ADDENDUM TO DEBT CONVERSION AND FUNDING AGREEMENTAddendum or Modifications |
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EXHIBIT 10.2
ADDENDUM TO DEBT CONVERSION AND
FUNDING AGREEMENT
This Addendum to Debt Conversion and
Funding Agreement ("Addendum")
shall
memorialize in writing the subsequent modifications and adjustments made
to that
certain Debt Conversion and Funding Agreement dated September 30, 2004
is
between ERF Wireless, Inc., a Nevada corporation, ("ERFW"), Eagle R.
F.
International,
Inc., a Texas corporation ("Company"), and Pauline Trust, Carson
Family
Trust, HC1 Trust, Leopard Family Trust, Jauquine Trust and Bailey Trust
(collectively,
the "Investors").
WHEREAS, the Company desires to raise
additional capital from the
Investors;
WHEREAS, the Investors desire to make
additional cash investments from
time to
time for shares of ERFW's Series A Convertible Preferred Stock;
NOW THEREFORE, in consideration of the
foregoing and for other good and
valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged,
the parties hereto agree as follows:
1. At
December 31, 2004, the Investors had converted all of Investor's claims
($487,142.33)
against the Company and delivered new funds ($262,857.67) for
1,500,000
shares of ERFW's Series A Convertible Preferred Stock (the
"Securities").
Stated differently, the parties have fully performed their
respective
obligations under the Debt Conversion and Funding Agreement dated
September
30, 2004 and now desire to supplement that agreement by this Addendum
to
allow the Investors to purchase additional shares of ERFW's Series A
Convertible
Preferred Stock on similar terms and conditions.
2. From
time to time, the Investors agree to deliver up to $750,000 in
additional
funds to ERFW in exchange for additional Securities.
3. ERFW
shall issue the Investors one (1) share of its Series A Convertible
Preferred
Stock for every Fifty Cents ($.50) invested on or before December 31,
2005.
For example, the Investors shall receive an additional 1,500,000 shares of
ERFW's
Series A for an investment of $750,000.
4. The
Investor understands and agrees that all securities will be issued with a
restrictive
legend to the effect that: "THE SHARES REPRESENTED BY THIS
CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"ACT")
AND ARE "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN RULE 144
UNDER
THE
ACT. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED
EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR PURSUANT
TO AN
EXEMPTION FROM REGISTRATION UNDER THE ACT, THE AVAILABILITY OF WHICH IS TO
BE
ESTABLISHED TO THE SATISFACTION OF THE COMPANY."
5.
Private Transaction
A. PRIVATE TRANSACTION. Investors and
ERFW understand each that the
sale
and exchange of securities contemplated herein constitutes a private,
arms-length
transaction between a willing seller and a willing buyer without the
use or
reliance upon a broker, distribution or securities underwriter.
B. PURCHASE FOR INVESTMENT. Investors
are not underwriters of, or
dealers
in the securities to be exchanged hereunder. Further, each Investor is
acquiring
the securities for investment purposes and not with a view to resell
the
securities.
C. INVESTMENT RISK. Because of each
Investor's financial position and
other
factors, the transaction contemplated by this Agreement may involve a high
degree
of financial risk, including the risk that each Investor may lose its
entire
investment in the securities.
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