Replies to post #1607 on Elephant Talk Communications, Inc. (ETAK)

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As part of a binding letter agreement signed February 17, 2016, Cross River will wire transfer $8 million to ET no later than March 21, 2016, and will issue a $4 million short-term secured note in favor of ET for the balance of the purchase price. Cross River will use all possible efforts to complete a second advance payment to ET of $1.5 million before February 29, 2016, which, if paid, will serve to reduce the $8,000,000 cash payable, due upon closing. Effective as of the date of the Agreement, the existing Loan will be applied by ET towards to the purchase price of ValidSoft and will be non-refundable in the event that the ValidSoft sale transaction fails to close before 21 March 2016 (or at all) for reasons attributable to Cross River's failure to adhere to the terms of the Agreement, in which case such cash will be rolled into ET's PIPE placement.