Document:

Exhibit 10.59

 

IN THE CIRCUIT COURT
IN THE TWELFTH JUDICIAL CIRCUIT

IN AND FOR SARASOTA COUNTY, FLORIDA

 

CIVIL ACTION NO.

2014 CA 000899

IBC Funds, LLC,

a Nevada Limited Liability Company,

Plaintiff,

 

-against-

 

 

Epazz, Inc.,

a Illinois Corporation,

Defendant.

                                                                                                             /

 

ORDER GRANTING APPROVAL
OF

SETTLEMENT AGREEMENT AND STIPULATION

 

This
matter having come on for a hearing on the 14th day of February, 2014, to approve the Settlement Agreement entered into as of February
12, 2014 between Plaintiff, IBC Funds, LLC ("Plaintiff') and Defendant, Epazz, Inc. ("Defendant" and collectively
with Plaintiff, the "Parties"), and the Court having held a hearing as to the fairness of the terms and conditions of
the Settlement Agreement and Stipulation and being otherwise fully advised in the premises, the Court hereby finds as follows:

 

1.               The
Court has been advised that the Parties intend that the sale of the Shares (as

defined by the Settlement Agreement and, hereinafter, the "Shares") to and the resale of the Shares by Plaintiff in the
United States, assuming satisfaction of all other applicable securities laws and regulations, will be exempt from registration
under the Securities Act of 1933 (the "Securities Act") in reliance upon Section 3(a)(10) of the Securities Act based
upon this Court's finding herein that the terms and conditions of the issuance of the Shares by Defendant to Plaintiff are fair
to Plaintiff;

 

 

 

    	1

    	 

    

 

2.            
The hearing having been scheduled upon the consent of Plaintiff and Defendant, Plaintiff has had adequate notice of the
hearing and Plaintiff is the only party to whom Shares will be issued pursuant to the Settlement Agreement;

 

3.            
The terms and conditions of the issuance of the Shares in exchange for the release of certain claims as set forth in the
Settlement Agreement are fair to Plaintiff, the only party to whom the Shares will be issued;

 

4.            
The fairness hearing was open to Plaintiff. Plaintiff was represented by counsel at the hearing who acknowledged that adequate
notice of the hearing was given and consented to the entry of this Order.

 

It
is hereby ORDERED AND ADJUDGED that the Settlement Agreement and Stipulation is hereby approved as fair to the party to whom the
Shares will be issued, within the meaning of Section 3(a)(10) of the Securities Act and that the sale of the Shares to Plaintiff
and the resale of the Shares in the United States by Plaintiff, assuming satisfaction of all other applicable securities laws and
regulations, will be exempt from registration under the Securities Act of 1933.

 

 

 

Conformed copies to:

Charles N. Cleland, Jr., Esq.

Michael G. Brown, Esq.

 

 

    	2Exhibit 10.60

 

ST GEORGE INVESTMENTS LLC

303 EAST WACKER DRIVE, SUITE 1200

CHICAGO, IL 60601

 

 

September
24, 2014

 

VIA EMAIL

 

Epazz, Inc.

Attn: Shaun Passley

205 W. Wacker Dr., Suite 1320

Chicago, IL 60606

email: shaun@epazz.net

 

RE:       DEFAULT NOTICE 

 

Dear Mr. Passley:

 

I write in connection with
that certain Convertible Promissory Note dated September 5,2013 issued by Epazz, Inc., an Illinois corporation (the "Borrower"),
in favor of St George Investments LLC, a Utah limited liability company (the "Holder"), in the original principal
amount of $56,900.00 (the "Note"), and that certain Note Purchase Agreement dated September 5,2013 by and between
the Borrower and the Holder (the "Agreement"). Capitalized terms used in this letter without definition shall
have the meanings given to them in the Note.

 

Events of Default

 

Section 3.10) of the Note requires
the Borrower to comply with the reporting requirements of the Securities Exchange Act of 1934. The Borrower was required to file
their Form 10-K for the period ending December 31,2013 on or before March 31,2014 (the "Form 10-K Filing Due Date").
The Borrower did not file their Form 10-K until July 18, 2014. As a result of the Borrower's failure to file their Form 10-K for
the period ending December 31, 2013 by the Form 10-K Filing Due Date, an Event of Default has occurred under the Note as of March
31, 2014 (the "Filing Default Date").

 

Additionally, pursuant to Section
3.1(a) of the note, the Borrower was required to pay the Outstanding Balance of the Note on June 5,2014 (the "Maturity Date").
The Borrower failed to pay the Outstanding Balance of the Note by the Maturity Date, nor has it been paid as of the date of this
letter. As a result of the Borrower's failure to repay the Note on the Maturity Date, a second Event of Default occurred under
the Note as of June 5, 2014 (the "Payment Default Date").

 

Default Effects

 

In accordance with Section 3.2
of the Note, upon the occurrence of any Event of Default, (a) the Outstanding Balance shall increase to 150% of the Outstanding
Balance immediately prior to the occurrence of the Event of Default (the "Balance Increase"), and (b) this Note shall
then accrue interest at the Default Interest rate of 22% per annum; provided, however, that in no event shall the Balance Increase
be applied more than two times.

 

The Outstanding Balance of the
Note immediately prior to the Filing Default Date (before applying the first of two Balance Increases) was $44,488.14. After applying
the Balance Increase to the Outstanding Balance, the Outstanding Balance increased to $66,732.21 ($44,488.14 x 150%). The Outstanding
Balance of the Note immediately prior to the Payment Default Date (before applying the second of two Balance Increases) was $69,445.75.
After applying the Balance Increase to the Outstanding Balance, the

 

 

    	1

    	 

    

 

ST GEORGE INVESTMENTS LLC

303 EAST WACICER DRIVE, SUITE 1200

CHICAGO, IL 60601

 

 

 

Outstanding
Balance increased to $104,168.63 ($69,445.75 x 150%). Additionally, the Outstanding
Balance of the Note began accruing interest at 22% per annum on April 1,2014.

 

Late Clearing Adjustment Amount

 

On March 7,2014 (the "Conversion
Date"), the Holder delivered a Notice of Conversion to the Borrower in which the Holder elected to convert $15,000.00
of the Outstanding Balance of the Note into 125,000,000 shares of the Borrower's Common Stock (the "Conversion
Shares").

 

Pursuant to Section 1.6(g) of
the Note, if the Holder delivers a Notice of Conversion and the Conversion Shares are delivered to Holder or its broker, but it
takes longer than five (5) business days after such delivery for such Conversion Shares to be electronically cleared for trading
in Holder's brokerage account, then the Late Clearing Adjustment Amount (as defined below) shall be added to the Outstanding Balance
of this Note. The "Late Clearing Adjustment Amount" is the amount equal to
the number of applicable Conversion Shares multiplied by the excess, if any, of (1) the Trading Price of the Common Stock on the
Conversion Date, over (2) the Trading Price of the Common Stock on the date the certificated DTC Eligible Conversion Shares are
electronically cleared for trading in the Holder's brokerage account.

 

The 125,000,000 Conversion Shares
were not cleared for trading until September 10,2014 (the "Clearing Date"). The
Trading Price of the Common Stock on the Conversion Date was $0.0003, while the Trading Price of the Common Stock on the Clearing
Date was $0.0001. As a result of the Trading Price of the Common Stock being lower on the Clearing Date than on the Conversion
Date, the Outstanding Balance of the Note increased by the Late Clearing Adjustment Amount of $25,000.00 (125,000,000 Conversion
Shares * ($0.0003 - $0.0001)) on September 10, 2014.

 

As of the date of this letter, the Outstanding
Balance of the Note is $136,737.76.

 

Notwithstanding anything to
the contrary herein, the Holder reserves all rights and remedies available to it under the Note and the other Transaction Documents
with respect to any Event of Default thereunder. Moreover, any failure or delay by the Holder to exercise any right, power, or
remedy shall not constitute a waiver of such right, power, or remedy. If there are any inconsistencies between this Notice and
the Transaction Documents, the Transaction Documents shall govern.

 

If you have any questions,
please contact me at jfife@chicagoventure.com or at (312) 297-7001 or Tina Saxton at tsaxton@chicagoventure.com or at (312) 297-7018.

 

 

 

[SIGNATURE PAGE TO FOLLOW]

 

 

 

 

    	2

    	 

    

 

ST GEORGE INVESTMENTS LLC

303 EAST WACKER DRIVE, SUITE 1200

CHICAGO, IL 60601

 

 

 

	 	Sincerely,
	 	 
	 	ST GEORGE INVESTMENTS LLC
	 	 
	 	By: Fife Tradin Inc., Manager
	 	 
	 	By: /s/ John M Fife                               
	 	John M Fife, President

 

 

		cc:	J. Hansen — Hansen Black Anderson Ashcraft PLLC (via email only)

 

 

 

    	3Exhibit 10.1 Restricted Stock Unit Agreement - Thomas J. Felmer

Exhibit 10.1

BRADY CORPORATION
RESTRICTED STOCK UNIT AGREEMENT

Upon management’s recommendation, the Management Development and Compensation Committee (the “Committee”) of the Brady Corporation Board of Directors has awarded to Thomas J. Felmer (“Employee”) a restricted stock unit award effective October 1, 2014 pursuant to the terms of the Brady Corporation 2012 Omnibus Incentive Stock Plan (the “Plan”). The Corporation’s records shall be the official record of the grant described herein and, in the event of any conflict between this description and the Corporation’s records, the Corporation’s records shall control.
		
	1.
	Number of Units

This Restricted Stock Unit Award applies to 5,000 shares of the presently authorized Class A Nonvoting Common Stock of the Corporation, $.01 par value (the “Restricted Stock Units”).  The Restricted Stock Units granted under this Agreement are units that will be reflected in a book account maintained by the Corporation until they become vested or have been forfeited. 
		
	2.
	Service Vesting Requirement

The vesting of this Award (other than pursuant to accelerated vesting in certain circumstances as provided in Section 3 below) shall be subject to the satisfaction of the condition set forth in Section 2(a) below: 
		
	(a)
	Vesting.  The Award shall be subject to the following service vesting requirement.  If the Employee continues in employment through the vesting dates listed below, the Restricted Stock Units shall be vested as listed in the following table: 

	
		
	 
	Cumulative Percentage of

	Vesting Date
	Vested Restricted Stock Units

	 
	 

	First anniversary of grant date
	33-1/3%

	Second anniversary of grant date
	66-2/3%

	Third anniversary of grant date
	100%

		
	(b)
	Forfeiture of Restricted Stock Units.  Except as provided in Section 3, if the Employee terminates employment prior to the satisfaction of the vesting requirement set forth in Section 2(a) above, the Restricted Stock Units shall immediately be forfeited.  The period of time during which the Restricted Stock Units covered by this Award are forfeitable is referred to as the “Restricted Period.”

		
	3.
	Accelerated Vesting 

		
	(a)
	Notwithstanding the terms and conditions of Section 2 hereof, in the event of the termination of the Employee’s employment with the Corporation (and any Affiliate) prior to the end of the Restricted Period due to death or Disability, or due to termination by the Corporation without Cause, the Restricted Stock Units shall become fully vested.  

		
	(b)
	In the event of the termination of the Employee’s employment with the Corporation (and any Affiliate) prior to the end of the Restricted Period due to a Change in Control, the Restricted Stock Units shall become unrestricted and fully vested.

For purposes of this Agreement, a “Change of Control” shall occur if any person or group of persons (as defined in Section 13(d)(3) of the Securities and Exchange Act of 1934) other than the members of the family of William H. Brady, Jr. and their descendants, or trusts for their benefit, and the W. H. Brady Foundation, Inc., collectively, directly or indirectly controls in excess of 50% of the voting common stock of the Corporation.
For purposes of this Agreement, a termination due to Change of Control shall occur if within the 12 month period beginning with the date a Change of Control occurs (i) the Employee’s employment with the Corporation (and any Affiliate) is involuntarily terminated (other than by reason of death, disability or Cause) or (ii) the Employee’s employment with the Corporation (and any Affiliate) is voluntarily terminated by the Employee subsequent to (A) a 10% or more diminution 

in the total of the Employee’s annual base salary (exclusive of fringe benefits) and the Employee’s target bonus in comparison with the Employee’s total of annual base salary and target bonus immediately prior to the date the Change of Control occurs, (B) a significant diminution in the responsibilities or authority of the Employee in comparison with the Employee’s responsibility and authority immediately prior to the date the Change of Control occurs or (C) the imposition of a requirement by the Corporation that the Employee relocate to a principal work location more than 50 miles from the Employee’s principal work location immediately prior to the date the Change of Control occurs.
For purposes of this Agreement, Cause means (i) the Employee’s willful and continued failure to substantially perform the Employee’s duties with the Corporation (other than any such failure resulting from physical or mental incapacity) after written demand for performance is given to the Employee by the Corporation which specifically identifies the manner in which the Corporation believes the Employee has not substantially performed and a reasonable time to cure has transpired, (ii) the Employee’s conviction of or plea of nolo contendere for the commission of a felony, or (iii) the Employee’s commission of an act of dishonesty or of any willful act of  misconduct which results in or could reasonably be expected to result in significant injury (monetarily or otherwise) to the Corporation, as determined in good faith by the Committee.
		
	(c)
	In the event of (i) the merger or consolidation of the Corporation with or into another corporation or corporations in which the Corporation is not the surviving corporation, (ii) the adoption of any plan for the dissolution of the Corporation, or (iii) the sale or exchange of all or substantially all the assets of the Corporation for cash or for shares of stock or other securities of another corporation, the Restricted Stock Units shall become fully vested.  

		
	4.
	No Dividends

No dividends will be paid or accrued on any Restricted Stock Units during the Restricted Period.
		
	5.
	Settlement of Restricted Stock Units

As soon as practicable after Restricted Stock Units become vested, the Company shall deliver to the Employee one share of the Corporation's Class A Nonvoting Common Stock, $.01 par value ("Corporation Stock") for each Restricted Stock Unit which becomes vested.
		
	6.
	Transfer Restrictions

This Award is non-transferable and may not be assigned, pledged or hypothecated and shall not be subject to execution, attachment or similar process.  Upon any attempt to effect any such disposition, or upon the levy of any such process, the Award shall immediately become null and void and the Restricted Stock Units shall be forfeited.
		
	7.
	Withholding Taxes

The Corporation may require payment of or withhold any tax which it believes is payable as a result of the Restricted Stock Units becoming vested, and the Corporation may defer making delivery of the Corporation Stock until arrangements satisfactory to the Corporation have been made with regard to any such withholding obligations.  In lieu of part or all of any such payment, the Employee, in satisfaction of all withholding taxes (including, without limitation, Federal income, FICA (Social Security and Medicare) and any state and local income taxes) payable as a result of such vesting, may elect, subject to such rules and regulations as the Committee may adopt from time to time, to have the Corporation withhold that number of shares of Corporation Stock (valued at Fair Market Value on the date of vesting and rounded upward) required to settle such withholding taxes.
		
	8.
	Death of Employee

If the Restricted Stock Units shall vest upon the death of the Employee, the shares of Corporation Stock and any amounts in the Employee's Dividend Account shall be issued and paid to the estate of the Employee unless the Corporation shall have theretofore received in writing a beneficiary designation, in which event they shall be issued and paid to the designated beneficiary.
		
	9.
	Confidentiality, Non-Solicitation and Non-Compete 

As consideration for the grant of this Award, Employee agrees to, understands and acknowledges the following:
		
	(a)
	During Employee's employment with the Corporation and its Affiliates (the "Company"), the Company will provide Employee with Confidential Information relating to the Company, its business and clients, the disclosure or misuse of which would cause severe and irreparable harm to the Company. Employee agrees that all Confidential Information is and shall remain the sole and absolute property of the Company. Upon the termination of Employee's employment with the Company for any reason, Employee shall immediately return to the Company all documents and materials that contain or constitute Confidential Information, in any form whatsoever, 

including but not limited to, all copies, abstracts, electronic versions, and summaries thereof. Executive further agrees that, without the written consent of the Chief Executive Officer of the Corporation or, in the case of the Chief Executive Officer of the Corporation, without the written approval of the Board of Directors of the Corporation, Employee will not disclose, use, copy or duplicate, or otherwise permit the use, disclosure, copying or duplication of any Confidential Information of the Company, other than in connection with the authorized activities conducted in the course of Employee's employment with the Company. Employee agrees to take all reasonable steps and precautions to prevent any unauthorized disclosure, use, copying or duplication of Confidential Information.  For purposes of this Agreement, Confidential Information means any and all financial, technical, commercial or other information concerning the business and affairs of the Company that is confidential and proprietary to the Company, including without limitation,

		
	(i)
	information relating to the Company’s past and existing customers and vendors and development of prospective customers and vendors, including specific customer product requirements, pricing arrangements, payments terms, customer lists and other similar information;

		
	(ii)
	inventions, designs, methods, discoveries, works of authorship, creations, improvements or ideas developed or otherwise produced, acquired or used by the Company;

		
	(iii)
	the Company’s proprietary programs, processes or software, consisting of but not limited to, computer programs in source or object code and all related documentation and training materials, including all upgrades, updates, improvements, derivatives and modifications thereof and including programs and documentation in incomplete stages of design or research and development;

		
	(iv)
	the subject matter of the Company’s patents, design patents, copyrights, trade secrets, trademarks, service marks, trade names, trade dress, manuals, operating instructions, training materials, and other industrial property, including such information in incomplete stages of design or research and development; and

		
	(v)
	other confidential and proprietary information or documents relating to the Company’s products, business and marketing plans and techniques, sales and distribution networks and any other information or documents which the Company reasonably regards as being confidential.

		
	(b)
	Employee agrees that, without the written consent of the Chief Executive Officer of the Corporation, in the case of the Chief Executive Officer of the Corporation, without the written approval of the Board of Directors of the Corporation, Employee shall not engage in any of the conduct described in subsections (i) or (ii), below, either directly or indirectly, or as an employee, contractor, consultant, partner, officer, director or stockholder, other than a stockholder of less than 5% of the equities of a publicly traded corporation, or in any other capacity for any person, firm, partnership or corporation:

		
	(i)
	During the time of Employee's employment with Company, Employee will not: (A) perform duties as or for a Competitor; or (B) participate in the inducement of or otherwise encourage Company employees, clients, or vendors to currently and/or prospectively breach, modify, or terminate any agreement or relationship they have or had with Company.

		
	(ii)
	For a period of 12 months following the termination of Employee's employment with Company, Employee will not: (A) perform duties as or for a Competitor that are the same as or similar to the duties performed by Employee for the Company at any time during any part of the 24 month period preceding the termination of Employee's employment with Company; or (B) participate in the inducement of or otherwise encourage Company employees, clients, or vendors to currently and/or prospectively breach, modify, or terminate any agreement or relationship they have or had with Company during any part of the 24 month period preceding the termination of Employee's employment with Company.

For purposes of this Agreement, a Competitor shall mean any corporation, person, firm or organization (or division or part thereof) engaged in or about to become engaged in research and development work on, or the production and/or sale of, any product or service which is directly competitive with one with respect to which Employee acquired Confidential Information by reason of Employee's work with the Company.

		
	(c)
	Employee acknowledges and agrees that compliance with this Section 9 is necessary to protect the Company, and that a breach of any of this Section 9 will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law. In the event of a breach of this Section 9, or any part thereof, the Company, and its successors and assigns, shall be entitled to injunctive relief and to such other and further relief as is proper under the circumstances. The Company shall institute and prosecute proceedings in any Court of competent jurisdiction either in law or in equity to obtain damages for any such breach of this Section 9, or to enjoin Employee from performing services in breach of Section 9(b) during the term of employment and for a period of 12 months following the termination of employment. Employee hereby agrees to submit to the jurisdiction of any Court of competent jurisdiction in any disputes that arise under this Agreement.

		
	(d)
	Employee further agrees that, in the event of a breach of this Section 9, the Corporation shall also be entitled to recover the value of any amounts previously paid or payable or any shares (or the value of any shares) delivered or deliverable to Employee pursuant to any Company bonus program, this Agreement, and any other Company plan or arrangement.

		
	(e)
	Employee agrees that the terms of this Section 9 shall survive the termination of Employee's employment with the Company.

		
	(f)
	EMPLOYEE HAS READ THIS SECTION 9 AND AGREES THAT THE CONSIDERATION PROVIDED BY THE CORPORATION IS FAIR AND REASONABLE AND FURTHER AGREES THAT GIVEN THE IMPORTANCE TO THE COMPANY OF ITS CONFIDENTIAL AND PROPRIETARY INFORMATION, THE POST-EMPLOYMENT RESTRICTIONS ON EMPLOYEE'S ACTIVITIES ARE LIKEWISE FAIR AND REASONABLE. 

		
	10.
	Clawback  

This Award is subject to the terms of the Corporation's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of awards or any shares of Corporation Stock or other cash or property received with respect to the awards (including any value received from a disposition of the shares acquired upon payment of the awards). 
		
	11.
	Adjustment of Shares

The terms and provisions of this Award (including, without limitation, the terms and provisions relating to the number and class of shares subject to this Award) shall be subject to appropriate adjustment in the event of any recapitalization, merger, consolidation, disposition of property or stock, separation, reorganization, stock dividend, issuance of rights, combination or split-up or exchange of shares, or the like.
		
	12.
	Provisions of Plan Controlling

This Award is subject in all respects to the provisions of the Plan. In the event of any conflict between any provisions of this Award and the provisions of the Plan, the provisions of the Plan shall control, except to the extent the Plan permits the Committee to modify the terms of an Award grant and has done so herein. Terms defined in the Plan where used herein shall have the meanings as so defined. Employee acknowledges receipt of a copy of the Plan.
		
	13.
	Wisconsin Contract

This Award has been granted in Wisconsin and shall be construed under the laws of that state.
		
	14.
	Severability

Wherever possible, each provision of this Award will be interpreted in such manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions hereof.

IN WITNESS WHEREOF, the Corporation has granted this Award as of the day and year first above written.
BRADY CORPORATION

By: /s/ J. MICHAEL NAUMAN      
Name:  J. Michael Nauman    
Its: President and Chief Executive Officer       

EMPLOYEE'S ACCEPTANCE
I, Thomas J. Felmer, hereby accept the foregoing Award and agree to the terms and conditions thereof, including the restrictions contained in Section 9 of this Agreement.
EMPLOYEE:  THOMAS J. FELMER
Signature: /s/ THOMAS J. FELMER                      
Print Name:  Thomas J. Felmer

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