Document:

ex4_9.htm

PURCHASE AND SATISFACTION AGREEMENT

THIS PURCHASE AND SATIFACTION AGREEMENT, dated as of October 8, 2010 (this “Agreement”), by and amongst E-LIONHEART ASSOCIATES, LLC, as the buyer (the “Purchaser”), DONAL LAWLESS, as the seller (the “Seller”), and FLINT TELECOM GROUP, INC., a Nevada corporation (the “Company”).

 

 

W I T N E S S E T H:

WHEREAS, on May 5, 2009, the Seller entered into a Promissory Note in the principal amount of €100,000 with the Company; and

WHEREAS, the Purchaser desires to purchase $25,000.00 worth of principal of the outstanding Note (the “Note”) from the Seller and the Seller desires to sell $25,000.00 worth of principal of the Note to the Purchaser for an aggregate purchase price of $25,000.00 as set forth in Section 1.2 below and upon the terms and subject to the conditions hereinafter set forth; and

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties agree as follows:

1.           Purchase and Sale of the Note; Purchase Price; Closing; Liabilities.

1.1           Purchase and Sale of the Note.   Subject to the terms and conditions of this Agreement and on the basis of the representations, warranties and covenants contained herein, upon the full payment of the Purchase Price (as defined below), the Seller shall sell, transfer, convey, assign, set over and deliver to the Purchaser, and the Purchaser shall purchase, acquire and accept from the Seller, the Note.

1.2           Purchase Price.  The purchase price and payment (the “Purchase Price”) for $25,000 worth of principal of the Note shall be an aggregate of $25,000, payable by wire transfer.

1.3           Conversion Rate. The parties to this Agreement agree that the conversion rate for the $25,000 worth of principal of the Note to be converted into shares of the Company’s common stock shall be computed as follows:

The $25,000 worth of principal is convertible into such number of fully paid and non-assessable shares of common stock of the Company (the “Conversion Rate”) as is determined by dividing (x) that portion of the $25,000 worth of principal as of such date that Purchaser elects to convert by (y) the Conversion Price (as defined below) then in effect on the date on which Purchaser faxes a notice of conversion, duly executed, to the Company. The term “Conversion Price” shall mean twenty five (25%) percent of the average of the three lowest last reported close prices per share for shares of Common Stock on the Pink Sheets during the twenty (20) days immediately preceding that date as reported by the Pink Sheets.

1.4           Closing.

  

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(a)           The closing of the purchase and sale of the Note (the “Closing”) shall take place immediately upon the occurrence of both of the following: (i) execution of this Agreement and (ii) confirmed receipt of the Purchase Price. The date on which the Closing is held is referred to in this Agreement as the “Closing Date.”

(b)           At the Closing, Purchaser shall deliver or cause to be delivered to the Seller the Purchase Price.

1.5           General Release of the Seller.  Upon occurrence of the Closing, the Seller, on its own behalf and on behalf of their respective agents, assigns, subsidiaries, parents, successors, directors, officers, representatives, and shareholders, knowingly, voluntarily and irrevocably, fully and completely release and forever discharge the Company, their agents, assigns, subsidiaries, parents, successors, directors, officers, representatives, and shareholders, from all direct or indirect, known or unknown, suspected or unsuspected, claims, demands, actions, causes of action, causes, suits, or damages whatsoever, whether existing or occurring now or in the future, at law or in equity, in tort, contract, or otherwise on account of or in any way growing out of the facts and circumstances that were the subject of the Note (the “Released Claims”). The Seller further covenants and agrees to never assert any Released Claim against any such released party in any sort of proceeding before any tribunal, public or private.

1.6           General Release of the Company.  Upon occurrence of the Closing, the Company on its own behalf and on behalf of their respective agents, assigns, subsidiaries, parents, successors, directors, officers, representatives, and shareholders, knowingly, voluntarily and irrevocably, fully and completely release and forever discharge the Seller, its agents, assigns, subsidiaries, parents, successors, directors, officers, representatives, and shareholders, from all direct or indirect, known or unknown, suspected or unsuspected, claims, demands, actions, causes of action, causes, suits, or damages whatsoever, whether existing or occurring now or in the future, at law or in equity, in tort, contract, or otherwise on account of or in any way growing out of the facts and circumstances that were the subject of the Note (the “Released Claims”). The Company further covenants and agrees to never assert any Released Claim against any such released party in any sort of proceeding before any tribunal, public or private.

1.7           Non-deprecation.  The parties further agree that they will not criticize, denigrate or otherwise speak adversely about the other.

1.8           Effect of Non-Payment.  The purchase and sale transaction, releases, duties and obligations set forth in this Agreement shall only take effect upon payment of the first installment of the Purchase Price on or prior to October 12, 2010.  If for any reason the first installment of the Purchase Price shall not be paid by such date, this Agreement shall be null and void and of no legal effect whatsoever.

2.           Representations and Warranties of the Seller. The Seller represents and warrants to the Purchaser and the Company that:

2.1           Authorization.  The Seller is fully authorized and empowered without restriction to execute and deliver this Agreement and to perform Seller’s covenants and agreements hereunder. When executed and delivered by Seller, this Agreement shall constitute the valid and legally

  

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 binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as may be limited by bankruptcy, insolvency or other laws affecting generally the enforceability of creditors’ rights and by limitation on the availability of equitable remedies.

 

2.2           Disclosure.   In connection with the execution and delivery of this Agreement by the Seller, the consummation of the transactions contemplated herein, and the sale of the Note by the Seller to the Purchaser, the Seller is not or nor will be in violation of the provisions of Rule 10b-5 promulgated under the Securities Exchange Act of 1934, as amended, by the Securities and Exchange Commission. The representations and disclosures of the Seller do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading in connection with the purchase and sale of the Note hereunder.

2.3           Conflicts.  Neither the execution and delivery of this Agreement by the Seller, nor the consummation of the transactions contemplated herein, will violate any law, rule, regulation, writ, judgment, injunction, decree, determination, award or other order of any court, government or governmental agency or instrumentality, domestic or foreign, binding upon the Seller, or conflict with or result in any breach or termination of any of the terms of or the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature pursuant to the terms of any contract or agreement to which Seller is a party or by which Seller or any of their properties or assets is bound.

2.5           Not an Affiliate.  The Seller is not an “Affiliate” of the Company (as that term is defined in Rule 144(a)(1)  of the Securities Act of 1933, as amended, and has not been an Affiliate of the Company during the preceding three months.

3.           Representations and Warranties of the Company and Purchaser.  The Company and Purchaser severally represent and warrant to the Seller:

3.1           Authorization of Agreement. The Company and Purchaser are fully authorized and empowered without restriction to execute and deliver this Agreement and to perform each of their covenants and agreements hereunder. When executed and delivered by the Company and Purchaser, this Agreement constitutes the valid and binding obligation of the Company and Purchaser enforceable against the Company and Purchaser in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

4.           Other Agreements of the Parties.

4.1           Other Actions.   Each of the parties shall use its reasonable best efforts to cause the fulfillment of all of the conditions to their respective obligations to consummate the sale of the Note at the earliest practicable date. The Seller shall execute and/or deliver and take such other actions as shall be reasonably requested by the Purchaser; provided, that no such action shall alter the terms of this Agreement or cause Seller to incur out-of-pocket expense.

  

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4.2           Expenses.  The Purchaser shall bear its own expenses in connection with its obligations hereunder and otherwise in connection with this Agreement and the related documents. The Seller shall bear its own expenses in connection with its obligations hereunder and otherwise in connection with this Agreement and the related documents.

4.3           Transfer Taxes.  Any Transfer Taxes payable as a result of the sale or purchase of the Note shall be paid by the Seller.

5.           Conditions of Closing.

5.1           Conditions Precedent to the Obligations of all the Parties. The purchase of the Note by the Purchaser and sale of the Note by the Seller are subject to the condition that no provision of any applicable law shall prohibit, and there shall not be in effect any injunction or restraining order issued by a court of competent jurisdiction in any proceeding against the consummation of the sale and purchase of the Note pursuant to this Agreement.

5.2           Conditions Precedent to Obligations of the Purchaser. Consummation of the purchase of the Note by the Purchaser is also subject to the fulfillment on or prior to the Closing Date of each of the following conditions:

(a)           Representations and Warranties. The representations and warranties of the Seller contained herein shall be true and correct at and as of the Agreement Date and shall be true and correct in all material respects at and as of the Closing Date as if made on the Agreement Date (provided that the representations and warranties that are qualified as to materiality shall be true and correct in all respects at and as of the Closing Date).

(b)           Covenants.                      The Seller shall have performed or complied in all material respects with all obligations, agreements and covenants required to be performed by it hereunder prior to or on the Closing Date; it being understood however that the Seller shall have performed and complied in all respects with those obligations, agreements and covenants required to be performed by them.

5.3           Conditions Precedent to Obligations of the Seller.  Consummation of the sale of the Note by the Seller is subject to the fulfillment on or prior to the Closing Date of each of the following conditions:

(a)           Representations and Warranties.  The representations and warranties of the Purchaser contained herein and in any related document shall be true and correct as of the date hereof and shall be true and correct in all material respects as of the Closing Date (provided that the representations and warranties that are qualified as to materiality shall be true and correct in all respects as of the Closing Date.

(b)           Covenants.  The Purchaser shall have performed or complied in all material respects with all obligations, agreements and covenants required to be performed by it hereunder prior to or on the Closing Date it being understood however that the Purchaser shall have performed and complied in all respects with those obligations, agreements and covenants required to be performed by it upon confirmed payment of the Purchase Price.

  

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6.           Termination.

6.1           Means of Termination.  This Agreement may only be terminated by express mutual written consent of all parties.

6.2           Effect of Termination. Termination of this Agreement pursuant to Section 6.1 shall terminate all obligations of the Parties hereunder.

7.           Miscellaneous.

7.1           Entire Agreement, Survival.  This Agreement among the parties contains, and is intended as, a complete statement of all of the terms and agreements among the parties with respect to the matters provided for herein and supersedes any previous agreements and understandings among the parties with respect to those matters. All of the representations, warranties, covenants and agreements of each of the parties contained in this Agreement (including any Exhibit) and/or in any related document shall survive the execution, delivery and performance of this Agreement and each related document.

7.2           Jurisdiction and Governing Law.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK TO BE APPLIED.

7.3           Separability.  In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect (a) such provision shall be enforced to the maximum extent permissible under applicable law, and (b) the invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

7.4           Confidential Agreement. In consideration of the covenants and payments set forth above, the parties hereby covenant and agree that they and their agents shall keep the fact and terms of this Agreement confidential, and shall not, under any circumstances whatsoever, reveal same to any person or entity, including but not limited to, any employee, agent, associate, customer, or any person or entity with which the parties has any business relationship whatsoever, or to any member of the press or the public; provided, however, that they may reveal such information as is required by an enforceable court order, upon notice to the other party, or as required by the Internal Revenue Service.

7.4           Miscellaneous Provisions.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. No assignment of this Agreement or of any rights or obligations hereunder may be made by any party (by operation of law or otherwise) without the prior written consent of the other parties. This Agreement may be executed via counterparts, each of which shall be an original, but which together shall constitute one and the same Agreement. The Purchaser and the Seller shall indemnify and hold harmless the other from and against any and all claims for investment bankers, brokers, finders or similar commissions (“Third Party Commission”) made by any Person as a result of this Agreement and

  

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the transactions contemplated hereunder to the extent that any such Third Party Commission was incurred, or alleged to have been incurred, by or through them. The Seller hereby terminates any and all agreements by and among any of them in respect of the Shares, including any and all shareholder agreements or similar arrangements.

 

7.5           Signatures.  This Agreement may be executed in counterparts and with facsimile signatures with the effect as if all parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single Agreement. Telecopied or email (via PDF) signatures shall be deemed to have the same effect as an original.

  

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IN WITNESS WHEREOF, this Purchase and Satisfaction Agreement has been duly executed by the Parties as of the date first set forth above.

SELLER

DONAL LAWLESS

By:  /s/ Donal Lawless

Name: Donal Lawless

PURCHASER

E-LIONHEART ASSOCIATES, LLC

By:  /s/ Edward Bronson

Name: Edward Bronson

Title: Managing Member

COMPANY

FLINT TELECOM GROUP, INC.

By: /s/ Vincent Browne

Name:  Vincent Browne

Title:   Chief Executive Officer

  

7ex4_10.htm

PROMISSORY NOTE

October 8, 2010

	
$25,000.00

FOR VALUE RECEIVED, the undersigned corporation (the “Company”), promises to pay to E-Lionheart Associates, LLC., a Delaware limited liability company (the “Lenders”) the principal sum of Twenty Five Thousand Dollars and Zero Cents ($25,000.00) and interest at the annual rate of eight percent (8%) on the unpaid balance pursuant to the following terms:

 

1. Principal and Interest.  For value received, the Company hereby promises to pay to the order of the Lender in lawful money of the United States of America and in immediately available funds the principal sum of Twenty Five Thousand Dollars and Zero Cents ($25,000.00), together with interest on the unpaid principal of this note at the rate of eight percent (8%) per year (computed on the basis of a 365-day year and the actual days elapsed) from the date of this Promissory Note (the “Note”) until paid.

 

2. Principal and Interest Payments.  All principal and accrued interest shall be due and payable one (1) calendar year from the date of this Note, in shares or cash at the discretion of the Lender; provided, however, in the event that the Company receives any financing from any other source all proceeds received in connection with any such financing shall be paid to the Lender until such time that all outstanding principal and accrued interest has been paid to the Lender. All payment amounts shall be first applied to interest, if any, and then to the balance to principal.

 

3. Conversion.

 

(a)           At any time on or prior to the Maturity Date, any amount of the unpaid Principal Amount (the “Conversion Amount”) may be converted into restricted shares of Common Stock of the Company equal to the result of (i) the Conversion Amount, divided by (ii) the Variable Conversion Price (as defined below):

(A)           The “Variable Conversion Price” shall mean the Applicable Percentage (as defined herein) multiplied by the Market Price (as defined herein).  “Market Price” means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending one Trading Day prior to the date the Conversion Notice is sent by the Holder to the Borrower via facsimile (the “Conversion Date”). “Trading Price” means, for any security as of any date, the intraday trading price on the Pink Sheets (the “PINKSHEETS”) as reported by a reliable reporting service mutually acceptable to and hereafter designated by Holders of a majority in interest of the Notes and the Borrower or, if the PINKSHEETS is not the principal trading market for such security, the intraday trading price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no intraday trading price of such security is available in any of the foregoing manners, the average of the intraday trading prices of any market makers for such

  

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security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. “Applicable Percentage” shall mean 25%.

(b)           In the event that the Principal Amount on this Note is converted into Common Stock in accordance with the terms of this Section 3, the Company shall promptly issue to the Noteholder a certificate representing the shares of Common Stock into which the obligations of the Company under this Note have been converted, which certificate shall bear restrictive legends restricting the transfer of such certificate or the shares of Common stock represented thereby, unless otherwise contemplated.

(c)           No certificates representing fractional shares of Common Stock shall be issued to Noteholder upon conversion of principal due hereunder into Common Stock, no dividend or distribution of the Company shall relate to fractional share interests and such fractional share interests will not entitle the Noteholder to vote or to any rights as a stockholder of the Company.  The Noteholder shall pay to Company cash in lieu of any fractional shares of Common Stock resulting from conversion of any principal due hereunder, concurrently with the issuance to Noteholder of the Common Stock to which such fractional shares relate.

4. Waiver and Consent.  To the fullest extent permitted by law and except as otherwise provided herein, the Company waives demand, presentment, protest, notice of dishonor, suit against or joinder of any other person, and all other requirements necessary to charge or hold the Company liable with respect to this Note.

 

5. Costs, Indemnities and Expenses.  In the event of default as described herein, the Company agrees to pay all reasonable fees and costs incurred by the Lender in collecting or securing or attempting to collect or secure this Note, including reasonable attorneys’ fees and expenses, whether or not involving litigation, collecting upon any judgments and/or appellate or bankruptcy proceedings.  The Company agrees to pay any documentary stamp taxes, intangible taxes or other taxes which may now or hereafter apply to this Note or any payment made in respect of this Note, and the Company agrees to indemnify and hold the Lender harmless from and against any liability, costs, attorneys’ fees, penalties, interest or expenses relating to any such taxes, as and when the same may be incurred.

 

6. Intentionally Omitted.

 

7. Event of Default.  An “Event of Default” shall be deemed to have occurred upon the occurrence of any of the following: (i) the Company should fail for any reason or for no reason to make any payment of the principal, interest, costs, indemnities, or expenses pursuant to this Note within ten (10) days of the date due as prescribed herein; (ii) any default, whether in whole or in part, in the due observance or performance of any obligations or other covenants, terms or provisions to be performed by the Lender under this Note or any other related agreements hereunder between the Company and the Lender of even date herewith which is not cured by the Company by any applicable cure period therein, or (iii) the Lender shall:  (1) make a general assignment for the benefit of its creditors; (2) apply for or consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, liquidator or similar official for itself or any of its assets and properties; (3) commence a voluntary case for relief as a debtor under the United States Bankruptcy Code; (4) file with or otherwise submit to any governmental authority any

 

  

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petition, answer or other document seeking:  (A) reorganization, (B) an arrangement with creditors or (C) to take advantage of any other present or future applicable law respecting bankruptcy, reorganization, insolvency, readjustment of debts, relief of debtors, dissolution or liquidation; (5) file or otherwise submit any answer or other document admitting or failing to contest the material allegations of a petition or other document filed or otherwise submitted against it in any proceeding under any such applicable law, or (6) be adjudicated a bankrupt or insolvent by a court of competent jurisdiction.  Upon an Event of Default (as defined above), the entire principal balance and accrued interest outstanding under this Note, and all other obligations of the Company under this Note, shall be immediately due and payable without any action on the part of the Lender, interest shall accrue on the unpaid principal balance at twenty-four percent (24%) per year or the highest rate permitted by applicable law, if lower, and the Lender shall be entitled to seek and institute any and all remedies available to it.

 

8. Maximum Interest Rate.  In no event shall any agreed to or actual interest charged, reserved or taken by the Lender as consideration for this Note exceed the limits imposed by New York law.  In the event that the interest provisions of this Note shall result at any time or for any reason in an effective rate of interest that exceeds the maximum interest rate permitted by applicable law, then without further agreement or notice the obligation to be fulfilled shall be automatically reduced to such limit and all sums received by the Lender in excess of those lawfully collectible as interest shall be applied against the principal of this Note immediately upon the Lender’s receipt thereof, with the same force and effect as though the Company had specifically designated such extra sums to be so applied to principal and the Lender had agreed to accept such extra payment(s) as a premium-free prepayment or prepayments.

 

9. Issuance of Capital Stock.  So long as any portion of this Note is outstanding, the Company shall not, without the prior written consent of the Lender, (i) issue or sell shares of common stock or preferred stock without consideration or for a consideration per share less than the bid price of the common stock determined immediately prior to its issuance, (ii) issue any warrant, option, right, contract, call, or other security instrument granting the holder thereof, the right to acquire common stock without consideration or for a consideration less than such common stock’s bid price value determined immediately prior to it’s issuance, (iii) enter into any security instrument granting the holder a security interest in any and all assets of the Company, or (iv) file any registration statement on Form S-8.

 

10. Cancellation of Note. Upon the repayment by the Company of all of its obligations hereunder to the Lender, including, without limitation, the principal amount of this Note, plus accrued but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled and paid in full.  Except as otherwise required by law or by the provisions of this Note, payments received by the Lender hereunder shall be applied first against expenses and indemnities, next against interest accrued on this Note, and next in reduction of the outstanding principal balance of this Note.

 

11. Severability.  If any provision of this Note is, for any reason, invalid or unenforceable, the remaining provisions of this Note will nevertheless be valid and enforceable and will remain in full force and effect.  Any provision of this Note that is held invalid or unenforceable by a court of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable and as so modified will remain in full force and effect.

 

  

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12. Amendment and Waiver.  This Note may be amended, or any provision of this Note may be waived, provided that any such amendment or waiver will be binding on a party hereto only if such amendment or waiver is set forth in a writing executed by the parties hereto.  The waiver by any such party hereto of a breach of any provision of this Note shall not operate or be construed as a waiver of any other breach.

 

13. Successors.  Except as otherwise provided herein, this Note shall bind and inure to the benefit of and be enforceable by the parties hereto and their permitted successors and assigns.

 

14. Assignment.  This Note shall not be directly or indirectly assignable or delegable by the Company.  The Lender may assign this Note as long as such assignment complies with the Securities Act of 1933, as amended.

 

15. No Strict Construction.  The language used in this Note will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party.

 

16. Further Assurances.  Each party hereto will execute all documents and take such other actions as the other party may reasonably request in order to consummate the transactions provided for herein and to accomplish the purposes of this Note.

 

17. Notices, Consents, etc.  Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) trading day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

 

If to Company:                                           Address listed on the Pink Sheets website

If to the Lenders:                                  Fairhills Capital

245 Main Street

Suite 390

White Plains, NY 10601

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) trading days prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

  

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18. Remedies, Other Obligations, Breaches and Injunctive Relief.  The Lender’s remedies provided in this Note shall be cumulative and in addition to all other remedies available to the Lender under this Note, at law or in equity (including a decree of specific performance and/or other injunctive relief), no remedy of the Lender contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Lender’s right to pursue actual damages for any failure by the Company to comply with the terms of this Note.  No remedy conferred under this Note upon the Lender is intended to be exclusive of any other remedy available to the Lender, pursuant to the terms of this Note or otherwise.  No single or partial exercise by the Lender of any right, power or remedy hereunder shall preclude any other or further exercise thereof.  The failure of the Lender to exercise any right or remedy under this Note or otherwise, or delay in exercising such right or remedy, shall not operate as a waiver thereof.  Every right and remedy of the Lender under any document executed in connection with this transaction may be exercised from time to time and as often as may be deemed expedient by the Lender.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Lender and that the remedy at law for any such breach may be inadequate.  The Company therefore agrees that, in the event of any such breach or threatened breach, the Lender shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, and specific performance without the necessity of showing economic loss and without any bond or other security being required.

 

19. Governing Law; Jurisdiction. THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

 

20. No Inconsistent Agreements.  None of the parties hereto will hereafter enter into any agreement, which is inconsistent with the rights granted to the parties in this Note.

 

  

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21. Third Parties.  Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or entity, other than the parties to this Note and their respective permitted successor and assigns, any rights or remedies under or by reason of this Note.

 

22. Waiver of Jury Trial.  AS A MATERIAL INDUCEMENT FOR THE LENDER TO LOAN TO THE COMPANY THE MONIES HEREUNDER, THE COMPANY HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

 

23. Entire Agreement.  This Note (including any recitals hereto) set forth the entire understanding of the parties with respect to the subject matter hereof, and shall not be modified or affected by any offer, proposal, statement or representation, oral or written, made by or for any party in connection with the negotiation of the terms hereof, and may be modified only by instruments signed by all of the parties hereto.

 

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IN WITNESS WHEREOF, this Promissory Note is executed by the undersigned as of October 8, 2010.

 

FLINT TELECOM GROUP, INC.

By:    /s/ Vincent Browne

    Vincent Browne

CEO

 

Acknowledged and Agreed to:

NOTE HOLDER:

E-LIONHEART ASSOCIATES, LLC

By:       /s/ Edward Bronson

Edward Bronson

Managing Member

  

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EXHIBIT A

NOTICE OF HOLDER CONVERSION – October 5, 2010 Note

(To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby elects to convert the attached Convertible Note into restricted trading shares of common stock (the “Common Stock”), of Flint Telecom Group, Inc. (the “Company”) according to the conditions hereof, as of the date written below. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

Conversion request:

_           ______                                ___________

Date to Effect Conversion

_                      _______________

Number of Restricted shares of Common Stock to be Issued

_________________

Principal Amount Converted

__________________

Applicable Conversion Price

EIN# of E-Lionheart Associates, LLC:                                                                           20-2286364

WE HEREIN CERTIFY that E-Lionheart Associates, LLC does not and will not own more than ten percent (10%) or more of the Company’s Common Stock after the above conversion.

E-Lionheart Associates, LLC

By: __________________________________

Edward Bronson

Managing Member

Mailing Address for Stock Certificate:

Fairhills Capital

245 Main Street

Suite 390

White Plains, NY 10601

  

8

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