Document:

f8k073012ex10vi_genesis.htm

Exhibit 10.6

 

Purchase and  Sale  Agreement

 

This  Purchase and  Sale  Agreement  ("PSA") is hereby made this 30th of July 2012,  by and among Genesis Group Holdings Inc. as "'Seller" and  Billy  Caudill as Purchaser concerning the stock  of Digital Comm  Inc. (the  "Company").

 

WHEREAS, Seller desires to sell  and  Purchaser desires to purchase 60% of the  common equity interest of the  Company for good and  valuable consideration;

 

WHEREAS, this PSA is intended to create obligations to proceed in a manner set  forth by this PSA.

 

WHEREAS, the  parties mutually agree that they  will continue to cooperate and execute such other and further documentation as is necessary to further the  intentions of the respective parties contained herein.

 

UNDERSTANDING OF THE  PARTIES AS FOLLOWS:

 

Basic  Premise for Agreement, Purchase Price; Payment of Consideration.

 

	
1.  

	

The  purchase price  for the  Purchased Shares (the  "Purchase Price")  shall be  as follows:

	
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$125,000 in the  form  of a Non·Recourse/ Unsecured Promissory Note from  Purchaser to Seller delivered at Closing in exchange for 60% of the  common stock  of the Company. The  Note may  be repaid from  proceeds of the  Seller's S·l Registration statement that will go to Purchaser.

	
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Purchaser shall be given  Series D Preferred Stock  in Seller in an  amount that shall equal the  amounts shown on the  books of the  Company owed to Regions Bank that are  secured by Purchaser's home.

	
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Seller shall retain a non·dilutable 40% interest in the  Company. Purchaser shall be permitted to take on a strategic partner or partners and  sell  up to 60% of the Company so long as same terms are  first offered  to Seller with 30 days' notice  to accept or pass.

	
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 Seller shall use its best  efforts to continue secure additional financing and/or lines of credit to support help  support the  Company.

	
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All of the  Company's future work  shall first be offered  to Seller on a subcontract

	
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basis. In the  event that Seller or its subsidiaries are  unable to provide necessary labor or if the  Seller declines to accept the  assignment offered  to fulfill the  needs of the  Company's customer, Buyer may fulfill  the  work  through third parties.

	
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All salaries, and  other employee compensation and  day  to day  operational expenses shall be determined by Purchaser and  Seller shall have  no control over  day  to day operations. Seller shall only  be the  exclusive avenue for processing work.

	
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5% of cash receipts, up to $50,000 maximum annually, shall be paid  to Seller for

	
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accounting and administrative services.

  

  

  

 

	
2.  

	

This PSA t ball be construed under the laws of the State of Florida and cannot be changed or modified except by an instrument in writing executed by the Parties.

 

	
7.  

	

This PSA constitutes the entire agreement between the P3rtiea with  respect to the subject matter of this PSA.

IN WITNESS HEREOF the Parties by their duly authorized representatives, have executed this PSA effective the date first above written.

 

	
Seller:

	  	
Purchaser:

	  	  	  
	
Genesis Group Holdings Inc.

	  	
Billy Caudill

	  	  	  
	
/s/ Lawrence Sands

	  	
/s/ Billy Caudill

	
Authorized Signatory:

	  	
Authorized Signatory:f8k073012ex10vii_genesis.htm

Exhibit 10.7

 

 

THE LOAN EVIDENCED BY THIS NOTE IS NON-RECOURSE. THIS NOTE IS SECURED  BY  STOCK  AND  THE  HOLDER  AGREES  TO  LOOK  ONLY  TO THAT STOCK  TO ENFORCE  ANY OBLIGATIONS  IN THE EVENT  OF DEFAULT.  THIS  NOTE  SHALL  BE  PAID  IN  FULL  NO  LATER  THAN  THE DATE OF ITS MATURITY.

PROM ISSORY NOTE

 

	$125,000.00 (U.S.)	September 13, 2012

 

FOR VALUE RECEIVED, on or before the Maturity Date (hereinafter defined), the undersigned Billy Caudill.,  (hereinafter collectively referred to as the "Borrower"), promises to pay to the order of Genesis Group Holdings Inc, its successors and/or assigns (hereinafter "Holder"), the principal sum set forth under this Promissory Note (the "Note") under the following terms and conditions:

 

1. Loan Amount and Period

 

i.         Loan  Amount:  Holder  shall  provide  Borrower  with  the  sum  of  One Hundred Twenty-Five Thousand Dollars ($125,000.00) (the "Loan"), which by execution hereof the first acknowledged as received by Borrower.

 

ii.        Security:  60% of the stock of Digital Comm Inc. This is a non-recourse loan. The Holder may only look to the Security for payment in the event of default.

 

2. Payment

 

i.         Maturity Date.   One year from the from the date hereof. (the "Maturity Date") from the receipt of each the funds the remaining unpaid portion of the initial principal loan of   One Hundred Twenty-Five Thousand Dollars ($125,000.000) as described in this Note, together with any and all accrued and unpaid interest and any and all costs and expenses, shall be due and payable.

 

ii.        Interest.  None

 

iii.     All payments under this Note shall be made to Holder or its order, in lawful money of the United States of America and in immediately available funds and delivered to Holder by check or wire transfer to an account designated by written instructions delivered by Holder to Borrower. All amounts due under this Note and the Security Agreement shall be payable without defense, set off or counterclaim.

 

  

  

  

 

3. Interest Rate

 

i.         Should an Event of Default (as defined below) occur, interest shall accrue at a rate of eighteen percent (18%) per annum on the total remaining balance which shall have been accelerated under the terms herein.  Interest shall be determined for each day by multiplying a daily interest factor (based on the annual interest rate then in effect divided by 360) by the unpaid principal balance of the principal amount outstanding under the Note for such day.

 

ii.        Notwithstanding any provision in this Note, the total liability for payments of interest and payments in the nature of interest, including all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of the State of Florida or the applicable laws of the United States of America, whichever shall be higher (the "Maximum Rate").

 

iii.       The undersigned does not intend or expect to pay nor does the Holder intend or expect to charge, accept or collect any interest under this Note greater than the Maximum Rate.

 

4. Application of Payment and Pre-Payment

 

This Note may be prepaid in whole or in part at any time without penalty. In the event that Holder conducts an S-1 Registration and raises in excess of $20,000,000 (and "Offering"). The Note may be satisfied by the Borrow from shares of stock issued to Borrower from the Offering.

 

5. Default, Penalties and Interest

 

Event of Default.  In the event Borrower fails to pay the entire remaining unpaid principal balance of this Note, together with any and all accrued and unpaid interest and costs on or before the Maturity Date or within three (3) business days after same is due, such action shall trigger a "Event of Default."  Upon an Event of Default Holder may pursue any and all remedies available to it under applicable law and Borrower shall be required to pay interest on the full outstanding Loan balance of principal and interest at an interest rate of eighteen percent (18%) per annum until paid in full.

6. No Waiver of Rights by Holder  Borrower recognizes that in case of any Event of Default, no extension, postponement, forbearance, delay or failure on the part of the Holder of this Note in the exercise of any power, right or remedy hereunder, under the Collateral Assignment or any other Loan Document or at law or in equity shall operate as a waiver thereof, nor shall a single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power, right or remedy.

7. Presentment for Payment; Demand; Consent and Waiver

i.     Borrower hereby:

 

  

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[a]  waives any right to immunity from any such action or proceeding and waives any immunity or exemption of any property, wherever located, from garnishment, levy, execution, seizure or attachment prior to or in execution of judgment, or sale under execution or other process for the collection of debts;

[b] waives any right to interpose any set-off or non-compulsory counterclaim or to plead laches or any statute of limitations as a defense in any such action or proceeding, and waives (to the extent lawfully waivable) all provisions and requirements of law for the benefit of any Borrower now or hereafter in force;

[c) submits to the jurisdiction of the state and federal courts in the State of Florida, County of Miami-Dade for purposes of any such action or proceeding and waive any claim that the same is an inconvenient forum; and

 

8. Costs. Indemnities And Expenses.

Borrower expressly agrees that the Holder shall not be required first to institute any suit or to exhaust its remedies against the undersigned or any other person or party to become liable hereunder or against any collateral or security for the  loan evidenced hereby, in order to enforce this Note.   Borrower shall be responsible for any fees and expenses incurred in enforcing the Note.

9. Governing Law/Jurisdiction and Venue.   This Note shall be governed by, and construed and enforced in accordance with the laws of the State of Florida.  Any suit involving any dispute or matter arising under this Note or relating to the enforcement or interpretation thereof, may only be brought in a the Judicial Circuit Court of Palm Beach County  which shall have exclusive  personal and subject matter jurisdiction  over  the dispute or matter.  Borrower hereby consent to the exercise of personal jurisdiction by any such court with respect to any such proceeding and waives any objection to venue or inconvenient forum.

10. Invalidity.  If any term, clause or provision of this Note shall be determined by any court to be illegal, invalid or unenforceable, the illegality, invalidity or unenforceability of such term, clause or provision shall not affect the legality, validity or enforceability of the remainder thereof or of any other term, clause or provision hereof, and this Note shall be construed and enforced as if such illegal, invalid or unenforceable term, clause or provision had not been contained herein, and all covenants, obligations and agreements shall be enforceable to the full extent permitted by law.

11. Interpretation.  If this Note is signed by more than one person, then the term "Borrower" as used in this Note shall refer to all such persons jointly and severally, and all promises, agreements, covenants, waivers, consents, representations, warranties and other provisions in this Note are made by and shall be binding upon each and every undersigned person, jointly and severally.  Whenever used in this Note, words in the singular include the plural, words in the plural include the singular, and pronouns of any gender include the other genders, all as may be appropriate.   Captions and paragraph headings in this Note are for convenience only and shall not affect its interpretation.

 

  

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12.       WAIVER OF JURY TRIAL.  BORROWER AND HOLDER HEREBY KNOWINGLY,  VOLUNTARILY AND  INTENTIONALLY WAIVES  THE  RIGHT EITHER MAY HAVE TO TRIAL BY JURY IN RESPECT TO ANY  LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN  CONNECTION WITH THIS NOTE AND ANY AGREEMENT CONTEMPLATED  TO BE EXECUTED IN CONJUNCTION  HEREWITH, OR  ANY  COURSE  OF  CONDUCT,  COURSE  OF DEALING, STATEMENTS, (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.  BORROWER ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL  IS  A  MATERIAL  INDUCEMENT  TO  THE  HOLDER  IN  EXTENDING CREDIT  TO  THE  BORROWER,  THAT  THE   HOLDER  WOULD  NOT  HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT BORROWER HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN  ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.

The failure of any witness to sign as witness or the failure of this Note to be notarized shall not affect the validity of this Note.  This Note is signed, sealed and delivered as of the date first written above.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

SIGNATURE PAGE TO FOLLOW

 

  

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BORROWER:

 

 

 

	 	By:	/s/ Billy Caudill 	 
	 	 	Billy Caudill	 

 

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