Document:

EX-10.7

 Exhibit 10.7 
 Equity Financing 
 Binding Term Sheet 

April 11, 2013 
 This binding term sheet (this “Term Sheet”), dated as of the date first written above, is between Mandalay Digital Group, Inc., a Delaware corporation (“Issuer”), and
Guber Family Trust (“Investor”). The parties hereby agree as follows: 
  

			
	Security:	  	714,286 shares of common stock, par value $0.0001 per share (“Common Stock”), of Issuer (the “Shares”).
		
	 Purchase Price:
	  	$500,000 ($0.70 per share).
		
	 Warrant Coverage:
	  	Investor shall receive 25% warrant coverage (i.e., a warrant exercisable for 178,571 shares of Common Stock) (the “Warrant”). The Warrant shall be at the option
of Investor cash or cashless, have a five (5) year term from the date of issuance and an exercise price equal to $0.70 per share (which shall be adjusted from time to time for customary dilution and anti-dilution events). The Warrant may be
exercised only following the first anniversary of the date of issuance.
		
	 Closing:
	  	As soon as possible after the date of this Term Sheet but in no event later than April 16, 2013; provided that the transactions contemplated herein have been duly authorized by
Issuer and Issuer has received all requisite third party consents with respect to the issuance of the Shares.
		
	 Registration Rights:
	  	Issuer shall use best efforts to file a Registration Statement on Form S-3 or, if Issuer is not eligible for Form S-3, on Form S-1 (the “Registration Statement”)
covering the Shares and the shares of Common Stock underlying the Warrant within one hundred twenty (120) calendar days after the date of this Term Sheet and shall use its best efforts to cause the Registration Statement to become effective as soon
as possible thereafter.
		
	 Rights of Participation:
	  	Subject to standard carveouts, Investor shall have a right of participation for future financings undertaken by Issuer for a period of two (2) years following the date of
issuance of the Shares on a pro rata basis in accordance with Investor’s ownership interests in Issuer, on a fully diluted basis assuming exercise of the Warrant.
		
	Transferability:	  	Until the Shares and the shares issuable to Investor upon exercise of the Warrant have been registered pursuant to the Registration Statement, Investor may assign its right and
interests to the Shares and shares issued to Investor upon exercise of the Warrant, if any, subject to the consent of Issuer, which consent shall not be unreasonably withheld.

 This Term Sheet shall be binding on the parties hereto and their respective successors and assigns. Although the parties
anticipate entering into long-form documents with respect to the terms of this Term Sheet and containing such other provisions as are customary for transactions of the type contemplated, until they are able to do so, and in any case in the event
they are unable to do so, the terms of this Term Sheet shall be binding and shall govern the parties’ respective rights and obligations. This Term Sheet will be governed by and construed in accordance with the laws of the State of California.
Any disputes arising out of or relating to this Term Sheet shall be heard exclusively in state or federal courts located in California, each party waiving any and all objections to such venue. This Term Sheet sets forth the entire understanding of
the parties with respect to the subject matter hereof. This Term Sheet shall not be amended, or any provision hereof waived, except in a writing signed by each party hereto. This Term Sheet may be executed in any number of original, facsimile or
other electronic counterparts. 
 [Remainder of Page Intentionally Blank] 

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

									
	Issuer:	 		 	Investor:
			
	MANDALAY DIGITAL GROUP, INC.	 		 	GUBER FAMILY TRUST
					
	By:	 	 	 		 	Signature:	 	 
	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  
 -2-

 Binding Term Sheet 
 Equity FinancingEX-10.2

 Exhibit 10.2 
 EXECUTION COPY 
 FIRST AMENDMENT TO AMENDED AND RESTATED
MEMBERSHIP INTEREST 
 PURCHASE AGREEMENT 
 This First Amendment to Amended and Restated Membership Interest Purchase Agreement (this “Amendment”), dated as of July 22, 2013 (the “Effective Date”), is entered
into among Foundation Healthcare Affiliates, LLC, an Oklahoma limited liability company (“Seller”), TSH Acquisition, LLC, a Delaware limited liability company (“Buyer”), and Graymark Healthcare, Inc., an Oklahoma
corporation (“Parent” and together with the Seller and Buyer, the “Parties”). 
 RECITALS

 WHEREAS, Seller and Buyer entered into that certain Amended and Restated Membership Interest Purchase Agreement dated as
of March 29, 2013 (the “Purchase Agreement”), pursuant to which Seller agreed to sell and Buyer agreed to purchase (i) all of the issued and outstanding membership interests (the “FSA Membership
Interests”) in Foundation Surgery Affiliates, LLC, a Nevada limited liability company, and (ii) all of the issued and outstanding membership interests (together with the FSA Membership Interests, the “Membership
Interests”) in Foundation Surgical Hospital Affiliates, LLC, a Nevada limited liability company, all as more particularly described in the Purchase Agreement. 
 WHEREAS, the Parties desire to amend the Purchase Agreement to update the Purchase Price Seller shall receive from Buyer in connection with the sale of the Membership Interests. 

AGREEMENT 

NOW, THEREFORE, in consideration of the mutual rights and obligations hereunder, the Parties hereby agree as follows: 

 

	1.	Purchase Agreement. The Parties agree that the Purchase Agreement is in full force and effect. All capitalized terms used in, and not otherwise defined in, this
Amendment shall have the meanings given them in the Purchase Agreement. 

  

	2.	Amendments to Article I. 

  

	 	(a)	The definition of the term “Parent Common Shares” in Article I is amended to read as follows: 

““Parent Common Shares” means 114,500,000 shares of Parent Common Stock issued at Closing.” 

 

	 	(b)	The definition of “Post-Closing Tax Period” in Article I is amended to read as follows: 

““Post-Closing Tax Period” means any taxable period beginning after the Tax Effective Date and, with respect to any
taxable period beginning before and ending after the Tax Effective Date, the portion of such taxable period beginning after the Tax Effective Date.” 

	 	(c)	The definition of “Pre-Closing Tax Period” in Article I is amended to read as follows: 

““Pre-Closing Tax Period” means any taxable period ending on or before the Tax Effective Date and, with respect to
any taxable period beginning before and ending after the Tax Effective Date, the portion of such taxable period ending on and including the Tax Effective Date.” 
  

	 	(d)	A definition of the term “Amendment” is added in Article I to read as follows: 

““Amendment” means the First Amendment to Amended and Restated Membership Interest Purchase Agreement, entered into
by and among Buyer, Seller and Parent, dated as of                         , 2013.” 

 

	 	(e)	A definition of the term “Note” is added in Article I to read as follows: 

““Note” has the meaning set forth in Section 2.2(c).” 

 

	 	(f)	A definition of the term “Tax Effective Date” is added in Article I to read as follows: 

““Tax Effective Date” means July 1, 2013.” 

 

	3.	Amendment to Section 2.2. Section 2.2 of the Purchase Agreement is deleted in its entirety and replaced with the following: 

“Section 2.2 Purchase Price. The aggregate purchase price (the “Purchase Price”) for the Membership Interests
and the Additional Purchased Assets shall be: 
 (a) the Parent Common Shares; 

(b) the assumption of the Assumed Liabilities; and 
 (c) a demand promissory note for the principal amount of two million US dollars ($2,000,000) (the “Note”) issued by Parent to Seller substantially in the form attached as Exhibit A to the
Amendment.” 
  

	4.	Amendment to Section 2.4(a)(i). Section 2.4(a)(i) of the Purchase Agreement is deleted in its entirety and replaced with the following:

 “(i) the Purchase Price, by delivery to Seller of a stock certificate registered in the name of Seller
representing the Parent Common Shares and the Note executed by a duly authorized officer of Parent.” 
  

	5.	Amendment to Section 2.5. Section 2.5 of the Purchase Agreement is amended by adding the following sentence at the end of the existing
Section 2.5: 

 “For tax and accounting purposes the Closing shall be deemed to be effective as of the
Tax Effective Date.” 

	6.	Amendment to Section 6.1(b). Section 6.1(b) of the Purchase Agreement is deleted in its entirety and replaced with the following:

 “(b) Without the prior written consent of Buyer, Seller (and, prior to the Closing, each
Company, their Affiliates and their respective Representatives) shall not, to the extent it may affect, or relate to, any Company, make, change or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any
action, omit to take any action or enter into any other transaction not in the ordinary course of business consistent with past practice that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or a Company.
Seller agrees that Buyer is to have no liability for any Tax resulting from any action of Seller, any Company, their respective Affiliates or any of their respective Representatives taken prior to the Tax Effective Date, and agrees to indemnify and
hold harmless Buyer (and, after the Closing Date, each Company) against any such Tax or reduction of any Tax asset.” 
  

	7.	Amendment to Section 6.3. Section 6.3 of the Purchase Agreement is deleted in its entirety and replaced with the following: 

“Section 6.3. Tax Indemnification. Seller shall indemnify each Company, Buyer, and each Buyer Indemnitee and hold them
harmless from and against: (a) any Loss attributable to any breach of or inaccuracy in any representation or warranty made in Section 3.25; (b) any Loss attributable to any breach or violation of, or failure to fully perform, any
covenant, agreement, undertaking or obligation in Article VI; (c) all Taxes of the Seller or any Company for all Pre-Closing Tax Periods; (d) all Taxes required to be paid or withheld by the Seller or any Company for all Pre-Closing Tax
Periods; (e) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which the Company (or any predecessor of the Company) is or was a member on or prior to the Tax Effective Date by reason of a liability under
Treasury Regulation Section 1.1502-6 or any comparable provisions of foreign, state or local Law; and (f) any and all Taxes of any person imposed on a Company arising under the principles of transferee or successor liability or by
contract, relating to an event or transaction occurring before the Tax Effective Date, in each of the above cases, together with any out-of-pocket fees and expenses (including attorneys’ and accountants’ fees) incurred in connection
therewith. Seller shall reimburse Buyer for any Taxes of a Company that are the responsibility of Seller pursuant to this Section 6.3 within ten Business Days after payment of such Taxes by Buyer or the Company. 

Parent shall indemnify Seller and each Seller Indemnitee and hold them harmless from and against (i) any Loss attributable to any
breach of or inaccuracy in any representation or warranty made in Section 4.11, and (ii) any Loss attributable to any breach or violation of, or failure to fully perform, any covenant, agreement, undertaking or obligation in Article VI, in
each case, together with any out-of-pocket fees and expenses (including attorneys’ and accountants’ fees) incurred in connection therewith. 

	8.	Ratification. Except as specifically amended herein, the Purchase Agreement shall remain in full force and effect, and is hereby ratified by the Parties. In the
event that any terms of this Amendment shall conflict with the terms of the Purchase Agreement, the terms of this Amendment shall prevail. All references herein to the “Purchase Agreement” shall mean the Purchase Agreement as amended by
this Amendment. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same Amendment. 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed effective in all respects as of the Effective Date set
forth above. 
 [SIGNATURES ON FOLLOWING PAGE] 

 
			
	 FOUNDATION HEALTHCARE
 AFFILIATES, LLC

		
	By:	 	/s/ Robert M. Byers
	Name: Robert M. Byers
	Title: President and Chief Operating Officer

  

			
	GRAYMARK HEALTHCARE, INC.
		
	By:	 	/s/ Stanton Nelson
	Name: Stanton Nelson
	Title: Chief Executive Officer

  

			
	 TSH ACQUISITION, LLC

 

	By:	 	 Graymark Healthcare, Inc.,
 its
Manager

		
	By:	 	/s/ Stanton Nelson
	Name: Stanton Nelson
	Title: Chief Executive Officer

 SIGNATURE PAGE TO FIRST AMENDMENT TO AMENDED AND RESTATED 

MEMBERSHIP INTEREST PURCHASE AGREEMENT 

 EXHIBIT A 
 Promissory Note (Demand)

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