EXHIBIT “A”

ESCALATED INSTALLMENTS OF PREFERRED RENT



Year

Installment Amount


6

$ 680,555


7

$ 805,555


8

$ 930,555


9

$1,055,555


10

$1,180,555


11

$1,305,555


12

$1,430,555


13

$1,555,555


14

$1,680,555


15

$1,805,555


16

$1,930,555


17

$2,000,000


18

$2,000,000


19

$2,000,000


20

$2,000,000

SCHEDULE 5.3(c)

PREFERRED RENT

(a)

The installments of Preferred Rent shall be as follows:

(1)

Year 1 and Year 2: no payment

(2)

Year 3: $555,565

(3)

Year 4 – Year 20: $555,555 per year, payable on or before the end of February in each Year.

(b)

The foregoing notwithstanding, if the Company has not attained jobs and investment levels corresponding at least to the goals specified in the Community Goals Table for Year 5 (i.e., $90 million in investment and 1,000 jobs) on or before the end of Year 5, then commencing for Year 6, the annual installment for each Year shall be escalated and shall increase to the amount for each Year set forth on Exhibit “A” attached hereto and incorporated herein by reference, provided, that such escalation shall cease (without affecting the obligation to pay $555,555 per Year) for the first Year after the Year in which the Company attains jobs and investment levels corresponding at least to the goals specified in the Community Goals Table for Year 5 (regardless of the Year in which attainment occurs).

(c)

If it is necessary for any purpose of this Agreement to calculate the amount of unpaid installments of Preferred Rent at any time when an escalation is in effect as provided in (b), above, then it shall be assumed for such purpose that installments of Preferred Rent accrue at the amount for each Year set forth on Exhibit “A” hereto, notwithstanding any event that might intervene (such as attainment of investment or jobs levels).

?????????? Default is when you do not make a payment. Not sure what you are trying to show me. Can you be more specific?

They have assets and have produced revenues from their films in the past. This company has been profitable on 10 out of the 12 films they produced. They are carrying Yellow on their balance sheet at 18M. So if they are profitable that would be at least 20 million in cash flow. They expect to collect on their account receivables in the third quarter. Dilution will not be their only source of cash forever. There are too many traders that complain when they are down a little bit. Look at the big picture. The partnerships with Prime Focus, Acquisition of Atlas, Koppelman and the CEO is not accepting the salary. This company will not be trading at a 5 million dollar market cap for long.

Their payments just go up if they do not meet the requirements. They go back down once they do meet the requirements. The penalty is not that bad at first but then gets worse as time goes on. They still have over a year I believe until payments are due.

Agreed, they certainly have messed up quite a bit to this point. No argument here.

Do you think it is possible they are unable to find private placements or do you think management is just dumb?

Agreed, they do need to get the ball rolling and according to the activity guidance they will. I think the company understands they need to execute.

Looks like Yellow played at the Brussels International Fantastic Film Festival last week.

Awesome. Thanks for the DD.

Have you been to the Medient site recently? I am interested to see if any progress has been made with the start date fast approaching.

I think Jake Shapiro. If you look at the Flaherty news letter, he talks about a presentation he went to. It sounds like Jake Shapiro was giving it.

I suppose that is possible. That may be on the high end for pre-construction services. That would be 1 million worth of costs before construction even starts. I believe the IDA was covering a lot of the site development through a grant. I would need to find the PR. I think May will bring a lot more clarity to everything with the 10Q and the announcements.

Manu will not give out that information on twitter. I highly doubt we are at 600M. That would be almost a 90% dilution rate since the 10k on 3/31. I think Tesla made a good point when he said we are around a 50% dilution rate. This would put us at 480M shares. We may be a little higher around 500M. We should get an update in about 20 days in the 10Q.

I am not sure if we will get to a $1 or several dollars. I think the company will be worth several billion dollars at some point if their plans are completed. It depends on how many shares are issued but I think .20 should be easy to do. That is still an excellent return with the potential for much more.

In less than a month, we should get a 10Q. We will get to see what Atlas is worth, revenues from Atlas, liquidity and how much dilution has taken place etc.

Who is on the ask right now?

He tweeted yesterday that he is waiting for the TA to issue the shares. A form 3 will be filed once the shares are issued.

Yeah glad to share any information I find. Have been long and strong since late January. Plan on being a long term shareholder. I believe this will be worth a billion one day if everything is executed.

Shows the IDA has confidence in Medient's plans moving forward.

The are sinking some serious money into Medient's site. 800K for the well.

IDA approves a well for the Medient site.


http://beta.effinghamherald.net/section/22/article/25010/

Happy Easter! Looking forward to MDNT's move upward the rest of this year and beyond.

It will come out this summer believe me. It is in the 10k, activity guidance, twitter, being announced at Cannes. They would look extremely bad, lose their credibility and shareholders if they do not release. They are committed to that date.

Yeah agreed, I finally blocked him yesterday because I was getting tired of hearing the same thing over and over again...

How do you know he is shorting?

Yeah I agree. I did not expect him to dilute so aggressively. I thought he would dilute more slowly and allow the price to move higher. He obviously must have no choice, I doubt he wants to run his share price into the ground. I trust that this will stop at some point and make a nice run. We have held up reasonably well considering how aggressive the dilution has been.

I bet we are up around 500 OS now. I am thinking 520. This has been way more aggressive dilution than last time. I think they may be done since it has been so aggressive.

They will have their first studio up by December of this year according to Manu. That is the most important part because that will allow them to make movies and start bringing in revenue.


The Cusack movie was estimated at 10M budget and the other movie will probably only be a few million. So probably about 10-13 million to produce those movies. Yellow should be able to cover that and overhead as they have stated. I believe Medient is providing production services to some Bollywood film companies if you look at the activity guidance. That will bring in some revenue and do not forget Atlas. Plus my guess is that they raised 4-5 million this year with all the shares issued.

.

What article are you referring to?

This was in an article awhile back.

Said IDA Chairman Dennis Webb: “What we need to do is pass some kind of motion to keep the process rolling, to protect the IDA and the county and to put some dates certain and identify some of these dates that we’re going to change and some that can be flexible.”


http://beta.effinghamherald.net/section/22/article/24696/

I would think a little of both. Why else would he be in Dubai, Thailand, China, and Malaysia.

Manu gets back from his Worldwide trip next week. I am thinking that he probably at least finalized the technology agreements. Will be interesting to see if anything else positive occurred.

Did the V's show?

It says right in the filing receivables will be collected in 3rd quarter. Stop spreading misleading information.

LIQUIDITY

In 2012 and 2013 We generated revenues from the release of Storage 24, and the sale of prequel and sequel rights on the film. It is anticipated that accounts receivable therefrom will be paid to the Company in the third quarter of 2014.

Yeah that is correct. That is what he is responding to on twitter. The shares that will be issued at .064.

Who did you speak with?

Kumaran said Medient has a hybrid structure in place for financing, including short-term loans, “structuring” with Shore and bank financing.

http://savannahnow.com/effingham-now/2014-03-20/medient-hires-charleston-firm-contractor-movie-studio#.U0xKFyLD_IU


I wish Manu would tell us more about his financing arrangement for the Studioplex. If he has something viable in place as referred to in the article, it certainly would help investor confidence. He has proven trustworthy so far and so I believe he has a plan.

The CEO is Manu Kumaran. He has a twitter account where he answers investor questions.

I do not think DPS lets things like this get to him. He seems very even keel. If what he says is true, he is a multi-millionaire and does this for fun. So I am sure he does not let something like this ruin his week.

Yeah I agree it could happen sooner in anticipation of all the good news later this year. I just think when people see the Yellow revenues coming in, it will be hard to ignore MDNT at that point. This will become real in many peoples minds.