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VEDO.OB > SEC Filings for VEDO.OB > Form 8-K on 4-Aug-2009All Recent SEC Filings

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Form 8-K for VILLAGEEDOCS INC


4-Aug-2009

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance


Item 2.03 Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant.

On July 30, 2009 the Registrant arranged for an unsecured promissory note financing with C. Alan Williams and Joan P. Williams in the amount of $435,000 (the "Williams July 2009 Note"). The Williams July 2009 Note bears interest at ten percent (10%).per annum. The term of the Williams July 2009 Note is twelve
(12) months, with monthly installments paid by the Registrant at the end of each month consisting of principal and interest, beginning on July 31, 2009. The Williams July 2009 Note matures on July 1, 2010. Should the Registrant fail to make payments for a period of ninety (90) days, a default shall occur. Upon the default, the Registrant shall pay a penalty interest rate in the amount of fifteen percent (15%) per annum on the unpaid amounts until the default is cured.

Payment obligations under the Williams July 2009 Note are subordinate in certain respects to the rights of the Private Bank of the Peninsula.

The Registrant used the proceeds from the Williams July 2009 Note, to retire a line of credit with a financial institution on August 4, 2009 and to make installment payments to Vojin and Gloria Hadzi-Pavlovic pursuant to the agreement for the Registrant's purchase of Decision Management Company, Inc. dba Questys Solutions dated as of August 1, 2008.



Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit No.                               Description

   99.1       Promissory Note by and between the Registrant and C. Alan Williams
              and Joan P. Williams dated July 30, 2009.

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