Document:

Exhibit 4.01 - 11-24-14

Exhibit 4.01

SUPPLEMENTAL INDENTURE NO. 2
FROM
OGE ENERGY CORP.
TO
UMB BANK, N.A.
TRUSTEE
______________
DATED AS OF NOVEMBER 24, 2014
___________________________
SUPPLEMENTAL TO INDENTURE
DATED AS OF NOVEMBER 1, 2004

	TABLE OF CONTENTS

						
	 
	 
	 
	Page
	 

	 
	 
	 
	 
	 

	Parties
	1
	

	Recitals
	1
	

	 
	 
	 
	 
	 

	ARTICLE ONE
	 
	RELATION TO INDENTURE; DEFINITIONS
	1
	

	 

	 
	 
	 
	 
	 

	Section 1.01
	Integral Part of Indenture
	1
	

	Section 1.02
	Definitions; References to Articles and Sections; Terms referring to this Supplemental Indenture
	2
	

	 
	 
	 
	 
	 

	ARTICLE TWO
	 
	SECURITIES
	2
	

	 
	 
	 
	 
	 

	Section 2.01
	Designation and Principal Amount
	3
	

	Section 2.02
	Stated Maturity Date
	3
	

	Section 2.03
	Interest Payment Dates
	3
	

	Section 2.04
	Determination of Interest
	3
	

	Section 2.05
	Office for Payment
	4
	

	Section 2.06
	No Redemption or Sinking Fund Provisions
	4
	

	Section 2.07
	Authorized Denominations
	4
	

	Section 2.08
	Reopening of Series
	4
	

	Section 2.09
	Form of Security
	4
	

	 
	 
	 
	 
	 

	ARTICLE THREE
	 
	MISCELLANEOUS

	4
	

	 
	 
	 
	 
	 

	Section 3.01
	Recitals of fact, except as stated, are statements of the Company
	4
	

	Section 3.02
	Supplemental Indenture to be construed as a part of the Indenture
	5
	

	Section 3.03
	Trust Indenture Act to control; Severability of provisions contained in Supplemental Indenture and Securities
	5
	

	Section 3.04
	References to either party in Supplemental Indenture include successors or assigns
	5
	

	Section 3.05
	Provision for execution in counterparts; Table of Contents and descriptive headings of Articles not to affect meaning
	5
	

	 
	 
	 
	 
	 

	Exhibit A - Form of Security

SUPPLEMENTAL INDENTURE No. 2, made as of the 24th day of November, 2014, by and between OGE ENERGY CORP., a corporation duly organized and existing under the laws of the State of Oklahoma (the “Company”), and UMB BANK, N.A., a national banking association, as trustee (the “Trustee”):
WITNESSETH:
WHEREAS, the Company has heretofore executed and delivered its Indenture (hereinafter referred to as the “Indenture”), made as of November 1, 2004; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 1 dated as of November 4, 2004, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “5.00% Senior Notes, Series due November 15, 2014”; and
WHEREAS, Section 2.05 of the Indenture provides that debt securities shall be issued in series and that a Company Order shall specify the terms of each series; and
WHEREAS, the Company has this day delivered a Company Order setting forth the terms of a series of debt securities designated “Floating Rate Senior Notes, Series due November 24, 2017” (hereinafter sometimes referred to as the “Securities”); and
WHEREAS, Section 12.01 of the Indenture provides that the Company and the Trustee may enter into indentures supplemental thereto for the purposes, among others, of establishing the form of debt securities or establishing or reflecting any terms of any debt security and adding to the covenants of the Company; and
WHEREAS, the execution and delivery of this Supplemental Indenture No. ___ (herein, “this Supplemental Indenture”) have been duly authorized by a resolution adopted by the Board of Directors of the Company;
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
That in order to set forth the terms and conditions upon which the Securities are, and are to be, authenticated, issued and delivered, and in consideration of the premises of the purchase and acceptance of the Securities by the Holders thereof and the sum of one dollar duly paid to it by the Trustee at the execution of this Supplemental Indenture, the receipt whereof is hereby acknowledged, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective Holders from time to time of the Securities, as follows:
ARTICLE ONE
RELATION TO INDENTURE; DEFINITIONS

SECTION 1.01.Integral Part of Indenture.  This Supplemental Indenture constitutes an integral part of the Indenture.

SECTION 1.02.Definitions; References to Articles and Sections; Terms referring to this Supplemental Indenture.  For all purposes of this Supplemental Indenture:

(a)Capitalized terms used herein without definition shall have the meanings specified in the Indenture;
(b)All references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture; 
(c)The terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder” and “herewith” refer to this Supplemental Indenture; and
(d)The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.

“Bloomberg L.P.’s page “BBAM”” means the display that appears on Bloomberg L.P.’s page “BBAM” or any page as may replace such page on such service (or any successor service) for the purpose of displaying the London interbank offered rate for U.S. dollar deposits.
“Calculation Agent” means UMB Bank, N.A., or its successor appointed by us, acting as calculation agent.
“Interest Determination Date” means the second London Business Day immediately preceding the first day of the relevant Interest Period.
“Interest Period” means the period commencing on an interest payment date for the Securities (or, with respect to the initial Interest Period only, commencing on the issue date for the Securities) and ending on the day before the next succeeding interest payment date for the Securities.
“LIBOR” means, with respect to any Interest Period, the rate (expressed as a percentage per annum) for deposits in U.S. dollars for a three-month period commencing on the first day of that Interest Period and ending on the next interest payment date that appears on Bloomberg L.P.'s page "BBAM" as of 11:00 a.m. (London time) on the Interest Determination Date for that Interest Period. If such rate does not appear on Bloomberg L.P.'s page "BBAM" as of 11:00 a.m. (London time) on the Interest Determination Date for that Interest Period, LIBOR will be determined on the basis of the rates at which deposits in U.S. dollars for the Interest Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the London interbank market by four major banks in the London interbank market, which may include affiliates of one or more of the underwriters of the Securities, selected by the Company, at approximately 11:00 a.m., London time, on the Interest Determination Date for that Interest Period. The Calculation Agent will request the principal London office of each such bank to provide a quotation of its rate. If at least two such quotations are provided, LIBOR with respect to that Interest Period will be the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR with respect to that Interest Period will be the arithmetic mean

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 of the rates quoted by three major banks in New York City, which may include affiliates of one or more of the underwriters of the Securities, selected by the Company, at approximately 11:00 a.m., New York City time, on the Interest Determination Date for that Interest Period for loans in U.S. dollars to leading European banks for that Interest Period and in a principal amount of not less than $1,000,000. However, if fewer than three banks selected by the Company to provide quotations are quoting as described above, LIBOR for that Interest Period will be the same as LIBOR as determined for the previous Interest Period.
“London Business Day” means a day that is a business day and a day on which dealings in deposits in U.S. dollars are transacted, or with respect to any future date are expected to be transacted, in the London interbank market.
ARTICLE TWO
SECURITIES

SECTION 2.01Designation and Principal Amount.  There shall be a series of debt securities designated the “Floating Rate Senior Notes, Series due November 24, 2017” (the “Securities”).  The Securities shall be limited to $100,000,000 aggregate principal amount, except as provided in Section 2.08 hereof.

SECTION 2.02Stated Maturity Date.  Except as otherwise provided in Section 2.05 hereof, the principal amount of the Securities shall be payable on the stated maturity date of November 24, 2017.

SECTION 2.03Interest Payment Dates.  The Securities shall be dated their date of authentication as provided in the Indenture and shall bear interest from their date at the rate determined in accordance with Section 2.04 below payable quarterly in arrears on February 24, May 24, August 24 and November 24 of each year, commencing February 24, 2015.  The Regular Record Dates with respect to such interest payment dates shall be the fifteenth calendar prior to such interest payment date.  Principal and interest shall be payable to the persons and in the manner provided in Sections 2.04 and 2.12 of the Indenture.

SECTION 2.04Determination of Interest.    The Securities will bear interest for each quarterly Interest Period at a per annum rate determined by the Calculation Agent, subject to the maximum interest rate permitted by Oklahoma law or other applicable state law, as such law may be modified by United States law of general application. The interest rate applicable during each quarterly Interest Period will be equal to LIBOR on the Interest Determination Date for such Interest Period plus 0.55%. Promptly upon such determination, the Calculation Agent will notify the Company and the Trustee, if the Trustee is not then serving as the Calculation Agent, of the interest rate for the new Interest Period. The interest rate determined by the Calculation Agent, absent manifest error, shall be binding and conclusive upon the beneficial owners and holders of the Securities, the Company and the Trustee.

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Upon the request of a holder of the Securities, the Calculation Agent will provide to such holder the interest rate in effect on the date of such request and, if determined, the interest rate for the next Interest Period. 
The accrued interest for any period is calculated by multiplying the principal amount of a Security by an accrued interest factor. The accrued interest factor is computed by adding the interest factor calculated for each day in the period for which accrued interest is being calculated. The interest factor (expressed as a decimal rounded upwards if necessary) is computed by dividing the interest rate (expressed as a decimal rounded upwards if necessary) applicable to such date by 360.
All percentages resulting from any calculation of the interest rate on the Securities will be rounded, if necessary, to the nearest one-hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655) and 9.876544% (or .09876544) being rounded to 9.87654% (or .0987654)), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upwards)
SECTION 2.05Office for Payment.  The Securities shall be payable at the corporate trust office of the Trustee and at the offices of such paying agents as the Company may appoint by Company Order in the future.

SECTION 2.06No Redemption or Sinking Fund Provisions.  The Securities shall not be subject to redemption prior to maturity. The Securities shall not be subject to any sinking fund.

SECTION 2.07Authorized Denominations.  The Securities shall be issued in fully registered form without coupons in denominations of $1,000 and integral multiples thereof.

SECTION 2.08Reopening of Series.  The Securities may be reopened and additional notes of the Securities may be issued in excess of the limitation set forth in Section 2.01, provided that such additional notes will contain the same terms (except for the public offering price, issue date and, if applicable, the initial interest payment date) as the other Securities. Any such additional Securities, together with the other Securities, shall constitute a single series for purposes of the Indenture.

SECTION 2.09Form of Floating Rate Senior Note, Series due November 24, 2017.  The Securities shall initially be in the form attached as Exhibit A hereto.
ARTICLE THREE
MISCELLANEOUS

SECTION 3.01Recitals of fact, except as stated, are statements of the Company.  The recitals of fact herein and in the Securities (except the Trustee’s Certificate) shall be taken as statements of the Company and shall not be construed as made by the Trustee.

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SECTION 3.02Supplemental Indenture to be construed as a part of the Indenture.  This Supplemental Indenture shall be construed in connection with and as a part of the Indenture.

SECTION 3.03Trust Indenture Act to control; Severability of provisions contained in Supplemental Indenture and Securities.

(a)If any provision of this Supplemental Indenture limits, qualifies, or conflicts with another provision of the Indenture required to be included in indentures qualified under the Trust Indenture Act of 1939 (as enacted prior to the date of this Supplemental Indenture) by any of the provisions of Sections 310 to 317, inclusive, of said Act, such required provisions shall control.

(b)In case any one or more of the provisions contained in this Supplemental Indenture or in the debt securities issued hereunder should be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected, impaired, prejudiced or disturbed thereby.

SECTION 3.04References to either party in Supplemental Indenture include successors or assigns.  Whenever in this Supplemental Indenture either of the parties hereto is named or referred to, this shall be deemed to include the successors or assigns of such party, and all the covenants and agreements in this Supplemental Indenture contained by or on behalf of the Company or by or on behalf of the Trustee shall bind and inure to the benefit of the respective successors and assigns of such parties, whether so expressed or not.

SECTION 3.05Provision for execution in counterparts; Table of Contents and descriptive headings of Articles not to affect meaning.

(a)This Supplemental Indenture may be simultaneously executed in several counterparts, and all said counterparts executed and delivered, each as an original, shall constitute but one and the same instrument.

(b)The Table of Contents and the descriptive headings of the several Articles of this Supplemental Indenture were formulated, used and inserted in this Supplemental Indenture for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

[Signature page follows]

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IN WITNESS WHEREOF, OGE ENERGY CORP. has caused this Supplemental Indenture to be signed by its Treasurer, and attested by its Secretary or an Assistant Secretary, and UMB BANK, N.A., as Trustee, has caused this Supplemental Indenture to be signed by its President, a Vice President or an Assistant Vice President, and attested by its Secretary, an Assistant Secretary, a Vice President or an Assistant Vice President, all as of the date first above written.
	
					
	 
	 
	 
	OGE ENERGY CORP.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Charles B. Walworth

	 
	 
	 
	 
	Charles B. Walworth

	 
	 
	 
	 
	Treasurer

	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Patricia D. Horn
	 
	 
	 

	 
	Patricia D. Horn
	 
	 
	 

	 
	Secretary
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	UMB BANK, N.A., as Trustee

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Anthony P. Hawkins

	 
	 
	 
	 
	Anthony P. Hawkins

	 
	 
	 
	 
	Vice President

	 
	 
	 
	 
	 

	ATTEST:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Douglas G. Hare
	 
	 
	 

	 
	Douglas G. Hare
	 
	 
	 

	 
	Senior Vice President
	 
	 
	 

	 
	 
	 
	 
	 

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EXHIBIT A
FORM OF SECURITY
	
		
	REGISTERED
	REGISTERED

THIS SECURITY IS A GLOBAL SECURITY REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
OGE ENERGY CORP.
FLOATING RATE SENIOR NOTES, SERIES DUE NOVEMBER 24, 2017
	
		
	CUSIP / ISIN: 670837 AB9/US670837AB97
	NUMBER: R-1

	 
	 

	ORIGINAL ISSUE DATE(S): November 24, 2014
	PRINCIPAL AMOUNT(S):

	 
	$100,000,000

	 
	 

	INTEREST RATE: LIBOR plus 0.55% per annum
	MATURITY DATE: November 24, 2017

	 
	 

	INTEREST PAYMENT DATES: February 24, May 24, August 24 and November 24
	 

	 
	 

OGE ENERGY CORP., a corporation of the State of Oklahoma (the “Company”), for value received hereby promises to pay to CEDE & CO. or registered assigns, the principal sum of 
ONE HUNDRED MILLION DOLLARS ($100,000,000)

on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date (or if this Global Security has two or more Original Issue Dates, interest shall, beginning on each such Original Issue Date, begin to accrue for that part of the principal amount to which that Original Issue Date is applicable) set forth above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly in arrears on February 24, May 24, August 24 and November 24 in each year, commencing on February 24, 2015, at the rates per annum determined in accordance with the provisions specified below, until the principal hereof is paid or made available for payment. No interest shall accrue on the Maturity Date, so long as the principal amount of this Global Security is paid on the Maturity Date.  The interest so payable and punctually paid or duly provided for on any such Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest, which shall be the fifteenth calendar day next preceding such Interest Payment Date; provided that the first Interest Payment Date for any part of this Security, the Original Issue Date of which is after a Regular Record Date but prior to the applicable Interest Payment Date, shall be the Interest Payment Date following the next succeeding Regular Record Date; and provided that interest payable on the Maturity Date set forth above or, if applicable, upon repayment or acceleration, shall be payable to the Person to whom principal shall be payable.  Except as otherwise provided in the Indenture (as defined below), any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid to the Person in whose name this Security is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Security holders not more than fifteen days or fewer than ten days prior to such Special Record Date.  On or before 10:00 a.m., New York City time, or such other time as shall be agreed upon between the Trustee and the Depositary, of the day on which such payment of interest is due on this Global Security (other than maturity), the Trustee shall pay to the Depositary such interest in same day funds.  On or before 10:00 a.m., New York City time, or such other time as shall be agreed upon between the Trustee and the Depositary, of the day on which principal, interest payable at maturity and premium, if any, is due on this Global Security, the Trustee shall deposit with the Depositary the amount equal to the principal, interest payable at maturity and premium, if any, by wire transfer into the account specified by the Depositary.  As a condition to the payment, on the Maturity Date or upon repayment or acceleration, of any part of the principal and applicable premium of this Global Security, the Depositary shall surrender, or cause to be surrendered, this Global Security to the Trustee, whereupon a new Global Security shall be issued to the Depositary.
This Global Security is a global security in respect of a duly authorized issue of Floating Rate Senior Notes, Series due November 24, 2017 (the “Securities of this Series”, which term includes any Global Securities representing such Securities) of the Company issued and to be issued under an Indenture dated as of November 1, 2004 between the Company and UMB Bank, N.A. as trustee (the “Trustee”, which term includes any successor Trustee under the Indenture) (the “Indenture”).  Under the Indenture, one or more series of debt securities may be issued and, as used herein, the term “Securities” refers to the Securities of this Series and any other outstanding series of Securities.  Reference is hereby made to the Indenture for a more complete statement of the respective rights, limitations of rights, duties and immunities under the Indenture of the Company, the Trustee and the Security holders and of the terms upon which the Securities are and are to be 

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authenticated and delivered.  This Global Security has been issued in respect of the series designated on the first page hereof.
Each Security of this Series shall be dated and issued as of the date of its authentication by the Trustee and shall bear an Original Issue Date or Dates.  Each Security or Global Security issued upon transfer, exchange or substitution of such Security or Global Security shall bear the Original Issue Date or Dates of such transferred, exchanged or substituted Security or Global Security, as the case may be.
The Securities of this Series will bear interest for each quarterly Interest Period (as defined below) at a per annum rate determined by the Calculation Agent (as defined below), subject to the maximum interest rate permitted by Oklahoma law or other applicable state law, as such law may be modified by United States law of general application. The interest rate applicable during each quarterly Interest Period will be equal to LIBOR (as defined below) on the Interest Determination Date (as defined below) for such Interest Period plus 0.55%. Promptly upon such determination, the Calculation Agent will notify the Company and the Trustee, if the Trustee is not then serving as the Calculation Agent, of the interest rate for the new Interest Period. The interest rate determined by the Calculation Agent, absent manifest error, shall be binding and conclusive upon the beneficial owners and holders of the Securities of this Series, the Company and the Trustee.
Upon the request of a holder of the Securities of this Series, the Calculation Agent will provide to such holder the interest rate in effect on the date of such request and, if determined, the interest rate for the next Interest Period. 
The accrued interest for any period is calculated by multiplying the principal amount of a Security of this Series by an accrued interest factor. The accrued interest factor is computed by adding the interest factor calculated for each day in the period for which accrued interest is being calculated. The interest factor (expressed as a decimal rounded upwards if necessary) is computed by dividing the interest rate (expressed as a decimal rounded upwards if necessary) applicable to such date by 360.
All percentages resulting from any calculation of the interest rate on the Securities of this Series will be rounded, if necessary, to the nearest one-hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655) and 9.876544% (or .09876544) being rounded to 9.87654% (or .0987654)), and all dollar amounts used in or resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upwards).

“Bloomberg L.P.’s page “BBAM”” means the display that appears on Bloomberg L.P.’s page “BBAM” or any page as may replace such page on such service  (or any successor service) for the purpose of displaying the London interbank offered rate for U.S. dollar deposits.

“Calculation Agent” means UMB Bank, N.A., or its successor appointed by us, acting as calculation agent.

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“Interest Determination Date” means the second London Business Day immediately preceding the first day of the relevant Interest Period.
“Interest Period” means the period commencing on an interest payment date for the Securities (or, with respect to the initial Interest Period only, commencing on the issue date for the Securities ) and ending on the day before the next succeeding interest payment date for the Securities.
“LIBOR” means, with respect to any Interest Period, the rate (expressed as a percentage per annum) for deposits in U.S. dollars for a three-month period commencing on the first day of that Interest Period and ending on the next interest payment date that appears on Bloomberg L.P.'s page "BBAM" as of 11:00 a.m. (London time) on the Interest Determination Date for that Interest Period. If such rate does not appear on Bloomberg L.P.'s page "BBAM" as of 11:00 a.m. (London time) on the Interest Determination Date for that Interest Period, LIBOR will be determined on the basis of the rates at which deposits in U.S. dollars for the Interest Period and in a principal amount of not less than $1,000,000 are offered to prime banks in the London interbank market by four major banks in the London interbank market, which may include affiliates of one or more of the underwriters of the Securities, selected by the Company, at approximately 11:00 a.m., London time, on the Interest Determination Date for that Interest Period. The Calculation Agent will request the principal London office of each such bank to provide a quotation of its rate. If at least two such quotations are provided, LIBOR with respect to that Interest Period will be the arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR with respect to that Interest Period will be the arithmetic mean of the rates quoted by three major banks in New York City, which may include affiliates of one or more of the underwriters of the Securities, selected by the Company, at approximately 11:00 a.m., New York City time, on the Interest Determination Date for that Interest Period for loans in U.S. dollars to leading European banks for that Interest Period and in a principal amount of not less than $1,000,000. However, if fewer than three banks selected by the Company to provide quotations are quoting as described above, LIBOR for that Interest Period will be the same as LIBOR as determined for the previous Interest Period.
“London Business Day” means a day that is a business day and a day on which dealings in deposits in U.S. dollars are transacted, or with respect to any future date are expected to be transacted, in the London interbank market.
Interest payments for this Global Security shall be computed and paid on the basis of the actual number of days elapsed over a 360‐day year.  If any Interest Payment Date or date on which the principal of this Global Security is required to be paid is not a Business Day, then payment of principal, premium or interest need not be made on such date but may be made on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date or date on which the principal of this Global Security is required to be paid and, in the case of timely payment thereof, no interest shall accrue for the period from and after such Interest Payment Date or the date on which the principal of this Global Security is required to be paid.
The Securities of this Series shall not be subject to redemption prior to the Maturity Date.
The Company, at its option, and subject to the terms and conditions provided in the Indenture, will be discharged from any and all obligations in respect of the Securities (except for certain 

A-4

obligations including obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying agencies and hold monies for payment in trust, all as set forth in the Indenture) if the Company deposits with the Trustee money, U.S. Government Obligations which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, or a combination of money and U.S. Government Obligations, in any event in an amount sufficient, without reinvestment, to pay all the principal of and any premium and interest on the Securities on the dates such payments are due in accordance with the terms of the Securities.
If an Event of Default shall occur and be continuing, the principal of the Securities may be declared due and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modifications of the rights and obligations of the Company and the rights of the Security holders under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the outstanding Securities.  Any such consent or waiver by the Holder of this Global Security shall be conclusive and binding upon such Holder and upon all future Holders of this Global Security and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu thereof whether or not notation of such consent or waiver is made upon the Security.
As set forth in and subject to the provisions of the Indenture, no Holder of any Securities will have any right to institute any proceeding with respect to the Indenture or for any remedy thereunder unless such Holder shall have previously given to the Trustee written notice of a continuing Event of Default with respect to such Securities, the Holders of not less than a majority in principal amount of the outstanding Securities affected by such Event of Default shall have made written request and offered reasonable indemnity to the Trustee to institute such proceeding as Trustee and the Trustee shall have failed to institute such proceeding within 60 days; provided that such limitations do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal of and any premium or interest on this Security on or after the respective due dates expressed here.
No reference herein to the Indenture and to provisions of this Global Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Global Security at the times, places and rates and the coin or currency prescribed in the Indenture.
As provided in the Indenture and subject to certain limitations therein set forth, this Global Security may be transferred only as permitted by the legend hereto.
If at any time the Depositary for this Global Security notifies the Company that it is unwilling or unable to continue as Depositary for this Global Security or if at any time the Depositary for this Global Security shall no longer be eligible or in good standing under the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to this Global Security.  If a successor Depositary for this Global Security is not appointed by the Company within 90 days after the Company receives such notice or becomes 

A-5

aware of such ineligibility, the Company’s election to issue this Security in global form shall no longer be effective with respect to this Global Security and the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual Securities of this Series in exchange for this Global Security, will authenticate and deliver individual Securities of this Series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of this Global Security.
The Company may at any time and in its sole discretion determine that all Securities of this Series (but not less than all) issued or issuable in the form of one or more Global Securities need not be represented by such Global Security or Securities.  In such event, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual Securities of this Series in exchange for such Global Security, shall authenticate and deliver, individual Securities of this Series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such Global Security or Securities in exchange for such Global Security or Securities.
Under certain circumstances specified in the Indenture, the Depositary may be required to surrender any two or more Global Securities which have identical terms (but which may have differing Original Issue Dates) to the Trustee, and the Company shall execute and the Trustee shall authenticate and deliver to, or at the direction of, the Depositary a Global Security in principal amount equal to the aggregate principal amount of, and with all terms identical to, the Global Securities surrendered thereto and that shall indicate all Original Issue Dates and the principal amount applicable to each such Original Issue Date.
The Indenture and the Securities shall be governed by, and construed in accordance with, the laws of the State of Oklahoma.
Unless the certificate of authentication hereon has been executed by the Trustee, directly or through an Authenticating Agent by manual signature of an authorized officer, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.
All terms used in this Global Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise indicated herein.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.
	
					
	 
	 
	 
	OGE ENERGY CORP.

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	 

	 
	 
	 
	 
	Treasurer

A-6

	
					
	 
	 
	 
	 
	 

	 
	 
	 
	Attest:
	 

	 
	 
	 
	 
	Secretary

	 
	 
	 
	 
	 

	Dated:
	 
	 
	 

	 
	 
	 
	 
	 

	TRUSTEE'S CERTIFICATE
	 
	 
	 

	OF AUTHENTICATION
	 
	 
	 

	 
	 
	 
	 

	This Security is one of the Securities of the series herein designated, described or provided for in the within-mentioned Indenture.
	 
	 
	 

	 
	 
	 
	 
	 

	UMB BANK, N.A., as Trustee
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	 
	 

	 
	Authorized Officer
	 
	 
	 

	 
	 
	 
	 
	 

A-7

ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations.
	
					
	TEN COM - as tenants in common
	UNIF GIFT

	 
	MIN ACT - 
	 
	Custodian
	 

	 
	 
	(Cust)
	 
	(Minor)

	 
	 
	 
	 
	 

	TEN ENT - as tenants by the entireties
	Under Uniform Gifts to Minors

	 
	 
	 
	 
	 

	JT TEN - as joint tenants with right of survivor-
	 
	 
	 
	 

	ship and not as tenants in common
	 

	 
	State

Additional abbreviations may also be used
though not in the above list.
__________________

FOR VALUE RECEIVED the undersigned hereby sell(s),
assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER 
IDENTIFYING NUMBER OF ASSIGNEE
	
			
	 

	 

	 

	Please print or typewrite name and address

	including postal zip code of assignee

	 
	 

	the within debt security and all rights thereunder, hereby irrevocably constituting and appointing ________ attorney to transfer said debt security on the books of the Company, with full power of substitution in the premises.
	 

	 
	 
	 

	Dated:
	 
	 

	 
	 
	 

	 
	 
	NOTICE:  The signature to this assignment  must correspond with the name as written upon the  face of the within instrument in every particular, without alteration or enlargement or any change whatever.

A-8EXHIBIT 10.61

 

FORBEARANCE AGREEMENT

 

This Forbearance
Agreement (this “Agreement”) is entered into as of November 6, 2014 by and between St. George Investments
LLC, a Utah limited liability company (formerly known as St George Investments LLC, an Illinois limited liability company) (“Buyer”),
and Epazz, Inc., an Illinois corporation (the “Company”). Capitalized terms used in this Agreement without
definition shall have the meanings given to them in the Note (defined below).

 

A.            The Company previously sold and issued to Buyer that certain Convertible Promissory Note dated September 5, 2013 in the
original principal amount of $56,900.00 (the “Note”) pursuant to that certain Note Purchase Agreement
dated September 5, 2013 by and between Buyer and the Company (the “Purchase Agreement,” and together
with the Note and all other documents entered into in conjunction therewith, the “Transaction Documents”).

 

B.            As set forth in more detail in a certain Default Notice given by Buyer to the Company on September 24, 2014 (the “Default
Notice”), the Company failed to timely file its Form 10-K for the period ending December 31, 2013, which failure
constitutes an Event of Default under the Note (the “First Default”).

 

C.            As set forth in more detail in the Default Notice, the Company also failed to pay to Buyer the Outstanding Balance of the
Note that was due and payable on June 5, 2014 (the “Second Default,” and together with the First Default,
the “Defaults”).

 

D.            As a result of the First Default, the interest rate on the Outstanding Balance increased to 22% per annum as of April 1,
2014 and the Outstanding Balance also increased by 150% (the “First Balance Increase”).

 

E.            As a result of the Second Default, the Outstanding Balance again increased by 150% (the “Second Balance Increase,”
and together with the First Balance Increase, the “Balance Increases”).

 

F.            On October 14, 2014, Buyer submitted a Conversion Notice under the Note to the Company, pursuant to which Buyer requested
to receive 267,953 shares of the Company’s Common Stock, which conversion request will be withdrawn and a new conversion
request will be provided (the “Conversion Shares”).

 

G.            No new or additional consideration is being provided in connection with this Agreement other than the modification of terms
as provided herein.

 

H.            Buyer has agreed, subject to the terms, conditions and understandings expressed in this Agreement, to refrain and forbear
temporarily from exercising and enforcing remedies against the Company with respect to the Defaults as provided in this Agreement.

 

    	1

    	 

    

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.            Recitals and Definitions. Each of the parties hereto acknowledges and agrees that the recitals set forth above in
this Agreement are true and accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.

 

2.            Forbearance. Subject to the terms, conditions and understandings contained in this Agreement, Buyer hereby agrees
to refrain and forbear from exercising and enforcing its remedies under the Note, any of the Transaction Documents, or under applicable
laws, with respect to the Defaults (the “Forbearance”). For the avoidance of doubt, the Forbearance shall
only apply to the Defaults and not to any Events of Default that may occur subsequent to the date hereof or any Event of Default
(other than the Defaults) that occurred prior to the date hereof. Moreover, the Forbearance shall only apply to the extent and
for so long as the Company remains in compliance with the terms hereof and Buyer shall have no obligation to abide by the Forbearance
following any breach of this Agreement by the Company.

 

3.            Forbearance Terms. Each of Buyer and the Company agree to the following with respect to the Forbearance:

 

(a)            Delivery of Conversion Shares. The Company agrees to deliver the Conversion Shares in the manner prescribed in Section
1.4(d) of the Note as soon as possible following execution of this Agreement, but in no event later than the date that is three
(3) Trading Days from the date of this Agreement. For the avoidance of doubt, in order for the Conversion Shares to be deemed to
have been delivered to Buyer, (i) the Conversion Shares or certificate(s) representing the Conversion Shares must have been cleared
and approved for public resale by the compliance departments of Buyer’s brokerage firm and the clearing firm servicing such
brokerage, and (ii) the Conversion Shares must be held in the name of the clearing firm servicing Buyer’s brokerage firm
and must have been deposited into such clearing firm’s account for the benefit of Buyer.

 

(b)            Volume Restriction. Buyer agrees that, with respect to any Common Stock received under the Note, in any given calendar
week its Net Sales (as defined below) of such Common Stock shall not exceed the greater of (i) twenty percent (20%) of the Company’s
weekly dollar trading volume in such week (which, for purposes hereof, means the number of shares traded during such calendar week
multiplied by the volume weighted average price per share for such week), and (ii) $10,000 (the “Volume Restriction”).
For illustration purposes only, if the Company’s weekly dollar trading volume was $60,000 each week for three (3) weeks,
Buyer would be entitled to Net Sales of $12,000 per week. However, if the Company’s weekly dollar trading volume was $40,000
each week for three (3) weeks, Buyer would be entitled to Net Sales of $10,000 per week. For purposes of this Agreement, the term
“Net Sales” means the gross proceeds from sales of shares of Common Stock sold in a calendar week minus
the purchase price paid for any shares of Common Stock purchased in such week.

 

    	2

    	 

    

 

(c)            Breach of Volume Restriction.

 

(i)            Buyer agrees that in the event it breaches the Volume Restriction where its Net Sales of Common Stock during any calendar
week exceed the dollar volume it is permitted to sell in any calendar week (such excess, the “Excess Sales”)
pursuant to the Volume Restriction by 20% or less of the dollar volume of Common Stock it is permitted to sell in any calendar
week pursuant to the Volume Restriction, then in such event the Company shall be entitled to reduce the Outstanding Balance of
the Note (and if the Note has been paid in full, it may require Buyer to pay the cash sum of such amount to the Company) by an
amount equal to 100% of the Excess Sales upon delivery of written notice to Buyer setting forth its basis for such reduction.

 

(ii)           In the event Buyer’s Net Sales of Common Stock during any calendar week exceed the dollar volume it is permitted to
sell in any calendar week pursuant to the Volume Restriction by more than 20% but less than or equal to 50% of the dollar volume
of Common Stock it is permitted to sell in any calendar week pursuant to the Volume Restriction, then in such event the Company
shall be entitled to reduce the Outstanding Balance of the Note (and if the Note has been paid in full, it may require Buyer to
pay the cash sum of such amount to the Company) by an amount equal to 150% of the Excess Sales upon delivery of written notice
to Buyer setting forth its basis for such reduction.

 

(iii)          In
the event Buyer’s Net Sales of Common Stock during any calendar week exceed the dollar volume it is permitted to sell in
any calendar week pursuant to the Volume Restriction by more than 50% of the dollar volume of Common Stock it is permitted to
sell in any calendar week pursuant to the Volume Restriction, then in such event the Company shall be entitled to reduce the Outstanding
Balance of the Note (and if the Note has been paid in full, it may require Buyer to pay the cash sum of such amount to the Company)
by an amount equal to 200% of the Excess Sales upon delivery of written notice to Buyer setting forth its basis for such reduction
(this subpart (iii) collectively with subparts (i) and (ii), the “Outstanding Balance Reduction”).

 

For illustration purposes
only, if the Company’s weekly dollar trading volume was $60,000 for a calendar week, Buyer would be entitled to Net Sales
of up to $12,000 during that week. If Buyer’s Net Sales for such week were equal to $13,000, and Buyer had sold the maximum
number of shares it could within the Volume Restriction during each prior week, then in such event the Company would be entitled
to reduce the Outstanding Balance of the Note by $1,000 (($13,000 - $12,000) x 100%). Notwithstanding the foregoing or anything
the contrary herein or in the Note or the other Transaction Documents, the Outstanding Balance Reduction shall be the Company’s
sole and exclusive remedy in the event Buyer breaches the Volume Restriction and any such breach may not be used as a defense to
the Company’s performance of its obligations hereunder or under the Note or any other Transaction Document, including without
limitation its obligation to honor future Conversion Notices delivered by Buyer, or as a reason, justification or excuse for the
Company’s nonperformance of such obligations.

 

    	3

    	 

    

 

(iv)          Buyer agrees to authorize and instruct its broker to provide to the Company trading records related solely to Buyer’s
sales and purchases of the Company’s Common Stock on a weekly basis or such other interval as may be agreed to by Buyer’s
broker and the Company. The Company agrees that any such trading records from Buyer’s broker are and shall be conclusive
evidence as to Buyer’s compliance (or lack thereof) with the Volume Restriction. Accordingly, the Company acknowledges and
agrees that it will be responsible to monitor whether Buyer’s Net Sales exceed the dollar volume of Common Stock it is permitted
to sell in any calendar week pursuant to the Volume Restriction and further agrees to give written notice to Buyer in the event
it becomes aware of any excess sales of the Company’s Common Stock by Buyer in any given calendar week.

 

(d)            Future Conversions. The Company agrees that according to the terms of this Agreement and the Note, it will honor
all of Buyer’s future Conversion Notices under the Note in a timely manner and that it shall deliver shares of Common Stock
in the manner and as and when required pursuant to the Note following its receipt of Conversion Notices from Buyer. Any failure
to so honor Conversion Notices from Buyer shall be deemed a breach of this Agreement and an Event of Default under the Note.

 

4.            Ratification of the Note. The Note shall be and remains in full force and effect in accordance with its terms, and
is hereby ratified and confirmed in all respects. The Company acknowledges that it is unconditionally obligated to pay the remaining
balance of the Note and represents that such obligation is not subject to any defenses, rights of offset or counterclaims. Subject
to the terms of Section 5 below, notwithstanding the Balance Increases or whether any Events of Default have occurred under the
Note, the Company and Buyer agree that as of the date hereof, so long as the Company complies with the terms of this Agreement,
the Outstanding Balance of the Note will be deemed to be equal to $75,000.00 and a new conversion request for the Conversion Shares
will need to be provided following withdrawal of the prior conversion request, with interest accruing at the rate of eight percent
(8%) per annum, compounding daily, based on a 360-day year, commencing on the date hereof; provided, however, that in the
event the Company breaches any term or provision of this Agreement or any Event of Default occurs under the Note after the date
hereof, the parties agree that the terms of the Note would permit the full Balance Increases to apply upon the occurrence of such
an Event of Default and that in such event, any interest (if applicable, accruing at the default interest rate of twenty-two percent
(22%) per annum), fees or charges, if applicable, accrued and accruing thereafter shall be deemed to have began accruing on the
date any Event of Default occurred under the Note. For the avoidance of doubt, the Company may repay the Outstanding Balance of
the Note, as agreed upon in this Section 4, plus any accrued interest, fees, charges thereunder, at any time. No forbearance or
waiver other than as expressly set forth herein may be implied by this Agreement. Except as expressly set forth herein, the execution,
delivery, and performance of this Agreement shall not operate as a waiver of, or as an amendment to, any right, power or remedy
of Buyer under the Note or the Transaction Documents, as in effect prior to the date hereof.

 

5.            Failure to Comply. The Company understands that the Forbearance shall terminate immediately upon the occurrence of
any material breach of this Agreement or upon the occurrence of any Event of Default after the date hereof (or any Event of Default
other than the Defaults that occurred prior to the date hereof) and that in any such case, Buyer may seek all recourse available
to it under the terms of the Note, this Agreement, any other Transaction Document, or applicable law. For the avoidance of any
doubt, the termination of the Forbearance pursuant to this Section shall not terminate, limit or modify any other provision of
this Agreement (including without limitation Section 4 hereof).

 

    	4

    	 

    

 

6.            Representations, Warranties and Agreements. In order to induce Buyer to enter into this Agreement, the Company, for
itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:

 

(a)            The Company has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants
contained herein, all of which have been duly authorized by all proper and necessary action. No consent or approval of the Company,
and no consent, approval, filing or registration with or notice to any governmental authority is required as a condition to the
validity of this Agreement or the performance of any of the obligations of the Company hereunder.

 

(b)            Any Event of Default which may have occurred under the Note has not been, is not hereby, and shall not be deemed to be waived
by Buyer, expressly, impliedly, through course of conduct or otherwise except upon full satisfaction of the Company’s obligations
under this Agreement. The agreement of Buyer to refrain and forbear from exercising any rights and remedies by reason of any existing
default or any future default shall not constitute a waiver of, consent to, or condoning of, any other existing or future default.
For the avoidance of any doubt, the Forbearance described herein only applies to the Defaults, and shall not constitute a waiver
or forbearance of any other rights or remedies available to Buyer with respect to any other defaults under the Note or other breach
of the Transaction Documents by the Company.

 

(c)            All understandings, representations, warranties and recitals contained or expressed in this Agreement are true, accurate,
complete, and correct in all respects; and no such understanding, representation, warranty, or recital fails or omits to state
or otherwise disclose any material fact or information necessary to prevent such understanding, representation, warranty, or recital
from being misleading. The Company acknowledges and agrees that Buyer has been induced in part to enter into this Agreement based
upon Buyer’s justifiable reliance on the truth, accuracy, and completeness of all understandings, representations, warranties,
and recitals contained in this Agreement. There is no fact known to the Company or which should be known to the Company which the
Company has not disclosed to Buyer on or prior to the date hereof which would or could materially and adversely affect the understandings
of Buyer expressed in this Agreement or any representation, warranty, or recital contained in this Agreement.

 

(d)            Except as expressly set forth in this Agreement, the Company acknowledges and agrees that neither the execution and delivery
of this Agreement nor any of the terms, provisions, covenants, or agreements contained in this Agreement shall in any manner release,
impair, lessen, modify, waive, or otherwise affect the liability and obligations of the Company under the terms of the Note or
any of the other Transaction Documents.

 

    	5

    	 

    

 

(e)            The Company has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions
or causes of action of any kind or nature whatsoever against Buyer, directly or indirectly, arising out of, based upon, or in any
manner connected with, the transactions contemplated hereby, whether known or unknown, which occurred, existed, was taken, permitted,
or begun prior to the execution of this Agreement and occurred, existed, was taken, permitted or begun in accordance with, pursuant
to, or by virtue of any of the terms or conditions of the Transaction Documents. To the extent any such defenses, affirmative or
otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action exist or existed, such defenses,
rights, claims, counterclaims, actions and causes of action are hereby waived, discharged and released. The Company hereby acknowledges
and agrees that the execution of this Agreement by Buyer shall not constitute an acknowledgment of or admission by Buyer of the
existence of any claims or of liability for any matter or precedent upon which any claim or liability may be asserted.

 

(f)            The Company hereby acknowledges that it has freely and voluntarily entered into this Agreement after an adequate opportunity
and sufficient period of time to review, analyze, and discuss (i) all terms and conditions of this Agreement, (ii) any and all
other documents executed and delivered in connection with the transactions contemplated by this Agreement, and (iii) all factual
and legal matters relevant to this Agreement and/or any and all such other documents, with counsel freely and independently selected
by the Company (or had the opportunity to be represented by counsel). The Company further acknowledges and agrees that it has actively
and with full understanding participated in the negotiation of this Agreement and all other documents executed and delivered in
connection with this Agreement after consultation and review with its counsel (or had the opportunity to be represented by counsel),
that all of the terms and conditions of this Agreement and the other documents executed and delivered in connection with this Agreement
have been negotiated at arm’s-length, and that this Agreement and all such other documents have been negotiated, prepared,
and executed without fraud, duress, undue influence, or coercion of any kind or nature whatsoever having been exerted by or imposed
upon any party by any other party. No provision of this Agreement or such other documents shall be construed against or interpreted
to the disadvantage of any party by any court or other governmental or judicial authority by reason of such party having or being
deemed to have structured, dictated, or drafted such provision.

 

(g)            There are no proceedings or investigations pending or threatened before any court or arbitrator or before or by, any governmental,
administrative, or judicial authority or agency, or arbitrator, against the Company.

 

(h)            There is no statute, regulation, rule, order or judgment and no provision of any mortgage, indenture, contract or other
agreement binding on the Company, which would prohibit or cause a default under or in any way prevent the execution, delivery,
performance, compliance or observance of any of the terms and conditions of this Agreement and/or any of the other documents executed
and delivered in connection with this Agreement.

 

(i)            The terms and provisions of this Agreement and all other instruments and agreements entered into in connection herewith
are being given for full and fair consideration and exchange of value.

 

(j)            To the best of its belief, after diligent inquiry, the Company represents and warrants that, as of the date hereof, no other
Event of Default under the Note (nor any material breach by the Company under any of the other Transaction Documents) exists.

 

    	6

    	 

    

 

(k)            As a result of the Forbearance and the agreed upon Outstanding Balance set forth in Section 4 above, the Company acknowledges
that the Balance Increase described in Section 3.2 of the Note has not been applied with respect to any Events of Default. Accordingly,
such Balance Increase may still be applied to two (2) more Events of Default to the extent any Events of Default occur after the
date hereof or Buyer becomes aware of any Event of Default (other than the Defaults) that occurred prior to the date hereof; provided
that, for the avoidance of doubt, if the Balance Increases described in the recitals hereto are applied following any breach hereof,
such application of the Balance Increases shall count towards the limitation set forth in Section 3.2 of the Note.

 

7.            Headings. The headings contained in this Agreement are for reference purposes only and do not affect in any way the
meaning or interpretation of this Agreement.

 

8.            Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Illinois without regard to the principles of conflict of laws. Each party consents to and expressly agrees that the exclusive
venue shall be the courts in Illinois of any dispute arising out of or relating to this Agreement or any Transaction Document or
the relationship of the parties or their affiliates shall be in Cook County, Illinois. Without modifying the parties obligations
to resolve disputes hereunder or under any Transaction Document, each party hereto submits to the exclusive jurisdiction of any
state or federal court sitting in Cook County, Illinois in any proceeding arising out of or relating to this Agreement and agrees
that all Claims (as defined in Exhibit A) in respect of the proceeding may only be heard and determined in any such
court and hereby expressly submits to the exclusive personal jurisdiction and venue of such court for the purposes hereof and expressly
waives any claim of improper venue and any claim that such courts are an inconvenient forum. Each party hereto hereby irrevocably
consents to the service of process of any of the aforementioned courts in any such proceeding by the mailing of copies thereof
by registered or certified mail, postage prepaid, to its address as set forth in the Purchase Agreement, such service to become
effective ten (10) days after such mailing. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. To the extent the terms of the Transaction Documents conflict
with the foregoing provisions of this Section 7 and Section 8 below, the Company and Buyer agree that these provisions shall govern
and the terms of the Transaction Documents shall be amended as necessary to comply with the provisions of Sections 7 and 8 of this
Agreement.

 

9.            Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signing
parties had signed the same document. All counterparts shall be construed together and constitute the same instrument. The exchange
of copies of this Agreement and of signature pages by facsimile transmission or other electronic transmission (including email)
shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the parties transmitted by facsimile transmission or other electronic transmission (including email)
shall be deemed to be their original signatures for all purposes.

 

10.           Severability. If any part of this Agreement is construed to be in violation of any law, such part shall be modified
to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full
force and effect.

 

    	7

    	 

    

 

11.           Entire Agreement. This Agreement, together with the Transaction Documents, and all other documents referred to herein,
supersedes all other prior oral or written agreements between the Company, Buyer, its affiliates and persons acting on its behalf
with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither Buyer nor the Company makes any representation, warranty, covenant or undertaking with respect to such matters.

 

12.           Amendments. This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No
provision of this Agreement may be waived except in writing signed by the party against whom such waiver is sought to be enforced.

 

13.           Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed
by Buyer hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part. The Company
may not assign this Agreement or any of its obligations herein without the prior written consent of Buyer.

 

14.           Continuing Enforceability; Conflict Between Documents. Except as otherwise modified by this Agreement, each of the
Note and all of the other Transaction Documents shall remain in full force and effect, enforceable in accordance with all of its
original terms and provisions. This Agreement shall not be effective or binding unless and until it is fully executed and delivered
by Buyer and the Company. If there is any conflict between the terms of this Agreement, on the one hand, and the Note or any other
Transaction Document, on the other hand, the terms of this Agreement shall prevail.

 

15.           Time of Essence. Time is of the essence with respect to each and every provision of this Agreement.

 

16.           Notices. Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted
under this Agreement to be given to the Company or Buyer shall be given as set forth in the “Notices” section of the
Purchase Agreement.

 

17.           Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

[Remainder of page intentionally left
blank]

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Agreement as of the date first set forth above.

 

COMPANY:

 

EPAZZ, INC.

 

 

By: _________________________________

Name: _______________________________

Title: ________________________________

 

 

BUYER:

 

ST. GEORGE INVESTMENTS LLC

 

By: Fife Trading, Inc., its Manager

 

By:  ________________________________

        John M. Fife, President

 

 

 

    	9

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