Amendment to Consolidated Letter of Intent Between Murchison Media Group and Team Communications Group, Inc.
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Summary
This amendment updates the terms of a prior agreement between Murchison Media Group (MMG) and Team Communications Group, Inc. (Team). It clarifies that each share of newly issued preferred stock will have the same ownership and voting rights as common stock, but with a defined liquidation preference. MMG is also granted the right to convert certain notes into preferred stock at a specified price. All other terms of the original agreements remain unchanged.
EX-10.1 3 v76540ex10-1.txt TEAM COMMUNICATIONS EXHIBIT 10.1 Exhibit 10.1 Reference is made to the following documents: A. That certain Conformed Consolidated Letter of Intent dated effective September 10, 2001 by and between Murchison Media Group ("MMG") and Team Communications Group, Inc. ("Team") (the "Consolidated LOI"). B. That certain Letter of Intent between MMG and Team dated September 7, 2001 (the "September 7th LOI"). C. That certain First and Final Amendment to the September 7th LOI (the "September 10th FFALOI"). D. That certain Supplement to the First and Final Amendment dated September 10th, 2001 (the "September 10th Supplement"). Collectively the above referenced documents are herein referred to as the LOI documents. This document is intended by the parties to amend the Consolidated LOI and all pertinent parallel and respective references in the LOI documents which refer to the sections being hereby amended. Paragraph 8 of the Consolidated LOI is hereby amended as follows: 8. Under the terms of the Definitive Preferred Stock Purchase Agreement, each share of newly issued Preferred Stock shall have a per share ownership interest equal to each share of Team's common stock. That is, each share of Preferred Stock shall have the identical ownership interests in Team as down each share of common stock. However, in addition to equal ownership rights, each share of Preferred stock shall have a defined liquidation preference and equal identical voting rights with the common stock. Paragraph 9 of the Consolidated LOI is hereby amended as follows: 9. At any time during the Term of the Notes, MMG shall have the right, but not the obligation, to convert the principal and compounded accrued interest (if any) of any or all of the Notes to Preferred stock. At the option of MMG, the Notes shall be convertible to Preferred Stock at a purchase price per share equal to the lower of sixty per cent (60%) of the price of Team's common stock as of the close of the NASDAQ business day as of September 17, 2001 or twelve cents ($0.12) per share. Team and MMG acknowledge and agree that as of the end of the NASDAQ business day on September 17, 2001, the Team common stock closed at Seventeen Cents ($0.17) per share. All other terms and conditions of the LOI documents will remain in full force and effect. Murchison Media Group Team Communications Group, Inc. A Nevada corporation a California corporation By: Dennis Murchison By: Jay Shapiro --------------------- --------------------------- Its: Chairman Its: President Exhibit 10.2 TEAM COMMUNICATIONS GROUP, INC. SCHEDULE A -------------------------------------------------------------------------------- CASH REQUIREMENTS 8/31/01
TEAM COMMUNICATIONS GROUP, INC. SCHEDULE A -------------------------------------------------------------------------------- CASH REQUIREMENTS 8/31/01
Exhibit 10.3 TEAM COMMUNICATIONS GROUP, INC. SCHEDULE B -------------------------------------------------------------------------------- SCHEDULE OF DEBT as of 31-Aug-01
Notes: ---------- (1) - The convertible notes are convertible into common stock of the Company at 80% of the average market price of the shares. At the current market price of 21(cent), the $1,045,000 would be convertible into approximately 6.22 million shares (approximately 43% of shares outstanding). - Unamortized debt costs includes $100,000 of estimated Greenberg Traurig fees that were withheld from financing proceeds. - Warrants were issued in two tranches. Initial Tranche at issuance of the convertible notes exercisable at $1.56 per share 1,314,664 Issued Aug 20, 2001 in conjuncion with receipt of consent to raise additional financing 1,261,750 In addition, the exercise price for all warrants was reduced by MJS to 50(cent) per share. (2) - The REFCO Equity Line of Credit provides the Company with the right to sell it's common stock at 85% of the prevailing average market price of the shares. Warrants were exercisable at $1.56 when issued. The exercise price was reduced by MJS to 50(cent) per share.