Exhibit 10.1
NEITHERTHISNOTENORTHE SECURITIESINTOWHICHTHISNOTEIS CONVERTIBLEHAVEBEENREGISTEREDUNDERTHESECURITIESACT OF 1933,ASAMENDED(THE“ACT”)OR ANYSTATESECURITIES LAWS AND NEITHER THISNOTENOR ANYINTERESTTHEREIN NOR THESECURITIESINTO WHICHTHISNOTEISCONVERTIBLEMAYBE OFFERED, SOLD,TRANSFERRED,PLEDGED OROTHERWISEDISPOSED OF EXCEPTPURSUANTTOANEFFECTIVEREGISTRATIONSTATEMENT UNDER SUCHACTANDSUCHLAWSORAN EXEMPTIONFROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.
CONVERTIBLEPROMISSORYNOTE
Principal Amount: $45,000.00 | Issue Date: June 2 , 2015 |
Maturity Date: June 2 , 2016 |
Forgoodandvaluableconsideration,NationalAutomationServices,Inc.,aNevadacorporation(“Maker”),hereby makesanddeliversthisPromissory Note(this“Note”)in favor ofBlackbridgeCapital,LLC,oritsassigns(“Holder”),andherebyagreesas follows:
ARTICLEI.
PRINCIPAL AND INTEREST
Section 1.1 Forvaluereceived,MakerpromisestopaytoHolderatsuchplaceas Holderoritsassignsmaydesignateinwriting,incurrentlyavailablefundsoftheUnitedStates,thePrincipalAmount ofForty-FiveThousand Dollars. Maker’s obligation under this Note shallaccrue interestat the rate offivepercent (5%)per annumfrom the date hereof until paid in full. Interest shall becomputed on the basis of a 365-day year or 366-day year,asapplicable,andactualdayslapsed. Accrualof interestshallcommenceonthefirst businessday tooccuraftertheIssueDateandcontinueuntil paymentin full of thePrincipal Amount has beenmadeor duly providedfor.
Section 1.2
a. All payments shall be applied first to interest, then to principal and shall be credited to the Maker's account on the date that such payment is physically received by the Holder.
b. All principal and accrued interest then outstanding shall be due and payable by the Maker to the Holder on or beforeJune 2 , 2016(the “Maturity Date”).
c. Maker shall have no right to prepay all or any part of the principal under this Note.
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d. ThisNoteisfreefromalltaxes,liens,claimsandencumbrances withrespecttothe issuethereofandshallnotbe subjecttopreemptiverightsorother similarrights of shareholders oftheMakerand willnotimposepersonalliabilityupon the holderthereof.
Section 1.3 ThisNoteisissuedinexchangesolely forHolder’ssurrenderofthe ConvertibleNotespreviously issuedbyMaker,andsubsequentlyacquiredby Holder,as specificallylistedonScheduleAhereto,eachofwhichrepresentsamountsdueand owingby Maker to the original holder thereofas ofat least six (6) months prior to the date of this Note,and for no otherconsideration from Holder. All obligations of Maker toHolder,asrepresentedintheConvertibleNoteslistedinScheduleAhereto,are replacedand supersededintheirentiretyby the terms of this Note.
THEPRINCIPALSUMDUE TOHOLDERSHALLBEPRORATED BASED ONTHEAMOUNT OFNOTESPREVIOUSLYISSUED BYMAKER,ASSPECIFICALLY LISTED ON SCHEDULE AHERETO,THAT AREACTUALLYPURCHASED BY HOLDER, SUCHTHATTHEMAKER IS ONLYREQUIRED
TO REPAYTHAT AMOUNT OFDEBTPURSUANTTOTHISNOTE.
ARTICLEII.
CONVERSIONRIGHTS;CONVERSIONPRICE
Section 2.1 Conversion. TheHolderoritsassigns shallhavetheright,from time totime,commencingontheIssuanceDateof thisNote, toconvertanypart ofthe outstanding interest orPrincipalAmountof thisNoteintofullypaidand non-assessable sharesof CommonStockoftheMaker (the“NoticeShares”)attheConversion Price determinedasprovided herein.Promptlyafterdelivery to MakerofaNoticeof ConversionofConvertibleNoteintheformsattached heretoasExhibit1,orany other formprovidedbythe Holder, properlycompletedanddulyexecutedbythe Holder or itsassigns (a“ConversionNotice”), theMaker shallissueand deliver toor upontheorder of theHolderthatnumberofshares ofCommonStockfor thethatportionofthisNotetobeconvertedas shall be determined in accordanceherewith.
Nofractionofashareorscriprepresenting afractionofasharewillbeissuedonconversion, butthenumber ofshares issuableshallbe rounded tothenearest whole share. ThedateonwhichNoticeofConversionisgiven(the“ConversionDate”)shallbe deemedto be thedateonwhichthe Holderfaxes,mailsoremailstheNoticeof ConversiondulyexecutedtotheMaker.CertificatesrepresentingCommonStockuponconversionwillbedeliveredtotheHolderwithintwo(2) tradingdays fromthedatethe Noticeof Conversion isdelivered totheMaker.Delivery ofshares uponconversion shall bemadetothe addressspecifiedby theHolder orits assigns in theNoticeofConversion.
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Section 2.2. Conversion Price. Upon any conversion of this Note, the Conversion Price shall equal to Sixty Percent (60%) of the lowest Trading Price (defined below) during the Valuation Period (defined below), and the Conversion Amount shall be the amount of principal or interest electively converted in the Conversion Notice. The total number of shares due under any conversion notice (“Notice Shares”) will be equal to the Conversion Amount divided by the Conversion Price.
On the date that a Conversion Notice is delivered to Holder, the Company shall deliver an estimated number of shares (“Estimated Shares”) to Holder’s brokerage account equal to the Conversion Amount divided by the product of (i) Sixty Percent (60%) and (ii) the lowest trading price in the forty trading days prior to the day the Holder requests conversion.
The “Valuation Period” shall mean forty (40) Trading Days, commencing on the first Trading Day following delivery and clearing of the Notice Shares in Holder’s brokerage account, as reported by Holder (“Valuation Start Date”). If at any time, one or multiple times, during the Valuation Period the sum of Estimated Shares and Additional Shares already delivered to Holder is less than the Notice Shares, the company must immediately deliver enough shares equal to the difference (“Additional Shares”). A Conversion Amount will not be considered fully converted until the end of the Valuation Period for that Conversion Amount, as decreases in the Conversion Price would require the issuance of more Additional Shares, and thereby the issuance of more Notice Shares.
“Trading Price” means, for any security as of any date, any trading price on the OTC Bulletin Board, or other applicable trading market (the “OTCBB”) as reported by a reliable reporting service (“Reporting Service”) mutually acceptable to Maker and Holder (i.e. Bloomberg) or, if the OTCBB is not the principal trading market for such security, the price of such security on the principal securities exchange or trading market where such security is listed or traded. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTCBB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.
Section 2.3. Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.Incase theMaker shallreorganize itscapital, reclassify itscapital stock,consolidateormerge withorintoanothercorporation (wheretheMaker isnotthe survivingcorporation orwhere there isachange inordistribution with respect tothe Common Stock of the Maker),or sell, transfer orotherwise dispose ofallor substantiallyallits property,assetsor businesstoanothercorporationand,pursuant totheterms of such reorganization, reclassification, merger,consolidationor dispositionofassets, sharesofcommon stockofthesuccessororacquiringcorporation, oranycash,shares of stock or othersecurities or propertyofanynaturewhatsoever (includingwarrants or other subscriptionor purchase rights) inaddition to or inlieu ofcommon stock ofthe successororacquiringcorporation(“OtherProperty”),are to bereceivedbyor distributed to the holders of CommonStock of the Maker, then Holder shall have the rightthereafter toreceive, uponconversionof thisNote, thenumberof shares ofcommon stock of thesuccessororacquiringcorporation or of the Maker, ifitisthesurvivingcorporation,andOtherProperty receivableuponorasaresultofsuchreorganization, reclassification, merger,consolidation or disposition ofassetsby a holder of the number of sharesofCommonStock intowhich thisNote isconvertibleimmediatelypriortosuchevent.Incaseofany suchreorganization, reclassification, merger,consolidationor disposition ofassets, the successor oracquiringcorporation (if other than the Maker) shallexpresslyassumethedueandpunctual observanceand performanceofeachandeverycovenantandcondition of this Note tobe performedand observedby theMakerandall theobligationsandliabilities hereunder, subject to suchmodificationsasmaybe deemedappropriate(as determined ingood faithby resolution of theBoard of Directors of the Maker) in orderto provide foradjustments of the numberof shares ofcommon stockintowhichthisNoteisconvertiblewhichshallbeasnearlyequivalentas practicable to theadjustments provided for in thisSection 2.3(a).Forpurposes of thisSection 2.3(a), “commonstockofthesuccessororacquiringcorporation” shallinclude stock of suchcorporation ofanyclass which is not preferredas to dividends orassets overany otherclass ofstock ofsuchcorporationandwhich isnotsubject toredemptionandshallalsoincludeanyevidences ofindebtedness, sharesofstockorothersecurities whichareconvertible into orexchangeable forany such stock,eitherimmediately or upon thearrival of aspecified date orthe happening ofaspecifiedevent andany warrants orotherrights to subscribe fororpurchaseanysuch stock. Theforegoing provisionsof thisSection 2.3(a) shall similarlyapply to successive reorganizations, reclassifications, mergers,consolidations ordisposition ofassets.
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Section 2.4. Restrictions on Securities.ThisNote hasbeen issued by theMakerpursuant totheexemption fromregistration under the Securities Actof 1933,asamended (the“Act”). NoneofthisNoteortheshares ofCommonStockissuable uponconversion of this Notemay beoffered, soldorotherwise transferred unless(i)they firstshallhave beenregistered under the Actandapplicable state securities lawsor (ii) the Maker shall havebeen furnished withan opinion of legalcounsel(in form,substanceand scope reasonablyacceptable toMaker)to theeffect thatsuchsale ortransfer isexempt from the registrationrequirementsof theAct.Eachcertificate for sharesof CommonStock issuable uponconversion of thisNote thathavenot beenso registeredand thathave not beensoldpursuanttoanexemption thatpermitsremovalof theapplicable legend, shall bear alegend substantially inthe followingform,as appropriate:
THESECURITIESREPRESENTED HEREBY HAVE NOTBEEN REGISTEREDUNDER THESECURITIESACTOF1933(THE“ACT”). THESECURITIESREPRESENTEDHEREBY MAYNOTBE OFFERED, SOLD OROTHERWISETRANSFERRED UNLESSTHEY AREREGISTERED UNDERTHE ACTANDAPPLICABLE STATESECURITIESLAWS, OR SUCH OFFERS,SALESAND TRANSFERS AREMADE PURSUANT TO ANAVAILABLEEXEMPTIONFROM THEREGISTRATIONREQUIREMENTS OFTHOSELAWS.
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Upontherequestofaholderofacertificaterepresentingany sharesofCommonStock issuableuponconversionofthisNote,theMakershallremovetheforegoing legendfrom thecertificateorissuetosuchHolderanewcertificatefreeofanytransfer legend,if(a) withsuch request,theMaker shallhavereceivedanopinionofcounsel,reasonably satisfactory totheMakerinform,substanceandscope,totheeffectthatany suchlegend may beremovedfromsuchcertificateor(b)aregistration statementundertheActcoveringsuchsecuritiesis in effect.
Section 2.5. Reservationof CommonStock.
(a) TheMakercovenantsthatduring theperiodthe Noteisoutstanding,itwill reservefromitsauthorizedandunissuedCommonStock a sufficientnumber ofsharesto providefortheissuanceofCommonStockoftheMakerupontheConversionofthe Note.The Maker furthercovenants thatitsissuance of thisNote shallconstitutefullauthority toitsofficerswhoarechargedwiththeduty ofexecutingstockcertificatestoexecuteandissue thenecessarycertificates forsharesofCommonStockoftheMaker issuable upon the conversion of this Note.TheMakerwilltakeallsuchreasonableactionas maybenecessarytoassurethatsuchshares ofCommonStockmaybeissuedas providedhereinwithoutviolationofanyapplicablelaworregulation,orofany requirementsof theOTCBulletinBoard (or suchother principal market uponwhichthe CommonStock ofthe Maker maybelisted orquoted).
(b) TheMakershallnotbyanyaction,including,withoutlimitation,amendingitscertificateofincorporationorthroughanyreorganization,transferofassets,consolidation, merger,dissolution, issueorsaleofsecurities orany othervoluntaryaction,avoid or seek toavoid the observance or performance ofanyof the terms of this Note,butwillatalltimesingoodfaithassistin the carrying outofallsuchtermsandin thetakingofallsuchactionsasmaybenecessaryorappropriatetoprotecttherightsof Holderagainst impairment.Without limiting thegenerality of the foregoing, theMaker will(a)not increasetheparvalueofany sharesofCommonStockissuableupontheconversionof thisNoteabove theamountpayable therefor uponsuchconversion immediatelypriortosuchincreaseinparvalue,(b) takeallsuchactionasmaybe necessary orappropriate inorderthattheMakermayvalidlyandlegallyissuefullypaidandnonassessablesharesof Common Stockupontheconversionof thisNote,and(c) use itsbesteffortstoobtainallsuchauthorizations,exemptions orconsentsfromany public regulatory body havingjurisdictionthereofasmaybenecessary toenabletheMakerto performits obligations under this Note.
(c) Upon the request of Holder, the Maker will at any time during the period this Note is outstanding acknowledge in writing, in form reasonably satisfactory to Holder, the continuing validity of this Note and the obligations of the Maker hereunder.
(d) Before taking any action which would cause an adjustment reducing the current Conversion Price below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Maker shall take any corporate action which may be necessary in order that the Maker may validly and legally issue fully paid and non-assessable shares of such Common Stock at such adjusted Conversion Price.
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(e) Before taking any action which would result in an adjustment in the number of shares of Common Stock into which this Note is convertible or in the Conversion Price, the Maker shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
(f) If at any time the Maker does not have a sufficient number of authorized and available shares of Common Stock for issuance upon conversion of the Note, then the Maker shall call and hold a special meeting of its stockholders within forty-five (45) days of that time for the sole purpose of increasing the number of authorized shares of Common Stock.
Section 2.6. Maximum Conversion.
TheHoldershallnotbeentitledtoconvertonaConversionDatethatamountofthe Notesinconnectionwiththatnumber of sharesof Common Stock whichwouldbe inexcessofthesumof(i)thenumberofsharesofCommonStockbeneficially ownedby the HolderanditsaffiliatesonConversationDate,and(ii) the numberof sharesof CommonStock issuable upon theconversionof the Notes with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownershipby the Holderand its Affiliates of more than 9.99% of the outstanding shares of CommonStock of the Company on such Conversion Date.For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall bedetermined inaccordancewithSection 13(d)oftheSecurities ExchangeAct of
1934,as amended,and Regulation 13d-3 thereunder.
ARTICLEIII.
REPRESENTATIONSAND WARRANTIES
Section 3.1. TheHolderrepresents andwarrantsto the Maker:
(a) The Holder of this Note, by acceptance hereof, agrees that this Note is being acquired for investment and that such Holder will not offer, sell or otherwise dispose of this Note or the Common Stock issuable upon conversion hereof except under circumstances that will not result in a violation of the Act or any application state securities laws or similar laws relating to the sale of securities;
(b) That Holder understands that none of this Note or the Common Stock issuable upon conversion hereof have been registered under the Securities Act of 1933, as amended (the “Act”), in reliance upon the exemptions from the registration provisions of the Act and any continued reliance on such exemption is predicated on the representations of the Holder set forth herein;
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(c) Holder(i)hasadequatemeansofprovidingforhiscurrentneedsand possiblecontingencies,(ii) has noneed for liquidityinthisinvestment, (iii)is ableto bear thesubstantialeconomic risksofaninvestmentinthisNoteforanindefiniteperiod,(iv)atthepresenttime,canaffordacompletelossofsuchinvestment,and(v) doesnothaveanoverallcommitmenttoinvestmentswhicharenotreadilymarketablethatis disproportionate to Holder’s net worth,and Holder’s investment in this Note will notcause such overallcommitment to becomeexcessive;
(d) Holder is an “accredited investor” (as defined in Regulation D promulgated under the Act)and the Holder’s total investment in this Note does not exceed 10% of the Holder’s net worth; and
(e) Holder recognizes that an investment in the Maker involves significant risks and only investors who can afford the loss of their entire investment should consider investing in the Maker and this Note.
Section 3.2 TheMakerrepresents and warrantsto Holder:
(a) Organization and Qualification.TheMakerandeachofitsSubsidiaries (as definedbelow),ifany, isacorporation duly organized, validlyexistingandingood standingunder thelaws ofthe jurisdiction inwhich itisincorporated, with full powerandauthority (corporateand other) to own, lease, useand operate its propertiesand tocarry onitsbusinessasandwhere now owned,leased, used, operatedandconducted. The MakerandeachofitsSubsidiariesis duly qualifiedas a foreigncorporation to do businessand isingood standing inevery jurisdiction inwhichitsownership oruseof property orthenature of thebusinessconductedbyit makes suchqualification necessaryexcept where the failure tobesoqualified oringoodstanding wouldnothave aMaterial Adverse Effect.“Material Adverse Effect” meansanymaterialadverseeffect on the business,operations,assets, financialcondition or prospectsof theMaker or itsSubsidiaries, ifany, takenas a whole, or on thetransactionscontemplated hereby orby theagreements or instruments to beentered into inconnection herewith.“Subsidiaries” meansanycorporation orotherorganization, whether incorporated orunincorporated, in which the Maker owns,directlyor indirectly,anyequity or other ownership interest.
(b) Authorization; Enforcement.(i)TheMaker hasallrequisitecorporate powerandauthority toenterintoandperform thisNoteandtoconsummatethe transactionscontemplated herebyand therebyandtoissuethe CommonStock, inaccordance with the terms hereof, (ii) theexecutionand delivery of this Notebythe Makerandtheconsummationby itof the transactionscontemplatedherebyandthereby (including without limitation, the issuance of the Noteand the issuanceand reservation for issuance of the CommonStock issuable uponconversion orexercise hereof) have been dulyauthorizedbytheMaker’sBoardofDirectorsandnofurtherconsentorauthorization of theMaker, itsBoard of Directors,or itsshareholders isrequired, (iii)this Notehasbeen dulyexecutedanddeliveredby theMakerbyitsauthorized representative,andsuchauthorized representative isthetrueand official representativewithauthorityto signthis Noteandtheother documentsexecuted inconnectionherewithandbindthe Makeraccordingly,and(iv) thisNoteconstitutes, alegal,validand binding obligation of the Makerenforceableagainstthe Maker inaccordance withitsterms.
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(c) Issuance ofShares.TheNoticeSharesaredulyauthorizedandreserved forissuanceand, uponconversion of the Note inaccordance with itsrespective terms, willbe validly issued,fullypaidandnon-assessable,andfreefromalltaxes,liens,claimsandencumbrances withrespect totheissue thereofand shallnotbesubject topreemptive rightsorothersimilar rightsofshareholders ofthe Makerand willnotimpose personal liability upon the holderthereof.
(d) Acknowledgment of Dilution.The Maker understandsand acknowledges thepotentiallydilutiveeffect totheCommonStockupontheissuance oftheNoticeShares uponconversion of thisNote.TheMaker furtheracknowledges thatits obligation toissue NoticeShares uponconversion of thisNote isabsoluteandunconditional regardless ofthedilutiveeffect thatsuchissuance mayhave ontheownership interests of othershareholders oftheMaker.
ARTICLEIV.
EVENTSOFDEFAULT
Section 4.1. Default.ThefollowingeventsshallbedefaultsunderthisNote:
(“Events ofDefault”):
(a) defaultinthedueandpunctualpaymentofalloranypartofanypayment of interestor thePrincipal Amountasand when suchamountor such partthereof shall become dueand payablehereunder; or
(b) failureonthepartoftheMakerduly toobserveorperforminallmaterial respectsany ofthecovenantsoragreementsonthepartoftheMakercontainedherein (otherthanthosecoveredbyclause(a)above)foraperiodof 5business daysafterthe dateonwhichwrittennoticespecifying suchfailure,stating thatsuchnoticeisa“Notice ofDefault”hereunderanddemandingthattheMakerremedy thesame,shallhavebeengivenby theHolderbyregisteredorcertifiedmail,returnreceipt requested, totheMaker; or
(c) any representation,warranty orstatementof factmadeby theMaker herein whenmadeor deemedtohavebeenmade, falseormisleading inany material respect;provided,however, thatsuch failure shallnotresultinanEventof Default totheextent itiscorrectedby theMaker withina periodof5business daysafterthedateon whichwritten noticespecifying suchfailure, statingthatsuchnoticeis a“Noticeof Default” hereunderand demanding that the Maker remedy same, shall have beengivenbytheHolderbyregistered orcertified mail, return receiptrequested; or
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(d) anyofthefollowingactions bytheMakerpursuanttoorwithinthe meaningtitle11,U.S.Codeorany similarfederalorstatelawforthereliefofdebtors (collectively,the“BankruptcyLaw”):(A)commencementofavoluntarycaseor proceeding,(B)consenttotheentry ofanorderforreliefagainstitinaninvoluntarycase orproceeding,(C)consentstotheappointmentofareceiver,trustee,assignee,liquidator orsimilarofficialunderanyBankruptcyLaw(each, a“Custodian”),ofitorforallor substantiallyallof its property,(D) ageneralassignment for the benefit of itscreditors, or (E) admission in writingits inabilityto payitsdebts as the same becomedue; or
(e) entrybyacourtofcompetentjurisdictionofanorderordecreeunderanyBankruptcyLawthat:(A)isforreliefagainsttheMakerinaninvoluntarycase,(B)appointsaCustodian oftheMakerorforall or substantiallyall ofthe property ofthe Maker, or(C) orders the liquidationof the Maker,andsuchorderor decree remains unstayedand in effectfor60 days.
Section 4.2. Remedies Upon Default.Upontheoccurrenceofaneventofdefaultby Makerunderthis Noteoratanytimebeforedefaultwhen theHolderreasonablyfeelsinsecure, then,inaddition toallotherrightsandremediesatlaworinequity, Holdermayexerciseany oneor moreof the following rightsand remedies:
a. Acceleratethetimeforpaymentofallamountspayableunder this Noteby writtennoticethereoftoMaker,whereuponallsuchamountsshallbe immediatelydueand payable.
b PursueanyotherrightsorremediesavailabletoHolderatlaworin equity.
c. Receiveliquidateddamagesof$500perdayperEventofDefault the Maker is in Defaultpursuant to this Note.
Section 4.3. Payment of Costs.TheMaker shall reimbursetheHolder,ondemand, foranyandallreasonablecostsandexpenses, includingreasonableattorneys’feesand disbursementandcourtcosts,incurredby theHolder incollecting orotherwiseenforcing this Note orin attempting to collect orenforce this Note.
Section 4.4. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.No right orremedy hereinconferred uponorreserved totheHolderisintended to beexclusive ofanyotherright orremedyavailable to Holder underapplicable law,andevery such rightandremedy shall,totheextent permittedby law, becumulativeandinaddition toevery otherrightandremedygivenhereunder ornoworhereafterexistingat law orinequity orotherwise. Theassertion oremployment ofany rightorremedy hereunder, orotherwise, shallnotprevent theconcurrentassertionoremployment ofanyotherappropriate rightor remedy. Nodelayor omission oftheHolder toexerciseany right orpower accruinguponany Default occurringandcontinuingasaforesaid shall impairany such right orpower orshallbe construed tobeawaiverofanysuchDefault oranacquiescence therein;andevery powerandremedygivenby this Note orbylaw may be exercisedfrom time to time,andas oftenas shallbedeemedexpedient,bytheHolder.
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Section 4.5. Waiver of Past Defaults. TheHolder maywaiveanypastdefault orEvent of Defaulthereunderanditsconsequences butnosuchwaivershallextend toany subsequent or otherdefault orEvent ofDefault orimpairany right consequentthereon.
Section 4.6. Waiver of Presentment etc.TheMakerhereby waivespresentment, demand,notice,protestandallother demandsandnoticesinconnectionwiththe delivery,acceptance, performanceandenforcement of thisNote,exceptasspecifically provided herein.
ARTICLEV.
MISCELLANEOUS
Section 5.1. Notices. Any notice herein required or permitted to be given shall be in writing and may be personally served or delivered by courier or sent by United States mail and shall be deemed to have been given upon receipt if personally served (which shall include telephone line facsimile transmission) or sent by courier or three (3) days after being deposited in the United States mail, certified, with postage pre-paid and properly addressed, if sent by mail. For the purposes hereof, the address of the Holder shall be 450 7th Ave., Suite 601, New York, NY 10123; and the address of the Maker shall be 8965 S. Eastern Ave., Suite 120E, Las Vegas, NV 89123. Both the Holder or its assigns and the Maker may change the address for service by delivery of written notice to the other as herein provided.
Section5.2. Amendment.ThisNoteandanyprovisionhereofmaybeamendedonlybyan instrumentin writing signedbytheMakerandtheHolder.
Section5.3. Assignability.ThisNoteshallbebinding upontheMakeranditssuccessorsandassignsandshallinure tobe the benefitof the Holderanditssuccessorsandassigns; provided,however,that solongasnoEventofDefaulthasoccurred,this Noteshallonly be transferable inwholesubjecttothe restrictionscontained inthe restrictive legendon thefirst pageof this Note.
Section 5.4. Governing Law. This Note shallbegovernedbythe internallaws ofthe State ofNewYork, withoutregard toconflicts of laws principles.
Section 5.5. Replacement of Note.TheMakercovenants thatuponreceiptbytheMaker ofevidencereasonablysatisfactory toitoftheloss,theft,destruction ormutilation ofthis Note,andincaseofloss, theftordestruction, ofindemnityor security reasonably satisfactory to it (whichshall not include the posting ofanybond),andupon surrender andcancellation ofsuchNote, if mutilated, the Maker willmakeand deliver anewNote ofliketenor.
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Section 5.6. This Note shall not entitle the Holder to any of the rights of a stockholder of the Maker, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholder or any other proceedings of the Maker, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.
Section 5.7. Severability. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.
Section 5.8. Headings. The headings of the sections of this Note are inserted for convenience only and do not affect the meaning of such section.
Section 5.9. Counterparts. This Note may be executed in multiple counterparts, each of which shall be an original, but all of which shall be deemed to constitute one instrument.
INWITNESSWHEREOF,withtheintenttobelegallyboundhereby,theMakerasexecuted this Note as ofthedatefirstwrittenabove.
National AutomationServices, Inc.
/s/ Robert Chance
By: Robert Chance
Its: CEO
Acknowledged andAgreed: Blackbridge Capital,LLC.
/s/ Alexander Dillon
By:AlexanderDillon
Its: Partner
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