Document:

Unassociated Document

Exhibit 10.12

 

 

Amendment to Convertible Promissory note dated July 2, 2012 between Star Financial Corporation & Epazz, Inc.

 

 

Interest rate change: from no interest to an interest rate of 10%

 

 

 

 

The parties hereby indicate by their signatures below that they have read and agree with the modification to the promissory note.

Lender Information

Star Financial Corporation

Sign: /s/ Fay Passley

Fay Passley, President

July 2, 2012

 

 

Borrow Information

Epazz, Inc.

309 W. Washington St. Suite 1225

Chicago, IL 60606

Sign: /s/ Shaun Passley

Shaun Passley, CEO

July 2, 2012Unassociated Document

 Exhibit 10.13

PROMISSORY NOTE

 

	US $2,000	 
October 9, 2012

 

FOR VALUE RECEIVED, the undersigned, Epazz, Inc.., an Illinois corporation, ("Maker") hereby promises to pay to the order of L&F Lawn Service, Inc. ("Payee"), the principal sum of thirteen thousand dollars ($2,000), in lawful money in United States of America, which shall be legal tender, bearing interest and payable as provided herein.  This Promissory Note (this “Note” or “Promissory Note”) has an effective date of October 9, 2012.  This Note is to satisfy the outstanding fees owed to Payee by Maker as of the effective date in consideration for services rendered by Payee to Maker for audit and review services performed.  Payee will forever forgive and discharge any difference between the outstanding balance of the fees owed to Payee by Maker as of the effective date of this Note and the principal amount of this Note upon repayment of this Note in its entirety.

	
1.  

	
Interest on the unpaid balance of this Note shall bear interest at the rate of six percent (10%) per annum, which interest shall accrue from the effective date until the Maturity Date (as defined below), unless prepaid prior to such Maturity Date.  All past-due principal and interest (which failure to pay such amounts after a fifteen (15) day cure period, shall be defined herein as an “Event of Default”) shall bear interest at the rate of fifteen percent (15%) per annum until paid in full (the “Default Interest Rate”), with it being understood that Maker shall have an additional fifteen day cure periods during the term of the Note before an Event of Default occurs.  Upon an Event of Default, Payee may declare the entire amount of this Note due and payable and shall be able to take whatever action available to it in law or equity to enforce its rights to collect an additional $500 as liquidated damages in addition to the amounts owed pursuant to this Note.  Interest will be computed on the basis of a 360-day year.

	
2.  

	
The principal amount of this Note shall be due and payable on January 15, 2013 (the “Maturity Date”).

	
3.  

	
Loan Origination fee shall be 144,928 shares of Epazz Common A.

	
4.  

	
This Note may be prepaid in whole or in part, at any time and from time to time, without premium or penalty.

	
5.  

	
If any payment of principal or interest on this Note shall become due on a Saturday, Sunday or any other day on which national banks are not open for business, such payment shall be made on the next succeeding business day.

	
6.  

	
This Note shall be binding upon and inure to the benefit of the Payee named herein and Payee’s respective successors and assigns.  Each holder of this Note, by accepting the same, agrees to and shall be bound by all of the provisions of this Note.  Payee may assign this Note or any of its rights, interests or obligations to this Note without the prior written approval of Maker.

	
7.  

	
No provision of this Note shall alter or impair the obligation of Maker to pay the principal of and interest on this Note at the times, places and rates, and in the coin or currency, herein prescribed.

	
8.  

	
The Maker will do or cause to be done all things reasonably necessary to preserve and keep in full force and effect its corporate existence, rights and franchises and comply with all laws applicable to the Maker, except where the failure to comply could not reasonably be expected to have a material adverse effect on the Maker.  Failure to comply with this provision shall constitute an Event of Default.

	
9.  

	
Notwithstanding anything to the contrary in this Note or any other agreement entered into in connection herewith, whether now existing or hereafter arising and whether written or oral, it is agreed that the aggregate of all interest and any other charges constituting interest, or adjudicated as constituting interest, and contracted for, chargeable or receivable under this Note or otherwise in connection with this loan transaction, shall under no circumstances exceed the Maximum Rate.

  

  

  

	
10.  

	
In the event the maturity of this Note is accelerated by reason of an Event of Default under this Note, any other agreement entered into in connection herewith or therewith, or by voluntary prepayment by Maker or otherwise, then earned interest may never include more than the Maximum Rate allowable by law, computed from the dates of each advance of the loan proceeds outstanding until payment.  If from any circumstance any holder of this Note shall ever receive interest or any other charges constituting interest, or adjudicated as constituting interest, the amount, if any, which would exceed the Maximum Rate shall be applied to the reduction of the principal amount owing on this Note, and not to the payment of interest; or if such excessive interest exceeds the unpaid balance of principal hereof, the amount of such excessive interest that exceeds the unpaid balance of principal hereof shall be refunded to Maker.  In determining whether or not the interest paid or payable exceeds the Maximum Rate, to the extent permitted by applicable law (i) any nonprincipal payment shall be characterized as an expense, fee or premium rather than as interest; and (ii) all interest at any time contracted for, charged, received or preserved in connection herewith shall be amortized, prorated, allocated and spread in equal parts during the period of the full stated term of this Note.  The term "Maximum Rate" shall mean the maximum rate of interest allowed by applicable federal or state law.

	
11.  

	
Except as provided herein, Maker and any sureties, guarantors and endorsers of this Note jointly and severally waive demand, presentment, notice of nonpayment or dishonor, notice of intent to accelerate, notice of acceleration, diligence in collecting, grace, notice and protest, and consent to all extensions without notice for any period or periods of time and partial payments, before or after maturity, without prejudice to the holder.  The holder shall similarly have the right to deal in any way, at any time, with one or more of the foregoing parties without notice to any other party, and to grant any such party any extensions of time for payment of any of said indebtedness, or to grant any other indulgences or forbearance whatsoever, without notice to any other party and without in any way affecting the personal liability of any party hereunder.  If any efforts are made to collect or enforce this Note or any installment due hereunder, the undersigned agrees to pay all collection costs and fees, including reasonable attorney's fees.

	
12.  

	
A copy of this Promissory Note 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 Promissory Note shall be effective as an original for all purposes.

	
13.  

	
This Note shall be construed and enforced under and in accordance with the laws of the State of Texas, without regard to choice-of-law rules of any jurisdiction.

IN WITNESS WHEREOF, Maker has duly executed this Note as of the day and year first written above.

Epazz, INC.

 

Shaun Passley

Chief Executive OfficerUnassociated Document

 Exhibit 10.14

 

DEBT CONVERSION AGREEMENT

This Debt Conversion Agreement (this “Agreement”) dated September 24, 2012, is by and between, Epazz, Inc., an Illinois corporation (the "Company") and L&F Lawn Services, Inc., an Illinois corporation (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 $53,968.50 (the “Amount Owed”) to the Creditor pursuant to outstanding accounts payable (the “Accounts Payable”);

WHEREAS, the Company and the Creditor desire to convert the Amount Owed under the Accounts Payable 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 $0.005217391 of the Amount Owed to Creditor (the “Common Stock”, the “Conversion” and the “Conversion Rate”);

WHEREAS, the Creditor agrees to convert the Accounts Payable 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 Accounts Payable.

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 Accounts Payable, which amount is owed to the Creditor, and the termination and cancellation of the Accounts Payable, the Company agrees to issue the Creditor an aggregate of 10,343,963 restricted shares of Common Stock (one share for every $0.005217391 of the Accounts Payable 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 Accounts Payable, confirms that such Accounts Payable 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 Accounts Payable 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 Accounts Payable 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 here from 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”

L & F Lawn Services, Inc.

By:______________________

Its:_______________________

Printed Name:___________________

 

 

 

 

 

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