Document:

FRANKLIN CREDIT MANAGEMENT CORPORATION 8-K

 

Exhibit 10.1

 

FRANKLIN CREDIT MANAGEMENT CORPORATION

101 Hudson Street, 25th Floor

Jersey City, NJ 07302

January 20, 2015

Paul D. Colasono

8 Marie Drive

Huntington, NY 11743

 

This letter sets forth an amendment of
your employment agreement with Franklin Credit Management Corporation (the “Company”), effective as of March 28, 2005
and as previously amended on December 31, 2008 (the “Employment Agreement”), in connection with a proposed reverse
and forward stock split on January 20, 2015, in accordance with Information Statement filed with the Securities and Exchange Commission
on November 18, 2014, (the “Reverse/Forward Split”) of common stock of the Company (the “Common Stock”)
and termination of registration of the Common Stock under Rule 12g-5 and Section 12(g) of the Securities Exchange Act of 1934.
Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Employment Agreement.

For good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and subject to the execution of this letter by the Company and Paul
D. Colasono, Executive Vice-President and Chief Operating Officer of the Company (“Employee”) and subject to
consummation and effectiveness of the Reverse/Forward Split, the parties to this letter agreement agree as follows:

		1.	Deletion of Section 1(f)(3) of the Employment Agreement.

Section 1(f)(3) of the Employment Agreement, which provides
that a “Change in Control” shall occur in the event that the “Company’s shares shall cease to be registered
under Section 12(b) or 12(g) under the Securities Exchange Act of 1934, as amended” shall be deleted in its entirety and
not replaced for the sole purpose of this Reverse/Forward Split.

		2.	Furthermore, and for the avoidance of doubt, this letter shall memorialize the mutual understanding
of the Company and Employee that the Reverse/Forward Split, as contemplated and proposed by the Company, will not be deemed a “Change
in Control” as defined in Section 1(f) of the Employment Agreement. Deletion of Section 1(f)(3) of the Employment Agreement
applies solely to this Reverse/Forward Split and not to any future stock splits and/or notices of termination of registration under
Section 12(g) of the Securities Exchange Act of 1934, should they become necessary.

If you agree to the foregoing, please
sign where indicated below and return the signed copy to me. Otherwise, the agreement will continue in full force and effect, without
amendment.

[remainder of page
intentionally left blank]

    	

    	 

    

 

		Sincerely,
	 	 	 
		FRANKLIN CREDIT MANAGEMENT CORPORATION
	 	 	 
	 	 	 
		/s/ Thomas J. Axon
		Name:	Thomas J. Axon
		Title:	President and Chairman
	 	 	 
	AGREED AND ACCEPTED	 	 
	 	 	 
	 	 	 
	/s/ Paul D. Colasono	 	 
	Paul D. Colasono	 	 
	 	 	 
	Date:	 January 20, 2015	 	 

  

    	- 2
                                                                                                                                                                             -Exhibit 10.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

PROMISSORY NOTE

 

	$10,000	San Antonio, Texas	October 31, 2014

 

FOR VALUE RECEIVED,
DIGERATI TECHNOLOGIES, INC., a Nevada corporation, whose address is 3463 Magic Drive, Suite 355, San Antonio, Texas 78229
(the “Debtor”), promises to pay to the order of Flagship Oil and Gas Corp., a Texas corporation, whose
address is 626 Jessamine Street, San Antonio, Texas 78209 (the “Payee”), the sum of TEN THOUSAND DOLLARS
($10,000) in lawful money of the United States of America which shall be legal tender for the payment of debts from time
to time, together with interest on the outstanding principal amount hereof at the rate of seven percent (7%) interest per annum,
computed on the basis of a 360-day year and 30-day months.  

 

This Note shall be payable
in a single installment of principal and accrued interest, without demand, on January 5, 2015 (the “Maturity Date”).
If the Maturity Date shall be a Saturday, Sunday, or day on which Banks in San Antonio, Texas, or the place of payment are authorized
or required to be closed, such payment shall be made on the next following day that is not a Saturday, Sunday or day on which banks
in San Antonio, Texas, or the place of payment are authorized or required to be closed and interest thereon shall continue to accrue
thereon until such date.

 

Time is of the essence
of this Note, and the Debtor expressly agrees that in the event of default in the payment of any principal or interest when due,
the Payee may declare the entirety of this Note immediately due and payable. Upon the occurrence of any default hereunder, the
Payee shall also have the right to exercise any and all of the rights, remedies and recourses now or hereafter existing in equity,
law, by virtue of statute or otherwise.

 

In the event that any payment
is not made when due, either of principal or interest, and whether upon maturity or as a result of acceleration, interest shall
thereafter accrue at the rate per annum equal to the lesser of (a) the maximum non-usurious rate of interest permitted by the laws
of the State of Texas or the United States of America, whichever shall permit the higher rate or (b) twenty percent (20%) per annum,
from such date until the entire balance of principal and accrued interest on this Note has been paid.

 

Debtor
has the privilege of making prepayments on this Note from time to time in any amount without penalty provided that any such prepayment
shall be applied to accrued and unpaid interest on this Note and the balance, if any, to the principal amount payable under this
Note; provided, however, that Debtor shall give Payee at least 10 days’ notice before
making any prepayment of more than $10,000, which notice shall specify the amount of the prepayment and the date upon which such
prepayment will be made, and upon giving of any such notice this Note shall be deemed to be amended to require the payment of amount
set forth in such notice on the date set forth in such notice.

 

    	 

    	 

    

 

No failure to exercise
and no delay on the part of Payee in exercising any power or right in connection herewith shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No course of dealing
between Debtor and Payee shall operate as a waiver of any right of Payee. No modification or waiver of any provision of this Note
or any consent to any departure therefrom shall in any event be effective unless the same shall be in writing and signed by the
person against whom enforcement thereof is to be sought, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given.

 

In the event default is
made in the prompt payment of this Note when due or declared due, and the same is placed in the hands of an attorney for collection,
or suit is brought on same, or the same is collected through any judicial proceeding whatsoever, or if any action be had hereon,
then Debtor agrees and promises to pay an additional amount as reasonable, calculated and foreseeable attorneys’ and collection
fees incurred by Payee in connection with enforcing its rights herein contemplated.

 

To the extent permitted
by applicable law, Debtor hereby waives grace, notice, demand or presentment for payment of this Note, dishonor, notice of dishonor,
notice of default or nonpayment, protest, notice of protest, suit, notice of intention to accelerate, notice of acceleration, diligence
or any notice of or defense on account of the extension of time of payments or change in the method of payments, and consents to
any and all renewals and extensions in the time of payment hereof, and the release of any party primarily or secondarily liable
hereon.

 

It is expressly provided
and stipulated that notwithstanding any provision of this Note, in no event shall the aggregate of all interest paid by Debtor
to Payee hereunder ever exceed the maximum non-usurious rate of interest which may lawfully be charged Debtor under the laws of
the State of Texas or United States Federal Government, as applicable, on the principal balance of this Note remaining unpaid.
It is expressly stipulated and agreed by Debtor that it is the intent of Payee and Debtor in the execution and delivery of this
Note to contract in furtherance of such laws, and that none of the terms of this Note shall ever be construed to create a contract
to pay for the use, forbearance or detention of money, at any interest rate in excess of the maximum non-usurious rate of interest
permitted to be charged Debtor under the laws of the State of Texas or United States Federal Government, as applicable. The provisions
of this paragraph shall govern over all other provisions of this Note should any such provisions be in apparent conflict herewith.

 

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Specifically and without
limiting the generality of the foregoing paragraph, it is expressly provided that:

 

(i) In the event of prepayment of
the principal of this Note, in whole or in part, or the payment of the principal of this Note prior to the Maturity Date, whether
resulting from acceleration of the maturity of this Note or otherwise, if the aggregate amount of interest accruing hereon prior
to such payment plus the amount of any interest accruing after maturity and plus any other amount paid or accrued in connection
with the indebtedness evidenced hereby which by law are deemed interest on the indebtedness evidenced by the Note and which aggregate
amounts paid or accrued (if calculated in accordance with the provisions of this Note other than this paragraph) would exceed the
maximum non-usurious rate of interest which could lawfully be charged as above mentioned on the unpaid principal balance of the
indebtedness evidenced by this Note from time to time advanced (less any discount) and remaining unpaid from the date advanced
to the date of final payment thereof, then in such event the amount of such excess shall be credited, as of the date paid, toward
the payment of the principal of this Note so as to reduce the amount of the final payment of principal due on this Note, or if
the principal amount hereof has been paid in full, refunded to Debtor.

 

(ii) If under any circumstances the
aggregate amounts paid on the indebtedness evidenced by this Note prior to and incident to the final payment hereof include amounts
which by law are deemed interest and which would exceed the maximum non-usurious rate of interest which could lawfully have been
charged or collected on this Note, as above mentioned, Debtor stipulates that (a) any non-principal payment shall be characterized
as an expense, fee, or premium rather than as interest and any excess shall be credited hereon by the holder hereof (or, if this
Note shall have been paid in full, refunded to Debtor); and (b) determination of the rate of interest for determining whether
the indebtedness evidenced hereby is usurious shall be made by amortizing, prorating, allocating, and spreading, in equal parts
during the full stated term hereof, all interest at any time contracted for, charged, or received from Debtor in connection with
such indebtedness, and any excess shall be canceled, credited, or refunded as set forth in (a) herein.

 

Any check, draft, money
order, or other instrument given in payment of all or any portion of this Note may be accepted by Payee and handled in collection
in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of Payee except to the extent
that actual cash proceeds of such instruments are unconditionally received by Payee. If at any time any payment of the principal
of or interest on this Note is rescinded or must be restored or returned upon the insolvency, bankruptcy or reorganization of Debtor
or otherwise, the obligation under this Note with respect to that payment shall be reinstated as though the payment had been due
but not made at that time.

 

Debtor agrees that this
Note shall be freely assignable to any assignee of Payee, subject to compliance with applicable securities laws.

 

Debtor represents and warrants
that the extension of credit represented by this Note is for business, commercial, investment, or other similar purposes and not
primarily for personal, family, household or agricultural use.

 

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This Note has been executed
and delivered and shall be construed in accordance with and governed by the laws of the State of Texas and of the United States
of America applicable in Texas. Venue for any litigation between Debtor and Payee with respect to this Note shall be Bexar County,
Texas. Debtor and Payee hereby irrevocably submit to personal jurisdiction in Texas, and waive all objections to personal jurisdiction
in Texas and venue in Bexar County for purposes of such litigation.

 

THIS NOTE REPRESENTS
THE FINAL AGREEMENT BETWEEN DEBTOR AND PAYEE AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN DEBTOR AND PAYEE.

 

THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN DEBTOR AND PAYEE.

 

	 	 
	 	DIGERATI TECHNOLOGIES, INC.,
	 	a Nevada corporation
	 	 
	 	By:	/s/ Arthur L Smith
	 	 	Name:	Arthur
L Smith
	 	 	Title:	CEO 
	 	 	 	 

 

 

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