ATSI COMMUNICATIONS INC/DE
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v110358_ex10-1.htm
<TEXT>
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    <div>&#160;</div>
    <div>&#160;<img src="v110358_logo.jpg" alt="">&#160;<br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
      10.1</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AMENDMENT
      TO ACCOUNT TRANSFER AGREEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Amendment dated this 26</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      day of
      March, 2008, shall modify that certain Account Transfer Agreement dated
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>December
      6, 2007</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      as
      amended (the &#8220;Agreement&#8221;) by and between Wells Fargo Bank, National Association
      acting through its Wells Fargo Business Credit operating division (&#8220;WFBC&#8221;) and
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Digerati
      Networks, Inc. </u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(&#8220;Customer&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      good
      and valuable consideration the receipt and sufficiency of which is hereby
      acknowledged, WFBC and Customer agree as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sections
      1, 5 and 10 of the Agreement are deleted in its entirety and replaced with
      the
      following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;1.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Offer
      of Accounts</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      At its
      election from time to time during the term of this Agreement, Seller agrees
      to
      offer for sale to WFBC certain of its accounts arising out of sales of goods,
      or
      services rendered, by Seller, and to sell to WFBC no less than $350,000 nor
      more
      than $5,000,000 a month, of such accounts on the terms set forth in this
      Agreement such of the offered accounts as WFBC may accept for purchase. WFBC
      shall have the absolute right in its sole discretion to reject any or all
      offered accounts, whether or not WFBC has previously purchased accounts of
      any
      particular account debtor hereunder. The parties agree that without the prior
      consent of WFBC, the maximum face amount of accounts that WFBC may purchase
      hereunder at any time, together with the then outstanding face amount of
      outstanding accounts previously purchased by WFBC from Seller hereunder, will
      not exceed Five Million Dollars and no cents ($5,000,000.00), (the &#8220;Maximum
      Credit Facility&#8221;). WFBC&#8217;s consent to purchase accounts in excess of such amount
      may be evidenced by WFBC&#8217;s acceptance for purchase of such offered
      accounts.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;5.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Fixed
      and Variable Discounts</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      For all
      domestic accounts, WFBC&#8217;s &#8220;Fixed Discount&#8221; means a discount of 0.0349% of the
      Net Amount of such account for accounts paid within 1 day and an additional
      0.0349% of the Net Amount of such account for each additional 1 day period
      that
      an account remains unpaid thereafter. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      all
      foreign accounts, WFBC&#8217;s &#8220;Fixed Discount&#8221; means a discount of 1.02% of the Net
      Amount of such account for accounts paid within 1 day and an additional 0.0349%
      of the Net Amount of such account for each additional 1 day period that an
      account remains unpaid thereafter. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -1.15pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Termination
      Fee</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      If the
      Agreement is terminated by WFBC upon the occurrence of an Event of Default,
      or
      is terminated by Seller, in view of the impracticability and extreme difficulty
      of ascertaining actual damages and by mutual agreement of the parties as to
      a
      reasonable calculation of WFBC's lost profits as a result thereof, in addition
      to payment of all principal, interest, fees, expenses and other Obligations,
      Seller shall pay WFBC upon the effective date of such termination a fee in
      an
      amount equal to three-tenths percent (0.3%) of the Maximum Credit Facility
      plus
      the then outstanding principal balance of any Advances under this Credit
      Facility. Such fee shall be presumed to be the amount of damages sustained
      by
      WFBC as the result of termination and Seller acknowledges that it is reasonable
      under the circumstances </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">currently
      existing.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;<img src="v110358_logo.jpg" alt="">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;10.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: -8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Representations,
      Warranties and Covenants of Seller.</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Seller
      hereby represents and warrants to WFBC with respect to each account offered
      by
      Seller to WFBC hereunder that (i) Seller is the sole owner of such account,
      which account is free and clear of any liens, claims, equities or encumbrances
      whatsoever, and upon each purchase by WFBC of such account, WFBC will own such
      account free and clear of any liens, claims, equities or encumbrances whatsoever
      and the consideration received by Seller from WFBC for such account is fair
      and
      adequate, (ii) Seller is the sole oblige under such account, and has full power
      and is duly authorized to sell, assign and transfer such account to WFBC
      hereunder, and the date of sale of such account is not more than</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60
      days
      after the date of the original invoice relating to such account, (iii) Seller
      has no knowledge of any fact which would lead it to expect that, at the date
      of
      sale of such account to WFBC, such account will not be paid in the
      full</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">stated
      amount when due, (iv) such account arises out of a bona fide sale of conforming
      goods or the bona fide rendition of services by Seller, and all underlying
      goods
      have been delivered to the account debtor, or all underlying services have
      been
      rendered by Seller, in complete fulfillment of all of the terms and conditions
      of a fully executed, delivered and unexpired contract with the account debtor,
      and the account debtor has accepted the goods or services to which
      the</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">account
      relates, (v) unless WFBC agrees to the contrary in writing, such account
      is</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">denominated
      and payable only in United States</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">dollars,
      (vi) such account constitutes the legal, valid and binding payment obligation
      of
      the account debtor, enforceable in accordance with its terms (except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, or other similar laws affecting the enforcement
      of
      creditor&#8217;s rights generally), (vii) such account is current and not past due,
      has not been paid by or on behalf of the account debtor in whole or in part,
      and
      is not and will</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">not
      be
      subject to any dispute, rescission, set-off, recoupment, defense or claim by
      the
      account debtor, whether relating to price, quality, workmanship, delay in
      delivery, set-off, counterclaim or otherwise, and the account debtor has not
      and
      will not claim any defense of any kind or character (other than
      bankruptcy</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or
      insolvency arising after the date of sale of such account to WFBC hereunder)
      against payment of such account, and (viii) as of the date of purchase by WFBC
      of such account the account debtor with respect to such account is not a debtor
      in any bankruptcy proceedings, insolvent, undergoing composition or adjustment
      of debts or unable to make payment of its obligations when due. Seller further
      represents and warrants to WFBC that (a) the execution, delivery and performance
      of this Agreement by Seller have been duly authorized and this Agreement
      constitutes the legal, valid and binding obligation of Seller, enforceable
      against Seller in accordance with its terms, (b) Seller is not a debtor in
      any
      bankruptcy proceedings, insolvent, undergoing composition or adjustment of
      debts
      or unable to make payment of its obligations when due and no petition in
      bankruptcy has been filed by or against Seller or any affiliate thereof, nor
      has
      Seller or any of its affiliates filed any petition seeking an arrangement of
      its
      debtors or for any other relief under the United States Bankruptcy Code (the
      &#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Bankruptcy
      Code&#8221;</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
      and no
      application for appointment of a receiver or trustee for all or a substantial
      part of the property of Seller or any affiliate thereof is pending, nor has
      Seller or any affiliate thereof made any assignment for the benefit of
      creditors, (c) Seller is not in default of any debt or obligation to any lender
      or other creditor, and (d) Seller&#8217;s principle place of business, chief executive
      office, location where the records concerning its books of account and contract
      rights are kept, and location of any property subject to the security interest
      granted in Section 7 hereof, unless changed upon notice to WFBC complying with
      the next following sentence and Section 15 of this Agreement, is its
&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Address
      for Notices</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
      described in Section 15 hereof, (e) Seller and each Guarantor is solvent, is
      able to pay its or his debts as they become due, and has no outstanding liens,
      suits, garnishments, bankruptcies, or court actions which could render it or
      him
      insolvent, (f) all federal, state, county, city, and other taxes, including
      without limitation, income taxes, payroll taxes, real estate taxes, and sales
      taxes which are due and owing by Seller have been paid, and by the execution
      hereof, Seller certifies that all future taxes, of any kind and character,
      will
      be paid when due. Seller agrees not to change the location of its principal
      place of business or chief executive office, the location where its records
      concerning its books of account or contract rights are kept, or the location
      of
      any property subject to the security interest granted in Section 7 hereof,
      without giving at least 15 days advance written notice thereof to
      WFBC.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;<img src="v110358_logo.jpg" alt="">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      representation and warranty of Seller contained in this Agreement shall be
      deemed to be made at and as of the date hereof and at and as of the date of
      each
      sale of accounts to WFBC hereunder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Seller
      agrees to indemnify and hold WFBC harmless against any breach by Seller of
      any
      representation, warranty or agreement of Seller contained in this Agreement,
      and
      against any claims or damages arising out of the manufacture, sale, possession
      or use of, or otherwise relating to, goods, or the performance of services,
      associated with or relating to accounts or related rights purchased (or with
      respect to which a security interest is granted) hereunder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Seller
      agrees to notify WFBC immediately of any breach by Seller of any representation,
      warranty or agreement of Seller contained herein or should any representation,
      warranty or agreement made herein become untrue or false at any time. Seller
      further agrees to notify WFBC immediately of the assertion by any account debtor
      of any dispute or other claim (including any defense or offset asserted by
      any
      account debtor) with respect to any account sold to WFBC hereunder, or with
      respect to any related goods or services. Upon WFBC&#8217;s request, Seller agrees to
      settle, at its own expense and for the benefit of WFBC any such dispute or
      claim
      upon such terms as WFBC may in its sole discretion deem advisable or (ii) to
      assign the related account to Seller, without recourse to WFBC, and</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">charge
      any unpaid balance with respect thereof (up to the amount of the Initial Payment
      with respect thereto and WFBC&#8217;s Discount and Fees (through the date of such
      change) with respect thereto) against any amounts withheld by WFBC from Reserves
      pursuant to Section 6 hereof or against such other funds, WFBC may require
      Seller to pay (and Seller hereby agrees to pay) to WFBC on demand any such
      unpaid balance. Seller agrees to notify WFBC in advance of the filing of any
      voluntary bankruptcy proceeding or any other voluntary insolvency
      proceeding.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;<img src="v110358_logo.jpg" alt="">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
      as
      specifically set forth herein, the Agreement is unchanged and is in full force
      and effect.</font></div>
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            <tr>
              <td align="left" colspan="3" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WELLS
                  FARGO BANK, NATIONAL </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSOCIATION</strong></font></strong></font></div>
              </td>
              <td align="left" valign="top" width="17%">&#160;</td>
              <td align="left" colspan="3" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Digerati
                  Networks, Inc </strong></font>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a
                    Texas Corporation</strong></font></div>
                </div>
              </td>
              <td align="left" valign="top" width="15%">&#160;</td>
            </tr>
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