Document:

Unassociated Document

    

    EXHIBIT
10-2

    

    

    THIS
NOTE HEREOF HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS.  THIS NOTE HAS
BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR DISTRIBUTION
OR RESALE, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED UNLESS
IT HAS BEEN SO REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

    

    

    CONVERTIBLE DEMAND
PROMISSORY NOTE

    

     

    
      
        	
                Principal
      Amount:  $60,000.00

              	
                Issue
      Date:  August 27, 2009    

              

      

    

    

    

    FOR VALUE RECEIVED, the
undersigned, Signature
Exploration & Production Corp, a Delaware corporation (the “Borrower”
or the “Company”),
hereby promises to pay to the order of Bristol Investment Fund,
Ltd. (together with each of their said heirs, personal
representatives, successors and assigns, and any such bearer, being hereinafter
referred to collectively as  the “Holder”),
on or before November 19, 2009 (the “Maturity
Date”), the principal sum of Sixty Thousand Dollars
($60,000.00) (this “Note”),
together with interest thereon at the rate set forth herein (the “Loan”).  For
purposes of this Note, “Borrower” shall mean all successors in interest and
assignees, including, without limitation, pursuant to a merger, consolidation,
reorganization, recapitalization or other similar restructuring event
(collectively, a “Reorganization”),
and all endorsers, sureties and guarantors and any other person liable or to
become liable with respect to the Loan.

    

    1.           Interest
Rate.   Interest shall accrue on the outstanding principal
balance of this Note from and after the date hereof at the rate of 10% per
annum.  Interest shall be calculated on the basis of a 360-day year,
and shall be charged on the principal outstanding from time to time for the
actual number of days elapsed.

    

    2.           Payment of Principal and
Interest.   The Borrower shall pay the Holder all accrued
interest shall be paid on the Maturity Date.

    

    3.           Conversion.  At
any time while this Note is outstanding, the Holder may convert any portion of
this Note that is outstanding, whether such portion represents principal or
interest, into shares of common stock of the Company (the “Conversion Shares”)
at a price (the “Conversion Price”) equal to the lesser of (i) $0.01 and (ii)
50% of the average of the three (3) lowest trading prices during the twenty (20)
trading days preceding the date that the Holder notifies the Company that it
elects to effectuate a conversion (the “Conversion Date”).  The
Company must deliver the Conversion Shares to the Holder no later than the third
(3rd)
business day after the Conversion Date (the “Share Delivery Date”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.           Holder’s Conversion
Limitations.  The Company shall not effect any conversion of
this Note, and a Holder shall not have the right to convert any portion of this
Note, to the extent that after giving effect to the conversion set forth on the
applicable conversion notice (“Notice of Conversion”) submitted by the Holder,
the Holder (together with the Holder’s affiliates, and any Persons acting as a
group together with the Holder or any of the Holder’s affiliates) would
beneficially own in excess of the Beneficial Ownership Limitation (as defined
below).  For purposes of the foregoing sentence, the number of shares
of common stock beneficially owned by the Holder and its affiliates shall
include the number of shares of common stock issuable upon conversion of this
Note with respect to which such determination is being made, but shall exclude
the number of shares of common stock which are issuable upon (i) conversion of
the remaining, unconverted principal amount of this Note beneficially owned by
the Holder or any of its affiliates and (ii) exercise or conversion of the
unexercised or unconverted portion of any other securities of the Company
subject to a limitation on conversion or exercise analogous to the limitation
contained herein (including, without limitation, any other convertible
securities or warrants) beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for
purposes of this Section 4, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder.  To the extent that the limitation contained
in this Section 4 applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any
affiliates) and of which principal amount of this Note is convertible shall be
in the sole discretion of the Holder, and the submission of a Notice of
Conversion shall be deemed to be the Holder’s determination of whether this Note
may be converted (in relation to other securities owned by the Holder together
with any Affiliates) and which principal amount of this Note is convertible, in
each case subject to the Beneficial Ownership Limitation. To ensure compliance
with this restriction, the Holder will be deemed to represent to the Company
each time it delivers a Notice of Conversion that such Notice of Conversion has
not violated the restrictions set forth in this paragraph and the Company shall
have no obligation to verify or confirm the accuracy of such
determination.  In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated
thereunder.   For purposes of this Section 4, in determining the
number of outstanding shares of common stock, the Holder may rely on the number
of outstanding shares of common stock as stated in the most recent of the
following: (i) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (ii) a more recent public announcement by
the Company, or (iii) a more recent written notice by the Company or the
Company’s transfer agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder, the
Company shall within two Trading Days confirm orally and in writing to the
Holder the number of shares of common stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Note, by the Holder or its affiliates since the date as of which
such number of outstanding shares of common stock was reported. The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of common
stock issuable upon conversion of this Note held by the Holder.  The
Holder, upon not less than 61 days’ prior notice to the Company, may waive the
Beneficial Ownership Limitation and the Beneficial Ownership Limitation shall no
longer apply as of the 61st day
after such notice is delivered to the Company.  The limitations
contained in this paragraph shall apply to a successor holder of this
Note.

    

    5.           Acknowledgement by the
Holder.  The Holder hereby represents and warrants to the
Borrower that the Holder has sufficient knowledge and experience of financial
and business matters so that the Holder is able to evaluate the merits and risks
of purchasing this Note and the Holder has had substantial experience in
previous private and public purchases of securities.  The Holder is an
“accredited investor” as that term is defined in Rule 501 of Regulation D under
the Securities Act.

    

    6.           Anti-dilution
Adjustment.  If at any time this Note is outstanding, the
Company issues common stock or securities convertible into or exercisable for
common stock at a price per share that is lower than the Conversion Price (a
“Dilutive Issuance”), or adjusts the price per share at which any of its
outstanding securities can be converted into or exercised for common stock to a
price that is lower than the Conversion Price (a “Dilutive Adjustment”), the
Conversion Price shall automatically be adjusted to equal the lower price
granted in such Dilutive Issuance or Dilutive Adjustment (the “Adjusted
Conversion Price”).  The Company must provide written notice to the
Holder of a Dilutive Issuance or a Dilutive Adjustment (the “Adjustment Notice”)
within three (3) trading days of such occurrence, provided however that the
Adjusted Conversion Price shall be deemed to be in effect automatically upon any
Dilutive Issuance or Dilutive Adjustment regardless of whether the Company
provides the Adjustment Notice. The Company must honor any conversions requested
by the Holder at the Adjusted Conversion Price following any Dilutive Issuance
or Dilutive Adjustment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.           Event of
Default.  Any of the following shall constitute an “Event of
Default” under this Note, and shall give rise to the remedies provided in
Section 6
herein:

    

    
      	
               
      

            	
              (a)

            	
              The
      failure by the Borrower to pay the Indebtedness or otherwise to satisfy
      when due, as contemplated in Section
      2;

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      failure by the Borrower to deliver the Conversion Shares by the Share
      Delivery Date, as contemplated in Section
      3;

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      failure by the Borrower to provide the Adjustment Notice or honor
      conversions at the Adjusted Conversion Price following a Dilutive Issuance
      or Dilutive Adjustment, as contemplated in Section
      6;

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      failure by the Borrower to timely file and keep current periodic reports
      with the SEC;

            

    

    

    
      	
               
      

            	
              (e)

            	
              If
      the Borrower:  (i) makes a general assignment for the benefit of
      creditors; (ii) is adjudicated a bankrupt or insolvent; (iii) files a
      voluntary petition in bankruptcy; (iv) takes advantage, as against its
      creditors, of any bankruptcy law or statute of the United States of
      America or any state or subdivision thereof now or hereafter in effect;
      (v) has a petition or proceeding filed against it under any provision of
      any bankruptcy or insolvency law or statute of the United States of
      America or any state or subdivision thereof, which petition or proceeding
      is not dismissed within 30 days after the date of the commencement
      thereof; (vi) has a receiver, liquidator, trustee, custodian, conservator,
      sequestrator or other such person appointed by any court to take charge of
      its affairs or assets or business and such appointment is not vacated or
      discharged within 30 days thereafter; or (vii) takes any action in
      furtherance of any of the
foregoing;

            

    

    

    
      	
               
      

            	
              (f)

            	
              Any
      merger, liquidation, dissolution or winding up of the Borrower or its
      business or any sale of all or substantially all of the Borrower’s capital
      stock or assets; provided,
      however,
      the merger or sale of the Borrower with a successor entity that
      acknowledges and expressly assumes in writing the Borrower’s obligations
      hereunder shall not be considered an “Event of Default” for purposes
      hereof; or

            

    

    

    
      	
               
      

            	
              (g)

            	
              The
      Borrower attempts to effectuate or effectuates a reverse stock split of
      its common stock without first obtaining the prior written consent of the
      Holder.

            

    

    

    8.           Remedies on
Default.  If any Event of Default shall occur and be continuing
for a period of seven (7) calendar days, the Holder shall, in addition to any
and all other available rights and remedies, have the right, at the Holder’s
option unless such Event of Default shall have been cured or waived in writing
by the Holder (which waiver shall not be deemed to be a waiver of a subsequent
default), to:  (a) declare the entire unpaid principal balance of this
Note, together with all interest accrued thereon and all other sums due by the
Borrower hereunder (the “Default Amount”), along with a default premium equal to
10% of the Default Amount, to be immediately due and payable; and (b) pursue any
and all available remedies for the collection of such principal and interest to
enforce its rights as described herein; and in such case the Holder may also
recover all costs of suit and other expenses in connection therewith, including
reasonable attorney’s fees for collection and the right to equitable relief
(including, but not limited to, injunctions) to enforce the Holder’s rights as
set forth herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9.           Certain
Waivers.  Except as otherwise expressly provided in this Note,
the Borrower hereby waives diligence, demand, presentment for payment, protest,
dishonor, nonpayment and default with respect to the Indebtedness evidenced
hereby.  The Borrower hereby expressly agrees that this Note, or any
payment hereunder, may be extended, modified or subordinated (by forbearance or
otherwise) from time to time, without in any way affecting the liability of the
Borrower.

    

    10.           Waivers and Amendments;
Cumulative Remedies.  Neither any provision of this Note nor
any performance hereunder may be waived orally, but only by an agreement in
writing and signed by the party against whom enforcement of any waiver or
discharge is sought.  No right or remedy conferred upon the parties
under this Note is intended to be exclusive of any other right or remedy
contained herein or in any instrument or document delivered in connection
herewith, and every such right or remedy shall be cumulative and shall be in
addition to every other such right or remedy contained herein and/or now or
hereafter existing at law or in equity or otherwise.

    

    11.           Governing
Law.  This Note shall be deemed to be a contract made under the
laws of the State of New York and shall be governed by, and construed in
accordance with, the laws of the State of New York, without giving effect to the
principles of conflicts of law.  If either party shall commence an
action or proceeding to enforce any provision of this Note, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for
its attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

    

    12.           Consent to Jurisdiction and
Service of Process.  The Borrower by execution, and the Holder
by acceptance, hereof each consent to the jurisdiction of any federal district
court in the State of New York having competent jurisdiction.  The
Borrower waives personal service of any summons, complaint or other process in
connection with any such action or proceeding and agrees that service thereof
may be made, as the Holder may elect, by certified mail directed to the Borrower
at the location provided for in Section 13 hereof,
or, in the alternative, in any other form or manner permitted by
law.

    

    13.           Additional
Documents.  From time to time the Holder will execute and
deliver to the Borrower such additional instruments as the Borrower may
reasonably request to effectuate the purposes of this Note.

    

    14.           Notices.  All
notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by United States first-class mail, postage prepaid,
or delivered personally by hand or by nationally recognized overnight courier or
sent via facsimile addressed to:

    

    If to the
Borrower:

    

    Signature Exploration and Production
Corp.

    Attn:
Steven Weldon

    201 St
Charles Avenue, Ste 2500

    New
Orleans, LA 70170

    Fax:
(504) 524-7979

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    If to the
Holder:

    

    Bristol
Investment Fund Ltd.

    c/o
Bristol Capital Advisors LLC

    Attn: Amy
Wang, Esq.

    10990
Wilshire Blvd.

    Suite
1410

    Los
Angeles, CA 90024

    Facsimile: (310)
696-0334

    

    or at
such other address as shall have been furnished to the other party in
writing.  All such notices and other written communications shall be
effective:  (a) if mailed, five days after mailing; (b) if delivered,
upon delivery; and (c) if sent via facsimile, upon confirmation of
receipt.

    

    15.           Wiring
Instructions.  Any amount wired to the Borrower hereunder shall
be wired in accordance with the following wiring instructions:

     

    
      
        	
                Bank
      Name:

              	 	
                 

              
	
                Account
      Name:

              	 	
                 

              
	
                Account
      Number:

              	
                 

              	 
      
	
                Routing
      number:

              	
                 

              	 
      

      

       

    

    16.           Severability.  If
any provision of this Note is prohibited or unenforceable in any jurisdiction,
it shall be ineffective in such jurisdiction only to the extent of such
prohibition or unenforceability, and such prohibition or unenforceability shall
not invalidate the balance of such provision to the extent it is not prohibited
or unenforceable nor the remaining provisions hereof, nor render unenforceable
such provision in any other jurisdiction.

    

    17.           Assignment.  This
Note shall inure to the benefit of, and shall be binding upon, the Borrower and
the Holder and their respective successors and permitted
assigns.  Neither party hereto may assign any of its rights or
obligations hereunder without the prior written consent of the other
party.

    

    18.           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same
instrument.  A facsimile signature of any party shall be considered to
have the same binding legal effect as an original signature.

    

    19.           No Stockholder
Rights.  Nothing contained in this Note shall be construed as
conferring upon the Holder or any other person the right to vote or to consent
or to receive notice as a stockholder in respect of meeting of stockholders for
the election of directors of the Borrower or any other matters or any rights
whatsoever as a stockholder of the Borrower; and no dividends shall be payable
or accrued in respect of this Note.

    

    20.           JURY
WAIVER.  THE BORROWER BY EXECUTION, AND THE HOLDER BY
ACCEPTANCE, HEREOF EACH CONSENT THAT IN ANY CIVIL ACTION, COUNTERCLAIM, OR
PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS, OR
RELATES TO THIS NOTE, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS NOTE, THE
PERFORMANCE OF THIS NOTE, OR THE RELATIONSHIP CREATED BY THIS NOTE, WHETHER
SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, TRIAL SHALL BE TO A
COURT OF COMPETENT JURISDICTION AND NOT TO A JURY.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY.  ANY
PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS NOTE WITH ANY COURT, AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THIS NOTE OF THE WAIVER OF
THEIR RIGHT TO A TRIAL BY JURY.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
undersigned has executed and delivered this Note on and as of the date first set
forth above.

    

    Signature
Exploration & Production Corp, a Delaware corporation, as
Borrower

     

     

    
      	
              By:

            	
              /s/ Steven Weldon

            	 
      
	
              Name:
      Steven Weldon

            	 
      
	
              Title:
      Chief Financial OfficerUnassociated Document

        

    EXHIBIT
10-3

    

    

    ADDENDUM

    TO

    CONVERTIBLE
PROMISSORY NOTE

    

    

    THIS
ADDENDUM (the “Addendum”) is hereby entered into as of August 27, 2009, by and
between Signature Exploration & Production Corp., a Delaware corporation
(“Signature”), and Bristol Capital, LLC, a Delaware limited liability company
(“Bristol”) (Signature and Bristol are hereinafter sometimes collectively
referred to as the “Parties”).

    

    WHEREAS, Signature issued to Bristol a
convertible promissory note (the “Note”) dated as of August 17, 2009, in the
principal amount of $18,000.00, pursuant to a Purchase Agreement dated as of
August 17, 2009 (the “Agreement”)” by and between Signature as Buyer (as defined
in the Agreement) and Bristol as a Seller (as defined in the
Agreement);

    

    WHEREAS, the Parties desire to amend
the Note by including a provision to limit the number of shares issuable to
Bristol under the Note;

    

    NOW THEREFORE, the Parties
agree to amend the Note as set forth below:

    

    
      	
               
      

            	
              1.

            	
              Conversion
      Limitation.  Signature shall not effect any conversion of
      the Note, and Bristol shall not have the right to convert any portion of
      the Note, to the extent that after giving effect to the conversion set
      forth on the applicable conversion notice (“Notice of Conversion”)
      submitted by Bristol, Bristol (together with its affiliates, and any
      persons acting as a group together with Bristol or any of Bristol’s
      affiliates) would beneficially own in excess of the Beneficial Ownership
      Limitation (as defined below).  For purposes of the foregoing
      sentence, the number of shares of common stock beneficially owned by
      Bristol and its affiliates shall include the number of shares of common
      stock issuable upon conversion of the Note with respect to which such
      determination is being made, but shall exclude the number of shares of
      common stock which are issuable upon (i) conversion of the remaining,
      unconverted principal amount of the Note beneficially owned by Bristol or
      any of its affiliates and (ii) exercise or conversion of the unexercised
      or unconverted portion of any other securities of Signature subject to a
      limitation on conversion or exercise analogous to the limitation contained
      herein (including, without limitation, any other convertible securities or
      warrants) beneficially owned by Bristol or any of its
      affiliates.  Except as set forth in the preceding sentence, for
      purposes of this provision, beneficial ownership shall be calculated in
      accordance with Section 13(d) of the Exchange Act and the rules and
      regulations promulgated thereunder.  To the extent that the
      limitation contained herein applies, the determination of whether the Note
      is convertible (in relation to other securities owned by Bristol together
      with any affiliates) and of which principal amount of the Note is
      convertible shall be in the sole discretion of Bristol, and the submission
      of a Notice of Conversion shall be deemed to be Bristol’s determination of
      whether the Note may be converted (in relation to other securities owned
      by Bristol together with any Affiliates) and which principal amount of the
      Note is convertible, in each case subject to the Beneficial Ownership
      Limitation.  To ensure compliance with this restriction, Bristol
      will be deemed to represent to Signature each time it delivers a Notice of
      Conversion that such Notice of Conversion has not violated the
      restrictions set forth in this provision and Signature shall have no
      obligation to verify or confirm the accuracy of such
      determination.  In addition, a determination as to any group
      status as contemplated above shall be determined in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder.   For purposes of this provision,
      in determining the number of outstanding shares of common stock, Bristol
      may rely on the number of outstanding shares of common stock as stated in
      the most recent of the following: (i) Signature’s most recent periodic or
      annual report filed with the Commission, as the case may be, (ii) a more
      recent public announcement by Signature, or (iii) a more recent written
      notice by Signature or its transfer agent setting forth the number of
      shares of common stock outstanding.  Upon the written or oral
      request of Bristol, Signature shall within two trading days confirm orally
      and in writing to Bristol the number of shares of common stock then
      outstanding.  In any case, the number of outstanding shares of
      common stock shall be determined after giving effect to the conversion or
      exercise of securities of Signature, including the Note, by Bristol or its
      affiliates since the date as of which such number of outstanding shares of
      common stock was reported.  The “Beneficial Ownership
      Limitation” shall be 9.99% of the number of shares of the common stock
      outstanding immediately after giving effect to the issuance of shares of
      common stock issuable upon conversion of the Note held by
      Bristol.  Bristol, upon not less than 61 days’ prior notice to
      Signature, may waive the Beneficial Ownership Limitation and the
      Beneficial Ownership Limitation shall no longer apply as of the 61st day
      after such notice is delivered to Signature.  The limitations
      contained in this provision shall apply to a successor holder of the
      Note.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              2. 

            	
              Miscellaneous
      Provisions. 

            

    

    

    
      	
               
      

            	
              (a)

            	
              Except
      as amended and modified herein, all other provisions of the Note, as
      modified and amended by this Addendum, are hereby ratified and approved,
      and shall remain in full force and
effect.

            

    

    

    
      	
               
      

            	
              (b)

            	
              This
      Addendum and the Note together constitute the entire agreement between the
      parties relating to the subject matter hereof and thereof.  This
      Addendum may be executed in counterparts and each counterpart may be
      deemed an original.  A telefaxed copy or electronic copy in PDF
      format of this Addendum shall be deemed an
  original

            

    

    

    IN WITNESS WHEREOF, the Parties hereto
have caused this Addendum to be executed by its duly authorized officers as of
the day first written above.

    

    
      	
              SIGNATURE
      EXPLORATION & PRODUCTION CORP.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	
              /s/ Steven Weldon

            	 
      
	
              Name:
      Steven Weldon

            	 
      
	
              Title:
      Chief Financial Officer

            	 
      

    

     

    
      

      
        
          	
                  BRISTOL
      CAPITAL, LLC

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Paul Kessler

                	 
      
	
                  Name:
      Paul Kessler

                	 
      
	
                  Title:
      Manager

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