EXHIBIT 10.12


 


 





	
        GWIV

        



 


	 	 $400,000 PROMISSORY NOTE	Interest free if paid in full within 3 months  





 


FOR VALUE RECEIVED, Globalwise Investments
Inc., a Nevada corporation (the “Borrower”) with at least 32,000,000 common shares issued and outstanding, promises
to pay to JMJ Financial or its Assignees (the “Lender”) the Principal Sum along with the Interest Rate and any other
fees according to the terms herein. This Note will become effective only upon execution by both parties and delivery of the first
payment of Consideration by the Lender (the “Effective Date”).


 


The Principal Sum is $400,000 (four hundred
thousand) plus accrued and unpaid interest and any other fees. The Consideration is $360,000 (three hundred sixty thousand) payable
by wire (there exists a $40,000 original issue discount (the “OID”)). The Lender shall pay $100,000 of Consideration
upon closing of this Note. The Lender may pay additional Consideration to the Borrower in such amounts and at such dates as Lender
may choose in its sole discretion. The Principal Sum due to Lender shall be prorated
based on the Consideration actually paid by Lender (plus an approximate 10% original issue discount that is prorated based on the
Consideration actually paid by the Lender as well as any other interest or fees) such
that the Borrower is only required to repay the amount funded and the Borrower is not required to repay any unfunded portion of
this Note. The Maturity Date is one year from the Effective Date of each payment (the “Maturity Date”) and
is the date upon which the Principal Sum of this Note, as well as any unpaid interest and other fees, shall be due and payable.
The Conversion Price is the lesser of $1.50 or 70% of the lowest trade price in the 25 trading days previous to the conversion
(In the case that conversion shares are not deliverable by DWAC an additional 5% discount will apply; and if the shares are chilled
for deposit into the DTC system and only eligible for Xclearing deposit an additional 7.5% discount shall apply). Unless otherwise
agreed in writing by both parties, at no time will the Lender convert any amount of the Note into common stock that would result
in the Lender owning more than 4.99% of the common stock outstanding.


 


1.  ZERO Percent Interest
for the First Three Months. The Borrower may repay this Note at any time on or before 90 days from the Effective Date, after
which the Borrower may not make further payments on this Note prior to the Maturity Date without written approval from Lender.
If the Borrower repays the Note on or before 90 days from the Effective Date, the Interest Rate shall be ZERO PERCENT (0%).
 If Borrower does not repay the Note on or before 90 days from the Effective Date, a one-time Interest charge of 5% shall be
applied to the Principal Sum. Any interest payable is in addition to the OID, and that OID (or prorated OID, if applicable) remains
payable regardless of time and manner of payment by Borrower.


 


2.  Conversion. The Lender has
the right, at any time from 90 days after the Effective Date, at its election, to convert all or part of the outstanding and unpaid
Principal Sum and accrued interest (and any other fees) into shares of fully paid and non-assessable shares of common stock of
the Borrower as per this conversion formula: Number of shares receivable upon conversion equals the dollar conversion amount divided
by the Conversion Price. Conversions may be delivered to Borrower by method of Lender’s choice (including but not limited
to email, facsimile, mail, overnight courier, or personal delivery), and all conversions shall be cashless and not require further
payment from the Lender. If no objection is delivered from Borrower to Lender regarding any variable or calculation of the conversion
notice within 24 hours of delivery of the conversion notice, the Borrower shall have been thereafter deemed to have irrevocably
confirmed and irrevocably ratified such notice of conversion and waived any objection thereto. The Borrower shall deliver the shares
from any conversion to Lender (in any name directed by Lender) within 3 (three) business days of conversion notice delivery.


 


3.  Conversion Delays. If Borrower
fails to deliver shares in accordance with the timeframe stated in Section 2, Lender, at any time prior to selling all of those
shares, may rescind any portion, in whole or in part, of that particular conversion attributable to the unsold shares and have
the rescinded conversion amount returned to the Principal Sum with the rescinded conversion shares returned to the Borrower (under
Lender’s and Borrower’s expectations that any returned conversion amounts will tack back to the original date of the
Note). In addition, for each conversion, in the event that shares are not delivered by the fourth business day (inclusive of the
day of conversion), a penalty of $2,000 per day will be assessed for each day after the third business day (inclusive of the day
of the conversion) until share delivery is made; and such penalty will be added to the Principal Sum of the Note (under Lender’s
and Borrower’s expectations that any penalty amounts will tack back to the original date of the Note).


 


4.  Reservation of Shares. At
all times during which this Note is convertible, the Borrower will reserve from its authorized and unissued Common Stock to provide
for the issuance of Common Stock upon the full conversion of this Note. The Borrower will at all times reserve at least 800,000
shares of Common Stock for conversion.


 


5.  Piggyback Registration Rights.
The Borrower shall include on the next registration statement the Borrower files with SEC (or on the subsequent registration statement
if such registration statement is withdrawn) all shares issuable upon conversion of this Note. Failure to do so will result in
liquidated damages of 25% of the outstanding principal balance of this Note, but not less than $25,000, being immediately due and
payable to the Lender at its election in the form of cash payment or addition to the balance of this Note.


 


6.  Terms of Future Financings.
So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of any security with any term
more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided
to the Lender in this Note, then the Borrower shall notify the Lender of such additional or more favorable term and such term,
at Lender’s option, shall become a part of the transaction documents with the Lender. The types of terms contained in another
security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion
discounts, conversion lookback periods, interest rates, original issue discounts, stock sale price, private placement price per
share, and warrant coverage.






    	 



    	 



    
 


 


7.  Default. The following are
events of default under this Note: (i) the Borrower shall fail to pay any principal under the Note when due and payable (or payable
by conversion) thereunder; or (ii) the Borrower shall fail to pay any interest or any other amount under the Note when due and
payable (or payable by conversion) thereunder; or (iii) a receiver, trustee or other similar official shall be appointed over the
Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed
or discharged within sixty (60) days; or (iv) the Borrower shall become insolvent or generally fails to pay, or admits in writing
its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) the Borrower shall make
a general assignment for the benefit of creditors; or (vi) the Borrower shall file a petition for relief under any bankruptcy,
insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against the Borrower;
or (viii) the Borrower shall lose its status as “DTC Eligible” or the borrower’s shareholders shall lose the
ability to deposit (either electronically or by physical certificates, or otherwise) shares into the DTC System; or (ix) the Borrower
shall become delinquent in its filing requirements as a fully-reporting issuer registered with the SEC.


 


8.  Remedies. In the event of
any default, the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages, fees and other
amounts owing in respect thereof through the date of acceleration, shall become, at the Lender’s election, immediately due
and payable in cash at the Mandatory Default Amount. The Mandatory Default Amount means the greater of (i) the outstanding principal
amount of this Note, plus all accrued and unpaid interest, liquidated damages, fees and other amounts hereon, divided by the Conversion
Price on the date the Mandatory Default Amount is either demanded or paid in full, whichever has a lower Conversion Price, multiplied
by the VWAP on the date the Mandatory Default Amount is either demanded or paid in full, whichever has a higher VWAP, or (ii) 150%
of the outstanding principal amount of this Note, plus 100% of accrued and unpaid interest, liquidated damages, fees and other
amounts hereon. Commencing five (5) days after the occurrence of any event of default that results in the eventual acceleration
of this Note, the interest rate on this Note shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum
rate permitted under applicable law. In connection with such acceleration described herein, the Lender need not provide, and the
Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and the Lender may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and the
Lender shall have all rights as a holder of the note until such time, if any, as the Lender receives full payment pursuant to this
Section 8. No such rescission or annulment shall affect any subsequent event of default or impair any right consequent thereon.
Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Borrower’s failure to timely deliver
certificates representing shares of Common Stock upon conversion of the Note as required pursuant to the terms hereof.


 


9.  No Shorting. Lender agrees
that so long as this Note from Borrower to Lender remains outstanding, Lender will not enter into or effect “short sales”
of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of Borrower.
Borrower acknowledges and agrees that upon delivery of a conversion notice by Lender, Lender immediately owns the shares of Common
Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered
short sales.


 


10.  Assignability. The Borrower
may not assign this Note. This Note will be binding upon the Borrower and its successors and will inure to the benefit of the Lender
and its successors and assigns and may be assigned by the Lender to anyone of its choosing without Borrower’s approval.


 


11.  Governing Law. This Note
will be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to the conflict
of laws principles thereof. Any action brought by either party against the other concerning the transactions contemplated by this
Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State
of Florida. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.


 


12.  Delivery of Process by Lender
to Borrower. In the event of any action or proceeding by Lender against Borrower, and only by Lender against Borrower, service
of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made
by Lender via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise
delivering a copy of such process to the Borrower at its last known attorney as set forth in its most recent SEC filing.


 


13.  Attorney Fees. In the event
any attorney is employed by either party to this Note with regard to any legal or equitable action, arbitration or other proceeding
brought by such party for the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in
connection with any of the provisions of this Note, the prevailing party in such proceeding will be entitled to recover from the
other party reasonable attorneys' fees and other costs and expenses incurred, in addition to any other relief to which the prevailing
party may be entitled.


 


14.  Opinion of Counsel. In the
event that an opinion of counsel is needed for any matter related to this Note, Lender has the right to have any such opinion provided
by its counsel. Lender also has the right to have any such opinion provided by Borrower’s counsel.


 


15.  Notices. Any notice required
or permitted hereunder (including Conversion Notices) must be in writing and either personally served, sent by facsimile or email
transmission, or sent by overnight courier. Notices will be deemed effectively delivered at the time of transmission if by facsimile
or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.


 


[Signature Page to Follow]






    	 



    	 



    
 


 


 


	Borrower:	Lender:
	 	 
	 	 
	/S/ William Santiago	/s/ JMJ Financial
	William Santiago	JMJ Financial
	Globalwise Investments Inc.	Its Principal
	Chief Executive Officer & President	 
	 	 
	 	 
	 	 
	Date: 8/7/12	Date: 8/7/12


 


 





 


 


 


 





 


 


 


 


 


 


 


 


[Signature Page to $400,000 Promissory
Note]