Investment Commitment Letter between Universal Capital Management, Inc. and Theater Xtreme Entertainment Group, Inc. (October 13, 2006)

Contract Categories: Business Finance › Debenture Agreements
Summary

Universal Capital Management, Inc. agrees to invest $250,000 in debentures and warrants of Theater Xtreme Entertainment Group, Inc. if Theater Xtreme does not sell at least $250,000 of similar debentures to other investors by October 31, 2006. The debentures must mature at least 13 months after issuance, bear no more than 10% annual interest, and include warrants to purchase at least 200,000 shares at a minimum price of $1.00 per share. Theater Xtreme must notify Universal by November 1, 2006, for the investment to proceed, with closing by November 30, 2006.

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EX-10.1 2 v055124_ex10-1.htm
Exhibit 10.1
 
UNIVERSAL CAPITAL MANAGEMENT, INC
2601 Annand Drive
Suite 16
Wilmington, Delaware 19808
 
October 13, 2006
 
Mr. Scott Oglum, President
Theater Xtreme Entertainment Group, Inc.
250 Corporate Boulevard, Suites E & F
Newark, DE 19702
 
Dear Scott:
 
This letter will serve to confirm our recent conversation. We agreed that if Theater Xtreme Entertainment Group, Inc. (“Theater Xtreme”) does not succeed, on or before October 31, 2006, in selling at least Two Hundred Fifty Thousand Dollars ($250,000) of debentures maturing on a date at least thirteen (13) months after date of issue, bearing interest at no more than Ten Percent (10%) per annum payable quarter annually, and accompanied by common stock warrants to purchase at least Two Hundred Thousand (200,000) shares of common stock of Theater Xtreme at an exercise price of not less than One Dollar ($1.00) per share, then Universal Capital Management, Inc. (“Universal”) shall and hereby agrees to invest Two Hundred Fifty Thousand Dollars ($250,000) in such debentures and warrants on the terms set forth above.
 
If Theater Xtreme desires that Universal honor its obligations under this letter, Theater Xtreme shall provide written notice to Universal not later than November 1, 2006, and closing for the purchase shall take place not later than November 30, 2006. If Theater Xtreme fails to give such notice on or before November 1, 2006, this letter shall expire and thereafter be of no further force or effect.
 
    Sincerely,
 
 		  
 		  
 
     /s/ Joseph T. Drennan
 
  Joseph T. Drennan