Document:

sapx_extca.htm

 

 

Exhibit 10.24

 

INDICATIVE TERM SHEET

COMMITTED EQUITY FACILITY

$5,000,000

TCA Global Credit Master Fund, LP

The Dickens, Kirk Street

16 Northington Street

London WC1N 2DG

August 5, 2010

STRICTLY PRIVATE AND CONFIDENTIAL

Seven Arts Pictures plc.

38 Hertford Street

London, W1J 7SG

Attention:  Mr. Peter Hoffman, Chief Executive Officer

Dear Mr. Hoffman,

On the terms and subject to the conditions set forth below, TCA Global Credit Master Fund, LP (the “Investor”) proposes to commit to purchase up to $5,000,000 (Five Million US dollars) in value of Securities (as defined below) in the capital of Seven Arts, Inc. (the “Seller” or the “Company”), through a Committed Equity Facility, on the principal terms set out herein.

The amount and timing of each ‘Advance’ shall be at the sole discretion of the Seller and there shall be no mandatory draw down amount, however there will be a maximum drawdown of 3000 shares weekly. This may change at the sole direction of the Investor as Company market strengthens.  In addition, there shall be no non-usage fee of any unused amount under the facility.

 

Other than the confidentiality provisions contained herein, this letter is non binding and subject to due diligence and the parties entering into formal agreements setting forth their respective rights and obligations.  Such agreements will contain customary representations, warranties and indemnifications.

 

 

  

  

  

 

The material terms of the proposed facility are set out below.

 

	
Seller/Company:

	
 Seven Arts, Inc.(Symbol: SAPX: Nasdaq )

	 	 
	
Investor:

	
TCA Global Credit Master Fund, LP

	 	 
	
Securities:

	
Registered Common stock of the Company.

	 	 
	
Instrument:

	
Committed Equity Facility (“CEF”)

	 	 
	
Facility Amount:

 

	
The Investor shall commit to purchase up to $5,000,000 (Five Million US Dollars) in value of the Securities over a term of 24 months after the signing of definitive documents between the Seller and the Investor (the “Closing Date”).  The Seller shall have the right, but not the obligation, to sell Securities to the Investor.  Each right to sell Securities is called an “Advance.”

	 	 
	
Facility Activation Date:

	
The Facility Activation Date shall be the Closing Date.

	 	 
	
Advance Notice Date:

	
In order to request an Advance, the Seller will submit a written notice (an “Advance Notice”) to the Investor.  The Advance Notice will specify the amount of the Advance (“Advance Amount”) which shall not exceed 4.99% of the Company’s outstanding common stock at any point in time inclusive of all shares held by the Investor at such date. The date the Advance Notice is delivered to the Investor is called an “Advance Notice Date.”

	 	 
	
Market Price:

	
The lowest of the daily volume weighted average price (“VWAP”) of the Securities during the Pricing Period as defined herein.

	 	 
	
Pricing Period:

	
The five (5) consecutive trading day period beginning on the first trading date after the Advance Notice Date.

	 	 
	
Purchase Price:

	
The Seller will sell to the Investor the Securities at a purchase price equal to 95% of the Market Price.

	 	 
	
Advance Closing Date:

 

	
Each Advance Closing Date will be at the end of the Pricing Period.

On each Advance Closing Date, the Seller will cause the delivery of whole shares of common stock to the Investor or its designees. The Investor will wire the Advance Amount in cash to the Company upon receipt of the common stock.

	 	 
	
No Short Sales:

 

	
Neither the Investor nor its affiliates has an open short position in the Securities, and the Investor agrees that it will not, and that it will cause its affiliates not to engage in any short sales with respect to the Securities.

	 	 
	
Share Registration:

 

 

 

	
Promptly, but no later than 45 calendar days from the Closing Date, the Company shall file a Registration Statement with the United States Securities & Exchange Commission (“SEC”) to register at least 3 times the Facility Amount (subject to rule 415 limitations) and use its best efforts to ensure that such Registration Statement is declared effective within 120 calendar days from the Closing Date.  In the event the registration statement is not declared effective within 120 calendar days, then the Investor shall have the right to terminate the CEF.  The Company shall keep “Evergreen” for the life of the Debentures the Registration Statement.  An amendment to the existing F1, which was filed July 15, 2010 is acceptable.

 

 

  

  

  

 

 

	 	 
	Diligence Fee:	The Company will pay to the Investor a fee of $10,000 dollars to cover Seller’s diligence and review costs in connection with the CEF upon signing of this term sheet. (It has been determined that this fee will be waived).
	 	 
	
Facility Fee:

	
Upon the Registration Statement being declared effective, the Seller shall issue to the Investor Securities in an amount equal to 3% of the Facility Amount based on 100% of the VWAP of the Securities on the issuance date. 

	 	 
	
Advance Fee:

	
Upon each Advance, the Investor shall receive directly from escrow cash compensation equal to four percent (4%) of the gross proceeds of such Advance.

	 	 
	
Document and Legal Fee:

	
The Company will pay to the Investor a fee of $10.000 to cover Seller’s legal and administrative costs in connection with the CEF upon signing of this term sheet.

	 	 
	
Other Expenses:

	
Except for the Structuring Fee, each party will be responsible for all its own fees and expenses in this transaction.

	 	 
	
Confidentiality:

 

	
The existence of this term sheet and the individual terms and conditions are of a confidential nature and shall not be disclosed to anyone, except to the Seller, the Investor and their respective legal advisors who are made aware of and agree to be bound by this Confidentiality obligation.

	 	 
	
Law and Jurisdiction:

	
Florida

If the terms and conditions contained herein are satisfactory, please sign as indicated below.  We appreciate this opportunity to work with you.  We look forward to an expeditious and successful closing of this transaction.

	
Sincerely,

	  
	  	  
	
TCA GLOBAL CREDIT MASTER FUND, LP

	  
	  	  
	
By:  TCA Global Credit Fund GP, Ltd

	  
	
Its:  General Partner

	  
	  	  
	By:	/s/ Robert Press	
                                                              

	  
	Name:	Robert Press	 	 
	Title:  	Director	 	 
	
                                                               

	  

 

	  	  
	
AGREED TO AND ACCEPTED:

	  
	  	  
	
Seven Arts Pictures plc

	  

 

	By:	/s/ Peter Hoffman	
                                                              

	  
	Name:	Peter Hoffman	 	 
	Title:  	

CEOqumi_ex41.htm

EXHIBT 4.1

 

AMENDMENT TO SENIOR SECURED PROMISSORY NOTE

 

May 21, 2010

 

This Amendment to the Senior Secured Promissory Note ("Amendment") is entered into by and between Quamtel, Inc., a Nevada corporation (the "Maker") and Gilder Funding Corp. (the "Payee").

 

RECITALS

 

A.  Maker and Payee are each a party to that certain Senior Secured Promissory Note, effective as of February 27, 2010 (the "Note"), pursuant to which, for value received, Maker agrees to pay Payee the outstanding principal sum of $1,000,000 (the "Principal") together with any outstanding interest accrued at the rate of 15% per annum on or before February 27, 2015.

 

B.  Pursuant to the Note, Maker agrees to make monthly payments in the amount of $23,789.93, payable on the fifteenth day of every month starting April 5, 2010 (each, a "Monthly Payment").

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Amendment to the Principal.  Effective May 24, 2010 the Principal is increased to $1,250,000.

 

2. Amendment to the Monthly Pavment.  Effective June 15, 2010 and every month thereafter, the Monthly Payment is increased to $27,000.

 

3. Restated Paragraph.  Effective upon the date of this Amendment, the second paragraph of the Note is restated in its entirety to state the following:

 

"The Monthly payments are to be applied: (a) to the payment of accrued interest computed at the applicable interest rate; and (b) the balance of such payment is to be applied toward the reduction of the Principal balance. The balance of the Principal, all unpaid interest thereon and all other amounts owed pursuant to this Note shall be due and payable on February 27, 2015 (the "Maturity Date"). This Note may be prepaid without penalty."

 

4. No Other Changes.  All other terms of the Note remain unchanged.

 

 

[Remainder of page intentionally left blank]

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

 

 

	 	MAKER: 	 
	 	 	 
	 	QUAMTEL, INC,	 
	 	 	 	 
	
 

	
By: 

		 

 

 

	 	PAYEE:	 
	 	 	 
	 	GILDER FUNDING CORP.	 
	 	 	 	 
	
 

	
By:qumi_ex42.htm

EXHIBIT 4.2

 

CONSULTING AGREEMENT

 

THIS AGREEMENT is made as of this the 7th day of June 2010 by and between Quamtel, Inc. (the '"Company"), and Thelusma, Windel (referred to herein as the "Consultant").

 

WHEREAS, Company desires to retain Consultant to assist the Company in the matters described in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and the agreements contained herein the Company and Consultant hereby agree as follows:

 

1.  Consulting Services.

 

1.1  Beginning the date hereof, the Company hereby retains Consultant and Consultant hereby agrees to perform consulting services for the Company as requested from time to time by the President of the Company or the Company's principal consulting firm, iTella, Inc. Such services shall be primarily related to advice and counsel regarding the Company's financial management and strategic opportunities.

 

1.2  Consultant shall at all times be free to devote time to occupations, employment and activities other than those provided for in this Agreement.

 

1.3  The relationship created between the Company and Consultant by this Agreement is that of a hiring corporation and an independent contractor. The methods and means of performing the work by Consultant under this Agreement will be solely within the control of Consultant. Consultant acknowledges and agrees that Company's worker's compensation insurance does not cover Consultant or any employee of Consultant. Consultant further acknowledges and agrees that because he is an independent contractor, the Company has no responsibility for withholding any employee related taxes including, without limitation, state or federal income taxes, unemployment taxes, FICA taxes, and disability insurance charges.

 

2. Consideration. Company will pay to Consultant for his services hereunder a total of 100,000 shares of the Company's common stock (the ''Shares").  In addition, the Company shall reimburse Consultant for all expenses incurred by him in connection with his duties hereunder, provided that all expenses shall be incurred pursuant to Company policies in effect from time to time. These shares shall be issues from the company's stock option compensation share plan.

 

3.  Term. The term of this Agreement shall be for a period of one year.

  

4.  General.

 

4.1  This Agreement supersedes all prior agreements and understandings between the Consultant and the Company with regard to the subject matter of this Agreement.

 

4.2  No modification, termination, or waiver under this Agreement shall be valid unless in writing and signed by the Consultant and the Company.

  

  

  

 

4.3  This Agreement shall inure to the benefit of and be binding upon any successor or assign of the Company and shall inure to the benefit of and be binding upon the Consultant's heirs, successors and assigns.

 

4.4  The waiver by the Company of a breach of any provision of this Agreement by Consultant shall not operate or be construed as a waiver of any subsequent breach of Consultant and the waiver by Consultant of a breach of any provision of this Agreement by the Company shall not operate or be construed as a waiver of any subsequent breach by the Company.

 

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

 

	 	
QUAMTEL, INC.

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