NEITHERTHEISSUANCEANDSALEOFTHESECURITIESREPRESENTEDBYTHISCERTIFICATENORTHESECURITIESINTOWHICHTHESESECURITIESARECONVERTIBLEHAVEBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORAPPLICABLESTATESECURITIESLAWS.THESECURITIESMAYNOT BEOFFEREDFORSALE,SOLD,TRANSFERRED ORASSIGNED(I) IN THEABSENCE OF(A)ANEFFECTIVEREGISTRATIONSTATEMENTFOR THESECURITIESUNDER THESECURITIES ACT OF1933,ASAMENDED, OR(B)ANOPINION OFCOUNSEL(WHICHCOUNSELSHALLBESELECTEDBYTHEHOLDER),INAGENERALLYACCEPTABLEFORM,THATREGISTRATION ISNOTREQUIREDUNDERSAIDACT OR(II)UNLESS SOLDPURSUANTTORULE144ORRULE144AUNDERSAIDACT.NOTWITHSTANDING THEFOREGOING, THESECURITIESMAY BEPLEDGED INCONNECTIONWITHABONAFIDEMARGINACCOUNTOROTHERLOANORFINANCINGARRANGEMENTSECUREDBYTHESECURITIES.
| PrincipalAmount:$20,000.00 | Issue Date: January 10, 2015 |
CONVERTIBLEPROMISSORYNOTE
FORVALUERECEIVED,CROSSCLICK MEDIA, INC.,a California corporation(hereinaftercalledthe“Borrower”),herebypromisestopaytotheorderofBRETT GILLIAT,an individual resident of the State of California,orregisteredassigns(the“Holder”)the sumof $20,000.00 for invoices for services rendered to the Borrower during 2014assetforthherein, as of December 31,2014(the“MaturityDate”),andtopay nointerest ontheunpaidprincipalbalancehereof.Allpaymentsdue hereunder(to the extent notconverted intocommonstock, $0.001parvaluepershare(the“CommonStock”) inaccordancewith thetermshereof)shall bemade inlawful money oftheUnited States ofAmerica.Allpayments by issuance of common shares of the Company’s (Borrower’s) stock shall be by mutual consent of the Borrower and Holder. All payments or otherwiseshall bemadeatsuchaddress,as theHolder shallhereaftergive to theBorrower bywrittennoticemadeinaccordance withtheprovisionsofthisNote. Wheneveranyamountexpressedtobe duebythetermsofthisNoteisdueonanydaywhichisnotabusinessday, thesameshall instead be dueon thenextsucceedingday which is a businessdayand, in thecase ofanyinterestpaymentdatewhich is not thedate onwhich thisNote ispaid infull,extensionof the duedatethereofshall not be takenintoaccountfor purposesofdeterminingtheamountofinterestdueonsuchdate.AsusedinthisNote,theterm“businessday”shallmean anydayother than aSaturday, Sundayoraday onwhichcommercialbanks in thecityofNewYork,New Yorkareauthorized orrequired bylaw orexecutive order toremainclosed.
ThisNoteisfreefromalltaxes,liens,claimsandencumbranceswithrespecttotheissuethereofandshallnotbesubjecttopreemptiverightsorothersimilarrightsofshareholdersoftheBorrowerandwill not impose personal liabilityupon the holder thereof.
The followingterms shall applyto thisNote:
ARTICLEI.EVENTSOFDEFAULT
If anyofthefollowing events of default (each,an“Event of Default”)shalloccur:
1.1FailuretoPayPrincipal.TheBorrowerfailstopaytheprincipalhereofthereonwhendueonthisNote,whetheratmaturity,uponaccelerationorotherwise.
1.2 BreachofCovenants.TheBorrowerbreachesanymaterialcovenantorothermaterialtermorconditioncontainedinthisNoteandanycollateraldocumentsincludingbutnotlimitedtothePurchaseAgreementandsuchbreachcontinuesforaperiodoften(10)daysafterwrittennotice thereofto the Borrower from the Holder.
1.3DelistingofCommonStock. TheBorrower shallfail to maintain thelistingoftheCommonStockonatleastoneoftheOTCBBoranequivalentreplacementexchange,theNasdaqNationalMarket,theNASDAQSmallCapMarket,theNewYorkStockExchange,ortheAmericanStockExchange.
1.4FailuretoComplywiththeExchangeAct.TheBorrowershallfailtocomplywiththereportingrequirementsoftheExchangeAct;and/ortheBorrowershallceasetobesubject to the reportingrequirements ofthe ExchangeAct.
1.5Liquidation.Anydissolution,liquidation,orwindingupofBorroweroranysubstantialportion ofitsbusiness.
1.6Cessation of Operations.AnycessationofoperationsbyBorrowerorBorroweradmitsitisotherwisegenerallyunabletopayitsdebtsassuchdebtsbecomedue,provided,however,thatanydisclosureoftheBorrower’sabilityto continue as a“goingconcern”shall not be anadmissionthat the Borrowercannotpayitsdebtsas theybecome due.
1.7Maintenanceof Assets. ThefailurebyBorrowertomaintainanymaterialintellectualpropertyrights,personal,realpropertyorotherassetswhich arenecessarytoconduct itsbusiness(whethernoworin thefuture).
1.8FinancialStatementRestatement.Therestatementofanyfinancialstatementsfiledby theBorrowerwiththeSECforany dateorperiodfromtwoyearspriortotheIssueDateofthisNoteanduntilthisNoteis nolongeroutstanding, iftheresultofsuchrestatementwould,bycomparisontotheunrestatedfinancialstatement,haveconstitutedamaterial adverseeffect on therights of theHolderwithrespect to thisNote or thePurchaseAgreement.
1.9ReverseSplits.TheBorrowereffectuatesareversesplitofitsCommonStockwithouttwenty(20) days prior writtennoticeto the Holder.
1.10Replacement ofTransferAgent.In theeventthat the Borrower proposes toreplaceitstransferagent,theBorrowerfailstoprovide,priortotheeffectivedateofsuchreplacement,afullyexecutedIrrevocableTransferAgentInstructionsinaformasinitiallydeliveredpursuant tothePurchaseAgreement (including but notlimitedtotheprovisiontoirrevocably reserveshares of CommonStock intheReservedAmount)signedby thesuccessortransferagent toBorrower and theBorrower.
ARTICLEII.MISCELLANEOUS
2.1 FailureorIndulgenceNotWaiver.NofailureordelayonthepartoftheHolderintheexerciseofanypower,rightorprivilegehereundershalloperateasawaiverthereof,norshallanysingleorpartialexerciseofanysuchpower,right or privilege precludeother orfurther exercisethereof or ofanyotherright, power orprivileges.Allrightsandremediesexistinghereunder arecumulativeto,andnotexclusiveof,anyrightsorremediesotherwise available.
2.2 Notices.Allnotices,demands,requests,consents,approvals,andothercommunicationsrequiredorpermittedhereundershallbeinwritingand,unlessotherwisespecifiedherein,shallbe(i)personallyserved,(ii)depositedinthemail,registeredorcertified,return receiptrequested,postageprepaid,(iii)delivered byreputable aircourierservicewithchargesprepaid,or(iv)transmittedbyhanddelivery,telegram, or facsimile,addressedas setforthbelowortosuchotheraddressassuchparty shallhavespecifiedmostrecentlybywrittennotice.Anynotice orothercommunicationrequiredorpermittedtobegivenhereundershallbedeemedeffective (a) uponhanddeliveryor delivery byfacsimile,withaccurateconfirmationgeneratedbythe transmittingfacsimilemachine,attheaddressornumberdesignatedbelow(ifdelivered on a businessday duringnormal businesshourswhere such noticeis to bereceived),orthefirstbusinessdayfollowingsuchdelivery(ifdeliveredotherthanonabusinessdayduringnormalbusinesshourswheresuch notice is to bereceived) or(b) on thesecondbusinessdayfollowing thedate ofmailingbyexpresscourierservice, fully prepaid,addressed tosuchaddress,or uponactualreceipt ofsuchmailing,whichevershallfirstoccur.Theaddressesforsuchcommunicationsshallbe:
Ifto the Borrower, to:
CROSSCLICK MEDIA, INC.
8275 SouthEastern Avenue, Suite 200-661
LasVegas,NV89123
Attn: Gary R. Gottlieb, Corporate Secretary
Email: gary@crossclickmedia.com
Ifto the Holder:
BRETT GILLIAT
15057 Sherman Way, Unit C
Van Nuys, CA 91405
Attn: Brett Gilliat
e-mail:vendzilla@yahoo.com
2.3 Amendments.ThisNoteandanyprovisionhereofmayonlybeamendedbyaninstrumentinwritingsignedbytheBorrowerandtheHolder. Theterm“Note”andallreferencethereto,asusedthroughout thisinstrument,shallmeanthisinstrument(andtheotherNotesissuedpursuanttothePurchaseAgreement)asoriginallyexecuted,or iflateramendedorsupplemented,thenas soamended or supplemented.
2.4 Assignability.ThisNoteshallbebindingupontheBorroweranditssuccessorsandassigns,andshallinuretobethebenefitoftheHolderanditssuccessorsandassigns.Eachtransferee of thisNote must bean“accredited investor” (asdefined in Rule501(a) of the 1933Act).Notwithstandinganything in thisNote to the contrary, thisNote may bepledgedascollateral inconnectionwith abonafidemargin account orotherlendingarrangement.
2.5 Cost ofCollection.Ifdefault ismadein thepayment ofthisNote,theBorrowershallpaytheHolder hereof costs ofcollection,includingreasonable attorneys’ fees.
2.6 GoverningLaw.ThisNoteshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateof Californiawithoutregardtoprinciplesofconflictsoflaws.Anyactionbroughtbyeither partyagainst theother concerningthetransactionscontemplatedbythisNoteshallbebroughtonlyinthestatecourtsofCaliforniaorinthefederalcourts locatedinthestateand countyof Orange.Theparties tothisNote herebyirrevocablywaive anyobjectiontojurisdictionandvenue of
anyactioninstitutedhereunderandshallnotassertanydefensebasedonlackofjurisdictionorvenueorbaseduponforumnonconveniens.TheBorrowerandHolderwaivetrial byjury. Theprevailingpartyshall beentitled torecover from theotherparty itsreasonableattorney's feesandcosts. In the eventthat any provision of thisNote or anyotheragreementdelivered inconnectionherewith isinvalid orunenforceableunder anyapplicablestatuteorruleoflaw,thensuchprovisionshallbedeemedinoperativeto theextentthatitmayconflicttherewithand shall bedeemed modified toconformwithsuchstatuteorruleoflaw. Anysuchprovisionwhichmay prove invalidorunenforceableunderany lawshall notaffect the validityorenforceabilityofanyotherprovisionofanyagreement.Eachpartyherebyirrevocablywaivespersonalserviceofprocessandconsentstoprocessbeingservedinanysuit,action orproceedinginconnectionwith thisAgreement oranyotherTransactionDocumentbymailing a copy thereof viaregisteredorcertifiedmail orovernight delivery(withevidence ofdelivery) tosuchpartyattheaddressineffectfornoticestoitunder thisAgreementandagreesthatsuchserviceshallconstitutegoodandsufficientservice of processandnoticethereof.Nothingcontainedhereinshallbedeemedtolimitinanywayanyrighttoserveprocessinanyother manner permittedbylaw.
| 2.7 | Certain Amounts.Whenever pursuanttothisNotetheBorrowerisrequired |
topayanamountinexcessoftheoutstandingprincipalamount(ortheportionthereofrequiredtobepaidatthattime)plusaccruedandunpaidinterestplusDefaultInterestonsuchinterest,theBorrowerandtheHolderagreethattheactualdamagestotheHolderfromthereceiptofcashpayment onthisNote may bedifficult todetermineandtheamount tobe sopaidby theBorrowerrepresentsstipulateddamagesand not a penaltyand isintended tocompensate theHolder inpartfor lossof the opportunity toconvertthisNoteandtoearnareturnfromthesale ofsharesof CommonStockacquireduponconversionofthisNoteat apriceinexcessofthepricepaidforsuch sharespursuant to thisNote.TheBorrowerand the Holder herebyagreethatsuchamount ofstipulateddamages is not plainlydisproportionate to the possible loss to theHolderfrom thereceipt of acashpaymentwithoutthe opportunity toconvert thisNote intoshares ofCommonStock.
| 2.8 | Agreement.ByitsacceptanceofthisNote, eachpartyagreestobebound |
bytheapplicableterms ofthe Agreement.
2.9 Remedies.TheBorroweracknowledgesthatabreachbyitofitsobligationshereunderwillcauseirreparableharmtotheHolder,byvitiatingtheintentandpurpose of the transactioncontemplatedhereby.Accordingly, theBorroweracknowledgesthat theremedyatlawforabreachofitsobligationsunderthisNotewill beinadequateandagrees,in the eventofabreach orthreatenedbreach bytheBorroweroftheprovisions ofthisNote,that theHoldershallbeentitled,inadditiontoallotheravailableremediesatlaworinequity,andinaddition to thepenaltiesassessableherein, toaninjunction orinjunctionsrestraining,preventing or curinganybreach of thisNoteand toenforcespecifically the terms andprovisionsthereof,withoutthenecessityofshowing economiclossandwithoutanybondorothersecuritybeingrequired.
INWITNESSWHEREOF,BorrowerhascausedthisNotetobesignedinitsnameby itsdulyauthorizedofficerthis January 10, 2015.
CROSSCLICK MEDIA, INC.
By: __________________
Gary R. Gottlieb
Corporate Secretary
