Document:

EX-10.6 PERSONAL GUARANTY

          For value received and intending to be legally bound, the undersigned, Bob Chance, an individual residing at 2053 Pabco Road, Henderson, Nevada 89011 (the “Guarantor”), (a) hereby becomes surety to Trafalgar Capital Specialized Investment Fund, Luxembourg (the “Obligee”) to pay all amounts due pursuant to the obligations of National Automation Services, Inc., a Nevada corporation, with headquarters located at 2053 Pabco Road, Henderson, NV 89011 (the “Obligor”), to Obligee, under the Security Agreement dated as of the date hereof, and its successors, endorsees and assigns to which Obligee is a party, arising from those certain secured redeemable debentures issued by the Obligor to the Obligee pursuant to the Securities Purchase Agreement dated as of the date hereof or arising from the Securities Purchase Agreement or from any of the Transaction Documents, as defined therein (collectively, the “Obligations”), and hereby: (a) guarantees the full and timely payment of the Obligations as defined in the Security Agreement, including specifically all amounts due under the secured redeemable debentures or any of the Transaction Documents, and all extensions or renewals thereof, and all sums payable under or by virtue thereof including, without limitation, all amounts of principal and interest and all expenses (including attorneys’ fees and costs of collection) incurred in the collection thereof, the enforcement of rights thereunder or with respect to any security thereof and the enforcement hereof, and waive presentment, demand, notice of dishonor, protest, notice of protest and all other notices whatsoever; (b) waives and consents to any disposition of any collateral held by the Obligee or otherwise; (c) consents and agrees that he is bound (except as limited by Florida statutory law as amended from time to time) under the Obligations as fully as though such Guarantor were a maker thereof; (d) consents to the exercise by Obligee of each and every remedy permitted by law, all without notice to or consent of and without affecting the liability of the undersigned; and (e) further consents and agrees that he may be sued by Obligee with or without joining any other parties to or guarantors of the Obligation, whether primarily or secondarily liable, and without first or contemporaneously suing or enforcing any security interest against any such other persons, or otherwise seeking or proceeding to collect from him.

          The Guarantor warrants and represents to the Obligee that: (i) this Guaranty constitutes a legal, valid and binding obligation of such, and is fully enforceable against the Guarantor in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally; and (ii) neither the execution nor delivery of this Guaranty by the Guarantor, nor fulfillment of nor compliance with the terms and provisions hereof, will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under any agreement or instrument to which the Guarantor is now a party or by which Guarantor may be bound, nor will result in the creation of any lien, charge or encumbrance upon any of the Guarantor’s property or assets.

          The Guarantor agrees that the liability of the Guarantor hereunder is present, absolute, unconditional, continuing, primary, direct and independent of the obligations of Obligor and any other Guarantor. Obligee shall not be required to pursue or exhaust any other remedies before invoking the benefits of this Guaranty. Nothing herein contained shall prevent Obligee, however, from suing the Obligor with or without making the Guarantor a party to the suit, or from exercising any other rights permitted by law, and if such suit or other remedy is availed of, only the net proceeds therefrom, after deduction of all charges and expenses of every kind and nature whatsoever, shall be applied in reduction of the amount due on the Obligation, and Obligee shall not be required to institute or prosecute proceedings to recover any deficiency as a condition of payment hereunder or enforcement hereof. Upon default by Obligor, the liability of the undersigned Guarantor shall be effective immediately and payable on demand without any suit or action against Obligor or Guarantor. 

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          Invalidity and Construction. If any provision of this Guaranty contravenes or is held invalid under the laws of any applicable jurisdiction, this Guaranty shall be construed as though it did not contain that provision, and the rights and liabilities of the parties to this Guaranty shall be construed and enforced accordingly. This Guaranty shall be construed as to its fair meaning and not strictly for or against Guarantor or Obligee.

          Notices, Demand. Any notice, demand or request hereunder shall be in writing and shall be deemed to have been validly given or made upon delivery, if personally delivered, or on the date mailed, if mailed postage prepaid, by first class mail, addressed to the party to be notified at the address set forth below, or to such other address as any party may hereafter designate for itself or himself by written notice to the other parties in the manner herein prescribed.

	
 
	  
	  

	 If to the Guarantor:
	 
Bob Chance

	  
	 2053 Pabco Road

	 
 
	 Henderson, NV 89011

	  
	 Telephone: (702) 642-7720

	  
	 Facsimile: (702) 564-5411

	  
	  
	  

	 With a copy to:
	 National Automation Services, Inc.

	  
	 2053 Pabco Road

	  
	 Henderson, NV 89011

	  
	 Attention: Mr. Bob Chance, President

	  
	 Telephone: (702) 642-7720

	  
	 Facsimile: (702) 564-5411

	  
	  

	 And a copy to (which shall 
not constitute notice):
	 
Richardson & Patel, LLP

	
 
	 10900 Wilshire Boulevard, Suite 500

	  
	 Los Angeles, CA 90024

	  
	 Attention: Peter Hogan, Esq.

	  
	 Telephone: (310) 208-1182

	  
	 Facsimile: (310) 208-1154

	  
	  

	 If to the Obligee:
	 
Trafalgar Capital Specialized Investment Fund

	
 
	 8-10 Rue Mathias Hardt

	  
	 BP 3023

	  
	 L-1030 Luxembourg

	  
	 Attention: Andrew Garai, Chairman of the Board of 

	  
	 Trafalgar Capital Sarl, General Partner 

	  
	 Facsimile:
	 011-44-207-405-0161 and

	 
 
	  
	
001-786-323-1651

	  
	  
	  

	 With a copy to (which shall
not constitute notice):
	 
James G. Dodrill II, P.A.

	
 
	 5800 Hamilton Way

	  
	 Boca Raton, FL 33496

	  
	 Attention:
	 James Dodrill, Esq.

	  
	 Telephone:
	 (561) 862-0529

	  
	 Facsimile:
	 (561) 892-7787

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          No delay or omission in exercising any right hereunder shall operate as a waiver of such right or any other right. Guarantor agrees to pay reasonable attorneys’ fees and all other costs and expenses that may be incurred by Obligee in the enforcement of this Guaranty.

          In the event either party shall bring any action against the other party pursuant to this Agreement, the arbitrator or court shall have the right to grant the prevailing party recovery from the other party all costs and expenses of such action including, without limitation, administrative costs of the arbitration, arbitrator’s fees, discovery costs, costs of investigation, related expenses, and reasonable attorney’s fees and costs.

LITIGATION.
           Forum Selection and Consent to Jurisdiction. Any litigation based on or arising out of, under, or in connection with, this Guaranty shall be brought and maintained exclusively in the federal courts of the State of Florida. Each Guarantor hereby expressly and irrevocably submits to the jurisdiction of the federal courts of the State of Florida for the purpose of any such litigation as set forth above and irrevocably agrees to be bound by any final judgment rendered thereby in connection with such litigation. Each Guarantor irrevocably consents to the service of process by registered mail, postage prepaid, or by personal service within or without the State of Florida. Each Guarantor hereby expressly and irrevocably waives, to the fullest extent permitted by law, any objection which Guarantor may have or hereafter may have to the laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in any inconvenient forum. To the extent that such Guarantor has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, such Guarantor hereby irrevocably waives such immunity in respect of his obligations under this Guaranty and the other loan documents.

          Waiver of Jury Trial. The Guarantor hereby knowingly, voluntarily and intentionally waives any rights he may have to a trial by jury in respect of any litigation based hereon, or arising out of, under, or in connection with, this Guaranty, or any course of conduct, course of dealing, statements (whether oral or written) or actions of Guarantor or Obligee. The Guarantor acknowledges and agrees that he has received full and sufficient consideration for this provision and that this provision is a material inducement for the Obligee making the loan to American Energy Resources Corporation.

          This Guaranty shall inure to the benefit of the Obligee, the Obligee’s successors and assigns, and it shall be binding upon the Guarantor, his legal representatives, heirs and assigns. 

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MISCELLANEOUS.
           All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, impersonal, singular or plural, as the identity of the person or persons may require.

          This Guaranty shall be assignable solely by the Obligee, and upon notice of such assignment the Guarantor shall make payment to the assignee at the assignee’s address.

          Neither this Guaranty nor any provision hereof shall be waived, modified, changed, discharged, terminated, revoked or canceled, except by an instrument in writing signed by the Guarantor and Obligee.

          This Guaranty shall be enforced, governed and construed in all respects in accordance with the laws of the State of Florida, as such laws are applied by Florida courts to agreements entered into, and to be performed in, Florida by and between residents of Florida, and shall be binding upon the undersigned, the undersigned’s heirs, estate, legal representatives, successors and assigns and shall inure to the benefit of the Obligee, its successors and assigns. If any provision of this Guaranty is invalid or unenforceable under any applicable statue or rule of law, then such provisions shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof that may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof. 

          The Guarantor has caused this instrument to be executed this 21 day of July 2008.

	
 
	  
	  

	 WITNESS
	  
	 GUARANTOR

	  

 
	  
	  /
s/ Bob Chance

	

 	  
	 
 
	 
 
	  
	
Bob Chance

 4EX-10.7 THIS SECURED DEBENTURE (THE “SECURITIES”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

SECURED REDEEMABLE DEBENTURE
 
NATIONAL AUTOMATION SERVICES, INC.
 July 21, 2008

	
 
	  

	 No. NAS – 1
	 US$750,000

           This Secured Redeemable Debenture (the “
Debenture”) is issued on July 21, 2008 (the “Closing Date”) by National Automation Services, Inc. a Nevada corporation (the “
Company”), to Trafalgar Capital Specialized Investment Fund, Luxembourg (together with its permitted successors and assigns, the “
Holder”) pursuant to exemptions from registration under the Securities Act of 1933, as amended. 

ARTICLE I. 
           Section 1.01
Principal and Interest. For value received, the Company hereby promises to pay to the order of the Holder on January ____, 2010 in lawful money of the United States of America and in immediately available funds any then unpaid portion of the principal sum of Seven Hundred Fifty Thousand U.S. Dollars
(US$750,000) together with interest on the unpaid principal of this Debenture at the rate of ten percent (10%) per annum (the “Interest Rate”). Interest shall be payable monthly in cash or, in the Holder’s sole discretion, shares of the Company’s common stock (“Common Stock”) on the outstanding balance commencing two (2) months from the date hereof. Interest shall be computed on the basis of a 360-day year and the actual days elapsed and the Holder shall deduct the first two (2) interest payments at the Closing (as defined in the Securities Purchase Agreement). Any unpaid interest shall be compounded monthly. Additionally, upon the occurrence of an Event of Default (as defined herein) the Interest Rate shall be increased to a rate of eighteen percent (18%) per annum. 

 
           Section 1.02
[Reserved]
           Section 1.03
[Reserved]
           Section 1.04
[Reserved]
           Section 1.05
Mandatory Redemption. The Company shall begin redeeming on this Debenture monthly beginning on the one (1) month anniversary following the Closing by making equal payments over the remaining term of this Debenture (each payment, a “Redemption”). The Company shall pay a fifteen percent (15%) redemption premium on the principal redeemed each month. For the avoidance of doubt, the Company shall make payments according to the schedule set forth on Exhibit A hereto (the date of each payment, a “Repayment Date”). The Company shall have the option to prepay the outstanding balance at any time with the fifteen percent (15%) redemption premium. 

          Section 1.06 Interest Payments. Holder shall deduct the first two (2) interest payments at the Closing. At the time such interest is payable, the Holder, in its sole discretion, may elect to receive the interest in cash (via wire transfer or certified funds) or in the form of Common Stock. In the event of default, as described in Article III Section 3.01 hereunder, the Holder may elect that the interest be paid in cash (via wire transfer or certified funds) or in the form of Common Stock. If paid in the form of Common Stock, the amount of stock to be issued will be calculated as follows: the value of the stock shall be the closing bid price of the Common Stock on the Pink Sheets or the Over-The-Counter Bulletin Board, as the case may be, on the date the interest payment is due. A number of shares of Common Stock with a value equal to the amount of interest due shall be issued. No fractional shares will be issued; therefore, in the event that the value of the Common Stock per share does not equal the total interest due, the Company will pay the balance in cash. 

          Section 1.07 Paying Agent and Registrar. Initially, the Company will act as paying agent and registrar. The Company may change any paying agent, registrar, or Company-registrar by giving the Holder not less than ten (10) business days’ written notice of its election to do so, specifying the name, address, telephone number and facsimile number of the paying agent or registrar. The Company may act in any such capacity. 

          Section 1.08 Secured Nature of Debenture. This Debenture is secured by all of the assets and property of the Company and its present and future acquired subsidiaries (including specifically Summit Controls, LLC.) as set forth on Exhibit A to the Security Agreement dated as of the date hereof between the Company and the Holder (the “Security Agreement”). As set forth in the Security Agreement, Holder’s security interest shall terminate upon the satisfaction of the Obligations as defined in the Security Agreement. 

          Section 1.09 Currency Exchange Rate Protections.

	
 
	  

	  
	           (a) “Closing Date Exchange Rate” means the Euro to US dollar spot exchange rate as converted by the Holder’s Custodian on the date funds are transferred into escrow. 

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	           (b) “Repayment Exchange Rate”means in relation to each date of a Redemption or a Repayment Date, the Euro to US dollar spot exchange rate as quoted by Bloomberg or Proquote on such date. 

	  
	  

	  
	           (c) If on the date of any Redemption, the Repayment Exchange Rate is more than the Closing Date Exchange Rate then the number of Shares to be issued shall be increased by the same percentage as results from dividing the Repayment Exchange Rate by the Closing Date Exchange Rate. By way of example, if the number of Shares to be issued in respect of a particular Redemption would, but for this Section, be 1,000 and if the Closing Date Exchange Rate is 1.75 and the relevant Repayment Exchange Rate is 1.80, then 1,029 Shares will be issued in relation to that Redemption, as the case may be. For the avoidance of doubt, the formula for such calculation, by way of example for this Section, equals ((1.80 /1.75)-1)*1000 = 29 additional shares. 

	  
	  

	  
	           (d) If on the Repayment Date, the Cash Payment Date Exchange Rate, as defined below is more than the Closing Date Exchange Rate then the amount of cash required to satisfy the amounts due at such time shall be increased by the same percentage as results from dividing the Cash Payment Date Exchange Rate by the relevant Closing Date Exchange Rate. “Cash Payment Date Exchange Rate”meansin relation to each Repayment Date the Euro to US dollar spot exchange rate as quoted by Bloomberg or Proquote on such date. By way of example, if the amount of cash required to repay all amounts due on such date would, but for this Section, be $1,000 and if the Closing Date Exchange Rate is 1.75 and the relevant Repayment Date Exchange Rate is 1.80 then the amount of cash from the Cash Payment required to repay all amounts due on such date will be $1,028.57. For the avoidance of doubt, the formula for such calculation, by way of example for this Section, equals ((1.80/1.75)-1)*$1000 = $28.57 additional dollars. 

ARTICLE II.
           Section 2.01
Amendments and Waiver of Default. The Debenture may not be amended without the written consent of both the Holder and the Company. Notwithstanding the above, without the consent of the Holder, the Debenture may be amended to cure any ambiguity, defect or inconsistency, or to provide for assumption of the Company obligations to the Holder. 

ARTICLE III.
           Section 3.01
Events of Default. An Event of Default is defined as follows: (a) failure by the Company to pay amounts due hereunder within fifteen (15) days of the date of maturity of this Debenture; (b) failure by the Company for ten (10) days after notice to it to comply with any of its other agreements in the Debenture; (c) events of bankruptcy or insolvency; or (d) a breach by the Company of its obligations under the Securities Purchase Agreement which is not cured by the Company within ten (10) days after receipt of written notice thereof. Upon the occurrence of an Event of Default, the Holder may, in its sole discretion, accelerate full repayment of all debentures outstanding and accrued interest thereon or may, notwithstanding any limitations contained in this Debenture and/or the Securities Purchase Agreement dated as of the date hereof between the Company and Trafalgar Capital Specialized Investment Fund, Luxembourg (the “
Securities Purchase Agreement”). 
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           Section 3.02
[Reserved]
 ARTICLE IV.
           Section 4.01
[Reserved]
 ARTICLE V.
           Section 5.01
[Reserved]
           Section 5.02
Consent of Holder to Sell Capital Stock, Incur Debt or Grant Security Interests. Except for the Securities Purchase Agreement, so long as any of the principal of or interest on this Debenture remains unpaid, the Company shall not, without the prior consent of the Holder, issue or sell (i) any Common Stock or Preferred Stock without consideration or for a consideration per share less than the bid price of the Common Stock determined immediately prior to its issuance except for shares of Common Stock issued to Richardson & Patel, LLP, (ii) issue or sell any Preferred Stock, warrant, option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock without consideration or for a consideration per share less than such Common Stock’s bid price value determined immediately prior to its issuance, (iii) enter into any security instrument granting the holder a security interest in any of the assets of the Company, (iv) file any registration statement on Form S-8 except for a registration statement for Richardson & Patel, LLP, or (v) incur any additional debt without the Holder’s prior written consent with the exception of equipment purchases and real estate acquisitions used in the normal course of business. 

ARTICLE VI.
           Section 6.01
Notice. Notices regarding this Debenture shall be sent to the parties at the following addresses, unless a party notifies the other parties, in writing, of a change of address: 

	
 
	  
	  
	  

	 If to the Company, to:
	 National Automation Services, Inc.
	
 

	  
	 2053 Pabco Road
	  

	  
	 Henderson, NV 89011
	  

	  
	 Attention: Mr. Bob Chance, President
	
 

	  
	 Telephone: (702) 642-7720
	 
 

	  
	 Facsimile: (702) 564-5411
	 
 

 4
 

 	  
	  
	  

	 With a copy to (which shall not
	  

	 constitute notice):
	 Richardson & Patel, LLP

	
 
	 10900 Wilshire Blvd., Suite 500

	  
	 Los Angeles, CA 90024

	  
	 Attention: Peter Hogan, Esq.

	  
	 Telephone:
	 (310) 208-1182

	  
	 Facsimile:
	 (310) 208-1154

	  
	  

	 If to the Holder:
	 Trafalgar Capital Specialized Investment Fund

	  
	 8-10 Rue Mathias Hardt

	  
	 BP 3023

	  
	 L-1030 Luxembourg

	  
	 Attention:
	 Andrew Garai, Chairman of the Board of

	
 
	 Facsimile:
	
011-44-207-405-0161 and

	  
	  
	 001-786-323-1651

	  
	  

	 With a copy to (which shall not
	
 

	 constitute notice):
	 James G. Dodrill II, P.A.

	
 
	 5800 Hamilton Way

	  
	 Boca Raton, FL 33496

	  
	 Attention:
	 James Dodrill, Esq.

	  
	 Telephone:
	 (561) 862-0529

	  
	 Facsimile:
	 (561) 892-7787

           Section 6.02
Governing Law. This Debenture shall be deemed to be made under and shall be construed in accordance with the laws of the State of Florida without giving effect to the principals of conflict of laws thereof. Each of the parties consents to the jurisdiction of the U.S. District Court sitting in the Southern District of the State of Florida or the state courts of the State of Florida sitting in Broward County, Florida in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on
forum non conveniens to the bringing of any such proceeding in such jurisdictions. 

          Section 6.03 Severability. The invalidity of any of the provisions of this Debenture shall not invalidate or otherwise affect any of the other provisions of this Debenture, which shall remain in full force and effect. 

          Section 6.04 Entire Agreement and Amendments. This Debenture represents the entire agreement between the parties hereto with respect to the subject matter hereof and there are no representations, warranties or commitments, except as set forth herein. This Debenture may be amended only by an instrument in writing executed by the parties hereto. 

          Section 6.05 Counterparts. This Debenture may be executed in multiple counterparts, each of which shall be an original, but all of which shall be deemed to constitute on instrument. 

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          IN WITNESS WHEREOF, with the intent to be legally bound hereby, the Company as executed this Debenture as of the date first written above. 

	
 
	  
	
 

	  
	
NATIONAL AUTOMATION SERVICES, INC.

	
 
	  
	  

	  
	 By:
	 
 /s/ Bob Chance

	  
	  
	 
 
	  
	 Name: 
	 Bob Chance

	  
	 Title:
	 President

		

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 EXHIBIT “A”

[Franklin to provide]
 A-1

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