Yorkville Advisors
Exhibit
99.2
Yorkville
Advisors
March 13,
2009
Law
Office of Xxxxxxx X. Xxxxxx
00000
Xxxxx Xxxxxxxxx, Xxxxx 000
Huntington
Beach, CA 92647
Attn: Xxxxxxx
X. Xxxxxx, Esq.
Re: Savi
Media Group, Inc. (the “Company”)//YA Global Investment, L.P. (f/k/a Cornell
Capital Partners, L.P.) (“YA Global”)
Securities Purchase Agreement and
Transaction Documents dated July 10, 2006
Convertible
Debentures SVMI-1 dated July 10, 2006, SVMI-2 dated August 17, 2006 and SVMI-3
dated September 1, 2006 (collectively, the “Convertible
Debentures”)
Warrants
Nos. SVMI-001, SVMI-002, SVMI-003, SVMI-004, SVMI-005, SVMI-006, SVMI-007,
SVMI-008, SVMI-009, and SVMI-101, each dated July 10, 2006 (collectively, the
“Warrants”)
Agreement
and Promissory Note dated April 17, 2007 (the “Promissory Note”)
Dear Xx.
Xxxxxx:
Kindly
accept this letter as notification that YA Global hereby rejects the offer of
the Company of $350,000 as full satisfaction of the debt (reflected by the above
captioned Convertible Debentures and Promissory Note) and warrant positions
(reflected by the above captioned Warrants) held by YA Global.
YA Global
would be willing to accept payment in full of all outstanding debt reflected by
the Convertible Debentures and Promissory Note, including, but not limited to,
principal and accrued interest, through the date that such payment is
received. At this time, the Company’s outstanding debt to YA Global
is as follows:
Interest Accrued
Principal to March 16,
2009 Total
Due
Convertible
Debenture No.
SVMI-1 $
1,670,000.00
$
448,383.56
$ 2,118,383.56
Convertible
Debenture No.
SVMI-2 $
200,000.00
$
51,616.44
$ 251,616.44
Convertible
Debenture No.
SVMI-3 $
600,000.00 $
152,383.56
$ 752,383.56
Promissory
Note
$ 15,000.00
$
1,436.30
$ 16,436.30
$ 3,138,819.86
In
addition to the amounts detailed above, liquidated damages totaling one million
three hundred thirty-three thousand eight hundred dollars ($1,333,800) have
accrued in accordance with Section 2(c) of the Investor Registration Rights
Agreement entered into by and between the Company and YA Global on July 10, 2006
and as amended by that Amendment No. 1 to Investor Registration Rights Agreement
dated August 17, 2006.
Accordingly,
the total amount necessary to repay the outstanding debt due to YA Global on
March 16, 2009 is four million four hundred seventy-two thousand six hundred
nineteen dollars and eighty-six cents ($4,472,619.86), representing
$3,138,819.86 in principal and accrued interest on the Convertible Debentures
and Promissory Note, and $1,222,800 of Liquidated Damages.
Interest
shall continue to accrue at a rate of $678.05 per diem until full payment is
received. Should full payment not be received on or before March 26,
2009, an additional $49,400 of liquidated damages shall accrue.
Should
you have any questions and/or concerns, or should you wish to discuss the above,
please feel free to contact the undersigned.
Very
Truly Yours,
/s/
Xxxxxxx Xxxxxxx
Head,
Special Situations Group