Document:

EXHIBIT 10.4

 

PROMISSORY NOTE

 

	US $10,000	June 12, 2013

 

FOR VALUE RECEIVED, the undersigned, Epazz, Inc.., an
Illinois corporation, ("Maker") hereby promises to pay to the order of Star Financial Corporation, Inc. ("Payee"),
the principal sum of Ten thousand dollars ($10,000), in lawful money in United States of America, which shall be legal tender,
bearing interest and payable as provided herein. This Promissory Note (this “Note” or “Promissory Note”)
has an effective date of May 16, 2013. This Note is to satisfy the outstanding fees owed to Payee by Maker as of the effective
date in consideration for services rendered by Payee to Maker for audit and review services performed. Payee will forever forgive
and discharge any difference between the outstanding balance of the fees owed to Payee by Maker as of the effective date of this
Note and the principal amount of this Note upon repayment of this Note in its entirety.

 

		1.	Interest on the unpaid balance of this Note shall bear interest at the rate of ten percent (10%) per annum, which interest
shall accrue from the effective date until the Maturity Date (as defined below), unless prepaid prior to such Maturity Date. All
past-due principal and interest (which failure to pay such amounts after a fifteen (15) day cure period, shall be defined herein
as an “Event of Default”) shall bear interest at the rate of fifteen percent (15%) per annum until paid in full (the
“Default Interest Rate”), with it being understood that Maker shall have an additional fifteen day cure periods during
the term of the Note before an Event of Default occurs. Upon an Event of Default, Payee may declare the entire amount of this Note
due and payable and shall be able to take whatever action available to it in law or equity to enforce its rights to collect an
additional $500 as liquidated damages in addition to the amounts owed pursuant to this Note. Interest will be computed on the basis
of a 360-day year.

 

		2.	The principal amount of this Note shall be due and payable on June 12, 2015 (the “Maturity Date”).

 

		3.	Loan Origination fee shall be two thousand dollars ($2,000), as deducted from principal proceeds of this note (Net proceeds
of $8,000).

 

		4.	This Note may be prepaid in whole or in part, at any time and from time to time, without premium or penalty.

 

		5.	If any payment of principal or interest on this Note shall become due on a Saturday, Sunday or any other day on which national
banks are not open for business, such payment shall be made on the next succeeding business day.

 

		6.	This Note shall be binding upon and inure to the benefit of the Payee named herein and Payee’s respective successors
and assigns. Each holder of this Note, by accepting the same, agrees to and shall be bound by all of the provisions of this Note.
Payee may assign this Note or any of its rights, interests or obligations to this Note without the prior written approval of Maker.

 

		7.	No provision of this Note shall alter or impair the obligation of Maker to pay the principal of and interest on this Note at
the times, places and rates, and in the coin or currency, herein prescribed.

 

		8.	The Maker will do or cause to be done all things reasonably necessary to preserve and keep in full force and effect its corporate
existence, rights and franchises and comply with all laws applicable to the Maker, except where the failure to comply could not
reasonably be expected to have a material adverse effect on the Maker. Failure to comply with this provision shall constitute an
Event of Default.

 

		9.	Notwithstanding anything to the contrary in this Note or any other agreement entered into in connection herewith, whether now
existing or hereafter arising and whether written or oral, it is agreed that the aggregate of all interest and any other charges
constituting interest, or adjudicated as constituting interest, and contracted for, chargeable or receivable under this Note or
otherwise in connection with this loan transaction, shall under no circumstances exceed the Maximum Rate.

 

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		10.	In the event the maturity of this Note is accelerated by reason of an Event of Default under this Note, any other agreement
entered into in connection herewith or therewith, or by voluntary prepayment by Maker or otherwise, then earned interest may never
include more than the Maximum Rate allowable by law, computed from the dates of each advance of the loan proceeds outstanding until
payment. If from any circumstance any holder of this Note shall ever receive interest or any other charges constituting interest,
or adjudicated as constituting interest, the amount, if any, which would exceed the Maximum Rate shall be applied to the reduction
of the principal amount owing on this Note, and not to the payment of interest; or if such excessive interest exceeds the unpaid
balance of principal hereof, the amount of such excessive interest that exceeds the unpaid balance of principal hereof shall be
refunded to Maker. In determining whether or not the interest paid or payable exceeds the Maximum Rate, to the extent permitted
by applicable law (i) any nonprincipal payment shall be characterized as an expense, fee or premium rather than as interest; and
(ii) all interest at any time contracted for, charged, received or preserved in connection herewith shall be amortized, prorated,
allocated and spread in equal parts during the period of the full stated term of this Note. The term "Maximum Rate" shall
mean the maximum rate of interest allowed by applicable federal or state law.

 

		11.	Except as provided herein, Maker and any sureties, guarantors and endorsers of this Note jointly and severally waive demand,
presentment, notice of nonpayment or dishonor, notice of intent to accelerate, notice of acceleration, diligence in collecting,
grace, notice and protest, and consent to all extensions without notice for any period or periods of time and partial payments,
before or after maturity, without prejudice to the holder. The holder shall similarly have the right to deal in any way, at any
time, with one or more of the foregoing parties without notice to any other party, and to grant any such party any extensions of
time for payment of any of said indebtedness, or to grant any other indulgences or forbearance whatsoever, without notice to any
other party and without in any way affecting the personal liability of any party hereunder. If any efforts are made to collect
or enforce this Note or any installment due hereunder, the undersigned agrees to pay all collection costs and fees, including reasonable
attorney's fees.

 

		12.	A copy of this Promissory Note signed by one party and faxed to another party shall be deemed to have been executed and delivered
by the signing party as though an original. A photocopy of this Promissory Note shall be effective as an original for all purposes.

 

		13.	This Note shall be construed and enforced under and in accordance with the laws of the State of Texas, without regard to choice-of-law
rules of any jurisdiction.

 

IN WITNESS WHEREOF, Maker has duly executed this Note as of
the day and year first written above.

 

	
        Epazz, INC.

         
	 	 
	/s Shaun Passley	 	June 12, 2013
	Shaun Passley	 	 
	Chief Executive Officer	 	 

 

 

    	2EXHIBIT 10.5

 

	
        EPAZ
	 	$300,000
    PROMISSORY NOTE	Interest free if paid in full within 3 months

 

FOR VALUE RECEIVED, Epazz, Inc., a Illinois corporation (the “Borrower”) with at least
1,200,000,000 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 $300,000 (three hundred
thousand) plus accrued and unpaid interest and any other fees. The Consideration is $270,000 (two hundred seventy thousand) payable
by wire (there exists a $30,000 original issue discount (the “OID”)). The Lender shall pay $30,000 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 $0.0018 or 60% 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 10% discount will apply; and if the shares are ineligible
for deposit into the DTC system and only eligible for Xclearing deposit an additional 5% discount shall apply; in the case of both
an additional cumulative 15% 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 12% 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 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 50,000,000
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.

 

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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.

 

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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]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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	Borrower:	 	Lender:	 
	 	 	 	 
	 	 	 	 
	/s/ Shaun Passley	 	/s/ Justin Keener	 
	Shaun Passley	 	JMJ Financial	 
	Epazz, Inc.	 	Its Principal	 
	Chief Executive Officer	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Date:  ____________________________________	 	Date:  ____________________________________	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to $300,000 Promissory
Note]

 

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