Document:

exhibit_10-1.htm

    
      

    
Exhibit
10.1

    

     

    

     

     

     

     

    W2
Energy, Inc.

    ____________________________

    

    

    SECURITIES
PURCHASE AGREEMENT

    

    __________________________

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECURITIES
PURCHASE AGREEMENT

    

    This
Securities Purchase Agreement (this “Agreement”) is made and entered into
effective as of March 30, 2009 (the “Effective Date”) by and between W2 Energy,
Inc., a Nevada corporation (the “Company”), and Access Capital Fund I, LLC, a
Nevada limited liability company (the “Purchaser”).  The Company and
Purchaser shall each be referred to as a “Party” and collectively as the
“Parties.”

    

    1.           PURCHASE OF
SECURITIES:  On the Closing Date (as hereinafter defined),
subject to the terms and conditions set forth in this Agreement, the Purchaser
hereby agrees to purchase, and the Company hereby agrees to sell, a Convertible
Promissory Note of even date herewith (the “Note”) in the original principal
amount of Twenty Five Thousand Dollars ($25,000.00) (the “Purchase
Price”).  The Note shall be convertible into common stock of the
Company (the “Conversion Shares” and together with the Note, the
“Securities”).

    

    2.           CLOSING AND
DELIVERY:

    

    a)           Upon
the terms and subject to the conditions set forth herein, the consummation of
the purchase and sale of the Note (the “Closing”) shall be held simultaneous
with the execution of this Agreement, or at such other time mutually agreed upon
between the constituent Parties (the “Closing Date”).  The Closing
shall take place at the offices of the Purchaser set forth in Section 6 hereof,
or by the exchange of documents and instruments by mail, courier, facsimile and
wire transfer to the extent mutually acceptable to the Parties
hereto.

    

    b)           At
the Closing:

     

    (i)    The
Company shall deliver to the Escrow Agent (as defined in the Escrow Agreement in
the form attached hereto as Exhibit B”) fully
executed copies of the following:

     

    
      
        	 	A.	the
      Note in the form attached hereto as Exhibit
      A;
	
                 
      

              	
                B.

              	
                the
      Escrow Agreement in the form attached hereto as Exhibit
      B;

              

      

    

    
      	
               
      

            	
              C.

            	
              the
      Irrevocable Instruction Letter to Transfer Agent in the form attached
      hereto as Exhibit
      C;

            

    

    
      	
               
      

            	
              D.

            	
              the
      Conflict Waiver entered into between the Company and The Lebrecht Group,
      APLC; and

            

    

    
      	
               
      

            	
              E.

            	
              the
      security shares as set forth in Section 4(e)
  hereof.

            

    

    

    
      (ii)    The
Company shall deliver to the Purchaser fully executed copies of the
following:

    

    

    
      	
               
      

            	
              A.

            	
              the
      Auditor Agreement in the form attached hereto as Exhibit D;
      and

            

    

     

     

    
      
         

      

      
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              B.

            	
              the
      Unanimous Written Consent of Directors of the Company in the form attached
      hereto as Exhibit
      E.

            

    

    

    (iii)           The
Purchaser shall deliver to the Escrow Agent the Purchase Price.

    

    3.           REPRESENTATIONS, WARRANTIES
AND AGREEMENTS BY PURCHASER:  The Purchaser hereby represents,
warrants and agrees as follows:

    

    a)           Purchase for Own
Account.  Purchaser represents that it is acquiring the Note
solely for its own account and beneficial interest for investment and not for
sale or with a view to distribution of the Securities or any part thereof, has
no present intention of selling (in connection with a distribution or
otherwise), granting any participation in, or otherwise distributing the same,
and does not presently have reason to anticipate a change in such
intention.

     

    b)           Ability to Bear Economic
Risk.  Purchaser acknowledges that an investment in the
Securities involves a high degree of risk, and represents that it is able,
without materially impairing its financial condition, to hold the Securities for
an indefinite period of time and to suffer a complete loss of its
investment.

     

    c)           Access to Information. The
Purchaser acknowledges that the Purchaser has been furnished with such financial
and other information concerning the Company, the directors and officers of the
Company, and the business and proposed business of the Company as the Purchaser
considers necessary in connection with the Purchaser’s investment in the
Note.  As a result, the Purchaser is thoroughly familiar with the
proposed business, operations, properties and financial condition of the Company
and has discussed with officers of the Company any questions the Purchaser may
have had with respect thereto.  The Purchaser
understands:

    

    (i)            
The risks involved in this investment, including the speculative nature of the
investment;

    

    (ii)           
The financial hazards involved in this investment, including the risk of losing
the Purchaser’s entire investment;

    

    (iii)           The
lack of liquidity and restrictions on transfers of the Securities;
and

    

    (iv)           The
tax consequences of this investment.

    

    The
Purchaser has consulted with the Purchaser’s own legal, accounting, tax,
investment and other advisers with respect to the tax treatment of an investment
by the Purchaser in the Note and the merits and risks of an investment
therein.

    
 

     

    
      
         

      

      
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    d)           Securities Part of
Private
Placement.  The Purchaser has been advised that the Securities
have not been registered under the Securities Act of 1933, as amended (the
“Act”), or qualified under the securities law of any state, on the ground, among
others, that no distribution or public offering of the Securities is to be
effected and the Securities will be issued by the Company in connection with a
transaction that does not involve any public offering within the meaning of
section 4(2) of the Act and/or Regulation D as promulgated by the Securities and
Exchange Commission under the Act, and under any applicable state blue sky
authority.  The Purchaser understands that the Company is relying in
part on the Purchaser’s representations as set forth herein for purposes of
claiming such exemptions and that the basis for such exemptions may not be
present if, notwithstanding the Purchaser’s representations, the Purchaser has
in mind merely acquiring the Securities for resale on the occurrence or
nonoccurrence of some predetermined event.  The Purchaser has no such
intention.

    

    e)           Further Limitations on
Disposition.  Purchaser further acknowledges that the
Securities are restricted securities under Rule 144 of the Act, and, therefore,
any certificates reflecting the ownership interest in the Securities will
contain a restrictive legend substantially similar to the
following:

     

    
      
        
          	
                  THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “ACT”).  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
      PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL
      SATISFACTORY TO THE HOLDER THAT SUCH REGISTRATION IS NOT
      REQUIRED.

                

        

      

       

    

    f)           Accredited Investor
Status. 
Purchaser is an “accredited investor” as such term is defined in Rule 501 under
the Act because Purchaser was not formed for the purpose of investing in the
Securities, has or will have other substantial business or investments, and each
of its members is an Accredited Investor.  For purposes hereof, an
“Accredited Investor” is one that either:

     

    (i)          
  has a net worth of at least $1,000,000
(including home and personal property), or

    

    (ii)       
    had an individual income of more than $200,000 in each
of the two most recent calendar years, and reasonably expects to have an
individual income in excess of $200,000 in the current calendar year; or along
with Purchaser’s spouse had joint income in excess of $300,000 in each of the
two most recent calendar years, and reasonably expects to have a joint income in
excess of $300,000 in the current calendar year.

     

     

    
      
         

      

      
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    For purposes of this Agreement,
“individual income” means “adjusted gross income” as reported for Federal income
tax purposes, exclusive of any income attributable to a spouse or to property
owned by a spouse:  (i) the amount of any interest income
received which is tax-exempt under Section 103 of the Internal Revenue Code
of 1986, as amended, (the “Code”), (ii) the amount of losses claimed as a
limited partner in a limited partnership (as reported on Schedule E of form
1040), (iii) any deduction claimed for depletion under Section 611 et
seq. of the Code and (iv) any amount by which income from long-term capital
gains has been reduced in arriving at adjusted gross income pursuant to the
provisions of Sections 1202 of the Internal Revenue Code as it was in
effect prior to enactment of the Tax Reform Act of 1986.

    

    For purposes of this Agreement, “joint
income” means, “adjusted gross income,” as reported for Federal income tax
purposes, including any income attributable to a spouse or to property owned by
a spouse, and increased by the following amounts:  (i) the amount
of any interest income received which is tax-exempt under Section 103 of
the Internal Revenue Code of 1986, as amended (the “Code”), (ii) the amount of
losses claimed as a limited partner in a limited partnership (as reported on
Schedule E of Form 1040), (iii) any deduction claimed for
depletion under Section 611 et seq. of the Code and (iv) any
amount by which income from long-term capital gains has been reduced in arriving
at adjusted gross income pursuant to the provisions of Section 1202 of the
Internal Revenue Code as it was in effect prior to enactment of the Tax Reform
Act of 1986.

    

    For the purposes of this Agreement,
“net worth” means (except as otherwise specifically defined) the excess of total
assets at fair market value, including home and personal property, over total
liabilities, including mortgages and income taxes on unrealized appreciation of
assets.

    

    g)           Purchaser
Authorization.  The Purchaser is empowered and duly authorized
to enter into this Agreement under any governing document, partnership
agreement, trust instrument, pension plan, charter, certificate of
incorporation, bylaw provision or the like; this Agreement constitutes a valid
and binding agreement of the Purchaser enforceable against the Purchaser in
accordance with its terms; and the person signing this Agreement on behalf of
the Purchaser is empowered and duly authorized to do so by the governing
document or trust instrument, pension plan, charter, certificate of
incorporation, bylaw provision, board of directors or stockholder resolution, or
the like.

    

    4.           REPRESENTATIONS, WARRANTIES
AND AGREEMENTS BY COMPANY:  The Company hereby represents,
warrants and agrees as follows:

    

    a)           Authority of
Company.  The Company has all requisite authority to execute
and deliver this Agreement and to carry out and perform its obligations under
the terms of this Agreement.

     

     

     

    
      
         

      

      
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    b)           Authorization.  All
actions on the part of the Company necessary for the authorization, execution,
delivery and performance of this Agreement by the Company and the
performance of the Company’s obligations hereunder has been taken or will be
taken prior to the issuance of the Note.  This Agreement, when
executed and delivered by the Company, shall constitute valid and binding
obligations of the Company enforceable in accordance with their terms, subject
to laws of general application relating to bankruptcy, insolvency, the relief of
debtors and, with respect to rights to indemnity, subject to federal and state
securities laws.  The Securities will be validly issued, fully paid
and nonassessable, will not violate any preemptive rights, rights of first
refusal, or any other rights granted by the Company, and will be issued in
compliance with all applicable federal and state securities laws, and will be
free of any liens or encumbrances, other than any liens or encumbrances created
by or imposed upon the Purchaser through no action of the Company; provided,
however, that the Securities may be subject to restrictions on transfer under
state and/or federal securities laws as set forth herein or as otherwise
required by such laws at the time the transfer is proposed.

     

    c)           Governmental
Consents.  All consents, approvals, orders, or authorizations
of, or registrations, qualifications, designations, declarations, or filings
with, any governmental authority required on the part of the Company in
connection with the valid execution and delivery of this Agreement, the offer,
sale or issuance of the Securities, or the consummation of any other transaction
contemplated hereby shall have been obtained, except for notices required or
permitted to be filed with certain state and federal securities commissions,
which notices will be filed on a timely basis.

     

    d)           Escrow Agreement; Distribution of
Proceeds.  The Company agrees to enter into the Escrow
Agreement, a copy of which is attached hereto as Exhibit B (the
“Escrow Agreement”), which provides for the distribution of the Purchase Price
and the release of the Conversion Shares upon conversion of the
Note.

    

    e)           Security
Shares.  The Company agrees to deposit with the escrow agent
under the Escrow Agreement that number of shares of its common stock equal to
four (4) times the number of shares necessary to convert the Note on the date
hereof.  The Company further agrees to replenish the shares of its
common stock held in escrow at the request of the Purchaser so that the number
of shares is always equal to at least two (2) times the number of shares
necessary to convert the Note.

    

    f)           Irrevocable Instruction Letter to
Transfer Agent; No Change in Transfer Agent.  The Company
agrees to execute the Irrevocable Instruction Letter to Transfer Agent as set
forth in Exhibit
C attached hereto and further agrees that it shall not, in any case,
revoke the Irrevocable Instruction to Transfer Agent or prevent or obstruct in
any way the ability of the escrow agent under the Escrow Agreement to transfer
the shares held in escrow.  The Company further agrees that as long as
the Note remains outstanding, the Company will not change transfer agents
without the express written consent of the Purchaser.

    

    g)           Registration
Rights.  If the Company at any time proposes to register any of
its securities under the Act, including under an S-1 Registration Statement or
otherwise, it will each such time give written notice to Purchaser of its
intention so to do.  Upon the written request of Purchaser given
within 30 days after receipt of any such notice, the Company will use its best
efforts to cause all shares underlying the conversion of the Note to be
registered under the Act (with the securities which the Company at the time
propose to register).  All expenses incurred by the Company in
complying with this section, including without
limitation all registration and filing fees, listing fees, printing expenses,
fees and disbursements of all independent accountants, or counsel for the
Company and the expense of any special audits incident to or required by any
such registration and the expenses of complying with the securities or blue sky
laws of any jurisdiction shall be paid by the Company.

     

     

     

    
      
         

      

      
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    5.           MISCELLANEOUS:

    

    a)           Binding
Agreement.  The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of the Parties.  Nothing in this Agreement, expressed or
implied, is intended to confer upon any third party any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

     

    b)           Governing Law;
Venue.  This Agreement shall be governed by and construed under
the laws of the State of Utah as applied to agreements among Utah residents,
made and to be performed entirely within the State of Utah.  The
Parties agree that any action brought to enforce the terms of this Agreement
will be brought in the appropriate federal or state court having jurisdiction
over Salt Lake County, Utah, United States of America.

     

    c)           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    d)           Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     

    e)           Notices
to be given hereunder shall be in writing and shall be deemed to have been
sufficiently given if delivered personally or sent by overnight courier, or by
facsimile transmission.  Notice shall be deemed to have been received
on the date and time of personal or overnight delivery or facsimile
transmission, if received during normal business hours of the recipient; if not,
then on the next business day.

     

    
      
        
          	
                  Notices
      to the Company shall be sent to:  

                	
                  W2
      Energy, Inc.

                  26
      Densley Avenue

                  Toronto,
      Ontario

                  Canada  M6M2R1

                  Attn:  Mike
      McLaren

                  Facsimile
      No.: (416) 248-2024

                

        

      

      
 

       

       

      
        
           

        

        
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                Notices
      to the Holder shall be sent to:  

              	
                Access
      Capital Fund I, LLC

                2975
      W. Executive Way, Suite 141

                Lehi,
      Utah  84043

                Attn:  Michael
      Southworth, Manager

                Facsimile
      No.:  ________________

              

      

       

    

    f)           Modification;
Waiver.  No modification or waiver of any provision of this
Agreement or consent to departure therefrom shall be effective unless in writing
and approved by the Company and the Purchaser.

     

    g)           Entire Agreement;
Successors.  This Agreement and the Exhibits hereto constitute
the full and entire understanding and agreement between the Parties with regard
to the subjects hereof and no Party shall be liable or bound to the other Party
in any manner by any representations, warranties, covenants and agreements
except as specifically set forth herein.  The representations,
warranties and agreements contained in this Agreement shall be binding on the
Purchaser’s successors, assigns, heirs and legal representatives and shall inure
to the benefit of the respective successors and assigns of the Company and its
directors and officers.

     

    h)           Expenses.  Each
Party shall pay their own expenses in connection with this
Agreement.  In addition, should either Party commence any action, suit
or proceeding to enforce this Agreement or any term or provision hereof, then in
addition to any other damages or awards that may be granted to the prevailing
Party, the prevailing Party shall be entitled to have and recover from the other
Party such prevailing Party’s reasonable attorneys’ fees and costs incurred in
connection therewith.

     

    i)           Currency.  All
currency is expressed in U.S. dollars.

     

    [remainder
of page intentionally left blank; signature page to follow]

     

     

     

     

     

     

     

     

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Parties have
executed this Securities Purchase Agreement as of the date first
written above.

     

    

    
      
        
          
            
              	
                      “Company”

                    	 	
                      “Purchaser”

                    	 
	 
      	 	 
      	 
	
                      W2
      Energy, Inc.,

                    	 	
                      Access
      Capital Fund I, LLC,

                    	 
	
                      a
      Nevada corporation

                    	 	
                      a
      Nevada limited liability company

                    	 
	 
      	 	 
      	 
	 
      	 	 
      	 
	/s/           
      Michael McLaren	 	/s/           
      Michael Southworth	 
	
                      By:           Michael
      McLaren

                    	 	
                      By:           Michael
      Southworth

                    	 
	
                      Its:           President

                    	 	
                      Its:           Manager

                    	 

            

          

        

      

    

    

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
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    Exhibit
A

    

    Note

     

     

     

     

     

     

     

     

     

     

     

     

    
 

     

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    
 

    Exhibit
B

    

    Escrow
Agreement

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

     

     

    Exhibit
C

    

    Irrevocable
Instruction Letter to Transfer Agent

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

     

    Exhibit
D

    

    Auditors
Agreement

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

     

    Exhibit
E

    

    Unanimous
Written Consent of Directors of Company

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    E-1exhibit_10-2.htm

    
      

    

    Exhibit
10.2

     

    THIS
CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED.  NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN
COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER.

     

    

    W2 ENERGY,
INC.

    CONVERTIBLE PROMISSORY
NOTE

    

     

    

     

    
      	$25,000.00	
              March 30,
      2009

            

    

     

    FOR VALUE
RECEIVED, W2 Energy, Inc., a Nevada corporation, its assigns and successors (the
“Company”), hereby promises to pay to the order of Access Capital Fund I, LLC, a
Nevada limited liability company, or its assigns (the
“Holder”), in immediately available funds, the total principal sum of Twenty
Five Thousand Dollars ($25,000.00).  The principal hereof and any
unpaid accrued interest thereon shall be due and payable on or before
5:00 p.m., Mountain Standard Time, on the date which is nine (9) months
from the date hereof (the “Maturity Date”) (unless such payment date is
accelerated as provided in Section 9 hereof).  Payment of all amounts
due hereunder shall be made at the address of the Holder provided for in Section
10 hereof.  Interest shall accrue at the rate of ten percent (10%) per
annum on this Note from the date hereof and shall continue to accrue until all
unpaid principal and interest is paid in full.

    

    1.           HISTORY OF THE
LOAN.  This Note is being delivered to Holder as consideration
under a Securities Purchase Agreement of even date herewith.

    

    2.           PREPAYMENT.  The
Company may, at its option, at any time and from time to time, prepay all or any
part of the principal balance of this Note, at a prepayment price equal to One
Hundred Thirty Percent (130%) of the then-outstanding principal and interest,
provided that concurrently with each such prepayment the Company shall pay
accrued interest on the principal, if any, so prepaid to the date of such
prepayment.

    

    3.           CONVERSION.

     

    3.1           Conversion Rights;
Conversion Date; Conversion Price.  The Holder shall have the
right, at its option, at any time from and after the date hereof, to convert the
principal amount of this Note, or any portion of such principal amount, into
that number of fully paid and nonassessable shares of the Company’s common stock
(the “Common Stock”) (as such shares shall then be constituted) determined
pursuant to this Section 3.1.  The number of shares of Common Stock to
be issued upon each conversion of this Note shall be determined by dividing the
Conversion Amount (as defined below) by the Conversion Price, which shall be
equal to fifty percent (50%) of the closing bid price for the Common Stock on
the trading day immediately preceding the conversion (the “Conversion
Price”).  Each election will be noticed by a Notice of Conversion,
substantially in the form attached hereto as Exhibit A, delivered
to the Company by the Holder by facsimile, or other reasonable means of
communication, dispatched prior to 5:00 p.m., Mountain Standard Time and in
accordance
with the terms of Section 10.  The term “Conversion Amount” means,
with respect to any conversion of this Note, the sum of (1) the principal amount
of this Note to be converted in such conversion, plus (2) accrued and unpaid
interest, if any, on such principal amount at the interest rates provided in
this Note to the Conversion Date.

     

     

     

    
      
        
        

      

      
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    3.2           Method of
Conversion.

    

    (a)           The
Common Stock underlying the conversion of this Note shall be held by an Escrow
Agent (the “Escrow Agent”) pursuant to an Escrow Agreement of even date
herewith.

    

    (b)           Notwithstanding
anything to the contrary set forth herein, upon conversion of this Note in
accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Company or Escrow Agent unless the entire unpaid
principal amount of this Note is so converted.  Rather, records
showing the principal amount converted (or otherwise repaid) and the date of
such conversion or repayment shall be maintained on a ledger substantially in
the form of Annex
I attached hereto (a copy of which shall be delivered to the Company and
Escrow Agent with each Notice of Conversion).  It is specifically
contemplated that the Holder shall act as the calculation agent for conversions
and repayments.  In the event of any dispute or discrepancies, such
records maintained by the Holder shall be controlling and determinative in the
absence of manifest error.  The Holder and any assignee, by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this
paragraph, following a conversion of a portion of this Note, the principal
amount represented by this Note will be the amount indicated on Annex I attached
hereto (which may be less than the amount stated on the face
hereof).

    

    
      (c)      
     Upon
receipt by the Company or Escrow Agent of a Notice of Conversion, the Holder
shall be deemed to be the holder of record of the Common Stock issuable upon
such conversion and the outstanding principal amount and the amount of accrued
and unpaid interest on this Note shall be reduced to reflect such conversion,
and, unless the Company defaults on its obligations under Section 9, all rights
with respect to the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other securities, cash
or other assets, as herein provided, on such conversion.  If the
Holder shall have given a Notice of Conversion as provided herein, the Company’s
obligation to issue and deliver the certificates for shares of Common Stock
shall be absolute and unconditional, irrespective of the absence of any action
by the Holder to enforce the same, any waiver or consent with respect to any
provision thereof, the recovery of any judgment against any person or any action
by the Holder to enforce the same, any failure or delay in the enforcement of
any other obligation of the Company to the Holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Company, and irrespective of any
other circumstance which might otherwise limit such obligation of the Company to
the Holder in connection with such conversion.  The date of receipt
(including receipt via facsimile) of such Notice of Conversion shall be the
Conversion Date so long as it is received before 5:00 p.m., Mountain Standard
Time, on such date.

    

     

     

     

     

    
      
        
        

      

      
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    4.          
CONVERSION
LIMITATION.  Notwithstanding Section 3 above, the Holder may
not convert any outstanding amounts due under this Note if at the time of such
conversion the amount of common stock issued for the conversion, when added to
other shares of Company common stock owned by the Holder or which can be
acquired by Holder upon exercise or conversion of any other instrument, would
cause the Holder to own more than nine and nine-tenths percent (9.9%) of the
Company’s outstanding common stock.  The restriction described in this
paragraph may be revoked upon sixty-one (61) days prior notice from Holder to
the Company.  For purposes of this section, beneficial ownership shall
be determined in accordance with Rule 13d-3 of the Exchange Act and Regulations
13 D-G thereunder, except as otherwise provided in this Section.

    

    5.           INSTRUCTIONS TO
TRANSFER AGENT. The Company undertakes
and agrees that no instruction other than the instructions referred to in
Sections 5 and 6 will be given to its transfer agent for the Common Stock and
that the Common Stock issuable upon conversion of the Note otherwise shall be
freely transferable on the books and records of the Company as and to the extent
provided in this Note and applicable law.  Nothing contained in this
Section 5 shall affect in any way Holder’s obligations and agreement to comply
with all applicable securities laws upon resale of such Common
Stock.

    

    6.           SHARE
ISSUANCES. The Escrow Agent shall
transmit the certificates evidencing the shares of Common Stock issuable upon
conversion of the Note to Holder via express courier, within one (1) business
day after receipt by the Company and Escrow Agent of the Notice of Conversion
(the “Delivery Date”).

    

    7.           TRANSFERABILITY.  This
Note shall not be transferred, pledged, hypothecated, or assigned by the Company
without the express written consent of the Holder. In the event any third party
acquires a controlling interest in the Company or acquires substantially all of
the assets of the Company (a “Reorganization Event”), this Note will survive and
become an obligation of the party that acquires such controlling interest or
assets.  In the event of a Reorganization Event the Company agrees to
make the party that acquires such controlling interest or assets, aware of the
terms of this Section and this Note.  This Note may be transferred,
pledged, hypothecated, or assigned by the Holder in his sole
discretion.

    

    8.           RESERVATION AND
LISTING OF SECURITIES.  The Company shall at all times reserve
and keep available out of its authorized shares of common stock, solely for the
purpose of issuance upon the conversion of this Note, such number of shares of
common stock as would be necessary to convert the entire amount due and owing
under the terms of this Note if Holder elected to convert said amount under
Section 3 hereof.

    

    9.           DEFAULT.  The
occurrence of any one of the following events shall constitute an Event of
Default:

    

    (a)           The
non-payment, when due, of any principal or interest pursuant to this
Note;

    

    (b)           The
material breach of any representation or warranty in this Note.  In
the event the Holder becomes aware of a breach of this Section 9(b), the Holder
shall notify the Company in writing of such breach and the Company shall have
five business days after notice to cure such breach;

     

     

     

    
      
        
        

      

      
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    (c)           The
breach of any covenant or undertaking, not otherwise provided for in this
Section 9;

    

    (d)           The
breach of any provision of the Securities Purchase Agreement or Escrow Agreement
executed by the Company and Holder on the date hereof.

    

    (e)           The
commencement by the Company of any voluntary proceeding under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, receivership,
dissolution, or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect; or the adjudication of the Company as insolvent or bankrupt
by a decree of a court of competent jurisdiction; or the petition or application
by the Company for, acquiescence in, or consent by the Company to, the
appointment of any receiver or trustee for the Company or for all or a
substantial part of the property of the Company; or the assignment by the
Company for the benefit of creditors; or the written admission of the Company of
its inability to pay its debts as they mature; or

    

    (f)           The
commencement against the Company of any proceeding relating to the Company under
any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt,
receivership, dissolution or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect, provided, however, that the commencement of
such a proceeding shall not constitute an Event of Default unless the Company
consents to the same or admits in writing the material allegations of same, or
said proceeding shall remain undismissed for 20 days; or the issuance of any
order, judgment or decree for the appointment of a receiver or trustee for the
Company or for all or a substantial part of the property of the Company, which
order, judgment or decree remains undismissed for 20 days; or a warrant of
attachment, execution, or similar process shall be issued against any
substantial part of the property of the Company.

    

    Upon the
occurrence of any Default or Event of Default, the Holder, may, by written
notice to the Company, declare all or any portion of the unpaid principal amount
due to Holder, together with all accrued interest thereon, immediately due and
payable, in which event it shall immediately be and become due and payable,
provided that upon the occurrence of an Event of Default as set forth in
paragraph (e) or paragraph (f) hereof, all or any portion of the unpaid
principal amount due to Holder, together with all accrued interest thereon,
shall immediately become due and payable without any such notice.

    

    10.           NOTICES.  Notices
to be given hereunder shall be in writing and shall be deemed to have been
sufficiently given if delivered personally or sent by overnight courier, or by
facsimile transmission.  Notice shall be deemed to have been received
on the date and time of personal or overnight delivery or facsimile
transmission, if received during normal business hours of the recipient; if not,
then on the next business day.

     

     

    
      
        
        

      

      
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                    Notices
      to the Company shall be sent to:  

                  	
                    W2
      Energy, Inc.

                    26
      Densley Avenue

                    Toronto,
      Ontario

                    Canada  M6M2R1

                    Attn:  Mike
      McLaren

                    Facsimile
      No.: (416) 248-2024

                  

          

        

      

       

      
        	
                Notices
      to the Holder shall be sent to: 

              	
                Access
      Capital Fund I, LLC

                2975
      W. Executive Way, Suite 141

                Lehi,
      Utah  84043

                Attn:  Michael
      Southworth, Manager

                Facsimile
      No.:  (___)____________

              

      

       

      Notices
to the Escrow Agent shall be sent as provided in the Escrow
Agreement.

    

    

    11.           REPRESENTATIONS
AND WARRANTIES.  The Company hereby makes the following
representations and warranties to the Holder:

    

    (a)           Organization, Good Standing
and Power.  The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Nevada and
has the requisite corporate power to own, lease and operate its properties and
assets and to conduct its business as it is now being conducted.

    

    (b)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and perform this Note and to issue and sell this
Note.  The execution, delivery and performance of this Note by the
Company, and the consummation by it of the Transactions contemplated hereby,
have been duly and validly authorized by all necessary corporate
action.  This Note when executed and delivered, will constitute a
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor’s rights and remedies or by other
equitable principles of general application.

    

    (c)           Disclosure.  Neither
this Note nor any other document, certificate or instrument furnished to the
Holder by or on behalf of the Company in connection with the transactions
contemplated by this Note contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements made
herein or therein, in the light of the circumstances under which they were made
herein or therein, not misleading.

    

    (d)           Non-contravention.
The execution and delivery by the Company of this Note and the issuance of the
securities, and the consummation by the Company of the other transactions
contemplated hereby and thereby, do not and will not conflict with or result in
a breach by the Company of any of the terms or provisions of, or constitute a
default (or an event which, with notice, lapse of time or both, would constitute
a default) under (i) the Articles of Incorporation or Bylaws of the Company or
its subsidiaries or (ii) any indenture, mortgage, deed of trust or
other material agreement
or instrument to which the Company or its subsidiaries is a party or by which
its properties or assets are bound, or any law, rule, regulation, decree,
judgment or order of any court or public or governmental authority having
jurisdiction over the Company or its subsidiaries or any of the Company’s or its
subsidiaries’ properties or assets, except as to (ii) above such conflict,
breach or default which would not have a Material Adverse Effect defined as “any
change in or effect on the business of the Company that, individually or in the
aggregate (taking into account all other such changes or effects), is, or is
reasonably likely to be, materially adverse to the business, assets,
liabilities, financial condition or results of operations of the Company, taken
as a whole, except to the extent any such change or effect results from or is
attributable to changes in general economic conditions or changes affecting the
industry generally in which the Company operates (provided that such changes do
not affect the Company in a materially disproportionate manner).”

     

     

    
      
        
        

      

      
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    12.           CONSENT TO
JURISDICTION AND SERVICE OF PROCESS.  The Company consents to
the jurisdiction of the courts of the State of Utah and of any state and federal
court located in the County of Salt Lake, Utah.  The Company hereby
irrevocably and unconditionally consents to the service of any and all process
in any such action or proceeding in such courts by the mailing of copies of such
process by certified or registered airmail at its address specified in the
Section 10 hereof.

    

    13.           GOVERNING
LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF UTAH APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY THEREIN, WITHOUT GIVING EFFECT TO
THE RULES OR PRINCIPLES OF CONFLICTS OF LAW.

    

    14.           ATTORNEYS
FEES.  In the event the Holder hereof shall refer this Note to
an attorney to enforce the terms hereof, the Company agrees to pay all the costs
and expenses incurred in attempting or effecting the enforcement of the Holder’s
rights, including reasonable attorney's fees, whether or not suit is
instituted.

    

    15.           CONFORMITY WITH
LAW.  It is the intention of the Company and of the Holder to
conform strictly to applicable usury and similar laws.  Accordingly,
notwithstanding anything to the contrary in this Note, it is agreed that the
aggregate of all charges which constitute interest under applicable usury and
similar laws that are contracted for, chargeable or receivable under or in
respect of this Note, shall under no circumstances exceed the maximum amount of
interest permitted by such laws, and any excess, whether occasioned by
acceleration or maturity of this Note or otherwise, shall be canceled
automatically, and if theretofore paid, shall be either refunded to the Company
or credited on the principal amount of this Note.

    

    16.           MODIFICATION;
WAIVER.  No modification
or waiver of any provision of this Note or consent to departure therefrom shall
be effective unless in writing and approved by the Company and the
Holder.  If any provision of this Note shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Note or the
validity or enforceability of this Note in any other jurisdiction.  This
Note
supersedes all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof.

     

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Company has signed and sealed this Note and delivered it as
of March 30, 2009.

    

    
      
        
          
            
              	
                      “Company”

                    	 	
                      “Holder”

                    	 
	 
      	 	 
      	 
	
                      W2
      Energy, Inc.,

                    	 	
                      Access
      Capital Fund I, LLC,

                    	 
	
                      a
      Nevada corporation

                    	 	
                      a
      Nevada limited liability company

                    	 
	 
      	 	 
      	 
	 
      	 	 
      	 
	/s/           
      Michael McLaren	 	/s/           
      Michael Southworth	 
	
                      By:           Michael
      McLaren

                    	 	
                      By:           Michael
      Southworth

                    	 
	
                      Its:           President

                    	 	
                      Its:           Manager

                    	 
	 
      	 	 
      	 

            

          

        

      

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        Page 7 of
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    ANNEX
I

    

    CONVERSION
AND REPAYMENT LEDGER

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            	
                                                                                                    Date

                                                                                                  	
                                                                                                    Principal
      Balance

                                                                                                  	
                                                                                                    Interest
      Converted or Paid

                                                                                                  	
                                                                                                    Principal
      Converted or Paid

                                                                                                  	
                                                                                                    New
      Principal Balance

                                                                                                  	
                                                                                                    Company
      Initials

                                                                                                  	
                                                                                                    Holder
      Initials

                                                                                                  
	
                                                                                                    March
      30, 2009

                                                                                                  	
                                                                                                    $25,000.00

                                                                                                  	 
      	 
      	
                                                                                                    $25,000.00

                                                                                                  	 
      	 
      
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

     

    Exhibit
A

    

    Notice
of Conversion

    

    (To be
Executed by the Registered Holder in order to Convert the Note)

    

    The
undersigned hereby irrevocably elects to convert $______________ of that certain
W2 Energy, Inc. Convertible Promissory Note dated March 30, 2009 into shares of
common stock of the Company according to the conditions set forth in such Note,
as of the date written below.

    

    If shares
are to be issued in the name of a person other than the undersigned, the
undersigned will pay all transfer and other taxes and charges payable with
respect thereto.

    

    Date of
Conversion:  ___________________________________________________

    

    Applicable
Conversion Price: _____________________________________________

    

    Signature: ___________________________________________________________

    [Print
Name of Holder and Title of Signer]

    

    Address: ____________________________________________________________

     

    ____________________________________________________________

    

    SSN or
EIN: __________________________________________________________

    

    Shares
are to be registered in the following name:

    

    Name: ____________________________________________________

    Address: __________________________________________________

    Tel: ______________________________________________________

    Fax: ______________________________________________________

    SSN or
EIN: ________________________________________________

    

    Shares
are to be sent or delivered to the following account:

    

    Account
Name: _____________________________________________

    Address: __________________________________________________

    Tel:
______________________________________________________

    Fax: ______________________________________________________

    SSN or
EIN: ________________________________________________

     

    
A-1

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