Document:

kurrantmob10q53109x106_71409.htm

    
 

    
      Exhibit 10.6

      

       

      PROMISSORY
NOTE

       

      
        	
                $250,000

              	
                Durango,
      Colorado

              
	 
      	
                March
      1, 2009

              

      

      

       

      

       

      

       

      FOR VALUE
RECEIVED, and at the times hereinafter specified, the undersigned (“Maker”)
hereby promises to pay to the order of SPYGLASS INVESTMENT
PARTNERSHIP (hereinafter referred to, together with each subsequent
holder hereof, as “Holder”), at such address as may be designated from time to
time hereafter by any Holder, the principal sum of TWO HUNDRED FIFTY THOUSAND
($250,000), or so much thereof as shall have been advanced to or for the benefit
of Maker, together with interest on the principal balance outstanding from time
to time, as hereinafter provided, in lawful money of the United States of
America.

       

      The term
of this note shall commence as of the date hereof and, if not sooner paid, the
entire unpaid principal indebtedness, all accrued and unpaid interest, and all
other sums payable in connection with this note shall be due and payable on
March 1, 2010 (the “Maturity Date”).  Notwithstanding the foregoing
sentence, the maturity date of this note may be extended at the option of Maker
for a period of one year following the Maturity Date provided Holder receives a
renewal fee equal to 1.5% of the then outstanding principal balance
due.  In no event shall the maturity date of this note be later
than  March 1,  2010.

       

      During
the period commencing on the date hereof and continuing until this note is paid
in full, (a) interest on the principal balance of this note shall accrue at the
rate of 15% per annum and (b) interest payments shall be made every 90 days,
beginning 90 days for the date hereof.  Interest shall be computed on
the basis of a 360-day year, calculated for the actual number of days
elapsed.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
Holder shall have the right, but not the obligation, to convert all or any
portion of the then aggregate outstanding Principal Amount of this Note,
together with any interest or fees due hereon into shares of Common Stock,
subject to the terms and conditions set forth herein at the rate of $0.01 per
share of Common Stock (“Fixed Conversion Price”) as same may be adjusted
pursuant to this Note.  The Holder may exercise such right by delivery
to the Maker of a written notice of conversion.

       

      The
Holder shall not be entitled to convert on a Conversion Date that amount of the
Note in connection with that number of shares of Common Stock which would be in
excess of the sum of (i) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock
issuable in connection with the unconverted portion of the Note, and (iii) the
number of shares of Common Stock issuable upon the conversion of the Note with
respect to which the determination of this provision is being made on a
Conversion Date, which would result in beneficial ownership by the Holder and
its affiliates of more than 4.99% of the outstanding shares of Common Stock of
the Maker on such Conversion Date.  For the purposes of the provision to
the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulation 13d-3 thereunder.  Subject to the foregoing, the
Holder shall not be limited to aggregate conversions of only 4.99% and aggregate
conversion by the Holder may exceed 4.99%.  The Holder shall have the
authority and obligation to determine whether the restriction contained in
herein will limit any conversion hereunder and to the extent that the Holder
determines that the limitation contained in this Section applies, the
determination of which portion of the Notes are convertible shall be the
responsibility and obligation of the Holder.  The Holder may waive the
conversion limitation described herein in whole or in part, upon and effective
after 61 days prior written notice to the Maker.  

       

      In the
event that the Holder elects to convert any amounts outstanding under this Note
into Common Stock, the Holder shall give notice of such election by delivering
an executed and completed notice of conversion (a "Notice of Conversion") to the
Maker, which Notice of Conversion shall provide a breakdown in reasonable detail
of the Principal Amount, accrued interest and amounts being converted.  The
original Note is not required to be
surrendered to the Maker until all sums due under the Note
have been paid.  On each Conversion Date (as hereinafter defined) and in
accordance with its Notice of Conversion, the Holder shall make the appropriate
reduction to the Principal Amount, accrued interest and fees as entered in its
records.  Each date on which a Notice of Conversion is delivered or
telecopied to the Maker in accordance with the provisions hereof shall be deemed
a "Conversion Date."

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      Pursuant
to the terms of a Notice of Conversion, the Maker will issue instructions to the
transfer agent accompanied by an opinion of counsel, if so required by the
Maker's transfer agent and shall cause the transfer agent to transmit the
certificates representing the Conversion Shares to the Holder by crediting the
account of the Holder's designated broker within seven  (7) business days
after receipt by the Maker of the Notice of Conversion (the "Delivery Date"). In the case
of the exercise of the conversion rights set forth herein the conversion
privilege shall be deemed to have been exercised and the Conversion Shares
issuable upon such conversion shall be deemed to have been issued upon the date
of receipt by the Maker of the Notice of Conversion. The Holder shall be treated
for all purposes as the record holder of such shares of Common Stock, unless the
Holder provides the Maker written instructions to the contrary.
Notwithstanding the foregoing to the contrary, the Maker or its transfer agent
shall only be obligated to issue and deliver the shares to the DTC on the
Holder’s behalf via DWAC (or certificates free of restrictive legends) if a
registration statement providing for the resale of the shares of Common Stock
issuable upon the conversion of this Note is effective and the Holder has
complied with all applicable securities laws in connection with the sale of the
Common Stock, including, without limitation, the prospectus delivery
requirements.  In the event that Conversion Shares cannot be delivered to
the Holder via DWAC, the Maker shall deliver physical certificates representing
the Conversion Shares by the Delivery Date. 

       

      The
number of shares of Common Stock to be issued upon each conversion of this Note
shall be determined by dividing that portion of the Principal Amount and
interest and fees to be converted, if any, by the then applicable Fixed
Conversion Price.

       

      The Fixed
Conversion Price and number and kind of shares or other securities to be issued
upon conversion shall be subject to adjustment from time to time upon the
happening of certain events while this conversion right remains outstanding, as
follows:

       

      

      A. Merger, Sale of Assets,
etc.  If the Maker at any time shall consolidate with or merge into
or sell or convey all or substantially all its assets to any other corporation,
this Note, as to the unpaid principal portion thereof and accrued interest
thereon, shall thereafter be deemed to evidence the right to purchase such
number and kind of shares or other securities and property as would have been
issuable or distributable on account of such consolidation, merger, sale or
conveyance, upon or with respect to the securities subject to the conversion or
purchase right immediately prior to such consolidation, merger, sale or
conveyance.  The foregoing provision shall similarly apply to successive
transactions of a similar nature by any such successor or purchaser.
 Without limiting the generality of the foregoing, the anti-dilution
provisions of this Section shall apply to such securities of such successor or
purchaser after any such consolidation, merger, sale or
conveyance.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      B. Reclassification,
etc.  If the Maker at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes, this Note, as to the unpaid principal
portion thereof and accrued interest thereon, shall thereafter be deemed to
evidence the right to purchase an adjusted number of such securities and kind of
securities as would have been issuable as the result of such change with respect
to the Common Stock immediately prior to such reclassification or other
change.

      

      C. Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

      

      D. Share Issuance.
  So long as this Note is outstanding, if the Maker shall issue any
Common Stock except for the Excepted Issuances (as defined in the Subscription
Agreement), prior to the complete conversion or payment of this Note, for a
consideration less than the Fixed Conversion Price that would be in effect at
the time of such issue, then, and thereafter successively upon each such
issuance, the Fixed Conversion Price shall be reduced to such other lower issue
price.  For purposes of this adjustment, the issuance of any security or
debt instrument of the Maker carrying the right to convert such security or debt
instrument into Common Stock or of any warrant, right or option to purchase
Common Stock shall result in an adjustment to the Fixed Conversion Price upon
the issuance of the above-described security, debt instrument, warrant, right,
or option and again upon the issuance of shares of Common Stock upon exercise of
such conversion or purchase rights if such issuance is at a price lower than the
then applicable Conversion Price.  The reduction of the Fixed Conversion
Price described in this paragraph is in addition to the other rights of the
Holder described in the Subscription Agreement.

      

      

      Whenever the Conversion Price is
adjusted herein, the Maker shall promptly mail to the Holder a notice setting
forth the Conversion Price after such adjustment and setting forth a statement
of the facts requiring such adjustment.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      During the period the conversion right
exists, Maker will reserve from its authorized and unissued Common Stock not
less than one hundred percent ( 100 %) of the number of shares to provide for the issuance of
Common Stock upon the full conversion of this Note. Maker represents that upon issuance, such shares will be duly
and validly issued, fully paid and non-assessable.  Maker agrees that its
issuance of this Note shall constitute full authority to its officers, agents,
and transfer agents who are charged with the duty of executing and issuing stock
certificates to execute and issue the necessary certificates for shares of
Common Stock upon the conversion of this Note.

      

      Upon any partial conversion of this
Note, a replacement Note containing the same date and provisions of this Note
shall, at the written request of the Holder, be issued by the Maker to the Holder for the outstanding Principal
Amount of this Note and accrued interest which shall not have been converted or
paid, provided Holder has surrendered an original Note to the Maker. In the
event that the Holder elects not to surrender a Note for reissuance upon partial
payment or conversion, the Holder hereby indemnifies the Maker against any and
all loss or damage attributable to a third-party claim in an amount in excess of
the actual amount then due under the Note.

      

       

      Whenever
any payment to be made hereunder is due on a day other than a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of payment of
interest.  “Business Day” shall mean a day on which Holder’s offices
are open for business in Denver, Colorado.

       

      Maker may
prepay this note in whole or in part.

       

      All
payments hereunder shall, at Holder’s option, be applied first to the payment of
accrued interest at the rate specified below, if any, second, to accrued
interest first specified above, and the balance applied in reduction of the
principal amount.  If any payment is not paid when due hereunder, then
the entire outstanding balance hereunder, including the interest component of
the delinquent payment, shall bear interest from the date such payment was due
until such payment is paid at a rate equal to 24.00% per annum (the “Default
Rate”).  In addition, upon the maturity date hereof, by acceleration
or otherwise, the entire balance of principal, interest, and other sums due
shall bear interest from such maturity date until paid at the Default
Rate.

       

      Any
default in payment of any sum required hereunder or performance of any other
covenant or agreement herein contained shall constitute an “Event of Default”
hereunder and under each document securing this note, and any Event of Default
under any of such documents securing this Note shall constitute an Event of
Default hereunder.  Any default in payment or other terms of any other
indebtedness owed by Maker to Holder shall constitute an Event of Default
hereunder, and any default hereunder shall constitute a default under any other
such indebtedness.  Upon the occurrence of any Event of Default, the
entire balance of principal, accrued interest, and other sums owing hereunder
shall, at the option of Holder, become at once due and payable without notice or
demand.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Maker and
all parties now or hereafter liable for the payment hereof, primarily or
secondarily, directly or indirectly, and whether as endorser, guarantor, surety,
or otherwise, hereby severally (a) waive presentment, demand, protest, notice of
protest and/or dishonor, and all other demands or notices of any sort whatever
with respect to this note, (b) waive any defenses that might be available to a
surety or accommodation maker, (c) consent to impairment or release of
collateral, extensions of time for payment, and acceptance of partial payments
before, at, or after maturity, (d) waive any right to require Holder to proceed
against any security for this note before proceeding hereunder, (e) consent to
the release of any other party liable hereunder, without diminishing or in any
way affecting their liability hereunder, and (f) agree to pay all costs and
expenses, including attorneys’ fees and expenses, which may be incurred in the
collection of this note or any part thereof or in preserving, securing
possession of, and realizing upon any security for this note.

       

      The
provisions of this note and of all agreements between Maker and Holder are
hereby expressly limited so that in no contingency or event whatever shall the
amount paid, or agreed to be paid, to Holder for the use, forbearance, or
detention of the money to be loaned hereunder exceed the maximum amount
permissible under applicable law.  If from any circumstance whatever,
the performance or fulfillment of any provision hereof or of any other agreement
between Maker and Holder shall, at the time performance or fulfillment of such
provision is due, involve or purport to require any payment in excess of the
limits prescribed by law, then the obligation to be performed or fulfilled is
hereby reduced to the limit of such validity, and if from any circumstance
whatever Holder should ever receive as interest an amount which would exceed the
highest lawful rate, the amount which would be excessive interest shall be
applied to the reduction of the principal balance owing hereunder (or, at
Holder’s option, be paid over to Maker) and shall not be counted as
interest.

       

      If any
provision hereof or of any other document securing or related to the
indebtedness evidenced hereby is, for any reason and to any extent, invalid or
unenforceable, then neither the remainder of the document in which such
provision is contained, nor the application of the provision to other persons,
entities, or circumstances, nor any other document referred to herein, shall be
affected thereby, but instead shall be enforceable to the maximum extent
permitted by law.

       

      Each
provision of this note shall be and remain in full force and effect
notwithstanding any negotiation or transfer hereof to any other Holder or
participant.

       

      MAKER
HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE ARISING IN CONNECTION
WITH THIS NOTE, OR IN ANY WAY RELATED TO THE NEGOTIATION, ADMINISTRATION,
MODIFICATION, EXTENSION OR COLLECTION OF THE INDEBTEDNESS EVIDENCED
HEREBY.  MAKER STATES THAT IT HAS CONFERRED SPECIFICALLY WITH HOLDER
WITH RESPECT TO THIS WAIVER, AND MAKER HAS AGREED TO THIS WAIVER AFTER
CONSULTATION WITH ITS COUNSEL AND WITH FULL UNDERSTANDING OF THE IMPLICATIONS
HEREOF.

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      Regardless
of the place of its execution, this note shall be construed and enforced in
accordance with the laws of the State of Colorado.

       

      
 

       

      
        	 
      	
                KURRANT MOBILE CATERING, INC.  

                 

                 

              
	
                By:

              	
                /s/
      Christopher Bell

              
	 
      	
                Its:  Presidentkurrantmob10q53109x107_71409.htm

    Exhibit
10.7

    

     

    

     

    PROMISSORY
NOTE

     

    
      	
              $5,904.17

            	
              Durango,
      Colorado

            
	 
      	
              March
      1, 2009

            

    

    

     

    

     

    

     

    FOR VALUE
RECEIVED, and at the times hereinafter specified, the undersigned (“Maker”)
hereby promises to pay to the order of MATTHEW GREGAREK (hereinafter referred
to, together with each subsequent holder hereof, as “Holder”), at such address
as may be designated from time to time hereafter by any Holder, the principal
sum of FIVE THOUSAND NINE HUNDRED FOUR AND SEVENTEEN/100THS DOLLARS ($5,904.17),
or so much thereof as shall have been advanced to or for the benefit of Maker,
together with interest on the principal balance outstanding from time to time,
as hereinafter provided, in lawful money of the United States of
America.

     

    The term
of this note shall commence as of the date hereof and, if not sooner paid, the
entire unpaid principal indebtedness, all accrued and unpaid interest, and all
other sums payable in connection with this note shall be due and payable on
March 1, 2010 (the “Maturity Date”).  Notwithstanding the foregoing
sentence, the maturity date of this note may be extended at the option of Maker
for a period of one year following the Maturity Date provided Holder receives a
renewal fee equal to 1.5% of the then outstanding principal balance
due.  In no event shall the maturity date of this note be later
than  March 1,  2010.

     

    During
the period commencing on the date hereof and continuing until this note is paid
in full, (a) interest on the principal balance of this note shall accrue at the
rate of 15% per annum and (b) interest payments shall be made every 90 days,
beginning 90 days for the date hereof.  Interest shall be computed on
the basis of a 360-day year, calculated for the actual number of days
elapsed.

     

    The
Holder shall have the right, but not the obligation, to convert all or any
portion of the then aggregate outstanding Principal Amount of this Note,
together with any interest or fees due hereon into shares of Common Stock,
subject to the terms and conditions set forth herein at the rate of $0.01 per
share of Common Stock (“Fixed Conversion Price”) as same may be adjusted
pursuant to this Note.  The Holder may exercise such right by delivery
to the Maker of a written notice of conversion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    The
Holder shall not be entitled to convert on a Conversion Date that amount of the
Note in connection with that number of shares of Common Stock which would be in
excess of the sum of (i) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock
issuable in connection with the unconverted portion of the Note, and (iii) the
number of shares of Common Stock issuable upon the conversion of the Note with
respect to which the determination of this provision is being made on a
Conversion Date, which would result in beneficial ownership by the Holder and
its affiliates of more than 4.99% of the outstanding shares of Common Stock of
the Maker on such Conversion Date.  For the purposes of the provision to
the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulation 13d-3 thereunder.  Subject to the foregoing, the
Holder shall not be limited to aggregate conversions of only 4.99% and aggregate
conversion by the Holder may exceed 4.99%.  The Holder shall have the
authority and obligation to determine whether the restriction contained in
herein will limit any conversion hereunder and to the extent that the Holder
determines that the limitation contained in this Section applies, the
determination of which portion of the Notes are convertible shall be the
responsibility and obligation of the Holder.  The Holder may waive the
conversion limitation described herein in whole or in part, upon and effective
after 61 days prior written notice to the Maker.  

     

    In the
event that the Holder elects to convert any amounts outstanding under this Note
into Common Stock, the Holder shall give notice of such election by delivering
an executed and completed notice of conversion (a "Notice of Conversion") to the
Maker, which Notice of Conversion shall provide a breakdown in reasonable detail
of the Principal Amount, accrued interest and amounts being converted.  The
original Note is not required to be surrendered to the Maker until all sums due
under the Note have been paid.  On each Conversion Date (as hereinafter
defined) and in accordance with its Notice of Conversion, the Holder shall make
the appropriate reduction to the Principal Amount, accrued interest and fees as
entered in its records.  Each date on which a Notice of Conversion is
delivered or telecopied to the Maker in accordance with the provisions hereof
shall be deemed a "Conversion
Date."

     

    Pursuant
to the terms of a Notice of Conversion, the Maker will issue instructions to the
transfer agent accompanied by an opinion of counsel, if so required by the
Maker's transfer agent and shall cause the transfer agent to transmit the
certificates representing the Conversion Shares to the Holder by crediting the
account of the Holder's designated broker within seven  (7) business days
after receipt by the Maker of the Notice of Conversion (the "Delivery Date"). In the case
of the exercise of the conversion rights set forth herein the conversion
privilege shall be deemed to have been exercised and the Conversion Shares
issuable upon such conversion shall be deemed to have been issued upon the date
of receipt by the Maker of the Notice of Conversion. The Holder shall be treated
for all purposes as the record holder of such shares of Common Stock, unless the
Holder provides the Maker written instructions to the contrary. Notwithstanding
the foregoing to the contrary, the Maker or its transfer agent shall only be
obligated to issue and deliver the shares to the DTC on the Holder’s behalf via
DWAC (or certificates free of restrictive legends) if a registration statement
providing for the resale of the shares of Common Stock issuable upon the
conversion of this Note is effective and the Holder has complied with all
applicable securities laws in connection with the sale of the
Common

    Stock,
including, without limitation, the prospectus delivery requirements.  In
the event that Conversion Shares cannot be delivered to the Holder via DWAC, the
Maker shall deliver physical certificates representing the Conversion Shares by
the Delivery Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    The
number of shares of Common Stock to be issued upon each conversion of this Note
shall be determined by dividing that portion of the Principal Amount and
interest and fees to be converted, if any, by the then applicable Fixed
Conversion Price.

     

    The Fixed
Conversion Price and number and kind of shares or other securities to be issued
upon conversion shall be subject to adjustment from time to time upon the
happening of certain events while this conversion right remains outstanding, as
follows:

     

    

    A. Merger, Sale of Assets,
etc.  If the Maker at any time shall consolidate with or merge into
or sell or convey all or substantially all its assets to any other corporation,
this Note, as to the unpaid principal portion thereof and accrued interest
thereon, shall thereafter be deemed to evidence the right to purchase such
number and kind of shares or other securities and property as would have been
issuable or distributable on account of such consolidation, merger, sale or
conveyance, upon or with respect to the securities subject to the conversion or
purchase right immediately prior to such consolidation, merger, sale or
conveyance.  The foregoing provision shall similarly apply to successive
transactions of a similar nature by any such successor or purchaser.
 Without limiting the generality of the foregoing, the anti-dilution
provisions of this Section shall apply to such securities of such successor or
purchaser after any such consolidation, merger, sale or conveyance.

    

    B. Reclassification,
etc.  If the Maker at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes, this Note, as to the unpaid principal
portion thereof and accrued interest thereon, shall thereafter be deemed to
evidence the right to purchase an adjusted number of such securities and kind of
securities as would have been issuable as the result of such change with respect
to the Common Stock immediately prior to such reclassification or other
change.

    

    C. Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    D. Share Issuance.
  So long as this Note is outstanding, if the Maker shall issue any
Common Stock except for the Excepted Issuances (as defined in the Subscription
Agreement), prior to the complete conversion or payment of this Note, for a
consideration less than the Fixed Conversion Price that would be in effect at
the time of such issue, then, and thereafter successively upon each such
issuance, the Fixed Conversion Price shall be reduced to such other lower issue
price.  For purposes of this adjustment, the issuance of any security or
debt instrument of the Maker carrying the right to convert such security or debt
instrument into Common Stock or of any warrant, right or option to purchase
Common Stock shall result in an adjustment to the Fixed Conversion Price upon
the issuance of the above-described security, debt instrument, warrant, right,
or option and again upon the issuance of shares of Common Stock upon exercise of
such conversion or purchase rights if such issuance is at a price lower than the
then applicable Conversion Price.  The reduction of the Fixed Conversion
Price described in this paragraph is in addition to the other rights of the
Holder described in the Subscription Agreement.

    

    

    Whenever the Conversion Price is
adjusted herein, the Maker shall promptly mail to the Holder a notice setting
forth the Conversion Price after such adjustment and setting forth a statement
of the facts requiring such adjustment.

    

    During the period the conversion right
exists, Maker will reserve from its authorized and unissued Common Stock not
less than one hundred percent ( 100 %) of the number of shares to provide for
the issuance of Common Stock upon the full conversion of this Note. Maker
represents that upon issuance, such shares will be duly and validly issued,
fully paid and non-assessable.  Maker agrees that its issuance of this Note
shall constitute full authority to its officers, agents, and transfer agents who
are charged with the duty of executing and issuing stock certificates to execute
and issue the necessary certificates for shares of Common Stock upon the
conversion of this Note.

    

    Upon any partial conversion of this
Note, a replacement Note containing the same date and provisions of this Note
shall, at the written request of the Holder, be issued by the Maker to the
Holder for the outstanding Principal Amount of this Note and accrued interest
which shall not have been converted or paid, provided Holder has surrendered an
original Note to the Maker. In the event that the Holder elects not to surrender
a Note for reissuance upon partial payment or conversion, the Holder hereby
indemnifies the Maker against any and all loss or damage attributable to a
third-party claim in an amount in excess of the actual amount then due under the
Note.

    

     

    Whenever
any payment to be made hereunder is due on a day other than a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of payment of
interest.  “Business Day” shall mean a day on which Holder’s offices
are open for business in Denver, Colorado.

     

    Maker may
prepay this note in whole or in part.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    All
payments hereunder shall, at Holder’s option, be applied first to the payment of
accrued interest at the rate specified below, if any, second, to accrued
interest first specified above, and the balance applied in reduction of the
principal amount.  If any payment is not paid when due hereunder, then
the entire outstanding balance hereunder, including the interest component of
the delinquent payment, shall bear interest from the date such payment was due
until such payment is paid at a rate equal to 24.00% per annum (the “Default
Rate”).  In addition, upon the maturity date hereof, by acceleration
or otherwise, the entire balance of principal, interest, and other sums due
shall bear interest from such maturity date until paid at the Default
Rate.

     

    Any
default in payment of any sum required hereunder or performance of any other
covenant or agreement herein contained shall constitute an “Event of Default”
hereunder and under each document securing this note, and any Event of Default
under any of such documents securing this Note shall constitute an Event of
Default hereunder.  Any default in payment or other terms of any other
indebtedness owed by Maker to Holder shall constitute an Event of Default
hereunder, and any default hereunder shall constitute a default under any other
such indebtedness.  Upon the occurrence of any Event of Default, the
entire balance of principal, accrued interest, and other sums owing hereunder
shall, at the option of Holder, become at once due and payable without notice or
demand.

     

    Maker and
all parties now or hereafter liable for the payment hereof, primarily or
secondarily, directly or indirectly, and whether as endorser, guarantor, surety,
or otherwise, hereby severally (a) waive presentment, demand, protest, notice of
protest and/or dishonor, and all other demands or notices of any sort whatever
with respect to this note, (b) waive any defenses that might be available to a
surety or accommodation maker, (c) consent to impairment or release of
collateral, extensions of time for payment, and acceptance of partial payments
before, at, or after maturity, (d) waive any right to require Holder to proceed
against any security for this note before proceeding hereunder, (e) consent to
the release of any other party liable hereunder, without diminishing or in any
way affecting their liability hereunder, and (f) agree to pay all costs and
expenses, including attorneys’ fees and expenses, which may be incurred in the
collection of this note or any part thereof or in preserving, securing
possession of, and realizing upon any security for this note.

     

    The
provisions of this note and of all agreements between Maker and Holder are
hereby expressly limited so that in no contingency or event whatever shall the
amount paid, or agreed to be paid, to Holder for the use, forbearance, or
detention of the money to be loaned hereunder exceed the maximum amount
permissible under applicable law.  If from any circumstance whatever,
the performance or fulfillment of any provision hereof or of any other agreement
between Maker and Holder shall, at the time performance or fulfillment of such
provision is due, involve or purport to require any payment in excess of the
limits prescribed by law, then the obligation to be performed or fulfilled is
hereby reduced to the limit of such validity, and if from any circumstance
whatever Holder should ever receive as interest an amount which would exceed the
highest lawful rate, the amount which would be excessive interest shall be
applied to the reduction of the principal balance owing hereunder (or, at
Holder’s option, be paid over to Maker) and shall not be counted as
interest.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    If any
provision hereof or of any other document securing or related to the
indebtedness evidenced hereby is, for any reason and to any extent, invalid or
unenforceable, then neither the remainder of the document in which such
provision is contained, nor the application of the provision to other persons,
entities, or circumstances, nor any other document referred to herein, shall be
affected thereby, but instead shall be enforceable to the maximum extent
permitted by law.

     

    Each
provision of this note shall be and remain in full force and effect
notwithstanding any negotiation or transfer hereof to any other Holder or
participant.

     

    MAKER
HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE ARISING IN CONNECTION
WITH THIS NOTE, OR IN ANY WAY RELATED TO THE NEGOTIATION, ADMINISTRATION,
MODIFICATION, EXTENSION OR COLLECTION OF THE INDEBTEDNESS EVIDENCED
HEREBY.  MAKER STATES THAT IT HAS CONFERRED SPECIFICALLY WITH HOLDER
WITH RESPECT TO THIS WAIVER, AND MAKER HAS AGREED TO THIS WAIVER AFTER
CONSULTATION WITH ITS COUNSEL AND WITH FULL UNDERSTANDING OF THE IMPLICATIONS
HEREOF.

     

    Regardless
of the place of its execution, this note shall be construed and enforced in
accordance with the laws of the State of Colorado.

     

    

     

    
      	 
      	
              KURRANT MOBILE CATERING, INC.

               

            
	
              By:

            	
              /s/
      Christopher Bell

            
	 
      	
              Its:  President

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