Advisory Fee Agreement between Sibling Group Holdings, Inc. and V3 Capital Partners, LLC (January 18, 2015)
Sibling Group Holdings, Inc. and V3 Capital Partners, LLC entered into this agreement for advisory, due diligence, and financing services related to a transaction with Shenzhen City Qisnhai Xinshi Education Management Co., LTD and other investors. Upon closing, Sibling Group will pay V3 Capital Partners a cash fee, units on the same terms as the transaction, and warrants. Additional payments include a share of fees on warrant exercises and reimbursement of certain legal and due diligence expenses. The agreement is binding and governed by New York law.
EXHIBIT 10.3
V3 Capital Partners, LLC
January 18, 2015
Sibling Group Holdings, Inc.
901 Mopac Expressway South, suite 300
Austin, TX 78746
Re:
Advisory Fee Agreement
Dear Mr. Brian Oliver Smith:
This letter is to confirm the advisory fee agreement between Sibling Group Holdings, Inc. (the Company) and V3 Capital Partners, LLC or its designee (the Advisor), in connection with the advisory, due diligence and financing activities performed by the Advisor relating to a transaction between the Company and Shenzhen City Qisnhai Xinshi Education Management Co., LTD and its subsidiaries and other institutional investors (the Transaction).
Upon the closing of the Transaction, the Company shall immediately pay the Advisor, or its designee, the following:
a.
Cash payment of $557,000 for the purchase of the initial notes under the Transaction;
b.
Units for $312,000 upon same terms and conditions of Units issued under the Transaction; and
c.
50% warrant coverage on the aggregate initial notes issued under the Transaction.
In addition, the Company agrees to pay (i) the Advisor a pro rata portion of each of the fees above on the exercise of any warrants issued under the Transaction, and (ii) $100,000 of Shenzhen City Qisnhai Xinshi Education Management Co., LTD and Advisors legal and due diligence expenses. The Advisor shall have the right, at its option, to offset the amounts due under this agreement from the amount its participates in the Transactiion.
This letter shall be a binding agreement between the Company and the Advisor and shall be governed under New York law.
| Very truly yours, |
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| _______________________ |
| Scot Cohen |
| Authorized Officer |
ACKNOWLEDGED AND AGREED TO:
Sibling Group Holdings, Inc.
By:________________________
Name:
Brian OliverSmith
Title:
Chief Executive Officer