Document:

Exhibit 10.21

AMENDED AND RESTATED

CONSOLIDATED LOAN AGREEMENT

This Amended and Restated Consolidated Loan Agreement (the “Agreement”) dated August 4, 2011, is entered into by and between 4net Software, Inc., a Delaware corporation, with offices located at 225 N.E. Mizner Boulevard, Suite 400 Boca Raton, Florida 33432 (“Borrower”) and Steven N. Bronson, having a business address at 225 N.E. Mizner Boulevard, Suite 400 Boca Raton, Florida 33432  (the “Lender”) to update and modify the Amended Consolidated Loan Agreement between the Borrower and the Lender, dated February 12, 2010.

WHEREAS, the Lender has loaned (the “Loan”) and advanced the Borrower monies (each a “Principal Advance” and collectively the “Principal Advances”) in the aggregate amount of $58,000 as follows:

	
Loan Amount

	 	
Date of Loan

	
(a)

	 	$	32,696.44	 	
December 7, 20091;

	
(b)

	 	$	3,000.00	 	
May 5, 2010;

	
(c)

	 	$	1,000.00	 	
May 21, 2010;

	
(d)

	 	$	7,000.00	 	
December 9, 2010; and

	
(e)

	 	$	15,000.00	 	
April 28, 2011.

WHEREAS, each of the Principal Advances accrues interest at the rate of ten percent (10%) per year from the date of the Principal Advance.

WHEREAS, this Agreement amends, replaces and supersedes the Amended Consolidated Loan Agreement between the Borrower and the Lender, dated February 12, 2010.  Upon execution and delivery of this Agreement the Amended Consolidated Loan Agreement between the Borrower and the Lender, dated February 12, 2010 shall be null and void.

WHEREAS, the parties hereto desire to memorialize the Loan and mutually agree that the Loan shall be shall be subject to the following terms and conditions.

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows:

1.           Principal.  The principal amount of the Loan is $58,696.44.  The principal amount and all accrued interest on the Loan is due and payable within ten (10) business days following Borrower’s receipt of a written demand for payment from Payee or immediately upon the occurrence of an Event of Default, as defined herein (the “Maturity Date”).  The obligations of the Borrower to make payments provided for in this Agreement are absolute and unconditional and not subject to any defense, set-off, counterclaim, rescission, recoupment or adjustment whatsoever. Upon payment in full of all principal and interest payable hereunder, this Agreement shall be surrendered to the Borrower for cancellation.

1           This advance is memorialized in Amended Consolidated Loan Agreement, dated February 12, 2010.

  

  

  

2.           Interest.   The Loan shall bear interest on the outstanding principal amount from the date of each Principal Advance until such amounts are repaid to Lender in full, at the rate of 10% per annum.  In the event any payment due hereunder shall not be paid on the Maturity Date, then the outstanding principal amount shall bear interest at the lesser of 15% per annum or the highest lawful rate permitted under applicable law, from the date when such payment was due until paid.   Additionally, Borrower’s failure to tender a payment, or any part thereof, in accordance with this Agreement above shall constitute an Event of Default.  If an Event of Default shall occur due to the Borrower’s failure to make a payment on the required date, Payee shall have no obligation to serve a notice of default.  In the event the Borrower fails to remedy the default within five (5) business days after the Event of Default (the “Default Date”), then all outstanding principal and accrued interest shall automatically accelerate and become immediately due and owing (the “Accelerated Debt”).   The Accelerated Debt shall accrue interest at the rate of 15% per annum from the Default Date until the Accelerated Debt is paid in full. Payee shall have no obligation to provide notice to Borrower concerning the Default Date, the acceleration of the debt or the interest rate on the Accelerated Debt.

This paragraph shall not be deemed to extend or otherwise modify or amend the date when such payments are due hereunder.  The obligations of the Borrower under this Agreement are subject to the limitation that payments of interest shall not be required to the extent that the charging of or the receipt of any such payment by the holder of this Agreement would be contrary to the provisions of law applicable to the holder of this Agreement limiting the maximum rate of interest which may be charged or collected by the holder of this Agreement. In no event shall any interest to be paid hereunder exceed the maximum rate permitted by law.  In any such event, this Agreement shall automatically be deemed amended to permit interest charges at an amount equal to, but no greater than, the maximum rate permitted by law.

3.           Representations and Warranties.  The Borrower represents and warrants as follows:

 

(a)           The Borrower has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Borrower and constitutes a valid and binding obligation of the Borrower, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

(b)           This Agreement is the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms and the terms of the Security Agreement, except as limited by applicable bankruptcy, insolvency, and other similar laws affecting creditors’ rights generally.

  

  

  

4.           Events of Default.

The principal amount and all accrued interest on this Loan is due and payable upon the Maturity Date, as defined above.  Additionally, the principal amount and all accrued interest on this Loan shall automatically become immediately due and payable upon the occurrence of any of the following events, each of which shall be deemed an “Event of Default”:

(a)           When there is any misstatement or false statement in connection with, noncompliance with or nonperformance of any of the Borrower’s obligations, representation, warranties or covenants under or emanating from this Agreement;

(b)           If the Borrower shall make an assignment for the benefit of creditors or shall admit in writing his inability to pay his debts as they become due or if the Borrower shall file a voluntary petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent, or shall file any petition or answer seeking any reorganization arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the present or any future federal bankruptcy code or other applicable federal, state or similar statute, law or regulation, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Borrower or of all or any substantial part of its properties.

5.           Notices.  Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be delivered personally or sent by FedEx mail or similar overnight delivery, postage prepaid to the parties at the addresses set forth above.  Each of the above addressees may change its address for purposes of this paragraph by giving to the other addressee notice of such new address in conformance with this paragraph.

6.           Waivers.  The Borrower hereby waives presentment, demand for performance, notice of non-performance, protest, notice of protest and notice of dishonor.  No delay on the part of Lender in exercising any right hereunder shall operate as a waiver of such right or any other right.  This Agreement is being delivered in and shall be construed in accordance with the laws of the State of Florida, without regard to the conflicts of laws provisions thereof.

7.           Attorneys’ Fees.  If the indebtedness represented by this Agreement or any part thereof is collected in bankruptcy, receivership or other judicial proceedings or if this Loan is placed in the hands of attorneys for collection after default, the Borrower agrees to pay, in addition to the principal payable hereunder, attorneys' fees and collection costs in the amount of ten percent (10%) of the then outstanding principal indebtedness.

8.           No Changes.  This Agreement may not be changed or terminated orally, but only by an agreement in writing signed by the party against whom enforcement of any change, modification, termination, waiver, or discharge is sought.

Signatures appear on the next page.

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	  	
BORROWER

	  
	  	  	  
	 	 	 
	  	
Leonard Hagan, Director

	  
	  	
4net Software, Inc.

	  
	  	  	  
	  	
LENDER

	  
	  	  	  
	 	 	 
	  	
Steven N. BronsonUnassociated Document

EXHIBIT 10.1

SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT dated as of the 3rd day of August 2011 is entered into by and between Zion Oil & Gas, Inc. (the “Company”) and Patti Beals (the “Employee”).

W     I     T   N    E     S     S     E     T     H

WHEREAS, the Parties entered into an employment agreement dated March 1, 2010, as amended (the "Employment Agreement"); and

WHEREAS, the Employment Agreement is scheduled to expire on August 31, 2011 but the Parties have agreed that it will terminate earlier as of this date, and

WHEREAS, the Parties wish to provide for an orderly termination of Employee’s employment in accordance with the terms and conditions herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this agreement the Parties hereby agree as follows:

All capitalized terms not otherwise defined shall have the meaning set forth in the Employment Agreement.

1.           Termination of Employment Agreement  The Parties hereby agree that the Employment Agreement is terminated as of this date.

2.           Representations and Undertakings by Employee

In consideration of the undertakings by the Company contained herein, Employee hereby agrees, represents and covenants that:

(i)           Part 5, 7, 8, 10 and 13 and Sections 11.8 and 12.3 of the Employment Agreement shall continue in full force and effect in accordance with their terms.

(ii)           notwithstanding Section 11.8 (Return of Property) of the Employment Agreement, the Employee is entitled to retain either of the Company’s DELL or MAC laptop computer supplied to Employee to date upon payment to the Company of an amount agreeable to the Company.

(iii)           the Employee shall be available for telephone consultations through the end of  October 2011 to assist the Company with an orderly transition of her duties under the Employment Agreement.

2.           Representations and Undertakings by Company

In consideration of the undertakings by the Employee contained herein, Company hereby agrees, represents and covenants:

(i)           to pay to Employee monthly the sum of $12,000 through to the end of October 2011 less deductions required under law. The amount paid for the month of August shall be in place and stead of the Gross Salary. In addition, the Company shall continue to pay Employee’s health insurance through to the end of October 2011.

 

  

  

  

 

2

 

(ii)           The Company shall provide to Employee at expiry of the Employment Agreement two reference letters, one signed by the CEO and the other by the Chairman of the Board.

3.           Release  The Employee shall sign the Waiver and Release of Claims agreement attached hereto as Appendix A.

4.           Reliance and Complete Agreement.  The parties acknowledge and agree that in the execution of this Agreement, neither has relied upon any representation by any party or attorney, except as expressly stated herein. Moreover, this Agreement shall represent the complete and entire agreement between the parties, to the exclusion of any and all other prior or concurrent terms, written or oral.  No supplement, modification or waiver or termination of this Agreement or any provision hereof shall be binding unless executed in writing by the parties to be bound thereby.

5.           Successors and Assigns. Except as otherwise provided in this Agreement, all the terms and provisions of this Agreement shall be upon, and shall inure to the benefit of, the Parties hereto and their respective heirs, personal representatives, successors and assigns.

6.           Counterparts.   This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

7.           Governing Law; Jurisdiction and Forum.  This Agreement, its interpretation, validity, construction, enforcement and effect shall be governed by and construed under the laws of the State of Texas without reference or effect to the principles of conflict of laws. Each of the Parties consents to the jurisdiction of the appropriate court in the County of Dallas in connection with any dispute arising under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens, to the bringing of any such proceeding in such jurisdictions.

8.           Representations.     Each of Employee and the Company acknowledges that they have had the opportunity to consult with legal counsel respecting this Agreement. Each person executing this Agreement on behalf of a corporation hereby represents and warrants that he has been authorized to do so by all necessary corporate action.

IN WITNESS WHEREOF,  the parties has set forth their signatures as of the date first written above.

Zion Oil & Gas, Inc.

	
/s/ Richard Rinberg                         

	
/s/ Patti Beals                  

	
Richard Rinberg

	
Patti Beals

	
CEO

	  

  

  

  

 

3

 

Appendix A

ZION OIL & GAS INC.

Waiver and Release of Claims

 

I understand that this Release Agreement (“Release”), constitutes the complete, final and exclusive embodiment of the entire agreement between Zion Oil & Gas Inc. (the “Company”) and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein.

 

In consideration of benefits I will receive under the Settlement Agreement being entered into on this date by the Company and myself, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors, agents, servants, employees, shareholders, attorneys, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed arising out of or in any way related to agreements, events, acts or conduct at any time prior to August 3, 2011, including, but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of my employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims or demands related to salary, bonuses, commissions, stock, stock options, or any other equity or ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any other form of compensation; claims pursuant to any federal, state or local law or cause of action.

 

I acknowledge and understand that certain State Civil Codes provide as follows and which may apply to me: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims I may have against the Company, its affiliates, and the entities and persons specified above.

 

 

	  	
Patti Beals

 

 

	  	
/s/ Patti Beals

	  	  
	  	
Date: August 3, 2011

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