Document:

Exhibit 10.4

 

THIS
NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT")

 

 

US

$20,625.00

 

 

 

WORTHINGTON
ENERGY, INC.

8%
CONVERTIBLE REDEEMABLE NOTE

DUE JANUARY 13, 2016

 

 

 
 FOR
VALUE RECEIVED, Worthington Energy, Inc. (the "Company") promises to pay to the order of ADAR BAYS, LLC and its authorized
successors and permitted assigns ("Holder"), the aggregate principal face amount of Twenty Thousand Six Hundred
Twenty Five Dollars exactly (U.S. $20,625.00) on January 13, 2016 ("Maturity Date") and to pay interest on the
principal amount outstanding hereunder at the rate of 8% per annum commencing on January 13, 2015. This Note contains a 25% original
issue discount such that the purchase price of the note is $16,500. The interest will be paid to the Holder in whose name this
Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest
on, this Note are payable at 3411 Indian Creek Drive, Suite 403, Miami Beach, FL 33140, initially, and if changed, last appearing
on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest
payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be
deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing
on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal
hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such
check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein. Interest
shall be payable in Common Stock (as defined below) pursuant to paragraph4 (b) herein.

 

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This Note is subject to the following additional
provisions:

 

1. This Note is exchangeable for an equal aggregate
principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge
will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges
payable in connection therewith.

 

2. The Company shall be entitled to withhold
from all payments any amounts required to be withheld under applicable laws.

 

3. This Note may be transferred or exchanged
only in compliance with the Securities Act of 1933, as amended ("Act") and applicable state securities laws. Any
attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of
this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's
records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent
shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set
forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this
Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion")
in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall
be the Conversion Date.

 

4. (a) The Holder of this Note is
entitled, at its option, at any time after 180 days, to convert all or any amount of the principal face amount of this Note
then outstanding into shares of the Company's common stock (the "Common Stock") without restrictive legend
of any nature, at a price ("Conversion Price") for each share of Common Stock equal to 45% of the lowest
closing bid price of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the
Company's shares are traded or any exchange upon which the Common Stock may be traded in the future
("Exchange"), for the twenty prior trading days including the day upon which a Notice of
Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of
communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same
day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded.
Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business
days of receipt by the Company of the Notice of Conversion. Once the Holder has received such shares of Common Stock, the
Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder's intention to convert this
Note or a specified portion hereof, and accompanied by proper assignment hereof in blank. Accrued, but unpaid interest shall
be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but
the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences a DTC
Chill" on its shares, the conversion price shall be decreased to 35% instead of 45% while that "Chill" is in
effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of
Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of
the Common Stock of the Company.

 

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(b) Interest on any unpaid principal balance
of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in Common Stock ("Interest Shares").
Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section
4(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the
unpaid principal balance of this Note to the date of such notice.

 

(c) During the first 180 days after the Note
has been issued, it may be prepaid at 150% of the face amount plus any accrued interest. This Note may not be prepaid after the
180th day. The redemption must be closed and paid for within 3 business days of the Company sending the redemption demand or the
redemption will be invalid and the Company may not redeem this Note.

 

(d) Upon (i) a transfer of all or substantially
all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification,
capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock
split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the
Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of
the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company
shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest
through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note
(together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the
Conversion Price.

 

(e) In case of any Sale Event (not to include a sale of all or substantially all of the
Company's assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this
Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to
such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by
the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company
or successor person or entity acting in good faith.

 

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5. 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 form, herein prescribed.

 

6. The Company hereby expressly waives demand
and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent
to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto.

 

7. The Company agrees to pay all costs and
expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under
this Note.

 

8.
If one or more of the following described "Events of Default" shall occur:

 

(a) The Company shall default in the payment
of principal or interest on this Note or any other note issued to the Holder by the Company; or

 

(b) Any of the representations or warranties
made by the Company herein or in any certificate or finincial or other written statements heretofore or hereafter furnished by
or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under
which this note was issued shall be false or misleading in any respect; or

 

(c) The Company shall fail to perform or observe,
in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note
issued to the Holder; or

 

(d) The Company shall (1) become insolvent;
(2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors
or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for
its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of
such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable;
or

 

(e) A trustee, liquidator or receiver shall
be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged
within sixty (60) days after such appointment; or

 

(f) Any governmental agency
or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole
or any substantial portion of the properties or assets of the Company; or

 

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(g) One or more money judgments, writs or warrants
of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against
the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen
(15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

(h) The Company shall have defaulted on or
breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default
within the appropriate grace period; or

 

(i) The Company shall have its Common Stock
delisted from an exchange (including the OTCBB exchange) or, if the Common Stock trades on an exchange, then trading in the Common
Stock shall be suspended for more than 10 consecutive days;

 

(j) if a majority of the members of
the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

(k) The Company shall not deliver to the Holder
the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of
Conversion; or

 

(1) The  Company shall not replenish the
reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

(m) The Company shall not be
"current"  its filings with the Securities and Exchange Commission; or

 

(n) The Company shall lose the
"bid" price for its stock in a market (including the OTCQB marketplace or other exchange).

 

Then, or at any time thereafter, unless cured
within 5 days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which
waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by
current law, then at the highest rate of interest permitted by law. In the event of a breach of
Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice
was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day.
The penalty for a breach of Section 8 (n) shall be an increase of the outstanding principal amounts by 20%. In case of
a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not paid at maturity,
the outstanding principal due under this Note shall increase by 10%.

 

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If the Holder shall commence an action or proceeding
to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such
action, the Holder shall be reimbursed by the Company for its attorneys' fees and other costs and expenses incurred in the investigation,
preparation and prosecution of such action or proceeding.

 

Make-Whole for Failure to Deliver Loss. At the Holder's election,
if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the
delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder
may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and
the Company must make the Holder whole as follows:

Failure to Deliver Loss = [(High trade price
at any time on or after the day of exercise) x (Number of conversion shares)]

 

The Company must pay the Failure to Deliver
Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder's written notice
to the Company.

 

9. In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope
or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable
to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way
be affected or impaired thereby.

 

10. Neither this Note nor any term hereof may
be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11. The Company represents that it is not a
"shell" issuer and has never been a "shell" issuer or that if it previously has been a "shell" issuer
that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a "shell
issuer. Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability of the
conversion shares or (ii) accept such opinion from Holder's counsel.

 

 

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12. The company shall issue irrevocable transfer
agent instructions reserving 120,000,000 shares of its Common Stock for conversions under this Note and another three notes in
the amounts of two $75,000 notes dated July 24, 2014 and a $37,500.00 note dated February 26, 2013 (the "Share Reserve").
The reserve shall be replenished as needed to allow for conversions of this Note. Upon full conversion of this Note, any shares
remaining in the Share Reserve shall be cancelled. The Company shall pay all costs associated with issuing and delivering the
shares. The company should at all times reserve a minimum of four times the amount of shares required if the note would be fully
converted. The Holder may reasonably request increases from time to time to reserve such amounts.

 

13. The Company will give the
Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc.
This notice shall be given to the Holder as soon as possible under law.

 

14. This Note shall be governed by and construed
in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and
shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by
jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This Agreement may be executed in
counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

Dated: 1/13/15

 

	 	WORTHINGTON ENERGY, INC.

By: /s/ Charles Volk

Title: CEO

 

 

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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 the above Note into ______ Shares of Common Stock of Worthington Energy, Inc.
("Shares") 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: _________________________________

 

    	9Exhibit 10.4

 

January 29, 2015

Orbit Energy, Inc.

900 Ridgefield Drive, Suite 145

Raleigh, NC 27609

Attn: Anwar Shareef, CEO

	Re:		Orbit Energy Charlotte, LLC

 

Dear Anwar:

 

Reference is
made to that Amended and Restated Orbit Energy Charlotte, LLC Purchase Agreement dated November 19, 2014 (the “Amended SPA”)
between Bluesphere Corporation, a company organized and existing under the laws of the State of Nevada (“BSC”) and
Orbit Energy Inc., a company organized and existing under the laws of the State of North Carolina (“Orbit”).

Notwithstanding
the fact that the transactions contemplated by the Amended SPA have been restructured and that a new agreement replacing the Amended
SPA will be executed by Orbit, BSC and a certain third-party (the “New SPA”), we hereby confirm and agree that except
for the payment of the Development Fee, which, pursuant to the New SPA, will be paid by a third-party, our obligations to and/or
to the benefit of Orbit in Sections 2.1, 2.4, 4.1 and 4.3 of the Amended SPA remain in full force and effect, but subject, in each
case, to the terms and conditions applicable to such obligations in the Amended SPA (the “Terms and Conditions”).

By counter-signing
below, you hereby agree to sign the New SPA in a timely manner and confirm and agree that the Terms and Conditions remain in full
force and effect.

	Yours truly,	 
	 	 
	Bluesphere Corporation	 
	 	 
	 	 
	By: Shlomi Palas	 
	Title: CEO	 
	 	 
	Agreed and accepted:	 
	 	 
	Orbit Energy Inc.	 
	 	 
	 	 
	By: Anwar Shareef	 
	Title: CEO	 

 

35 Asuta St. Even Yehuda, Israel 40500 | Tel: +972-9-8917438,
Fax: +972-9-8998615

London Office: Pall Mall 100 St. James London, SW1Y 5NQ
UK | Tel: +44-020-73213716

www.bluespherecorporate.com

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