Document:

Unassociated Document

Exhibit 10.81

 

NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH IT IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER SECTION 3(b), 4(2) OR 4(6) OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED, TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION OR EXCLUSION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.

	
No. CE-2

	
$ 50,000.00

12% CONVERTIBLE NOTE DUE 12 MONTHS FROM ORIGINAL ISSUANCE DATE

THIS NOTE is a duly authorized note issued by National Automation Services, Inc., a corporation organized and existing under the laws of the State of Nevada (the “Company”), designated as its 12% Convertible Notes (the “Notes”) due in 12 months from the Original Issuance Date (the “Maturity Date”), issued on November 1st, 2013 (the “Original Issuance Date”) in an aggregate principal amount of Fifty Thousand Dollars (US $50,000).

FOR VALUE RECEIVED, the Company promises to pay to The Entrust Group Inc. fbo Sharon V. Kinney IRA #60-01250 with the personal residence located at the address listed below (the “Holder”) the principal sum of (US $50,000, on or prior to the Maturity Date and to pay interest to the Holder on the principal sum at a flat rate of 12% of the principal amount of the Note.  Interest shall accrue daily commencing on the Original Issuance Date until payment in full of the principal sum is made.   Interest is to be paid to the Holder on the anniversary of the Issuance Date.  The Holder retains the option to convert the interest into shares at the closing market price of the Issuance Date anniversary in lieu of cash payment and agrees to provide at least (10) days’ notice prior to Issuance Date.   At such time they will be free trading under the provision of Section 2 hereof.   No notice is required to receive cash interest payments.

If at any time after the Original Issuance Date an Event of Default has occurred, the Holder shall be entitled to remedies under Section 2 hereof.  This is not a Public Offering and is being offered to accredited investors only.

This Note is subject to the following additional provisions:

Section 1.                  Events of Default and Remedies.

I.                “Event of Default,” when used herein, means any one of the following events (whatever the reason and whether any such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

(a)        any default in the payment of the principal of or interest on this Note as and when the same shall become due and payable either at the Maturity Date, by acceleration, conversion, or otherwise;

 

 

 

 

 

(b)        the Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of, this Note, and such failure or breach shall not have been remedied within fifteen (15) Business Days of its receipt of notice of such failure or breach;

(c)        the  Company  shall  commence  a  voluntary  case  under  the  United  States Bankruptcy Code as now or hereafter in effect or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against the Company under the Bankruptcy Code and the petition is not controverted within thirty (30) days, or is not dismissed within sixty (60) days, after commencement of the case; or a “custodian” (as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or any substantial part of the property of the Company or the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or there is commenced against the Company any such proceeding which remains un-dismissed for a period of sixty (60) days; or the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any custodian or the like for it or any substantial part of its property which continues un-discharged or un- stayed for a period of thirty (30) days; or the Company makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; or the Company shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company for the purpose of effecting any of the foregoing;

II.            Remedies        If any Event of Default occurs and continues, then the Holder may, by notice to the Company, accelerate all of the payments due under this Note by declaring all amounts so due under this Note, whereupon the same shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are waived by the Company, notwithstanding anything contained herein to the contrary, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law.  Such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder.  No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.  This shall include, but not be limited to the right to temporary, preliminary and permanent injunctive relief without the requirement of posting any bond or undertaking.

(a)        The Holder may thereupon proceed to protect and enforce its rights either by suit in equity and/or by action at law or by other appropriate proceedings whether for the specific performance (to the extent permitted by law) of any covenant or agreement contained in this Note or in aid of the exercise of any power granted in this Note, and proceed to enforce the payment of this Note. The Company agrees to pay reasonable costs of collection incurred by Holder and its counsel upon a default and failure of the Company to pay the Note in a timely manner.

(b)        Except as expressly provided for herein, the Company specifically (i) waives all rights it may have (A) to notice of nonpayment, notice of default, demand, presentment, protest and notice of protest with respect to any of the obligations hereunder or the shares of Common Stock and (B) notice of acceptance hereof or of any other action taken in reliance hereon, notice and opportunity to be heard before the exercise by the Holder of the remedies of self-help, set-off, or other summary procedures and all other demands and notices of any type or description except for cure periods; and (ii) releases the Holder, its officers, directors, agents, employees and attorneys from all claims for loss or damage caused by any act or failure to act  on the part of the Holder, its  officers, attorneys, agents, directors and employees except for gross negligence or willful misconduct.

 

 

 

 

 

(c)        As a non-exclusive remedy, upon the occurrence of an Event of Default, the Holder may convert the remaining principal amount of the Notes and accrued interest thereon at the Conversion Price upon giving a Notice of Conversion to the Company. Except as otherwise provided herein, the Company shall not have the right to object to the conversion and it shall release the shares of Common Stock so elected.

Section 2.               Conversion.

(a)        Upon Maturity or at the discretion of the Holder, any unpaid principal amount of this Note plus any accrued interest thereon shall be convertible into shares of Common Stock at a Fifty Percent (50%) discount to the lowest closing market price in the previous 10 days of trading to the date of Notice of Conversion provided to the Company.  (the “Conversion Price”), at the option of the Holder, in whole or in part  Shares issued upon conversion shall become free trading stock as promulgated by the rules and regulations of the U. S. Securities and Exchange Commission. The date on which such conversion is to be effected (the “Conversion Date”). The Holder shall effect conversions by surrendering the Note to be converted to the Company, together with the form of notice attached hereto as Exhibit A (“Notice of Conversion”).  The Notice of Conversion shall specify the amount of principal and accrued interest to be converted. The Notice of Conversion, once given, shall be irrevocable.  If, at Maturity, the Holder is converting less than all of the principal and interest amounts represented by this Note, the Company shall deliver to the Holder a cash payment equal to the amount of principal and interest, which is not converted at Maturity.  Upon conversion in full of the Note or upon payment in full on or before the Maturity Date, the Purchaser shall return the Note to the Company for cancellation.  Upon maturity of this Note, the debt owed by the Company is considered to comply with the Securities Act of 1933 and Holder, upon conversion, can seek and render a legal opinion from qualified legal counsel to have the restrictions lifted from the security.

(b)        The Company shall use reasonable efforts to deliver to the Holder not later than ten (10) Business Days after the Conversion Date, (i) a certificate or certificates representing the number of shares of Common Stock being acquired upon the conversion of this Note, and once this Note so converted in part shall have been surrendered to the Company, the Company shall deliver to the Holder a Note in the principal amount, if any, of this Note not then converted; provided, however, that the Company shall not be obligated to issue certificates evidencing the shares of Common Stock issuable upon conversion of this Note until this Note is either delivered for conversion to the Company or the Holder notifies the Company that this Note has been lost, stolen or destroyed and provides an affidavit of loss and an agreement reasonably acceptable to the Company indemnifying the Company from any loss incurred by it in connection with such loss, theft or destruction.

(c)           No fractional shares of Common Stock shall be issuable upon a conversion hereunder and the number of shares to be issued shall be rounded up or down to the nearest whole share.

(d)        The issuance of a certificate or certificates for shares of Common Stock upon conversion of this Note shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issuance or delivery of such certificate, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.

(e)        The portion of the principal amount and accrued but unpaid interest on the Note, if any, which is converted into Common Stock shall be canceled upon conversion.

(f)         The Notice of Conversion (Exhibit A) shall be given to the Company ten (10) days prior to the anniversary of Issuance Date or Maturity and shall be effected on the Maturity Date no later than 5:00 p.m. Nevada time on such Day.  In the event that the Notice of Conversion is deemed given to the Company after 5:00 p.m. Nevada time on any Business Day or at any time on a day that is not a Business Day, Notice of Conversion will be deemed given on the following Business Day.

 

 

 

 

 

Section 3.         Absolute  Payment  Obligation;       Except  as  expressly  provided  herein,  no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the coin or currency, herein prescribed.  This Note is a direct obligation of the Company.  This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.  Notwithstanding the foregoing, the Company reserves the right to enter into a variety of funding agreements at any time during the period of this Note with terms and conditions dictated by market conditions and the capital needs of the Company.

Section 4.        Loss, Theft, Mutilation or Destruction.  If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of an affidavit of such loss, theft or destruction of such Note, and, if requested by the Company, an agreement to indemnify the Company in form reasonably acceptable to the Company.

Section 5.        Payment Dates.   Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next following Business Day.

Section 6.        Notices.   All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt, by facsimile transmission against facsimile confirmation, electronic mail, or mailed by recognized overnight courier prepaid, to any officer of the Company at the following addresses:

	
If to the Company:

	
National Automation Services, Inc.

	  	
P.O. Box 400775

	  	
Las Vegas, NV  89140

	  	  
	  	
RChance@nasv.biz

	  	
Attn:  Robert W. Chance, President & CEO

	
If to the Holder:

	
The Entrust Group Inc. fbo Sharon V Kinney  #60-01250

	  	
14269 Isanti Street NE

	  	
Ham Lake, MN 55304

	  	

shmikinn@aol.com

 

 

All such notices, requests and other communications will (a)  if delivered  personally to the address as provided  in this Section 8,  be deemed given upon delivery, (b)  if delivered  by facsimile transmission to the facsimile number as provided for in this Section 8, be deemed given upon facsimile confirmation, (c) if delivered by overnight courier to the address as provided in this Section 8, be deemed given on the earlier of the first Business Day following the date sent by such overnight courier or upon receipt and (d) if by electronic mail, when directed to an electronic mail address provided for in this Section 8, be deemed given upon delivery (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section 8). Any party from time to time may change its address, facsimile number, email address or other information for the purpose of notices to that party by giving notice specifying such change to the other party hereto.

 

 

 

 

 

Section 7.        Waiver.  Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note.  The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note.  Any waiver must be in writing.

Section 8.        Invalidity.    If  any  provision  of  this  Note  is  held  to  be  invalid,  illegal  or unenforceable, the balance of this Note shall remain in effect, and if any provision is held to be inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

Section 9.        Rules of Construction. By its acceptance of this Note, Holder acknowledges and agrees that he has been represented by counsel during the negotiation and execution of this Note, and therefore he waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

Section 10.      Governing Law.  This Note shall be construed and enforced in accordance with and governed by the internal laws of the State of Nevada, without regard to its principles of conflicts of laws.

Section 11.      Consent to Jurisdiction; Service of Process.   The Company and Holder, by his acceptance of this Note, each irrevocably consents and agrees that any proceeding commenced by it arising out of or relating to this Note shall be brought only in the applicable court in the State of Nevada in any other manner provided by applicable law.

Section 12.      Waiver of Jury Trial. The Company and Holder, by his acceptance of this Note, each irrevocably waives any and all right to trial by jury in any proceeding arising out of or related to this Note.

Section 13.      Transfer; Assignment.  This Note is not transferable, negotiable or assignable by

Holder except pursuant to the laws of descent and distribution.

Section 14.      Headings.  Headings are for convenience of reference only and shall not limit or otherwise affect or be used in the construction of any of the terms or provisions hereof.

 

 

 

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized as of the date first above indicated.

 

	 	 	

NATIONAL AUTOMATION SERVICES, INC.

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	 	 	 
	 	 	 	
By: 

	 
	 	 	 	
Name: Robert W. Chance

	 
	 	 	 	Title: President & CEO	 
	 	 	 	 	 
	 	 	 	
Note Holder:

	 
	 	The Entrust Group Inc. fbo Sharon V Kinney #60-01250	 
	 	 	 	 	 
	 	 	 	:	 	 
	 	 	 	            Read & Approvedex10_82.htm

Exhibit 10.82

                  

 

 

National Automation Services, Inc.

PO Box 400775

Las Vegas, NV 89140

Wellington Shields & Co.

140 Broadway, 44th Fl.

New York, NY 10005

July 15, 2013

  

  

  

     

	 	

July 15, 2013

 

 

 

Robert Chance

National Automation Services, Inc.

PO Box 400775

Las Vegas, NV 89140

Re: Proposed Public Offering

 

Dear Mr. Robert Chance,

 

We are pleased to submit the following proposal with respect to a public offering by National Automation Services, Inc. (“the Company” or “NASV”) of $30,000,000 consisting of the Company’s Common Shares that will be listed on NASDAQ or AMEX, the price and terms of which shall be determined by the market price prior to the Effective Date of the offering closing. This letter states certain conditions and assumptions upon the proposed offering by Wellington Shields and Co. (“Wellington Shields”). It is our intent, immediately prior to the Effective Date, to enter into an exclusive Underwriting Agreement with the Company. The underwriter/broker will act as agent on a “Firm Commitment” basis. The Underwriting Agreement and related agreements shall contain such terms and conditions as are customarily contained in agreements of such character and among other things, provide for the following:

	
I.

	
Term of Retention.  This exclusive Engagement Agreement and the Company’s engagement of Wellington Shields as managing underwriter/broker shall commence at the signing of this document and continue for two (2) months after the SEC provides a Notice of Effectiveness on the registration statement. Expiration or cancellation of this Agreement shall not affect Wellington Shields’ right to a Success Fee if conversations between the Company and Buyer/Seller, or other participating entities, have begun prior to the expiration or are ongoing at the expiration of such two (2) month period, in which case Wellington Shields shall continue to be protected and to be entitled to the Success Fee set forth herein for as long as those conversations will continue.

 

	
II.

	
Expenses.  Wellington Shields shall be compensated as follows:

     

	
  

	
a)

	
An underwriting fee of seven percent (7%) of the amount raised in the Public Offering.

 

  

  

  

	
  

	
b)

	
The sale to Wellington Shields and/or its designees, at the time of the closing of the offering specified in the Underwriting Agreement (the “Closing Date”) of warrants (the “Underwriter’s Warrants”) to purchase that aggregate number of shares as would be equal to three percent (3%) of the total number of shares sold pursuant to the public offering. Neither the Underwriter’s Warrants nor any of the securities underlying the Underwriter’s Warrants (collectively, the Underlying Underwriter’s Warrants and Underlying Underwriter’s Securities”) shall be redeemable by the Company.  The Underwriter’s Warrants and Underlying Underwriter’s Securities are hereinafter sometimes collectively referred to as the “Underwriter’s Securities”.

The Underwriter’s Warrants will be exercisable between the first and fifth anniversary dates of the Effective Date (the “Warrant Exercise Term”).  Wellington Shields will agree that during the (1) year period following the Effective Date, it will not transfer the Underwriter’s Warrants or the underlying Underwriter’s Securities, except to Wellington Shields officers, partners or members of the selling group. The Underwriter’s Warrants shall be exercisable at a price per unit equal to one hundred and twenty percent (120%) of the public offering price of the common shares and shall be exercisable at any time from time to time, in whole or in part, during the warrant Exercise Term. The Underwriter’s Warrants shall contain such terms and conditions as are satisfactory in form and substance to Wellington Shields, the Company and their respective counsel, including, without limitation anti-dilution and exercise provisions.

	
  

	
c)

	
The Company will bear all fees, disbursements and expenses (including but not limited to all representations) in connection with the proposed offering, including, without limitation, the Company’s legal and accounting fees and disbursements, the costs of preparing, printing and delivering the Registration Statement, Prospectus and amendments, post-effective amendments and supplements thereto.

 

 

	
  

	
d)

	
In order to reimburse Wellington Shields expenses customarily incurred by an underwriter during the process, the Company shall pay to Wellington Shields a success-based non-accountable expense allowance in the amount of two (2%) of the gross proceeds of the offering (including the over-allotment option). In addition to the non-accountable expenses, the Company shall reimburse Wellington Shields for incurred expenses. All incurred expenses shall be preapproved and prepaid by the Company, including due diligence expenses. Unaccountable expenses shall be disbursed only at the time of Closing. In addition, the Company agrees to be responsible for the legal fees of counsel that Wellington Shields will incur.

	
  

	
e)

	
If the Company closes a Placement or a Transaction during the Term of this Agreement, for the twelve (12) month period commencing on the later of (i) the date of the closing of the Placement or (ii) the date of the closing of any Transaction, Wellington Shields shall have a preferential right whereby the Company will offer Wellington Shields the first opportunity to provide any financing arrangements to the Company, with the role of Wellington Shields, if any, to be determined at that time.  In addition, for the one (1) year period commencing on the termination or expiration of the term of this Engagement Agreement, Wellington Shields shall have a preferential right to participate as co-manager with no less than 25% economic interest (fees) in providing any financing arrangements for the Company or pay a breakup fee of $200,000.

 

  

  

  

	
  

	
f)

	
The Company shall retain as its accountants a firm of independent certified public accountants acceptable to Wellington Shields for twelve (12) months from the closing of the offering. Such accounting firm shall have responsibility for the preparation of the financial statements and financial exhibits, if any, to be included in the Registration Statement, and shall prepare all certified financial statements and schedules to be included in the Registration Statement. The Company shall retain as its lawyers a firm acceptable to Wellington Shields, which is expert in securities law matters and in the regulatory aspects of the Company proposed business for a period of twelve (12) months.

	
  

	
g)

	
If the sale of the shares is completed:

	
  

	
(1)

	
The Company shall be legally responsible for maintaining and executing an active and vigorous investor relations program for a period of twelve (12) months following the completion of the offering. The Company shall retain continuously an investor/public relations firm reasonably acceptable to Wellington Shields   for a period of twelve (12) months from the completion of the Offering.

	
  

	
(2)

	
For a period of not less than twelve (12) months from the Effective Date, the Company will provide to Wellington Shields on a timely basis quarterly statements setting forth such information regarding the Company's operations and financial position (including balance sheet, profit and loss statements and data regarding outstanding purchase orders) as is regularly prepared by management of.

The Company represents and warrants to Wellington Shields that (i) it is not obligated to pay a finder's fee or consulting fee to anyone in connection with the introduction of the Company to Wellington Shields in connection with its Public Offering: (ii) except for compensation paid to Wellington Shields during the prior twelve months, it has not paid any moneys or other compensation or issued any securities to any member of the FINRA, or to any affiliate or associate of such a member, or to any person in consideration for such person raising funds for the Company, or providing consulting services to the Company, (iii) no such compensation has heretofore been paid to any third party regarding this Public Offering, except for payment to Wellington Shields hereunder; no holder of the Company's securities has (A) any right to "piggyback" its securities on the Registration Statement or (B) any right to demand registration of its securities.

Wellington Shields reserves the right, in its sole discretion, to reduce any item of its compensation or adjust downward the terms thereof (including the number, type and exercise price of the Underwriter's Warrants) as specified herein in the event that a determination should be made by the FINRA and/or the securities department of any jurisdiction in which the offering is "Blue Skied" to the effect that its aggregate compensation is excessive or that the terms thereof require such adjustment. Any such reduction or adjustment shall not affect any other terms or provisions of the Letter of Intent.

 

  

  

  

   

It is our intention to enter into the Underwriting Agreement on or immediately prior to the Effective Date, however, Wellington Shields reserves the right not to proceed with the offering if, in its sole judgment, (i) market conditions are unsuitable for such offering at the price per Security set forth on page 1 hereof and if the Company and Wellington Shields cannot agree on another price or structure; (ii) information comes to Wellington Shields' attention relating the Company, its management or its position in the industry which would preclude a successful public offering: (iii)  a material adverse change has occurred in the financial condition, business or prospects of the Company, (iv)  the Company has failed to (a) expeditiously proceed with the offering, including the preparation, execution and filing with all necessary governmental authorities of the Registration Statement on Form S-1. (b) cooperate with Wellington Shields in requesting effectiveness of the Registration Statement at such time as Wellington Shields may deem appropriate: or (c) comply with all applicable statutes, laws, rules and regulations; or (v) the Company cannot expeditiously proceed with the offering; or (vi)  the FINRA determines that any payment (including cash and/or securities) paid by the Company, to any investment banker (other than Wellington Shields), consultant or to any other person as “Underwriter Compensation” in connection with the proposed public offering- or (vii) war or act of God or other calamity which would have substantial adverse effect or loss to the Company (viii) or the market for securities in general, or the Company's securities in particular, financial or economic conditions shall have materially changed from those reasonably foreseeable as of the date hereof as to render it impracticable in the Wellington Shields' judgment to make a public offering of the securities, or there has been a material adverse change in market levels for securities in general or financial or economic conditions which render it inadvisable to proceed; or (ix) any action, suit or proceeding, threatened or pending, at law or equity against the Company or by any Federal State or other commission, board or agency wherein any unfavorable result or decision could materially adversely affect the business, property, financial condition or income or earnings of the Company. If Wellington Shields   elects not to proceed with the offering as a result of the condition enumerated in clauses (i through ix) above, the Company shall reimburse Wellington Shields in full for its out-of-pocket expenses (including, without limitation, its legal fees and disbursements). After the execution of the Underwriting Agreement, in the event the offering is not consummated for any reason whatsoever, the Company shall reimburse Wellington Shields in full for its out-of-pocket expenses less amounts previously paid to it, as set forth in the Underwriting Agreement.

This letter shall be deemed to have been made and delivered in New York, NY and shall be governed as to validity, interpretation, construction, effect and in all other aspects by the laws of the State of New York. The Company agrees that any legal suit, action or proceeding arising out of or relating to those letter shall by instituted exclusively in New York State Circuit Court or in the United States District Court; waives any objection to the venue of any such suit, action or proceeding and the right to assert such forum is not a convenient forum; and irrevocably consents to the jurisdiction of the New York State Circuit Court or the United States District Court in any such suit, action or proceeding,

The Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the New York State Circuit Court or the United States District Court and agrees that service of process upon it mailed by certified mail to as address shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding.

 

  

  

  

Except as otherwise set forth herein, the Company nor Wellington Shields will be under any obligation to the other, until both the Company and Wellington Shields have executed and delivered the Underwriting Agreement. It is Understood that this letter is merely a statement of intent and while the parties agree in principle to the contents hereof any legal obligations between the parties shall be only as set forth in a duly negotiated and executed Underwriting Agreement.

This shall be in form and content satisfactory to Wellington Shields, the Company and their respective counsel. This letter shall, nevertheless, constitute a binding agreement relative to the reimbursement of Wellington Shields’ expenses.

If the foregoing correctly sets forth our understanding with respect to the proposed offering on behalf of the Company, will you please so confirm by signing and returning one copy of this letter, whereupon we will instruct our counsel to cooperate with counsel for the Company in the preparation of the appropriate Registration Statement under the Act, the Underwriting Agreement and related documents so as to expedite the successful consummation of the public offering.

Wellington Shields will remain committed to entering into this agreement provided it is executed by you on or before August 2, 2013.

Accepted and Confirmed on this 2nd day of August 2013.

	
WELLINGTON SHIELDS and CO.

	  
	  	  
	
By:

	
 

	  
	
Edward Cabrera

	  
	
Head of Investment Banking

	  
	  	  
	  	  
	
NATIONAL AUOTMATION SERVICES, INC.

	  
	  	  
	  	  
	
By:

	
 

	  
	
Mr. Robert Chance

	  
	
Chief Executive Officer

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