)
      under any other indebtedness, which default has not been cured under the cure
      provisions associated with any such event of default.

     

    4.9 Default
      Interest Rate.
      Following the occurrence and during the continuance of an Event of Default,
      interest on this Note shall accrue in an amount equal to one and a half percent
      (1.5%) per month (eighteen percent (18%) per annum), and all outstanding
      obligations under this Note shall continue to accrue such interest from the
      date
      of such Event of Default until the date such Event of Default is cured or
      waived.

     

    4.10 Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

     

    ARTICLE V

    MISCELLANEOUS

     

    5.1 Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    5.2 Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effectively given: (a) upon personal delivery to the party notified,
      (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five
      (5) days
      after having been sent by registered or certified mail, return receipt
      requested, postage prepaid, or (d) one (1) day after deposit with a nationally
      recognized overnight courier, specifying next day delivery, with written
      verification of receipt. All communications shall be sent to the Borrower at
      the
      address provided in the Purchase Agreement executed in connection herewith,
      and
      to the Holder at the address provided in the Purchase Agreement for the
      Holder, or at such other address as the Borrower or the Holder may designate
      by
      ten (10) days advance written notice to the other parties hereto. 

     

    5.3 Amendment
      Provision.
      The
      term “Note”, “Secured Term Note”, or “Secured Convertible Demand Note” and all
      reference thereto, as used throughout this instrument, shall mean this
      instrument as originally executed, or if later amended or supplemented, then
      as
      so amended or supplemented, and any successor instrument issued pursuant to
      Section 2.2 hereof, as it may be amended or supplemented.

     

    5.4 Assignability.
      This
      Note shall be binding upon the Borrower and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and assigns, and
      may
      be assigned by the Holder in accordance with the requirements of the Purchase
      Agreement. This Note shall not be assigned by the Borrower without the consent
      of the Holder.

     

    5.5 Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      Commonwealth of Virginia, without regard to principles of conflicts of laws.
      The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney’s fees and costs. In the event that any provision of this
      Note is invalid or unenforceable under any applicable statute or rule of law,
      then such provision shall be deemed inoperative to the extent that it may
      conflict therewith and shall be deemed modified to conform with such statute
      or
      rule of law. Any such provision which may prove invalid or unenforceable under
      any law shall not affect the validity or unenforceability of any other provision
      of this Note. Nothing contained herein shall be deemed or operate to preclude
      the Holder from bringing suit or taking other legal action against the Borrower
      in any other jurisdiction to collect on the Borrower’s obligations to the
      Holder, to realize on any collateral or any other security for such obligations,
      or to enforce a judgment or other court order in favor of the
      Holder.

     

    5.6 Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

     

    5.7 Security
      Interest and Subsidiary Guaranty.
      The
      Holder has been granted a security interest in certain assets of the Borrower
      as
      more fully described in the Term Note Security Agreement dated
      as
      of the date hereof. The obligations of the Borrower under this Note are
      guaranteed by SouthPeak Interactive Limited, a private company limited by shares
      incorporated under the laws of England and Wales and the Borrower’s wholly-owned
      subsidiary, pursuant to the Secured Subsidiary
      Guaranty
      dated as of the date hereof.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    5.8 Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    5.9 Cost
      of Collection.
      If
      default is made in the payment of this Note, the Borrower shall pay to the
      Holder all costs of collection, as reasonably permitted under the laws of the
      Commonwealth of Virginia.

     

    [Signatures
      on Following Page]

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Borrower has caused this Secured Term Note to be signed in its name effective
      as
      of this
      27th
      day
      of
      February, 2008.

     

    
      	 	 	 
	 	SOUTHPEAK
              INTERACTIVE, L.L.C.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Terry
              Phillips, Manager

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