Document:

ex10-7.htm

    Exhibit
      10.7

     

    NEITHER
      THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD OR
      OTHERWISE TRANSFERRED UNLESS THERE IS A REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IN EFFECT COVERING THIS
      WARRANT OR SUCH SECURITIES, AS THE CASE MAY BE, OR THERE IS AVAILABLE AN
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS.

    

    
      	
               

            	
              August
                15, 2007

            

    

    
      	
               

            	
              (“Original
                Issue Date”)

            

    

     

    WARRANT
      TO PURCHASE COMMON STOCK

    OF

    THEATER
      XTREME ENTERTAINMENT GROUP, INC.

    

    

    This
      is to certify that, for value
      received, Stacy Lyn Giunta, or her assignees (the “Holder”) is entitled
      to purchase, subject to the provisions of this Warrant and that certain
      Promissory Note (the “Note”) dated the date hereof, in the principal amount of
      $25,000 by and between, inter alia, the Holder and Theater
      Xtreme Entertainment Group, Inc., a Delaware  corporation (the
“Company”), from the Company that number of shares of Common Stock of the
      Company determined in accordance with Section (a).  Capitalized terms
      used and not defined herein shall have the meanings ascribed to them in the
      Note.

    

    The
      number of shares of Common Stock to be received upon the exercise of this
      Warrant and the price to be paid for a share of Common Stock may be adjusted
      from time to time as hereinafter set forth.  Common Stock deliverable
      upon such exercise, and as adjusted from time to time, are hereinafter sometimes
      referred to as “Warrant Shares,” and the exercise price of a share of
      Common Stock in effect at any time and as adjusted from time to time is
      hereinafter sometimes referred to as the “Exercise Price.”

    

    (a)           TERMS
      OF WARRANT.  This Warrant shall entitle the Holder to purchase that
      number of shares of Common Stock equal to the principal amount of the Note
      multiplied by the applicable Warrant Coverage Multiplier (as defined
      below).

    

    (1)           For
      purposes of this Warrant, the “Warrant Coverage Multiplier” shall be
      0.50.

    

    (2)           The
      initial Exercise Price shall be $1.00 per share, subject to adjustment as
      provided herein (or deemed per share purchase price) of Common
      Stock.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)           EXERCISE
      OF WARRANT.

    

    (1)           Subject
      to the provisions of Section (h) hereof, this Warrant may be exercised, in
      whole
      or in part at any time from the date of this Warrant until the fifth anniversary
      date of the date hereof (the “Termination Date”).

    

    (2)           Upon
      exercise, the Exercise Price shall be paid by delivering a certified check,
      bank
      draft or wire transfer of immediately available funds to the order of the
      Company.  If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant for cancellation, execute and
      deliver a new Warrant evidencing the rights of the Holder thereof to purchase
      the balance of the shares purchasable thereunder.  Upon receipt by the
      Company of this Warrant at its office, or by the stock transfer agent of the
      Company, if any, at its office, in proper form for exercise and together with
      payment of the Exercise Price in the manner provided herein, the Holder shall
      be
      deemed to be the holder of record of the shares of Common Stock issuable upon
      such exercise, provided, however, that if at the date of surrender of such
      Warrants and payment of such Exercise Price, the transfer books for the Common
      Stock shall be closed, the certificates for the shares in respect of which
      such
      Warrants are then exercised shall be issuable as of the date on which such
      books
      shall next be opened, and until such date the Company shall be under no duty
      to
      deliver any certificate for such shares and the Holder shall not be deemed
      to
      have become a holder of record of such shares.

    

     
      (c)           RESERVATION
      OF SHARES.  The Company hereby agrees that at all times there shall be
      reserved for issuance and/or delivery upon exercise of this Warrant such number
      of shares of its Common Stock as shall be required for issuance and delivery
      upon exercise of this Warrant.  The Company covenants and agrees that
      all shares of capital stock of the Company which may be issued upon the exercise
      of this Warrant will be duly authorized, validly issued and fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof to the registered holder hereof.

    

    (d)           FRACTIONAL
      SHARES.  The Company shall not be required to issue fractions of
      shares on the exercise of Warrants.  If any fraction of a share would,
      except for the provisions of this Section, be issuable on the exercise of any
      Warrant, the Company will (1) if the fraction of a share otherwise issuable
      is
      equal to or less than one-half, round down and issue to the Holder only the
      largest whole number of shares of Common Stock to which the Holder is otherwise
      entitled, or (2) if the fraction of a share otherwise issuable is greater than
      one-half, round-up and issue to the Holder one additional share of Common Stock
      in addition to the largest whole number of shares of Common Stock to which
      the
      holder is otherwise entitled.

    

     
      (e)           EXCHANGE,
      TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is exchangeable, without
      expense, at the option of the Holder, upon presentation and surrender hereof
      to
      the Company or at the office of its stock transfer agent, if any, for other
      Warrants of different denominations entitling the holder thereof to purchase
      in
      the aggregate the same number of shares of Common Stock purchasable hereunder.
      Subject to the provisions of Section (h), upon surrender of this Warrant to
      the
      Company or at the office of its stock transfer agent, if any, with the
      Assignment Form annexed hereto duly executed and funds sufficient to pay any
      transfer tax, the Company shall, without charge, execute and deliver a new
      Warrant in 

     

    
      
        
        

      

      
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    the
      name
      of the assignee named in such instrument of assignment and this Warrant shall
      be
      canceled.  If this Warrant should be assigned in part only, the
      Company shall, upon surrender of this Warrant in accordance with the procedures
      set forth in the preceding sentence, execute and deliver, in addition to the
      new
      Warrant described in the preceding sentence, a new Warrant evidencing the rights
      of the Holder to purchase the balance of the shares purchasable
      thereunder.  The term “Warrant” as used herein includes any
      Warrants into which this Warrant may be divided or exchanged.  Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Warrant, and (in the case of loss, theft
      or
      destruction) of such indemnification as the Company may in its discretion
      impose, and upon surrender and cancellation of this Warrant, if mutilated,
      the
      Company will execute and deliver a new Warrant of like tenor and
      date.

    

     (f)           RIGHTS
      OF THE HOLDER.  The Holder shall not, by virtue hereof, be entitled to
      any rights of a stockholder in the Company, either at law or equity, until
      this
      Warrant is exercised, and then only in respect of the shares of Common Stock
      underlying the exercised Warrant, and the rights of the Holder are limited
      to
      those expressed in the Warrant and are not enforceable against the Company
      except to the extent set forth herein.

    

    (g)           ANTI-DILUTION
      PROVISIONS.  The Exercise Price and the number and kind of securities
      purchasable upon the exercise of this Warrant shall be subject to adjustment
      from time to time as hereinafter provided:

    

    (1)           In
      case the Company shall issue Common Stock as a dividend upon Common Stock or
      in
      payment of a dividend thereon, shall subdivide the number of outstanding shares
      of its Common Stock into a greater number of shares or shall contract the number
      of outstanding shares of its Common Stock into a lesser number of shares, the
      Exercise Price then in effect shall be adjusted, effective at the close of
      business on the record date for the determination of stockholders entitled
      to
      receive such dividend or be subject to such subdivision or contraction, to
      the
      price (computed to the nearest cent) determined by dividing (A) the product
      obtained by multiplying the Exercise Price in effect immediately prior to the
      close of business on such record date by the number of shares of Common Stock
      outstanding prior to such dividend, subdivision or contraction, by (B) the
      sum
      of the number of shares of Common Stock outstanding immediately after such
      dividend, subdivision, or contraction.

    

    (2)           If
      any capital reorganization or reclassification of the capital stock of the
      Company (other than as set forth in subsection (1) of this Section (g)), or
      consolidation or merger of the Company with another corporation, or the sale
      of
      all or substantially all of its assets to another corporation shall be effected,
      then, as a condition of such reorganization, reclassification, consolidation,
      merger or sale, lawful and adequate provision shall be made whereby the holder
      of each Warrant shall thereafter have the right to purchase and receive upon
      the
      basis and upon the terms and conditions specified in the Warrant and in lieu
      of
      the shares of Common Stock of the Company immediately theretofore purchasable
      and receivable upon the exercise of the rights represented by such Warrant,
      such
      shares of stock, securities or assets as may be issued or payable with respect
      to or in exchange for a number of outstanding shares of such Common Stock equal
      to the number of shares of such Common Stock immediately theretofore purchasable
      and receivable upon the exercise of the rights represented by such 

     

    
      
        
        

      

      
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    Warrant
      had such reorganization, reclassification, consolidation, merger or sale not
      taken place, and in any such case appropriate provision shall be made with
      respect to the rights and interest of the Holder to the end that the provisions
      of the Warrant (including, without limitation, provisions for adjustment of
      the
      Exercise Price and of the number of shares issuable upon the exercise of
      Warrants) shall thereafter be applicable as nearly as may be practicable in
      relation to any shares of stock, securities, or assets thereafter deliverable
      upon exercise of Warrants.  The Company shall not effect any such
      consolidation, merger or sale unless prior to or simultaneously with the
      consummation thereof, the successor corporation (if other than the Company)
      resulting from such consolidation or merger or the corporation purchasing such
      assets shall assume, by written instrument, the obligation to deliver to the
      Holder such shares of stock, securities or assets as, in accordance with the
      foregoing provisions, the Holder may be entitled to purchase.

    

    (3)           If
      the Company makes a distribution of its assets to the holders of its capital
      stock as a dividend in liquidation or by way of return of capital or other
      than
      as a dividend payable out of earnings or surplus legally available for dividends
      under applicable law, the Holder shall, upon its exercise, be entitled to
      receive, in addition to the number of shares of Common Stock receivable
      thereupon, and without payment of any additional consideration therefor, a
      sum
      equal to the amount of such assets as would have been payable to it as owner
      of
      that number of shares of Common Stock receivable by exercise or conversion
      of
      this Warrant had it been the Holder of record of such Common Stock on the record
      date for such distribution, or if no such record is taken, as of the date of
      such distribution, and an appropriate provision therefor shall be made a part
      of
      any such distribution.

    

    (4)           Except
      for an
      Exempt Issuance, as defined below, if the Company at any time while this Warrant
      remains outstanding and unexpired shall issue any additional shares of common
      stock (otherwise than as provided in the foregoing subsections (1) and (2)
      of
      this Section (g)) at an aggregate price per share less, or for aggregate other
      consideration per share lower, than the Exercise Price, then upon such issuance
      the Exercise Price shall be reduced to a new Exercise Price equal to the
      aggregate price per share or the aggregate other consideration per share, as
      the
      case may be, received by the Company for the additional shares of common stock
      so issued and the number of shares issuable to Holder upon exercise of this
      Warrant shall be increased to the product of the number of shares issuable
      to
      Holder hereunder immediately prior to such issuance of additional shares of
      common stock multiplied by a fraction, the numerator of which is the former
      Exercise Price and the denominator of which is the new Exercise Price.. In
      the
      case of additional shares of common stock issued without consideration, the
      Exercise Price shall be reduced in amount and the number of shares issuable
      upon
      exercise of this Warrant shall be increased in amount so as to maintain for
      the
      Holder the right to acquire upon full exercise of this Warrant a number of
      shares of common stock which will give the Holder the same percentage interest
      in the common stock of the Company as the Holder had immediately preceding
      such
      issuance for the same aggregate consideration payable upon exercise of this
      Warrant.  No adjustment
      of
      the Exercise Price shall be made under this subsection (g)(4) upon the issuance
      of any additional shares of common stock which are issued pursuant to the
      exercise of any warrants, options or other subscription or purchase rights
      or
      pursuant to the exercise of any conversion or exchange rights in any convertible
      securities if any such adjustments shall previously have been made upon the
      issuance of any such warrants, 

     

    
      
        
        

      

      
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    options
      or other
      rights or upon the issuance of any convertible securities (or upon the issuance
      of any warrants, options or any rights therefor) pursuant to subsections (5)
      or
      (6) of this Section (g).

     

     (5)           Except
      for options issued to employees and an Exempt Issuance, if the Company shall
      issue any warrants, options or other rights to subscribe for or purchase any
      Additional Shares of Capital Stock and the price per share for which Additional
      Shares of Capital Stock may at any time thereafter be issuable pursuant to
      such
      warrants, options or other rights shall be less than the Exercise Price per
      share of Common Stock hereunder, then upon such issuance the Exercise Price
      shall be adjusted as provided in subsection (4) of this Section (g) on the
      basis
      that the aggregate consideration for the Additional Shares of Capital Stock
      issuable pursuant to such warrants, options or other rights, shall be deemed
      to
      be the consideration received by the Company for the issuance of such warrants,
      options, or other rights plus the minimum consideration to be received by the
      Company for the issuance of Additional Shares of Capital Stock pursuant to
      such
      warrants, options, or other rights.

    

     (6)           If
      the Company shall issue any securities (debt or equity) convertible into
      Additional Shares of Capital Stock and the consideration per share for which
      Additional Shares of Capital Stock may at any time thereafter be issuable
      pursuant to the terms of such convertible securities shall be less than the
      Exercise Price, then upon such issuance the Exercise Price shall be adjusted
      as
      provided in subsection (4) of this Section (g) on the basis that (i) the
      maximum number of Additional Shares of Capital Stock necessary to effect the
      conversion or exchange of all such convertible securities shall be deemed to
      have been issued as of the date of issuance of such convertible securities,
      and
      (ii) the aggregate consideration for such maximum number of Additional Shares
      of
      Capital Stock shall be deemed to be the consideration received by the Company
      for the issuance of the convertible securities plus the minimum consideration
      received by the Company for the issuance of such Additional Shares of Capital
      Stock pursuant to the terms of such convertible securities.  No
      adjustment of the Exercise Price shall be made under this subsection upon the
      issuance of any convertible securities which are issued pursuant to the exercise
      of any warrants or other subscription or purchase rights therefor, if any such
      adjustment shall previously have been made upon the issuance of such warrants
      or
      other rights pursuant to subsection (5) of this Section (g).

    

    (7)           Except
      for an Exempt Issuance, to the extent that any Additional Shares of Capital
      Stock or any convertible securities (debt or equity) or any warrants, options
      or
      other rights to subscribe for or purchase any Additional Shares of Capital
      Stock
      shall be issued for a cash consideration, the consideration received by the
      Company therefor shall be deemed to be the amount of the cash received by the
      Company therefor, or, if such Additional Shares of Capital Stock or convertible
      securities (debt or equity) are offered by the Company for subscription, the
      subscription price, or, if such Additional Shares of Capital Stock or
      convertible securities (debt or equity) are sold to underwriters or dealers
      for
      public offering without a subscription offering, or through underwriters or
      dealers for public offering without a subscription offering, the initial public
      offering price, in any such case excluding any amounts paid or incurred by
      the
      Company for and in the underwriting of, or otherwise in connection with the
      issue thereof.  To the extent that such issuance shall be for a
      consideration other than cash, then, except as herein otherwise expressly
      provided, the amount of such consideration shall be deemed to be the fair value
      of such consideration at the time of such issuance as determined in good faith
      by the Company’s Board of Directors.  The consideration for any
      Additional Shares of 

     

    
      
        
        

      

      
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    Capital
      Stock issuable pursuant to any warrants, options or other rights to subscribe
      for or purchase the same shall be the consideration received by the Company
      for
      issuing such warrants, options or other rights, plus the additional
      consideration payable to the Company upon the exercise of such warrants, options
      or other rights.  The consideration for any Additional Shares of
      Capital Stock issuable pursuant to the terms of any convertible securities
      (debt
      or equity) shall be the consideration paid or payable to the Company in respect
      of the subscription for or purchase of such convertible securities, plus the
      additional consideration, if any, payable to the Company upon the exercise
      of
      the right of conversion or exchange in such convertible
      securities.  In case of the issuance at any time of any Additional
      Shares of Capital Stock or convertible securities (debt or equity) in payment
      or
      satisfaction of any dividend upon any class of stock preferred as to dividends
      in a fixed amount, the Company shall be deemed to have received for such
      Additional Shares of Capital Stock or convertible securities a consideration
      equal to the amount of such dividend so paid or satisfied.

    

    (8)           If
      after the date hereof the Company shall take any action affecting the Company’s
      capital stock, other than an action described in any of the foregoing
      subsections (1) through (6), inclusive, of this Section (g) which in the opinion
      of the Company’s Board of Directors would have a materially adverse effect upon
      the rights of the Holder to purchase the Warrant Shares, the Exercise Price
      shall be adjusted in such manner and at such time as the Board of Directors
      may
      in good faith determine to be equitable in the circumstances.

    

    (9)           Upon
      each adjustment of the Exercise Price pursuant to subsections (1) through (8),
      inclusive, of this Section (g), the number of shares of Common Stock specified
      in each Warrant shall thereupon evidence the right to purchase that number
      of
      shares of Common Stock (calculated to the nearest hundredth of a share of Common
      Stock) obtained by multiplying the Exercise Price in effect immediately prior
      to
      such adjustment by the number of shares of Common Stock purchasable immediately
      prior to such adjustment upon exercise of such Warrant and dividing the product
      so obtained by the Exercise Price in effect after such adjustment.

    

     (10)           Omitted.

    

     (11)           The
      Company may, at its sole option, retain the independent public accounting firm
      regularly retained by the Company, or another firm of independent public
      accountants of recognized standing selected by the Company’s Board of Directors,
      to make any computation required under this Section (g) and a certificate signed
      by such firm shall be conclusive evidence of any computation made under this
      Section (g).

    

    (12)           Whenever
      the Company proposes to take any action that would require an adjustment to
      the
      Exercise Price or in the number or kind of securities issuable upon exercise
      of
      the Warrants, or both, as provided in this Section (g), the Company shall (i)
      as
      promptly as practical, but in any event at least fifteen (15) days prior to
      the
      applicable record (or determination) date with respect to such action or, if
      no
      record is to be taken, at least fifteen (15) days prior to the date on which
      such action is expected to become effective, deliver written notice of such
      action to the Holder hereof at its last address appearing on the books of the
      Company, (ii) upon the effectiveness of such adjustment promptly file in the
      custody of its 

     

    
      
        
        

      

      
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    Secretary
      or Assistant Secretary a certificate signed by the Chairman of the Board or
      the
      President or a Vice President of the Company and by the Treasurer or an
      Assistant Treasurer or the Secretary or an Assistant Secretary of the Company,
      setting forth the facts requiring such adjustment and the number and kind of
      securities issuable upon exercise of each Warrant after such adjustment; and
      (iii) cause a notice stating that such adjustment has been effected and stating
      the Exercise Price then in effect and the number and kind of securities issuable
      upon exercise of each Warrant to be sent to each registered holder of a
      Warrant.

    

    (13)           The
      Board of Directors of the Company may, in its sole discretion, (a) reduce the
      Exercise Price of each Warrant, (b) increase the number of shares of Common
      Stock issuable upon exercise of each Warrant and/or (c) provide for the issuance
      of other securities (in addition to the shares of Common Stock otherwise
      issuable upon exercise of the Warrant) upon exercise of each
      Warrant.

    

     

    (14)           “Exempt
      Issuance” shall means the issuance of (i) shares of Common Stock or options to
      employees, officers or directors of the Company pursuant to any stock or option
      plan duly adopted for such purpose by a majority of the non-employee members
      of
      the Board of Directors of the Company or a majority of the members of a
      committee of non-employee directors established, (ii) any other securities
      exercisable or exchangeable for or convertible into shares of Common Stock
      issued and outstanding on the date of the Note, provided that such securities
      have not been amended since the date of the Note to increase the number of
      such
      securities or to decrease the exercise, exchange or conversion price of such
      securities, and (iii) securities issued (A) pursuant to a merger or acquisition
      of all or substantially all of the capital stock or assets of another person
      or
      entity or (B) in exchange for services or goods which exchange has been approved
      by a majority of the disinterested directors of the Company.

     

    

    (h)           TRANSFER
      TO COMPLY WITH THE SECURITIES ACT OF 1933 AND OTHER APPLICABLE SECURITIES
      LAWS.  This Warrant or the Warrant Shares or any other security
      issued or issuable upon exercise of this Warrant may not be sold or otherwise
      disposed of unless this Warrant or the Warrant Shares or such other security
      may
      be legally transferred without violating the Securities Act of 1933 and any
      other applicable securities law and then only against receipt of an agreement
      of
      the transferee to comply with the provisions of this Section (h) with respect
      to
      any resale or other disposition of such securities.

    

    (i)           No
      Impairment.  The Company will not, by amendment of its charter or
      through any reorganization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms of this Warrant,
      but will at all times in good faith assist in the carrying out of all such
      terms
      and in the taking of all such action as may be necessary or appropriate in
      order
      to protect the rights of the Holder against impairment.

    

     
      (j)           Amendment
      and Waiver by Majority of the Holders.  The Warrants, including
      this Warrant, may be amended, modified or supplemented, and waiver or consents
      to departures from the provisions of the Warrants may be given, if the Company
      and the holders of Warrants exercisable for a majority of the Warrant Shares
      for
      which all Warrants are exercisable 

     

    
      
        
        

      

      
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    consent
      to the amendment; provided, however, that no term of this Warrant may be amended
      or waived in such a way as to selectively affect the Holder to the exclusion
      of
      the other Warrant holders without the written consent of the
      Holder.  Such consent may be effected by any available legal means,
      including without limitation at a meeting, by written consent or
      otherwise.  Any such amendment or waiver shall apply to and be binding
      upon the Holder of this Warrant, upon each future holder of this Warrant and
      upon the Company, whether or not this Warrant shall have been marked to indicate
      such amendment or waiver.  No such amendment or waiver shall extend to
      or affect any obligation not expressly amended or waived or impair any right
      consequent thereon.

    

      (k)           Amendment
      and Waiver by Holder.  Notwithstanding anything to the contrary
      set forth herein, the provisions of this Warrant may be amended, modified or
      supplemented, and waiver or consents to departures from the provisions hereof
      may be given, upon the written agreement of the Company and the
      Holder.  Neither the failure nor any delay in exercising any right,
      power or privilege under this Warrant will operate as a waiver of such right,
      power or privilege and no single or partial exercise of any such right, power
      or
      privilege by Holder will preclude any other or further exercise of such right,
      power or privilege or the exercise of any other right, power or
      privilege.

    

    
      
        	 	
                THEATER
                  XTREME ENTERTAINMENT GROUP, INC.

              
	 	 
	 	 
	 	
                By:
                  /s/ Scott Oglum

              
	 	
                Name:
                  Scott Oglum

              
	 	
                Title:   CEO

              

      

    

    
 

    
      
        
        

      

      
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    PURCHASE
      FORM

    

    Dated________,
      20__

    

    The
      undersigned hereby irrevocably elects to exercise the within Warrant to the
      extent of purchasing _______ shares of Common Stock and hereby makes payment
      of
      ________ in payment of the Exercise Price thereof.

    

    _______________

    

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

    

    Name________________________________________________________________________

    (Please
      typewrite or print in block letters.)

    

    Address_______________________________________________________________________

    

    ______________________________________________________________________________

    

    Signature______________________________________________________________________

    

    ______________

    

    ASSIGNMENT
      FORM

    

    FOR
      VALUE
      RECEIVED,___________________________________________

    hereby
      sells, assigns and transfers unto

    

    Name________________________________________________________________________

    (Please
      typewrite or print in block letters)

    

    Address_______________________________________________________________________

    

    ______________________________________________________________________________

    

    The
      right
      to purchase Common Stock represented by this Warrant to the extent of
      ___________ shares as to which such right is exercisable and does hereby
      irrevocably constitute and appoint

    ___________________,
      Attorney, to transfer the on the books of the Company with full power of
      substitution in the premises.

    

    Date____________,
      20__

    

    Signature_________________________

     

    
9Unassociated Document

    Exhibit
      10.8

     

    GUARANTY
      AND PLEDGE AGREEMENT

     

    THIS
      GUARANTY AND PLEDGE AGREEMENT, dated this August 15, 2007, by and between
      SCOTT OGLUM, an individual residing at 115 Christina Landing, Wilmington,
      Delaware 19801 (“Guarantor”), and in favor of Stacy Lyn Giunta,
      (“Lender”).

    

    W
      I T N E S S E T H:

     

    A.  Theater
      Xtreme Entertainment Group, Inc., a Florida corporation, at 250 Corporate Blvd.,
      Newark, DE 19702 (“Borrower”), has requested that Lender extend a loan (the
“Loan”) to Borrower in the principal amount of Twenty-Five Thousand Dollars and
      Lender has agreed to make such Loan to Borrower.

     

    B.  Borrower
      has executed and delivered to Lender a Promissory Note dated the date hereof
      in
      the principal amount of $25,000 (the “Note”).

     

    C.  Lender
      is
      willing to make the Loan to Borrower in consideration, among other things,
      of
      the covenants and obligations made and assumed by Guarantor as herein set
      forth.

     

     D.     As
      security for the obligations of Guarantor hereunder, Guarantor has agreed to
      pledge to Lender the Pledged Securities, as defined herein.

     

    NOW
      THEREFORE, for good and valuable consideration, intending to be legally bound
      hereby, Guarantor agrees as follows:

     

    1.  Guarantor
      hereby guarantees, as surety, the punctual performance of all of the Borrower’s
      obligations, including without limitation thereto, payment of money, pursuant
      to
      the terms of the Note (the “Obligations”).

     

    2.  Guarantor
      agrees to pay Lender all costs and expenses (including reasonable attorney’s
      fees) at any time incurred by Lender in the enforcement of this Guaranty against
      Guarantor.

     

    3.  This
      shall be an agreement of suretyship as well as of guaranty and Lender, without
      being required to proceed first against the Borrower or any other person or
      entity, may proceed directly against Guarantor whenever the Borrower fails
      to
      make any payment when due or otherwise fails to perform any Obligation owed
      or
      hereafter owed to Lender.  Guarantor hereby waives all notices of any
      character whatsoever with respect to this Guaranty and the Borrower’s
      obligations to Lender, including but not being limited to notice of the
      acceptance hereof and reliance hereon and notice of any defaults of Borrower
      pursuant to the Note.  Guarantor hereby consents to the taking of, or
      failure to take, from time to time, without notice to Guarantor, any action
      of
      any nature whatsoever with respect to the Borrower’s obligations to Lender and
      with respect to any rights against any person or persons (including the Borrower
      and Guarantor) or any property, including but not limited to, any renewals,
      extensions, modifications, waivers, surrenders, exchanges and releases, and
      Guarantor will remain fully liable hereunder.  Guarantor hereby waives
      the benefit of all laws now or hereafter in effect in 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    any
      way
      limiting or restricting his, her or its liability hereunder, including without
      limitation thereto (i) all defenses whatsoever to his her or its liability
      hereunder except the defense of payments made on account of Borrower’s
      liabilities to Lender and the Guarantor’s liability hereunder, and (ii) all
      right to stay of execution and exemption of property in any action to enforce
      the liability of Guarantor hereunder.  Guarantor hereby waives any
      benefit of and any right to participate in any other security for the Note
      now
      or hereafter held by Lender.

     

    4.  This
      Agreement shall be binding upon Guarantor and his or her heirs and personal
      representatives and shall inure to the benefit of Lender and its successors
      and
      assigns.

     

    5.  Guarantor
      will not exercise any rights with respect to Lender or Borrower related to
      or
      acquired in connection with or as a result of Guarantor’s making of this
      Guaranty which Guarantor may acquire by way of subrogation, indemnification
      or
      contribution, by reason of payment made by Guarantor hereunder or otherwise,
      until after the date on which all of the obligations of Borrower secured hereby
      shall have been satisfied in full, and until such time any such rights of
      Guarantor against the Borrower shall be fully subordinate in lien and payment
      to
      any claim in connection with such obligations which Lender now or hereafter
      has
      against the Borrower.  If any amount shall be paid to Guarantor on
      account of such subrogation, indemnification or contribution at any time when
      all of such obligations and all other expenses guaranteed pursuant hereto shall
      not have been paid in full, such amount shall be held in trust for the benefit
      of Lender, shall be segregated from other funds of Guarantor and shall forthwith
      be paid over to Lender to be applied in whole or in part by Lender against
      the
      obligations secured hereby, whether matured or unmatured, in such order as
      Lender shall determine in its sole discretion.  If Guarantor shall
      make a payment to Lender of all or any portion of the obligations secured
      hereby, and all of such obligations shall be paid in full, Guarantor’s right of
      subrogation shall be without recourse to and without any implied warranties
      by
      Lender and shall remain fully subject and subordinate to Lender’s right to
      collect any other amounts which may thereafter become due to Lender by the
      Borrower in connection with such obligations.

     

    6.  Any
      notice which may hereafter be given by or to Lender with respect to this
      Guaranty must be in writing and shall be sufficiently given if hand delivered
      with a signed receipt therefore or if deposited in the U.S. mail, by certified
      mail, return receipt requested, postage prepaid, addressed to Guarantor as
      set
      forth below his, her or its signature hereto and addressed to Lender as set
      forth above (or to such other place as the Guarantor or Lender, by written
      notice as aforesaid, shall advise the other).  Guarantor agrees to
      give Lender prompt written notice of each change of such Guarantor’s
      address.

     

    7.  If
      any
      claim is made upon Lender for repayment or recovery of any amount or amounts
      received by Lender in payment or on account of any obligations of Borrower
      to
      Lender and Lender repays all or part of said amount by reason of (i) any
      judgment, decree or order of any court or administrative body having
      jurisdiction over Lender or any of its property, or (ii) any settlement or
      compromise in good faith with any such claimant (including Borrower), then
      and
      in such event Guarantor agrees that any such judgment, decree, order, settlement
      or compromise shall be binding upon Guarantor, notwithstanding any termination
      hereof or the cancellation of any note or other instrument evidencing any
      obligation, and Guarantor shall remain liable to Lender hereunder for the amount
      so repaid or recovered to the same extent as if such amount had never originally
      been received by Lender.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    8.  As
      security for the due and punctual payment of all indebtedness and obligations
      of
      Guarantor under the Guaranty, Guarantor hereby pledges to
      Lender and grants to Lender a security interest in all of Guarantor's right,
      title and interest in and to the securities (collectively, the “Pledged
      Securities”) set forth on Exhibit A attached hereto and incorporated herein by
      reference.  The Pledged Securities shall also include any interests
      hereafter issued by the issuers of the Pledged Securities by way of a stock
      dividend, split or other distribution or reclassification.  The
      liability of Guarantor to Lender hereunder shall be limited to all of the
      Guarantor’s right, title and interest in and to the Pledged
      Securities.

     

    9.  Guarantor
      hereby represents, warrants and covenants as follows:

     

    (a)           Guarantor
      is the legal and beneficial owner of the Pledged Securities and has the right
      to
      pledge the Pledged Securities to Lender; neither said pledge nor the performance
      of this Pledge Agreement (including the exercise of the Lender's remedies upon
      default) will violate any agreement or other instrument to which Guarantor
      is a
      party or by which it is bound.

     

    (b)           The
      Pledged Securities shall at all times be free and clear of any security
      interests, mortgages, pledges, liens, encumbrances and restrictions on the
      transfer thereof other than those created by this Guaranty, and Guarantor will
      not suffer or permit any security interests, mortgages, pledges, liens,
      encumbrances or restrictions to attach to the Pledged Securities or transfer
      or
      attempt to transfer any interest in the Pledged Securities without the written
      consent of Lender.

     

    (c)           Without
      affecting the rights of Lender hereunder, any collateral security for the
      Obligations, and any guarantee or surety therefor, may be exchanged, sold,
      surrendered, released, modified or otherwise dealt with in accordance with
      the
      terms of any present or future agreement between Lender and any Guarantor or
      any
      guarantor or surety, including any agreement permitting Lender to take
      unilateral action with respect thereto.

     

    10.  Unless
      a
      default shall have occurred under the Guaranty and be continuing, Guarantor
      shall be entitled to vote or consent with respect to the Pledged Securities,
      to
      receive distributions thereon, and to have and exercise all other rights as
      a
      holder of the Pledged Securities in any manner not inconsistent with or in
      violation of the terms of this Guaranty.

     

    11.  Upon
      the
      occurrence and continuance of any default under the Guaranty, except to the
      extent prohibited by applicable law which cannot be waived, the following
      provisions shall govern the right of Lender to realize upon the Pledged
      Securities, in addition to any rights and remedies available in law or equity,
      and in addition to the rights and remedies provided in the
      Guaranty:

     

    (a)           Unless
      Lender agrees otherwise in writing, only Lender shall be entitled to vote or
      consent or take any other action with respect to the Pledged Securities, and
      Guarantor hereby irrevocably constitutes and appoints Lender its proxy and
      attorney in fact, with full power of substitution to do so, and agrees, if
      so
      requested, to execute or cause to be executed appropriate irrevocable proxies
      therefor in addition to and separate from this Agreement.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (b)           Lender
      shall not be required to make any demand upon or pursue or exhaust any of its
      rights or remedies against Guarantor or any other person with respect to the
      payment of the Obligations, or to pursue or exhaust any of its rights or
      remedies with respect to the Pledged Securities or any other collateral held
      in
      respect of the Obligations, or any direct or indirect guaranty
      thereof.  Lender shall not be required to marshall the Pledged
      Securities or any other collateral for or guaranty of the Obligations or to
      resort to the Pledged Securities or any such other collateral or guaranty in
      any
      particular order and all of the rights granted to Lender hereunder and under
      all
      other agreements relating to the Obligations shall be cumulative.  To
      the extent not prohibited by applicable law, Guarantor hereby agrees to waive,
      and does hereby absolutely and irrevocably waive and relinquish the benefit
      and
      advantage of, and does hereby covenant not to assert against Lender, any
      valuation, stay, appraisement, extension, or redemption laws now existing or
      which may hereafter exist and which, but for this provision, might be applicable
      to any sale made under the judgment, order or decree of any court, or privately
      under the power of sale conferred by this Guaranty or in respect of any Pledged
      Securities.  Without limiting the generality of the foregoing,
      Guarantor hereby agrees that it will not invoke or utilize any law which might
      cause delay in, or impede, the enforcement of the rights of Lender under this
      Guaranty, and hereby waives the same.  IN ADDITION, TO THE EXTENT NOT
      PROHIBITED BY APPLICABLE LAW, GUARANTOR HEREBY WAIVES ANY RIGHT TO PRIOR NOTICE
      (EXCEPT TO THE EXTENT EXPRESSLY PROVIDED IN THIS GUARANTY) OR JUDICIAL HEARING
      IN CONNECTION WITH THE TAKING POSSESSION OR THE DISPOSITION OF ANY OF THE
      PLEDGED SECURITIES, INCLUDING, WITHOUT LIMITATION, ANY SUCH RIGHT WHICH
      GUARANTOR WOULD OTHERWISE HAVE.

     

    12.  Guarantor
      recognizes that Lender may be unable to effect a public sale of all or a part
      of
      the Pledged Securities by reason of certain prohibitions contained in the
      Securities Act of 1933, as amended (the "1933 Act"), as now or hereafter in
      effect, or in applicable Blue Sky or other state securities laws, as now or
      hereafter in effect, but may be compelled to resort to one or more private
      sales
      to a restricted group of purchasers who will be obliged to agree, among other
      things, to acquire the Pledged Securities, or portions thereof, for their own
      account, for investment and not with a view to the distribution or resale
      thereof.  If, at the time of any sale of the Pledged Securities, the
      same or any part thereof to be sold shall not, for any reason whatsoever be
      effectively registered under the 1933 Act, Lender, in its sole and absolute
      discretion, is hereby authorized to sell the Pledged Securities or any such
      part
      thereof by private sale in such manner and under such circumstances as Lender
      may reasonably deem necessary or advisable in order that such sale may legally
      be effected without registration.  Guarantor acknowledges that private
      sales so made may be at prices and on other terms less favorable to the seller
      than if the Pledged Securities were sold at public sales, and agrees that Lender
      has no obligation to delay the sale of the Pledged Securities or any part
      thereof for the period of time necessary to register the Pledged Securities
      or
      public sale under such applicable securities laws.  Guarantor agrees
      that private sales made under the foregoing circumstances shall not, because
      so
      made, be deemed to have been made in a commercially unreasonable
      manner.

     

    13.  The
      proceeds of all sales and any other monies received by Lender with respect
      to
      the disposition of Pledged Securities shall be applied as follows:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (a)           First,
      to the payment of the costs and expenses of such sale or sales, and the
      reasonable attorneys' fees incurred by Lender;

     

    (b)           Second,
      any surplus then remaining, to the payment of the Obligations; and

     

    (c)           Third,
      any surplus then remaining shall be paid to Guarantor.

     

    14.  Upon
      the
      occurrence and continuance of any default under the Guaranty, Lender shall
      be
      entitled to receive all distributions on the Pledged Securities, and Lender
      at
      its option shall have the right to transfer into its name or that of its nominee
      any and all of the Pledged Securities.

     

    15.  Guarantor
      shall at any time and from time to time, execute and deliver upon the written
      request of Lender further documents and do further acts and things as Lender
      may
      reasonably request to effect the purposes of this Pledge Agreement, including,
      without limitation, delivering to Lender upon the occurrence and continuance
      of
      a default under the Guaranty irrevocable proxies with respect to the Pledged
      Securities in a form satisfactory to Lender. Until receipt thereof, this Pledge
      Agreement shall constitute Guarantor's proxy to Lender or its nominee to
      exercise all of the voting and other consensual rights pertaining to the Pledged
      Securities at any and all such times as Lender has the right to exercise such
      rights pursuant to the terms of this Pledge Agreement.  The power of
      attorney granted hereby is coupled with an interest and is
      irrevocable.

     

    16.  Concurrent
      with the execution of this Pledge Agreement, Guarantor shall deliver to Lender
      certificates evidencing the Pledged Securities together with
      appropriate  assignments separate from certificate duly executed by
      Guarantor

     

    17.  No
      delay
      or omission on the part of Lender in exercising any right under this Guaranty
      shall operate as a waiver or relinquishment of such right and no such waiver
      or
      relinquishment shall be effective.

     

    18.  This
      Guaranty shall be binding upon and inure to the benefit of the parties hereto,
      their respective successors and assigns, and shall inure to the benefit of
      the
      holders from time to time of any evidence of indebtedness created pursuant
      to
      the Agreement.

     

    19.  This
      Guaranty shall be construed in accordance with the laws of the State of
      Delaware.  If any provision of this Guaranty shall for any reason be
      held to be invalid or unenforceable, or if this Guaranty shall for any reason
      be
      unenforceable against Guarantor, such invalidity or unenforceability shall
      not
      affect any other provision hereof, but this Guaranty shall be construed as
      if
      such invalid or unenforceable provision had never been contained herein or
      as if
      the person or persons against whom this Guaranty is for any reason unenforceable
      had not be signatories hereto.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Guarantor has executed this Guaranty and Pledge Agreement
      the
      date first above written.

     

    
      
        	 	
                GUARANTOR:

              
	
                Witness

              	
                SCOTT
                  OGLUM

              
	
                By:  /s/
                  James J. Vincenzo

              	
                /s/
                  Scott Oglum

              
	
                Name:
                  James J. Vincenzo

              	
                Name:
                  Scott Oglum

              
	 	 
	 	 
	 	
                LENDER:

              
	
                Witness

              	
                Stacy
                  Lyn Giunta

              
	
                By:____________________________

              	
                /s/
                  Stacy Lyn Giunta

              
	
                Name:

              	 
	 	 

      

    

    
 

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    PLEDGED
      SECURITIES

    

    

    
      	
              1.

            	
              That
                certain number of shares of Scott Oglum’s stock of Theater Xtreme
                Entertainment Group, Inc., a Florida corporation rounded down to
                the
                nearest whole share, rounded down, that reflects the product of the
                (a)
                the ratio whose numerator is the principal amount of the Promissory
                Note
                payable to Borrower and whose denominator is $400,000 multiplied
                by (b)
                three million six hundred eighteen thousand two hundred and seventy
                five
                (3,618,275).

            

    

     

    
 

    -7-

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