Document:

lasvegasexh109.htm

Exhibit 10.9

ORIGINAL ISSUE DISCOUNT CONVERTIBLE PROMISSORY NOTE

 

Face Amount: $187,500.00                                                                                                                                                                                                                                                         May 28, 2014

Purchase Price: $125.000.00

 

 

FOR VALUE RECEIVED, Las Vegas Railway Express, Inc., a Delaware corporation (the "Maker"), with its principal offices located at 6650 Via Austi Parkway, Suite 140, Las Vegas, NV 89119, promises to pay to the order of BEAUFORT CAPITAL PARTNERS LLC, or its registered assigns (the "Payee"), upon the terms set forth below, the principal amount of Sixty-Five Thousand Dollars ($125.000.00) (this "Note").

1. Payments.

(a) The full face amount ($187,500.00) of this Note shall be due on August 28, 2014 or such later date as is agreed to in writing by the Payee (the "Maturity Date"), unless due earlier in accordance with the terms of this Note. '

(b) All overdue unpaid principal to be paid hereunder shall entail a late fee at the rate of 22% per annum (or such lower maximum amount of interest permitted to be charged under applicable law) which will accrue daily, from the date such principal is due hereunder through and including the date of payment.

(c) Absent the occurrence of Event of Default (unless such Event of Default is waived in writing by the Payee), the Maker (XTRN only) may prepay this Note for a net payment of $187,500.00 at any time prior to August 28, 2014. . If the $187,500.00 is not pre-paid by August 28, 2014, seller has the right to refuse any further payments and choose to convert this note when it has matures 180 days after payment of this $125.000.00.

2. Payment Schedule. $125.000.00 to XTRN upon written proof that transfer agent, corporate attorney and auditor has been paid and up to date. Beaufort will make payments to these entities and deduct from the $125.000.00 to XTRN if these entities are owed monies over $500 as of May 28, 2014.

3. Events of Default.

(a) "Event of Default", wherever used herein, means any one of the following events (whatever the reason and whether it 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):

(i) any default in the payment of the principal of this Note, as and when the same shall become due and payable;

(iii) Maker or any of its subsidiaries shall fail to observe or perform any of their respective obligations owed to Payee under this Note or any other covenant, agreement, representation or warranty contained in, or otherwise commit any breach hereunder or in any other agreement executed in connection herewith and such Failure or breach shall not have been remedied within ten days after the date on which notice of such failure or breach shall have been delivered;

  

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(iv) Maker or any of its subsidiaries shall commence, or there shall be commenced against Maker or any subsidiary, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Maker or any subsidiary 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 Maker or any subsidiary, or there is commenced against Maker or any subsidiary any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or Maker or any subsidiary is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Maker or any subsidiary suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or Maker or any subsidiary makes a general assignment for the benefit of creditors; or Maker or any subsidiary shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or Maker or any subsidiary shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by Maker or any subsidiary for the purpose of effecting any of the foregoing;

(v) Maker or any subsidiary ,shall default in any of its respective obligations under any other note or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or, other instrument under which there may be issued, or by which there may be sect1red or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of Maker or any subsidiary, wh6ther such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable; or

 

(vi) Maker shall (a) be a party to any Change of Control Transaction (as defined below), (b) agree to sell or dispose all or in excess of 33% of its assets in one or more transactions (whether or not such sale would constitute a Change of Control Transaction), (c) redeem or repurchase more than a de Minimis number of shares of Common Stock or other equity securities of Maker or (d) make any distribution or declare or pay any dividends (in cash or other property, other than common stock) on, or purchase, acquire, redeem, or retire any of Maker's capital stock, of any class, whether now or hereafter outstanding. "Change of Control Transaction" means the occurrence of any of: (i) an acquisition after the date hereof by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended) of effective control (whether through legal or beneficial ownership of capital stock of Maker, by contract or otherwise) of in excess of 33% of the voting securities of Maker, (ii) a replacement at one time or over time of more than one-half of the members of Maker's board of directors which is not approved by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board of directors was approved by a majority of the members of the board of directors who are members on the date hereof), (iii) the merger of Maker with or into another entity that is not wholly-owned by Maker, consolidation or sale of33% or more of the assets of Maker in one or a series of related transactions, or (iv) the execution by Maker of an agreement to which Maker is a party or by which it is bound, providing for any of the events set forth above in (i), (ii) or (iii).

(vii) Failure to complete audits or extensions. Beaufort ventures MUST, be notifies 7 business days ahead of failure to complete audits in a timely manner.

 

  

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(b) If any Event of Default occurs (unless such Event of Default is waived in writing by the Payee), the full principal amount of this Note shall become, at the Payee's election, immediately due and payable in cash. Commencing 5 days after the occurrence of any Event of Default that results in the acceleration of this Note, the interest rate on this Note shall accrue at the rate of 22% per annum, or such lower maximum amount of interest permitted to be charged under applicable law. The Payee need not provide and Maker hereby waives any presentment, demand, protest or other notice of any kind, and the Payee 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 Payee 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.

 

4. Section 4. Conversion.

 

(a) (i) Holder's Conversion Right. At any time after the Maturity Date until this Note is no longer outstanding, this Note, including interest and principal, shall be convertible into shares of Common Stock at a conversion price of 60% off the lowest traded price the prior 20 trading days (the "Set Price") at the option of the Holder, in whole at any time and from time to time. However, if XTRN share price, at any time before November 28, 2014 loses the bid (ex: .0001 on the ask with zero market makers on the bid on level 2), or has a DTC chill imposed on its stock, then the fixed conversion price resets to .00001. The Holder shall effect conversions by delivering to the Company the form of Notice of Conversion attached hereto as Annex A (a "Notice of Conversion"), specifying the date on which such conversion is to be effected (a "Conversion Date"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender Notes to the Company until the entire amount of this Note has been satisfied. The Company shall deliver any objection to any Notice of Conversion within TWO (2) Business Days of receipt of such notice. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. If the Company does not request the issuance of the shares underlying this Note after receipt of a Notice of Conversion within TWO (2) Business days following the period allowed for any objection, the Company shall be responsible for any differential in the value of the converted shares underlying this Note between the value of the closing price on the date the shares should have been delivered and the date the shares are delivered. In addition, if the COMPANY fails to timely (within 72 hours, 3 business days), deliver the shares per the instructions of the CLAIMANT, if permitted under Rule I 44 of the rules and regulations of the Securities and Exchange Commission, free and clear of all legends in legal free trading form, the COMPANY shall allow CLAIMANT to add two (2) days to the look­ back (the mechanism used to obtain the conversion price along with discount) for each day the COMPANY fails to timely (within 72 hours, 3 business days)) deliver shares, on the next conversion.

 

  

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The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. Any Opinion Letter required to effectuate the issuance of the shares pursuant to this Paragraph 4 (a) and the Notice of Conversion shall be provided and issued by BEAUFORT CAPITAL PARTNERS LLC. The parties hereby agree that the CLAIMANT will cover all reasonable legal costs associated with the issuance of the Opinion Letter to the Transfer Agent.

(ii) If the Company, at any time while this Note is outstanding: (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company pursuant to this Note, including as interest thereon), (B) subdivide outstanding shares of Common Stock into a larger number of shares, (C) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then the Set Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such\event and of which the denominator shall be the

 

Number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date the case of a subdivision, combination or re-classification.

(iii)           Whenever the Set Price is adjusted pursuant to any of Section 4, the Company shall promptly mail to each Holder a notice setting forth the Set Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

(iv)           If(A) the Company shall declare a dividend (or any other distribution) on the Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the 9ompany is a party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company; then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of the Notes, and shall cause to be mailed to the Holders at their last addresses as they shall appear upon the stock books of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided, that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. Holders are entitled to convert Notes during the 20-day period commencing the date of such notice to the effective date of the event triggering such notice.

 

  

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(v) If at any time while this Note is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a "Fundamental Transaction"), then upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Underlying Share that would have been issuable upon such conversion absent such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of Common Stock (the "Alternate Consideration"). For purposes of any such conversion, the determination of the Set Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Set Price among the Alternate Consideration in a reasonable manner reflecting the r1lative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate consideration it receives upon any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new note consistent with the foregoing provisions and evidencing the Holder's right to convert such note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph and insuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. If any Fundamental Transaction constitutes or results in a Change of Control Transaction, then at the request of the Holder delivered before the 90111 day after such Fundamental Transaction, the Company (or any such successor or surviving entity) will purchase the Note from the Holder for a purchase price, payable in cash within 10 Trading Days after such request (or, if later, on the effective date of the Fundamental Transaction), equal to the 200% of the remaining unconverted principal amount of this Note on the date of such request, plus all accrued and unpaid interest thereon, plus all other accrued and unpaid amounts due hereunder.

 

  

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(b) The Company covenants that it will at all times; reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this Note.

(c) Any and all notices or other communications or deliveries to be provided by the Holders hereunder, including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth or such other address or facsimile number as the Company may specify for such purposes by notice to the Holders delivered in accordance with this Section. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile telephone number or address of such Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section prior to 5:30 p.m. (New York City time), (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

(d) Notwithstanding anything to the .contrary herein contained, the Holder may not convert this Note to the extent such conversion would result in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the rules promulgated thereunder) in excess of 4.99% of the then issued and outstanding shares of Common Stock, including shares issuable upon such conversion and held by the Holder after application of this section. The provisions of this section may be waived by the Holder (but only as to itself and not to any other Holder) upon not less than 61 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.

5.           Negative Covenants. So long as any portion of this Note is outstanding, the Maker will not and will not permit any of its Subsidiaries to directly or indirectly, unless consented to in writing by the Payee:

  1.  amend  its  certificate   of   incorporation,   bylaws   or  other charter documents so as to adversely  affect any rights of  the Payee:

11.     enter into any agreement with respect to any of the foregoing,,

  

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6.           No Waiver of Payee's Rights. All payments of principal and interest shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.

7.           Modifications.  No term or provision contained herein may be modified,   amended or waived except by written agreement or consent signed by the party to be bound thereby.

8.           Cumulative Rights  and  Remedies : Usury.      The rights and .remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this. The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. If it shall be found that any interest due hereunder shall violate applicable laws gove111ing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate   of interest under such law.

9.           Use of Proceeds. Maker shall use the proceeds from this Note hereunder for general working capital purposes.

10.           Collection Expenses. If Payee shall commence an action or proceeding  to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorney's fees incurred with the investigation, preparation d prosecution of such action or proceeding.

11. Severability. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest.

12. Successors and Assigns. This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.

13. Lost or Stolen Promissory Note. If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note.

14. Due Authorization. This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms except as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally. No consent of any other party and no consent, license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance by the Maker, or the validity or enforceability of this Note other than such as have been met or obtained. The execution, delivery and performance of this Note and all other agreements and instruments executed and delivered or to be executed and delivered pursuant hereto or thereto or the securities issuable upon conversion of this Note will not violate any provision of any existing law or regulation or any order or decree of any court, regulatory body or administrative agency or the certificate of incorporation or by-laws of the Maker or any mortgage, indenture, contract or other agreement to which the Maker is a party or by which the Maker or any property or assets of the Maker may be bound.

 

  

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15. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each of Maker and Payee agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the "New York Courts"). Each of Maker and Payee hereby irrevocably submit to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each of Maker and Payee hereby irrevocably waive personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.

 

16. Notice. Any and all notices or other communications or deliveries to be provided by the Payee hereunder, including, without limitation, any conversion notice, shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to the Maker, or such other address or facsimile number as the Maker may specify for such purposes by notice to the Payee delivered in accordance with this paragraph. Any and all notices or other communications or deliveries to be provided by the Maker hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to the Payee at the address of the Payee appearing on the books of the Maker, or if no such address appears, at the principal place of business of the Payee. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission if delivered by hand or by telecopy that has been confirmed as received by 5:00 p.m. on a business day, (ii) one business day after being sent by nationally recognized overnight courier or received by telecopy after 5:00 p.m. on any day, or (iii) five business days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested.

The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.

LAS VEGAS RAILWAY EXPRESS, INC.

By: /s/ Michael Barron

Michael Barron

CEO

 

BEAUFORT CAPITAL PARTNERS LLC

 

By: /s/ Lieb Schaeffer

LEIB SCHAEFFER MANAGING MEMBER

  

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  Assignment and Assumption Agreement Between Las Vegas Railway Express, Inc. and BEAUFORT CAPITAL PARTNERS LLC   Dated 05/28/2014

 

In connection with the above referenced agreement and exhibits and related agreements and instruments, herein the Agreement, and any present and any future conversion requests of BEAUFORT CAPITAL PARTNERS LLC ("Beaufort") we irrevocably confirm:

I.    Las Vegas Railway Express, Inc. ("XTRN") is not, and has not been, a shell issuer as described in Rule 144 promulgated with reference to the Securities Act of 1933, as amended (the "Securities Act") nor is or was a "shell" as otherwise commonly understood;

 

2. Las Vegas Railway Express, Inc. is, unless noted "Not Applicable," subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934,as amended (the "Exchange Act").

 

3. Las Vegas Railway Express, Inc. has to the extent it has been subject to Exchange Act requirements for filing reports, filed all reports and other materials required to be filed by Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 6 months and or has filed with the trading exchange or over the counter disclosure system all such reports and information to be deeded current in all public reporting;

 

4. The original Debts noted in the above referenced Agreement, and the contents of the above referenced Agreement, is accurate and said original Debts and related stock and conversion rights is greater than 6 months old and was owned and subject to assignment and transfer to you by a non-affiliate which transfer has been made.

 

5. Las Vegas Railway Express, Inc.is now and will remain current with all obligations with its stock Transfer agent and the U.S. Securitie...s. And Exchange Commission and the state of incorporation. Your company and officers and owners and affiliates are not officers, Directors or material shareholders of Las Vegas Railway Express, Inc. or affiliates of Dethrone Royalty Holdings, Inc, Beaufort is not an affiliate.

6. Any and all approvals needed in relation to the above referenced Agreement, this letter, for the assistance of our transfer agent, etc.,is obtained. The Agreement reflects, among other things, conversion (lights we otherwise afford to the non-affiliate debt holders.

Representations herein survive the issuance or closing of any instrument or matter, and we will cooperate as needed to give effect to and protect your rights including as to the transfer agent and you may rely upon these promises and representations.

 

Effective Date: 11/8/2014

 

 

Very Truly Yours

 

By:    /s/Michael Barron 

Name: Michael Barron

 

Title:  CEO

 

  

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SAMPLE NOTICE OF CONVERSION

 

The undersigned hereby elects to convert principal under the Original Issue Discount Secured Promissory Note of Las Vegas Railway Express, Inc. (the "Company") dated 05/28/2014 into shares of common stock (the "Common Stock") according to the conditions hereof, 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 a reasonable transfer expense payable with respect thereto. No fee will be charged to the CLAIMANT for any conversion, except for such transfer expense, if any.

 

 

Conversion calculations:

 

Company Name: Las Vegas Railway Express, Inc. Date to Effect Conversion: _/ /_

 

Conversion Price: shall be convertible into shares of Common Stock at a conversion price of 60% off the lowest traded price the prior 20 trading days (the "Set Price") at the option of the Holder, in whole at any time and from time to time. However, if XTRN share price, at any time before November 28, 2014 loses the bid (ex: .0001 on the ask with zero market makers on the bid on level 2), or has a DTC chill imposed on its stock, then the fixed conversion price resets to .00001.

 

Principal Amount of   Agreement   to   be   converted:  $_    _ 

Interest Amount of Agreement to be converted: $ __ 

Number of shares of Common Stock to be issued: _

 

By: /s/Leib Schaeffer

 

Name: LEIB SCHAEFFER

 

Title: MANAGING MEMBER

 

BEAUFORT CAPITAL PARTNERS LLC

 

660 White Plains Rd Suite 455

 

Tarrytown, NY 10591

 

10lasvegasexh1010.htm

Exhibit 10.10

NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED  (THE "SECURITIES  ACT"), AND, ACCORDINGLY,   MAY NOT BE  OFFERED  OR  SOLD  EXCEPT   PURSUANT   TO   AN EFFECTIVE  REGISTRATION STATEMENT  UNDER   THE   SECURITIES   ACT   OR   PURSUANT   TO  AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN  ACCORDANCE  WITH  APPLICABLE STATE SECURITIES LAWS.

 

LAS VEGAS RAILWAY EXPRESS, INC.

 

CONVERTIBLE NOTE

 

Issuance Date: April 17, 2014                                                                                                                                                                                                                     Original Principal Amount: $250,000 
  

Note No. XTRN-1                                                                                                                                                                                                                                         Consideration Paid at Close: $50,000

 

FOR VALUE RECEIVED, Las Vegas Railway Express, Inc., a Delaware corporation (the "Company"), hereby promises to pay to the order of Vista Capital Investments, LLC or registered assigns (the "Holder") the amount set out above as the Original Principal Amount (as reduced  pursuant  to the terms hereof pursuant to redemption , conversion or otherwise, the "Principal") when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise  (in each  case  in accordance with the terms hereof) and to pay interest ("I interest") on any outstanding Principal at the applicable Interest Rate from the date set out above as the Issuance Date (the "Issuance Date") until the same becomes due and payable, upon the Maturity Date or acceleration , conversion, redemption or otherwise (in each case in accordance  with  the terms hereof).

The Original Principal Amount is $250,000 (two hundred fifty thousand) plus \accrued and unpaid interest and any other fees. The Consideration is $225,000  (two  hundred  twenty  five thousand) payable  by  wire  transfer  (there  exists  a  $50,000  original  issue  discount  (the  "OID")).   The Holder shall pay $25,000 of Consideration upon closing of this Note.   The Holder  may  pay  additional  Consideration  to the Company  i n  such  amounts  and  at  such  dates  as  Holder  may  choose  in  its  sole  discretion .  For  purposes hereof, the term  "Outstanding  Balance" means the Original  Principal  A mount, as reduced  or increased , as the case may  be, pursuant to the terms  hereof for conversion , breach  hereof or otherwise, plus any accrued but  u paid  interest , col lection  and  enforcements  costs, and  any  other  fees  or  charges  incurred  under  this Note. The Original  Principal  Amount  due  to  Holder  shall  be  prorated  based  on  the Consideration  paid  by Holder (plus an approximate  I 0% Original  Issue Discount  that  is prorated  based  on the Consideration  paid by  the  Holder  as  well  as any  other  interest  or  fees)  such  that  the  Company  is only required  to  repay  the amount funded  and the Company  is not required  to repay any unfunded  portion  of this Note.

 

(1) G EN ERAL TERMS

 

(a) Payment of Principal.   The  "Maturity Date"  shall  be two years from  the date of each payment of Consideration, as may be extended at the option of the Holder in the event that, and for so long as, an Event of Default (as defined below) shall not have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1 ) or any event shall not have  occurred  and be continuing on the Maturity Date (as may be extended pursuant to this Section I ) that with the passage of time and the failure to cure would result in an Event of Default.

  

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(b) Interest. A one-time interest charge of twelve percent (12%) ("Interest Rate") shall be applied on the Issuance Date to the Original Principal Amount.  Interest hereunder shall be paid on the Maturity Date (or sooner as provided herein) to the Holder or its assignee in whose name this Note is registered on the records of the Company regarding registration and transfers of Notes in cash or converted into Common Stock at the Conversion Price provided the Equity Conditions are satisfied.

 

(c)  Security. This Note shall not be secured by any col lateral or any assets pledged to the holder

 

(2)  EV ENTS OF DEFA U LT.

(a) An   "Event  of  Default",  wherever   used   herein ,  means  any  one  of  the following  events  (whatever  the  reason  and  whether  it  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):

(i) The  Company's   failure   to   pay   to  the   Holder   any   amount   of Principal,  Interest, or  other  amounts  when  and  as due  under this Note  (including,  without  l imitation,  the Company’s failure  to  pay  any  redemption   payments  or  amounts  hereunder)  or  any  other  Transaction Document ;

 

(ii)           A Conversion Fai l u re as defined in section 3(b)(ii )

(iii)  The Company or any subsidiary of the Company shall commence, or there shall  be commenced  against the Company or any subsidiary of the Company  under any applicable bankruptcy  or  insolvency  laws as now  or  hereafter in effect  or any  successor thereto, or the  Company  or any subsidiary  of 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 any  subsidiary  of the  Company  or there  is commenced  against  the  Company  or any  subsidiary  of the  Company  any  such  bankruptcy,  insolvency  or other proceeding which  remains un-dismissed for a period  of 61  days; or the Company or any subsidiary of 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  or any subsidiary of the Company  suffers any appointment of any custodian, private  or court appointed  receiver or the like for it or any substantial part of its property which  continues undischarged  or unstayed  for  a  period  of  sixty  one  (6 1 )  days;  or  the  Company  or  any subsidiary of the Company  makes a general assignment for the benefit  of creditors; or the Company or any subsidiary of 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  or  any  subsidiary  of  the  Company  shall  call  a meeting of its creditors with  a view to arranging a com position , adjustment  or restructuring of its debts; or the  Company  or  any  subsidiary  of  the  Company  shall  by  any  act  or failure  to  act  expressly indicate  its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action  is taken  by the Company  or any subsidiary of the Company for the purpose of effecting any of the forgoing;

(iv) The Company or any  subsidiary of the  Company  shall  default  in any of  its obligations under  any other Note  or any  mortgage, cred it agreement  or other facility, indenture agreement,  factoring  agreement  or other instrument under which there  may  be  issued , or  by  which  there may  be  secured  or  evidenced  any  indebted ness  for  borrowed  money  or  money  due under any  long  term leasing or factoring arrangement of the Company or any subsidiary of the Company  in an amount exceeding

$100,000, whether such indebted ness now exists or shall hereafter be created; and or shall hereafter be created; and

  

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(v) The Common Stock is suspended or delisted for trading on the Over the Counter Bulletin Board market (the "Primary Market ").

(vi) The Company loses its ability to deliver shares via "OWAC/FAST" electronic transfer.

(vii)  The Company loses its status as "OTC Eligible."

(viii) )         The Company shall become  late or delinquent  in  its filing requirements  as a fully-reporting  issuer  registered  with  the  Securities  &  Exchange  Commission.

(b) Upon the occurrence of any Event of Default, the Outstanding Balance shall immediately increase to 120% of the Outstanding Balance immediately prior to the occurrence of the Event of Default (the "Default Effect"). The Default Effect shall automatically apply upon the occurrence of an Event of Default without the need for any pa1ty to give any notice or take any other action.

(3) CONV ERSION OF NOTE.   This Note shall be convertible into shares of the Company's Common Stock, on the terms and conditions set forth in this Section 3.

(a) Conversion  Right.   Subject  to the  provisions  of  Section  3(c), at any time or times on or after the Issuance  Date, the Holder shall be entitled to convert any portion  of the outstanding and unpaid  Conversion  Amount  (as defined  below) into  fully  pa id  and  non-assessable  shares of  Common Stock in  accordance with  Section  3(b), at the Conversion  Price (as defined  below).   The number  of shares of Common  Stock  issuable upon conversion  of any Conversion  Amount pursuant  to this Section 3(a) shall be  equal  to the quotient  of dividing the Conversion  Amount by  the Conversion  Price. The Company shall not issue any fraction of a share of Common Stock upon any conversion.  If the  issuance  would  result in the  issuance  of a fraction  of a share of Com mon  Stock, the  Company  shall  round  such  fraction  of a share of Common  Stock up to the  nearest  whole  share.   The Company  shall  pay  any and  all transfer  agent fees, legal fees, costs and  any other fees or costs that may be incurred  or charged in connection  with the issuance of shares of the Company’s Common  Stock to the Holder arising out of or relating to the conversion  of this Note.

(i) "Conversion   Amount"  means  the  portion  of the  Original  Principal A mount and  Interest  to  be  converted , plus any  penalties , redeemed  or otherwise  with  respect  to which this determination is being made .

 

(ii) "Conversion    Price"  shall  equal  the  lesser  of  (a)  $0.25  or  (b) 60% of the  lowest trade  occurring during the twenty  five (25) consecutive  Trading  Days  immediately preceding the applicable Conversion Date on which the Holder elects to convert  all  or  part  of this Note, subject to adjustment as provided in this Note.

 

(b)  Mechanics of Conversion.

(i) Optional  Conversion.    To  convert  any  Conversion  Amount  into shares  of  Common  Stock  on  any  date  (a  "Conversion  Date"),  the  Holder  shall  (A)  transmit  by  email, facsimile (or otherwise deliver), for receipt on or prior to  1 1 :59 p.m., New  York , N Y Time, on such date, a copy of an executed  notice of conversion in the form attached hereto as Exhibit A (the "Conversion Notice") to the Company. On  or before  the third  Business  Day following the date of receipt of a Conversion  Notice (the "Share Delivery  Date"), the Company  shall (A) if legends are not  required  to be placed  on certificates of Com mon  Stock pursuant to the then existing provisions  of Ru le 144 of the Securities Act of  1933 ("Rule  144") and  provided  that  the  Transfer  Agent  is participating  in  the  Depository  Trust  Company's  ("OTC") Fast Automated Securities Transfer Program, cred it such aggregate number of shares of Com mon Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program , issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends u n less required pursuant the Rule 144. If this Note is physically surrendered for conversion and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall , upon request of the Holder, as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note representing the outstanding Principal not converted . The Person or Person’s entitled to receive the shares of Com mon Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.

 

  

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(ii) Company's Failure to Timely Convert. If within two (2) Trading Days after the Company's receipt of the facsimile or email copy of a Conversion Notice the Company shall fail to issue and deliver to Holder via "DWAC/ FAST" electronic transfer the number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount (a "Conversion Failure"), the Original Principal Amount of the Note shall increase by $2,000 per day until the Company issues and delivers a certificate to the Holder or cred it the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount (under Holder 's and Company 's expectation that any damages will tack back to the Issuance Date). Company will not be subject to any penalties once its transfer agent processes the shares to the DWAC system. If the Company fails to deliver share in accordance with the timeframe stated in this Section, resulting in a Conversion Failure, the Holder, at any time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion attributable to the unsold shares and have the rescinded conversion amount returned to the Outstanding Balance with the rescinded conversion shares returned to the Company (under Holder 's and Company’s expectations that any returned conversion amounts will tack back to the original date of the Note) .

(iii) DWAC / FAST ELIGILBITY   If the Company fails for any reason to deliver to the Holder the Shares by DWAC/ FAST electronic transfer (such as by delivering a physical stock certificate) , or if there is a Conversion Failure as defined  in Section 3(b)(ii), and if the Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Company must make the Holder whole by either of the following options at Holder's election:

Market  Price  Loss = [(High  trade  price  for the  period  between  the day of conversion  and  the day the  shares  clear in  the  Holder's  brokerage  account)  x  (Number  of  shares  receivable  from  the conversion)]  - [(Net  Sales  price  realized  by  Holder)  x  (Number  of  shares  receivable  from  the conversion)].

Option A - Pay Market Price Loss in Cash. The Company must pay the Market Price 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.

Option B - Add Market Price Loss to Outstand i ng Balance. The Company must pay the Market Price Loss by adding the Market Price Loss to the Outstanding Balance (under Holder's and the Company' s expectation that any Market Price Loss amounts will tack back to the Issuance Date).

In the case that conversion shares are not deliverable by DWAC/FAST electronic transfer an additional 5% discount to the Conversion  Price will apply.

  

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(i) OTC ELIGIBILITY & SUB – PENNY. If  the  Company  fails to  maintain its  status  as  "OTC  Eligible" for  any  reason , or,  if the  Conversion  Price  is  less  than  $0.01 , the  Principal Amount  of  the  Note  shall  increase  by  ten  thousand  dollars  ($10,000)  (under  Holder 's  and  Company 's expectation  that  any  Principal  Amount  increase  will  tack  back  to  the  Issuance  Date).  In  addition,  the Conversion  Price shall be redefined to equal the lesser of (a) $0.20 or (b) 50% of the lowest trade occurring during the  twenty  five  (25)  consecutive  Trading  Days  immediately  preceding  the  applicable  Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in the Note .

(ii) Book-Entry. Notwithstanding anything to the  contrary  set forth herein , upon conversion of any portion of this Note in accordance with  the terms hereof, the  Holder shall not be required to physically surrender this Note to the Company u n less (A) the full Conversion Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance  of  this  Note  upon physical surrender of this Note. The Holder  and  the Company  shall  maintain  records  showing the Principal and Interest conve1ted and the dates of such  conversions  or  shall  use  such  other  method ,  reasonably satisfactory to the Holder and the Company , so as not to require physical surrender of this Note upon  conversion.

(c)  Limitations on Conversions or Trading g.

(i) Beneficial Ownership The Company shall  not  affect any conversions  of  this  Note  and  the  Holder  shall  not  have  the  right  to  convert  any  portion  of  this Note  or receive  shares of Com mon  Stock as payment  of  interest  hereunder  to the extent  that  after giving  effect to such conversion  or receipt of such  interest  payment , the  Holder, together  with  any affiliate thereof, would beneficially  own  (as  determined in  accordance  with  Section   J 3(d)  of  the  Exchange  Act  and  the  rules promulgated  thereunder) in excess  of  4.99%  of  the number  of  shares  of  Com mon   Stock  outstanding immediately after giving effect to such  conversion  or receipt of shares as payment  of interest.     Since the Holder will not be obligated  to report to the Company  the number of shares of Com mon  Stock it may  hold at the time of a conversion  hereunder, u n less the conversion  at issue would  result  in  the  issuance of shares of Com mon  Stock  in  excess of 4.99%  of the then  outstanding shares of Com mon  Stock without  regard  to any other  shares  which  may  be  beneficially  owned  by  the  Holder  or an  affiliate thereof, the  Holder  shall have  the authority  and  obligation  to determine  whether  the  restriction  contained in  this Section  will limit any  particular  conversion   hereunder  and  to  the  extent  that  the  Holder  determines  that  the limitation contained in this Section  applies, the determination  of which  portion  of the  principal amount of this Note is  convertible  shall  be  the  responsibility  and  obligation  of  the  Holder.    If  the  Holder  has  delivered  a Conversion  Notice  for  a  principal  amount  of  this Note  that, without  regard  to  any  other  shares  that  the Holder or its affiliates may  beneficially  own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the conversion for the maxi m um principal  amount permitted  to be converted  on  such Conversion  Date in accordance with  Section 3(a) and, any  principal  amount  tendered  for  conversion  in  excess  of  the  permitted  amount  hereunder  shall  remain outstanding under this Note. The provisions  of this Section may be waived  by a Holder (but only as to itself and  not to any other  Holder) upon  not  less than  65 days prior  notice  to the Company . Other holders shall be unaffected by any such waiver.

(d)  Other Provisions.

(i) Share Reservation.  The  Company  shall  at  all  times  reserve and keep available out of its authorized Common  Stock the full number of shares of Com mon  Stock issuable upon  conversion  of all  outstanding amounts under this Note; and  within five (5) Business Days following the receipt by the Company of a Holder's  notice that such minimum number of Underlying Shares is not so reserved, the Company  shall  promptly  reserve  a sufficient number of shares of Com mon  Stock to comply with such requirement. The company will at all times reserve at least 3,000,000 shares of Common Stock for conversion.

  

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(ii)  Prepayment.  At any time within the 90 day period immediately following the Issuance  Date, the Company  shall have the option , upon 10 business days'  notice  to  Holder, to  pre-pay  the  entire  remaining  outstanding  principal  amount  of  this Note in  cash,  provided  that  (i) the Company shall pay the Holder  1 50% of the Outstanding  Balance, (ii) such amount must be  paid in cash  on the  next  business day  following  such 10 business day  notice  period , and  (iii) the  Holder  may  still  convert this Note  pursuant  to the terms hereof at al l  times until  such  prepayment  amount has  been  received in full. Except as set forth in this Section  the Company  may  not  prepay  this Note in  whole or in  part .

(iii) Terms of Future re Financings.   So long as this Note is outstanding, upon  any  issuance  by the Company or any of its subsidiaries of any security with  any term  more favorable to the  holder  of such  security  or with  a term  in  favor of the  holder  of such  security  that  was  not  similarly provided  to the  Holder  in  this Note,  then  the  Company  shall  notify  the  Holder  of such  additional  or more favorable term  and such term , at Holder 's option , shall become a part of the transaction  documents with the Holder.  The types of terms contained  in another security that may  be more favorable to the holder of such security  include,  but  are  not  limited  to,  terms  addressing  conversion   discounts,  conversion   look back periods ,  interest  rates,  original  issue  discounts,  stock  sale  price,  private  placement  price  per  share,  and warrant coverage.

 

(iv)  All calculations under this Section 3 shall be rounded up to the nearest $0.0000 I or whole  share .

 

(v)         Nothing   herein  shall  limit a   Holder's   right   to   pursue   actual damages  or declare an  Event  of  Default pursuant  to  Section  2 herein for the Company's  failure  to  deliver certificates representing shares of Common  Stock upon  conversion  within  the  period  specified  herein  and such  Holder  shall  have the right to pursue al l  remedies available to  it at law or in equity  including, without limitation, a decree of specific  performance  and/or injunctive relief, in each case without the need to post a bond  or provide  other security . The exercise of any such  rights shall not  prohibit  the  Holder  from  seeking to enforce damages  pursuant to any other Section  hereof  or under applicable  law.

(4) SECTI ON  3(A)(9) OR  3(A)(1 0)  TRANSACTION.     So  long  as  this  Note   is outstanding, the Company shall not enter into any transaction  or arrangement structured  in accordance with, based  upon , or  related  or  pursuant  to,  in  whole  or in  part, either  Section  3(a)(9)  of the  Securities  Act  (a "3(a)(9) Transact ion ") or Section 3(a)( I 0) of the Securities Act (a "3(a)( I 0) Transaction "). I n the event that the Company does enter  into, or makes any  issuance  of Com mon  Stock  related  to a 3(a)(9) Transaction  or a 3(a)( I 0) Transaction  while this note is outstanding, a liquidated damages charge of 25% of the outstanding principal  balance of this Note, but not  less than  $25,000, will be assessed  and will become immediately due and payable to the Holder at its election in the form of cash  payment  or addition to the balance of this Note .

(5) PIGGY BAC K  REG ISTRATION  RIGHTS.   The  Company  shall include  on  the next registration  statement the Company fi les with  SEC (or on the subsequent registration  statement  if such registration  statement is withdrawn) al l  shares issuable  upon  conversion  of this Note.   Fai l u re to do so will result in liquidated  damages  of  25%  of  the  outstanding  principal  balance  of  this Note,  but  not  less than $25,000, being immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

 

  

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(6)  R E I SSUAN CE OF T H I S NOT E.

(a) Assignability. The Company may not assign this Note.  This Note will be binding upon the Company and its successors and will insure to the benefit of the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing without Com pan y's approval.

(b) Lost, Stole, or Mutilated Note.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction  or mutilation of this Note, and , in the case  of  loss, theft  or  destruction, of  any  indemnification  undertaking  by  the  Holder  to  the  Company in customary  form  and , in  the case of mutilation , upon  surrender and  cancellation  of this Note, the Company shall execute and  deliver to the Holder a new Note representing the outstanding Principal.

(7) NOT I CES. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt when sent by facsimile (provided confirmation of transmission is mechanically or electronically generate4d and kept on file by the sending party) (iii) upon receipt, when send by email; or (iv) one (I) Trading Day after deposit with a nationally recognized delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for each communications shall be those set forth in the communications and documents that each party has provided the other immediately prececing the issuance of this Note or at such other address and/or facsimile number and/ or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) business days prior to effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii), or (iii) above, respectively.

 

The addresses for such communication s shall be:

 

 I f to the Company, to:

Las Vegas Railway Express, Inc.

6650 Via Austi Pkwy # 140

Las Vegas, NV 89119\

 

If to the Holder:

 

                V ISTA CAPITAL IN V ESTM ENTS, LLC

4342 Vista Way

La Mesa CA 9194 I

Attn: David Clark, Principal

 

(7) APPLICABLE  LAW AND  V EN U E.  This   Note   shall   be   governed   by   and construed in accordance with the laws of the State of California, without giving effect to conflicts of laws thereof.   Any  action  brought  by either  party  against the other concerning the transactions  contemplated  by this Agreement  shall be  brought only in  the state courts of California or in  the federal courts located in  the city  and  county  of  San  Diego, in the  State  of  California.  Both parties and the individuals signing this Agreement to submit to the jurisdiction of such courts.

 

(a) WAIVER. Any waiver by 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 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.

 

[Signature Page Follows]

 

IN WITNESS WHEREOF, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date set forth above.

 

COMPANY:

 

By:/s/ Michael Barron

 

Name:   Michael A. Barron

 

Title:  Chief Executive Officer

 

HOLDER:

 

VISTA CAPITAL INVESTMENTS, LLC.

By: /s/ David Clark

 

Name: David Clark

 

Title:  Pri ncipal

 

 

[Signature Page to Convertible Note No. XTRN-1]

 

  

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EXHIBIT A NOTICE OF CONVERSION

 

[Company Contact, Position] [Company Name]

[Company Address] [Contact Email Address}

 

The undersigned hereby elects to conve1i a portion of the $            Convertible Note Issued to Vista Capital Investments, LLC on into Shares of Common Stock of according to the conditions set forth in such Note as of the date written below.

 

By accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than 5% (five percent) of the common stock outstanding. If the number of shares to be delivered represents more than 4.99% of the common stock outstanding, this conversion notice shall immediately automatically extinguish and debenture Holder must be immediately notified.

 

Date of Conversion:                                                       

Conversion Amount:         

Conversion Price:  

Shares to be Delivered:     

 

Shares delivered in name of:

 

VISTA CAPITAL INVESTMENTS, LLC

 

 

Signature:

 

 

By: 

Title:

 

Vista Capital Investments, LLC

8

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