Debt Conversion agreement dated April 25, 2013, between the Company and Meshugeneh LLC
EXHIBIT 10.1
MEMO AUTHORIZING THE CONVERSION OF DEBT
Date: April 25, 2013
To: Mack Leath, Meshugeneh
From: Neal Sessions, SIBE
Re: Conversion of debt obligations
SIBE’s Board of Directors met on the 19th of April and approved the issuances of restricted shares for consideration of the current debt owed to Meshugeneh LLC. This memo is to serve as a formal agreement between Meshugeneh, LLC and Sibling Group Holdings, Inc. (SIBE), for the conversion of all obligations as of the above date into restricted common stock in SIBE.
Meshugeneh has made various advances on behalf of SIBE and is currently owed approximately $59,376 in total. Meshugeneh hereby agrees to accept 257,040 shares of restricted common stock in full settlement of these obligations. The formula used in determining the shares to be issued is: The full amount owed at the time of the agreement, divided by 110% of the average closing stock price on the ten (10) days prior to the agreement to convert. In this case the average closing price, using data from Yahoo finance is $.21 per share. Therefore, the share price used in determining the shares to be issued is $.231, which is 110% of that amount.
All parties agree that any discrepancy in the dollars actual owed will be made after the completion of the 2013 audit and deducted from future advances if necessary. The amounts shall be verified, but in general, consist of the following:
A DETAIL OF THE SHARE PRICE CALCUALTION AND AMOUNTS OWED FOLLOW
Agreed to this 16th day of May, 2013, by:
Neal B. Sessions |
| Mack R. Leath |
Neal B. Sessions |
| Mack R. Leath |
Chairman, CEO and CFO |
| Manager of Meshugeneh, LLC |
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SHARE INFO FOR 10 DAYS PRIOR TO CONVERSION |
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Date | Open | High | Low | Close | Volume | Adj Close* |
24-Apr-13 | 0.17 | 0.22 | 0.17 | 0.22 | 23,600 | 0.22 |
23-Apr-13 | 0.16 | 0.2 | 0.15 | 0.2 | 156,600 | 0.2 |
22-Apr-13 | 0.18 | 0.22 | 0.15 | 0.22 | 4,400 | 0.22 |
19-Apr-13 | 0.22 | 0.22 | 0.22 | 0.22 | 300 | 0.22 |
18-Apr-13 | 0.16 | 0.22 | 0.14 | 0.18 | 15,700 | 0.18 |
17-Apr-13 | 0.15 | 0.23 | 0.15 | 0.23 | 20,900 | 0.23 |
16-Apr-13 | 0.12 | 0.19 | 0.12 | 0.19 | 38,900 | 0.19 |
15-Apr-13 | 0.16 | 0.25 | 0.15 | 0.25 | 13,900 | 0.25 |
12-Apr-13 | 0.13 | 0.17 | 0.13 | 0.17 | 80,700 | 0.17 |
11-Apr-13 | 0.14 | 0.27 | 0.13 | 0.27 | 88,600 | 0.27 |
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| AVG CLOSING PRICE | 0.21 |
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| 110% | 0.231 |
Meshugeneh LLC Payables |
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| GL Date | Additional Desc | Amount |
| 10/1/2012 | Edgar Filing Fees | $2,500.00 |
| 12/31/2012 | Sherb Audit Fees | $5,000.00 |
| 12/31/2012 | Ligett Vogt & Webb Audit | $5,000.00 |
| 12/31/2012 | B2B CFO, Snyder | $3,500.00 |
| 12/31/2012 | DC - 2 tix at 1,120 plus hotel and meals | $2,655.42 |
| 12/31/2012 | FINRA response | $345.00 |
Meshugeneh LLC Payables at 2012 year-end | $19,000.42 | ||
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Mesh activity for Q1 2013 |
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| Trans. Date |
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| 1/3/2013 | Direct Deposit to NBS | $1,000.00 |
| 1/9/2013 | Direct Deposit to NBS | $2,000.00 |
| 1/11/2013 | Direct Deposit to NBS | $2,000.00 |
| 1/28/2013 | RECUR DEBIT CRD PMT01/27 YAHOO *NEWCO4EDUC ###-###-#### CA 474165XXXXXX1473 003027595902106 ?MCC=4816 | $13.94 |
| 2/6/2013 | CHECK # 1734 SCI Group / PR exp | $2,000.00 |
| 2/8/2013 | RECUR DEBIT CRD PMT02/07 YAHOO *NEWCO4EDUC ###-###-#### CA 474165XXXXXX1473 083038549805821 ?MCC=4816 | $9.00 |
| 2/11/2013 | CHECK # 1735 Deposited to WFB Checking | $2,400.00 |
| Feb. 2013 | Transfer to WFB Checking | $5,000.00 |
| Feb. 2013 | Initial deposti to WFB checking | $210.00 |
| Feb. 2013 | Initial deposit to WFB savings | $50.00 |
| 3/12/2013 | CHECK CRD PURCHASE 03/11 YAHOO *NEWCO4EDUC ###-###-#### CA 474165XXXXXX6938 283069424101776 ?MCC=4816 | $22.94 |
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| Q1 2013 Mesh Fundings | $14,705.88 |
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| Q1 GL Balance for Mesh | $33,706.30 | |
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Mesh Q2 EXPENSES IN 2013 THROUGH 4-25 |
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| 4/15/2013 | CHECK # 1664 deposit to WFB Checking | $3,000.00 |
| 4/15/2013 | WT FED#08571 CITIBANK N.A. NEW /FTR/BNF=LIGGETT, VOGT AND WEBB, PA SRF# 0066771105312937 TRN ###-###-#### RFB# | $5,000.00 |
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| 4/22/2013 | CHECK CRD PURCHASE 04/20 VOC*PRWEB NEWS SVC ###-###-#### MD 474165XXXXXX8427 083108632354879 ?MCC=5968 | $499.00 |
| 4/22/2013 | CHECK CRD PURCHASE 04/20 VOC*PRWEB NEWS SVC ###-###-#### MD 474165XXXXXX8427 163108641686086 ?MCC=5968 | $100.00 |
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| 4/25/2013 | CHKCARDMACREPORT MEDIAMARCELL NYUS | $199.00 |
| 4/25/2013 | CHKCARDMACREPORT MEDIAMARCELL NYUS | $1,950.00 |
| 4/25/2013 | OUTGOING WIRE DEBIT | $1,000.00 |
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| 4/24/2013 | WT FED#04034 CITIBANK N.A. NEW /FTR/BNF=Sherb and Co SRF# 0066771114972238 TRN ###-###-#### RFB# | $5,850.00 |
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| 4/19/2013 | CHECK CRD PURCHASE 04/18 PAYPAL *PRLOG ###-###-#### TX 474165XXXXXX8427 003108619365993 ?MCC=7311 | $49.00 |
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| 4/12/2013 | WT FED#00948 WEBSTER BANK, N.A. /FTR/BNF=Matthew Cowell SRF# 0066771102397227 TRN ###-###-#### RFB# | $5,000.00 |
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| 4/8/2013 | RECUR DEBIT CRD PMT04/06 YAHOO *NEWCO4EDUC ###-###-#### CA 474165XXXXXX8427 283096586174750 ?MCC=4816 | $9.00 |
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| 4/8/2013 | CHECK CRD PURCHASE 04/06 YAHOO *NEWCO4EDUC ###-###-#### CA 474165XXXXXX8427 083095534337020 ?MCC=4816 | $13.94 |
| 4/24/2013 | EDGAR FILING SERVICE | $ 3,000.00 |
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| TOTAL IN 2013 | $25,669.94 |
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| Mesh LLC Payable as of 4/25 | $59,376.24 | |
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| 110% of prior 10 day average | 0.231 |
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| No. of shares to issue | 257,040 |
