Document:

Unassociated Document

 Exhibit 10.15

 

DEBT CONVERSION AGREEMENT

This Debt Conversion Agreement (this “Agreement”) dated October 1, 2012, is by and between, Epazz, Inc., an Illinois corporation (the "Company") and Fay Passley an individual (the “Creditor”), each a “Party” and collectively the “Parties.”

	
  

	
W I T N E S S E T H:

WHEREAS, the Company owes an aggregate of $44,727.95 (the “Amount Owed”) to the Creditor pursuant to that certain Secured Promissory Note dated July 31, 2006, as amended from time to time and including accrued and unpaid interest thereon (the “Promissory Note”);

WHEREAS, the Company and the Creditor desire to convert the Amount Owed under the Promissory Note into shares of newly issued restricted Class A Common Stock of the Company, $0.01 par value per share, at a rate of one (1) share of Class A Common Stock for every $0.00477 of the Amount Owed to Creditor (the “Common Stock”, the “Conversion” and the “Conversion Rate”);

WHEREAS, the Creditor agrees to convert the Promissory Note into Common Stock at the Conversion Rate; and

WHEREAS, the Company and the Creditor desire to set forth in writing the terms and conditions of their agreement and understanding concerning Conversion of the Promissory Note.

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, the Parties hereto agree as follows:

1.           Consideration.

(a)           In consideration and in full satisfaction of the forgiveness of the entire Amount Owed pursuant to and in connection with the Promissory Note, which amount is owed to the Creditor, and the termination and cancellation of the Promissory Note, the Company agrees to issue the Creditor an aggregate of 9,370,640 restricted shares of Common Stock (one share for every $0.00477 of the Promissory Note converted into shares of Common Stock, the “Shares”).

(b)           In consideration for the issuance of the Shares, the Creditor agrees to forgive and cancel the Promissory Note, confirms that such Promissory Note is satisfied in full and agrees to waive and forgive any accrued and unpaid interest payable thereunder.

  

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2.           Full Satisfaction.

Creditor agrees that he, she or it is accepting the Shares in full satisfaction of the Promissory Note which is being converted into Common Stock and that as such Creditor will no longer have any rights of repayment against the Company as to the Amount Owed under the Promissory Notes which is being converted into Shares pursuant to this Agreement, at such time as the Shares have been issued to Creditor.

3.           Mutual Representations, Covenants and Warranties.

(a) The Parties have all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby. The Parties have duly and validly executed and delivered this Agreement and will, on or prior to the consummation of the transactions contemplated herein, execute, such other documents as may be required hereunder and, assuming the due authorization, execution and delivery of this Agreement by the Parties hereto and thereto, this Agreement constitutes, the legal, valid and binding obligation of the Parties enforceable against each Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general equitable principles.

(b) The execution and delivery by the Parties of this Agreement and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the lapse of time, the giving of notice or otherwise:  (a) constitute a violation of any law; or (b) constitute a breach or violation of any provision contained in the Articles of Incorporation or Bylaws, or such other document(s) regarding organization and/or management of the Parties, if applicable; or (c) constitute a breach of any provision contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental authority or any contract to which either the Company or the Creditor is a party or by which either the Company or the Creditor is bound or affected.

(c) Creditor hereby covenants that it will, whenever and as reasonably requested by the Company and at Creditor’s sole cost and expense, do, execute, acknowledge and deliver any and all such other and further acts, deeds, assignments, transfers, conveyances, confirmations, powers of attorney and any instruments of further assurance, approvals and consents as the Company may reasonably require in order to complete, insure and perfect the transactions contemplated herein.

 

4.           Creditor Representations and Warranties.

(a)           Creditor recognizes that the Shares have not been registered under the Securities Act of 1933, as amended (the “1933 Act,” or the “Act”), nor under the securities laws of any state and, therefore, cannot be resold unless the resale of the Shares are registered under the 1933 Act or unless an exemption from registration is available.  Creditor may not sell the Shares without registering them under the 1933 Act and any applicable state securities laws unless exemptions from such registration requirements are available with respect to any such sale;

  

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(b)           Creditor acknowledges that he, she or it:

(i)           is an “accredited investor” as defined in Rule 501 of the Act; and

(ii)           has had an opportunity to and in fact has thoroughly reviewed the Company’s periodic report filings (Form 10-K and 10-Q), current report filings (Form 8-K) and the audited and unaudited financial statements, description of business, risk factors, results of operations and related business disclosures described therein at http:///www.SEC.gov (“EDGAR”); has had a reasonable opportunity to ask questions of and receive answers and to request additional relevant information from a person or persons acting on behalf of the Company regarding such information; and has no pending questions as of the date of this Agreement and as such, has had access to information similar to that which would be included in a Registration Statement under the 1933 Act;

(c)           Creditor has such knowledge and experience in financial and business matters such that Creditor is capable of evaluating the merits and risks of an investment in the Shares and of making an informed investment decision, and does not require a representative in evaluating the merits and risks of an investment in the Shares;

(d)           Creditor recognizes that an investment in the Company is a speculative venture and that the total amount of consideration tendered in connection with this Agreement is placed at the risk of the business and may be completely lost.  The ownership of the Shares as an investment involves special risks;

(e)           Creditor realizes that the Shares cannot readily be sold as they will be restricted securities and therefore the Shares must not be accepted unless Creditor has liquid assets sufficient to assure that Creditor can provide for current needs and possible personal contingencies;

(f)           Creditor confirms and represents that he, she, or it is able (i) to bear the economic risk of the Shares, (ii) to hold the Shares for an indefinite period of time, and (iii) to afford a complete loss of the Shares.  Creditor also represents that he, she, or it has (i) adequate means of providing for his, her, or its current needs and possible personal contingencies, and (ii) has no need for liquidity in the Shares;

(g)           All information which Creditor has provided to the Company concerning Creditor's financial position and knowledge of financial and business matters is correct and complete as of the date hereof;

  

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(h)           Creditor has carefully considered and has, to the extent he, she, or it believes such discussion is necessary, discussed with his, her, or its professional, legal, tax and financial advisors, the suitability of an investment in the Shares for his, her, or its particular tax and financial situation and his, her, or its advisers, if such advisors were deemed necessary, have determined that the Shares are a suitable investment for him, her, or it;

(i)           Creditor understands that the Shares are being offered to him, her or it in reliance on specific exemptions from or non-application of the registration requirements of federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of Creditor set forth herein in order to determine the applicability of such exemptions and the suitability of Creditor to acquire the Shares. All information which Creditor has provided to the Company concerning the undersigned's financial position and knowledge of financial and business matters is correct and complete as of the date hereof, and if there should be any material change in such information prior to acceptance of this Agreement by the Company, Creditor will immediately provide the Company with such information; and

(j)           Creditor understands and agrees that a legend has been or will be placed on any certificate(s) or other document(s) evidencing the Shares in substantially the following form:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES ACT.  THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS (I) THEY SHALL HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND ANY APPLICABLE STATE SECURITIES ACT, OR (II) THE CORPORATION SHALL HAVE BEEN FURNISHED WITH AN OPINION OF COUNSEL, SATISFACTORY TO COUNSEL FOR THE CORPORATION, THAT REGISTRATION IS NOT REQUIRED UNDER ANY SUCH ACTS."

5.           Miscellaneous.

(a) Assignment.  All of the terms, provisions and conditions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the Parties hereto and their respective successors and permitted assigns.

  

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(b) Applicable Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of Illinois, excluding any provision which would require the use of the laws of any other jurisdiction.

(c)  Entire Agreement, Amendments and Waivers.  This Agreement constitutes the entire agreement of the Parties regarding the subject matter of the Agreement and expressly supersedes all prior and contemporaneous understandings and commitments, whether written or oral, with respect to the subject matter hereof.  No variations, modifications, changes or extensions of this Agreement or any other terms hereof shall be binding upon any Party hereto unless set forth in a document duly executed by such Party or an authorized agent of such Party.

(d)  Headings; Gender.  The paragraph headings contained in this Agreement are for convenience only, and shall in no manner be construed as part of this Agreement.  All references in this Agreement as to gender shall be interpreted in the applicable gender of the Parties.

(e) Severability.  Should any clause, sentence, paragraph, subsection, Section or Article of this Agreement be judicially declared to be invalid, unenforceable or void, such decision will not have the effect of invalidating or voiding the remainder of this Agreement, and the Parties agree that the part or parts of this Agreement so held to be invalid, unenforceable or void will be deemed to have been stricken herefrom by the Parties, and the remainder will have the same force and effectiveness as if such stricken part or parts had never been included herein.

(f) Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.  A copy of this Agreement signed by one Party and faxed to another Party shall be deemed to have been executed and delivered by the signing Party as though an original.  A photocopy of this Agreement shall be effective as an original for all purposes.

[Remainder of page left blank. Signature page follows.]

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above.

“Company”

Epazz, Inc.

By:______________________

Its:_______________________

Printed Name:___________________

“Creditor”

________________________________

Fay Passley

 

 

 

 

 

Page 6 of 6Offer Letter

Exhibit 10.1

December 18, 2012

Steven M. Shindler
VIA EMAIL AND HAND DELIVERY

Re:  Employment Offer

Dear Steve: 
We appreciate your consideration of our offer for the position of interim Chief Executive Officer with NII Holdings, Inc. (referred to herein as the “Company,” “we,” “our” or “us”) in addition to your position as Chairman and director.  We hope that the terms of our offer meet your expectations.  As interim Chief Executive Officer, you will serve at the pleasure of the Board until a permanent chief executive officer commences employment with the Company, six months passes after the date hereof (unless extended for one 90 day period by mutual agreement of you and the Board), you resign from this position or the Board suspends your service as interim Chief Executive Officer (each of the foregoing, a “Separation Event”), whichever shall first occur.  Your duties and responsibilities will be consistent with those of the Company's chief executive officer, as may be determined from time to time by the Board, including, without limitation, assisting as the Board may deem desirable and appropriate with the identification and selection of a permanent chief executive officer and reviewing, signing and certifying reports filed by the Company with the Securities and Exchange Commission.  In this position, you will report directly to the Board and will devote such time as is necessary to the business of the Company and its subsidiaries and affiliates in order to fulfill the expectations of the Board.  
During the term of your service as interim Chief Executive Officer of the Company, you will continue to serve as a director of the Company, Chairman of the Board, a member of the Finance Committee of the Board and a member of the Enterprise Risk Committee of the Board.  Following the suspension of your service as interim Chief Executive Officer, the Board currently intends that you will continue to serve as a director of the Company and resume your role as non-executive Chairman, but the Board or you may decide that an alternate course of action with respect to the Chairmanship is desirable in the future.
A summary of the key terms of our offer are detailed below: 
Compensation and Benefits: 
As interim Chief Executive Officer, you will receive a salary at the monthly rate of $78,833 until a Separation Event, which will be payable in accordance with the Company's regular payroll practices.  You also will have an opportunity to earn an annual incentive bonus (for clarity, on a prorated basis, based on the number of days you are actually employed by the Company during calendar year 2013) for performance in calendar year 2013 pursuant to the Company's 2013 annual bonus plan with the target annual incentive bonus equal to 130% of your annualized salary.  
As a full-time employee, you will be entitled to participate in all Company employee benefit plans for which you are eligible, which include, but are not limited to, life, disability and health insurance plans and programs and savings plans and programs, subject to applicable rules and regulations as in effect from time to time.  For the avoidance of doubt, as a temporary employee you will not be eligible to participate in the Company's Severance Plan.  To clarify further, if in connection with a “Change of Control” as such term is defined in the Company's Change of Control Severance Plan, a permanent chief executive officer commences employment or the Company becomes affiliated with 

Mr. Steven M. Shindler
December 18, 2012
Page 2 of 4

another entity the principal executive officer of which exercises authority over the Company substantially similar to that of a permanent chief executive officer, then the appointment of such permanent chief executive officer or affiliation with such other entity having such a principal executive officer is a Separation Event and the resulting automatic suspension of your service as interim Chief Executive Officer would not constitute termination of employment under the Company's Change of Control Severance Plan.  In addition, you will be reimbursed for reasonable out-of-pocket business expenses, including expenses associated with travel and entertainment.
Pursuant to the Company's compensation policy for non-employee directors, during the period of your service as interim Chief Executive Officer, as a full-time employee, you will not be entitled to any additional compensation, including grants of equity compensation to non-employee directors, if any, for service as a director, as Chairman of the Board or as a member of any committee of the Board other than the compensation described in this letter.  If, following the suspension of your service as interim Chief Executive Officer, you resume your role as non-executive Chairman, then the Board currently intends that your compensation will again be governed by the Company's compensation policy for non-employee directors then in effect, but it may decide that an alternate course of action is desirable in the future.  
Equity Compensation:
In addition to your cash compensation, you will be able to participate in the Company's 2012 Incentive Compensation Plan, as amended from time to time, subject to the terms and conditions as in effect from time to time.  The Compensation Committee has approved a grant to you of 685,912 nonqualified stock options and 377,937 shares of restricted stock effective as of December 17, 2012 (the “Grant Date”).  The options will have an exercise price of $6.53, which is equal to the closing price of the Company's common stock on the Grant Date.  Such options will become exercisable (or “vest”) and such restricted stock will vest over a period of three years with one-third vesting on each anniversary of the commencement of your service as interim Chief Executive Officer, subject to your continuing service as interim Chief Executive Officer on such date; provided, that, if not previously vested on the first anniversary of the commencement of your service as interim Chief Executive Officer, then the first one-third of such options and such restricted stock will vest when and if your service as interim Chief Executive Officer is suspended automatically hereunder upon the commencement of a permanent chief executive officer's employment with the Company.  Upon suspension of your service as interim Chief Executive Officer, all such options and such restricted stock that have not vested or do not then vest shall be forfeited.  Other than the one-third of such options and such restricted stock that may vest upon the commencement of a permanent chief executive officer's employment with the Company, with respect to such options and such restricted stock, you hereby waive any acceleration of vesting that may occur upon a “Change in Control” as such term is defined in the Company's 2012 Incentive Compensation Plan.
 Such options and such restricted stock will be subject to the terms and conditions of an Executive Officer Nonqualified Stock Option Agreement and an Executive Officer Restricted Stock Award Agreement, respectively, and, except to the extent of your waiver of acceleration described above, this description is qualified wholly by reference to the final agreed form and terms of those agreements. 
Term:
Your service as interim Chief Executive Officer will be effective as of the date hereof upon your execution hereof and will suspend automatically upon the occurrence of a Separation Event.  The Company may suspend your service as interim Chief Executive Officer at any time for any reason or no reason.  You and the Company agree that there will be no termination, severance or similar payments payable for any suspension of your service as interim Chief Executive Officer.

Mr. Steven M. Shindler
December 18, 2012
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Additional Matters:
In addition, our offer is contingent on your agreement to execute an Executive Officer Nonqualified Stock Option Agreement, an Executive Officer Restricted Stock Award Agreement and a Non-Competition and Confidentiality Agreement in form satisfactory to the Company, and additional terms that are to be determined.  Further, our offer is subject to your representation that you are not violating any current covenants not to compete or other similar type of arrangement to which you may be subject by negotiating or entering into an arrangement of employment with the Company.
 [The remainder of this page is intentionally left blank.]

Mr. Steven M. Shindler
December 18, 2012
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	Sincerely,
	 

	 
	 
	 
	 
	 

	 
	 
	 
	NII HOLDINGS, INC.

	 
	 
	 
	 
	 

	 
	 
	By: /s/ Gary Begeman                    

	 
	 
	 
	Gary Begeman

	 
	 
	 
	Executive Vice President, General Counsel and Secretary

	 
	 
	 
	 
	 

	Accepted and agreed,
	 
	 
	 

	 
	 
	 
	 
	 

	/s/ Steven M. Shindler    
	 
	 
	 

	Steven M. Shindler

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