Document:

Exhibit
10.6

PROMISSORY NOTE

	
  $100.000.00

  	
   

  	
  GLEN ELLYN, ILLINOIS

  	
   

  	
  October 12, 2005

  

 

FOR VALUE
RECEIVED, the undersigned, PINNACLE ROOFING, INC, a FLORIDA corporation, whose
address for purposes of notice is 999 N MAJN ST, STE 202, GLEN ELLYN, ILLINOIS
60137, TERRY DEER (whether one or more, “Borrower”) hereby promises, jointly
and severally, to pay to the order of GULFSIDE SUPPLY, INC. d/b/a GULFEAGLE
SUPPLY, a Delaware corporation (“Lender”), without grace at its office at 1451
Channelside Drive, Tampa, Florida 33605, or such other place as Holder may
direct, in lawful money of the United States of America, with interest, the
principal amount of ONE HUNDRED THOUSAND and 00/100 Dollars ($100,000.00)

This Note is
delivered by Borrower to further evidence amounts owing and past due to Lender
related to the purchase of certain roofing materials and supplies for use in
Borrower’s business. Borrower has requested that Lender make certain
accommodations and temporarily forbear from the exercise of its available rights
and remedies in collecting such amounts. Lender has agreed to make certain
accommodations and to grant such forbearance as and only to the extent set
forth herein, and without waiving any of Lender’s rights and remedies.

Payment of
principal and interest shall be in accordance with the following provisions:

1.                                       Definitions.

(a)                                  “Applicable
Rate” shall mean the fixed per annum rate of SIX percent (6%).

(b)                                 “Business
Day” shall mean a day (other than Saturday or Sunday) when Lender is open
for conducting all of its customary commercial banking activities.

(c)                                  “Default
Rate” shall mean the lesser of the Maximum Rate and eighteen percent (18%)
per annum.

(d)                                 “Holder”
shall mean Lender and any subsequent holder of this Note.

(e)                                  “Loan”
shall mean the loan from Lender to Borrower, in the amount of this Note.

(f)                                    “Maturity
Date” shall mean April 25, 2006.

(g)                                 “Maximum
Rate” shall mean, with respect to Holder, the maximum non- usurious
interest rate, if any, that at any time, or from time to time, may be
contracted for, taken, reserved, charged, or received on the indebtedness
evidenced by this Note, under the laws which are presently in effect of the
United States and the State of FLORIDA applicable to such Holder and to such
indebtedness or, to the extent permitted by law,

 

under such applicable laws of the United States and
the State of FLORIDA which may hereafter be in effect and which allow a higher
maximum non-usurious interest rate than applicable laws now allow.

(h)                                 “Note”
shall mean this Promissory Note.

(i)                                     “Security
Documents” shall mean this Note, and any and all other documents or
instruments otherwise executed by Borrower or third parties in connection with
the Loan.

2.                                       Payments.
Borrower promises to pay equal installments of principal and interest in the
amount of $16,959.55, on the twenty-fifth (25th) day of each month, commencing
on November 25, 2005. The final payment will be in the amount of $16,959.52. All
outstanding principal, including the aggregate unpaid principal amount of all
future advances and readvances, if any, and accrued and unpaid interest on this
Note and all other amounts due with respect to the Note under the Security
Documents shall be due and payable on the Maturity Date. Principal owing
hereunder from time to time shall accrue interest at the lesser of the
Applicable Rate or the Maximum Rate.

3.                                       Other
Payment Terms.

(a)                                  Should
any payment become due and payable on any day other than a Business Day for
Lender, the date of such payment shall be extended to the next succeeding
Business Day, and, in the case of a payment of principal or past due interest
or any installment of either thereof, interest shall accrue and be payable
thereon for the period of such extension at the applicable interest rate or
rates specified herein. Each payment by Borrower on account of the principal of
or interest on this Note or of any fee or other amount payable to Lender shall
be made not later than 11:00 a.m. on the applicable due date (or if such day is
not a Business Day, the next succeeding Business Day). Any payment made after
11:00 a.m. shall be credited on the next succeeding Business Day. All payments
shall be made to Lender at Lender’s office, in U.S. Dollars, in immediately
available funds and shall be made without any setoff, counterclaim or deduction
whatsoever.

(b)                                 Except
as otherwise provided in this Note or the other Security Documents, interest
shall accrue on the principal balance from day to day outstanding hereunder at
a rate equal to the lesser of the Applicable Rate or the Maximum Rate. All
payments of principal and interest that are past due shall, at the option of
Lender, bear interest at a per annum interest rate equal to the Default Rate. Borrower
agrees to pay interest on all amounts due under the Security Documents which
Borrower fails or refuses to pay, following the applicable notice and cure
period, if any, at the Default Rate from the date due until paid.

(c)                                  Except
for purposes of computing the Maximum Rate, interest shall be calculated on the
basis of a 360-day year applied to the actual number of days upon which
principal is outstanding by multiplying the principal amount outstanding
hereunder

 

by the applicable interest rate, multiplying the product thereof by the
actual number of days elapsed, and dividing the product so obtained by three
hundred sixty (360).

(d)                                 In
lieu of the interest on past due installments provided for in this Note, Lender
may collect a late charge not to exceed five cents ($.05) for each dollar
($1.00) of each payment of interest, principal and, if applicable, any other
payment due under any of the Security Documents which is more than ten (10)
days in arrears, to cover the extra expense involved in handling delinquent
accounts; provided however, that should such late charge constitute interest
under any applicable law, such late charge shall not, together with other
interest to be paid, charged, contracted for, received, or reserved against, or
taken on the indebtedness evidenced by this Note, or indebtedness arising under
any of the Security Documents exceed the Maximum Rate.

(e)                                  Borrower
shall have the right, from time to time, to prepay the unpaid principal, in
whole or in part, without premium or penalty, upon the payment of accrued
interest on the amount prepaid to and including the date of payment.

4.                                       Security
Documents. The indebtedness evidenced hereby is secured by the Security
Documents. This Note is included in the indebtedness referred to in the
Security Documents and is entitled to the benefits of those documents, but
neither this reference to those documents nor any provisions thereof shall
affect or impair the absolute and unconditional obligation of the Borrower to
pay the principal of and interest on this Note when due.

5.                                       Events
of Default. The happening of any one or more of the following events shall
constitute an Event of Default:

(a)                                  Borrower’s
failure to pay principal or interest due under this Note as and when due and
payable or the failure of Borrower to pay any other liability to Holder when
due and payable; or

(b)                                 The
occurrence of any event of default specified in any of the Security Documents
or in any other document, agreement or instrument now or hereafter executed in
connection with or securing this Note or any other document, agreement or
instrument now or hereafter executed, to which the Lender and Borrower are
parties.

Upon the happening of an Event of Default or at any
time thereafter during the continuance of any such event, the Holder may, with
notice to the Borrower, declare this Note to be forthwith due and payable, both
as to principal and interest, without presentment, demand, protest, or other
notice of any kinds, all of which are hereby expressly waived, anything
contained herein or in any of the Security Documents or in any other instrument
executed in connection with or securing this Note to the contrary
notwithstanding. Reference is made to the Security Documents for a statement of
the terms and conditions under which the credit facility represented by this
Note is being made available to Borrower and of additional terms and conditions
under which this Note may be accelerated.

 

6.                                       Waivers.
Borrower and guarantor, accommodation party, surety, endorser or other person
or entity liable for the payment or collection of this Note expressly waive
demand and presentment for payment, notice of nonpayment, protest, notice of
protest, notice of dishonor, notice of intent to accelerate, notice of
acceleration, all other notices, bringing of suit and diligence in taking any
action to collect amounts called for hereunder or enforcing any security or
guaranty, and agree to any substitution, exchange or release of any security,
with or without consideration, now or hereafter given for this Note or the
release of any party primarily or secondarily liable hereon. Borrower and
guarantor, accommodation party, surety, endorser or any other person or entity
liable for the payment or collection of this Note further agrees that it will
not be necessary for the owner or Holder hereof, in order to enforce payment of
this Note, to first institute or exhaust its remedies against any maker or
other party liable hereon or to enforce its rights against any security or
guaranty for this Note, and hereby consents to the renewal and extension from
time to time of this Note, and any other indulgence with respect hereto without
notice of any such renewal, extension or indulgence, and without limit as to
the number of such renewals, extensions or indulgences or the period or periods
thereof.

7.                                       Attorneys’
Fees and Costs. Borrower agrees to pay reasonable attorneys’ fees and costs
incurred by the Holder in collecting or attempting to collect this Note,
whether by suit or otherwise.

8.                                       Limitations
on Interest.

(a)                                  It
is the intention of the Lender and the Borrower to conform strictly to any
applicable usury laws. Accordingly, if the transactions contemplated hereby
would be usurious under any applicable law, then, in that event,
notwithstanding anything to the contrary in this Note, the Security Documents
or any other agreement entered into in connection with or as security for or
guaranteeing the Credit Agreement or this Note, it is agreed as follows: (i)
the aggregate of all consideration which constitutes interest under applicable
law that is contracted for, taken, reserved, charged or received by the Lender
under this Note, the Security Documents or under any other agreement entered
into in connection with or as security for or guaranteeing the Credit Agreement
or this Note shall under no circumstances exceed the Maximum Rate, and any
excess shall be canceled automatically and, if theretofore paid, shall, at the
option of the Lender, be credited by the Lender on the principal amount of any
indebtedness owed to the Lender by the Borrower or refunded by the Lender to
the Borrower; and (ii) in the event that the maturity of this Note is
accelerated or in the event of any required or permitted prepayment, then such
consideration that constitutes interest under law applicable to the Lender may
never include more than the Maximum Rate, and excess interest, if any, provided
for in this Note, the Security Documents or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall, at the option of the Lender, be credited by the Lender
on the principal amount of any indebtedness owed to the Lender by the Borrower
or refunded by the Lender to the Borrower.

(b)                                 Notwithstanding
anything herein to the contrary, in no event will interest payable to the
Lender exceed the Maximum Rate (after taking into account all charges

 

payable to the Lender which constitute interest under
such applicable law), but if any amount referred to in this Note which would be
payable to the Lender but for the applicability of usury or other laws limiting
the consideration payable to the Lender is not paid to the Lender as a result
of the applicability of such laws, then interest on the outstanding principal
balance of this Note payable to the Lender shall, to the extent permitted by
the law, accrue at the Maximum Rate (after taking into account all charges
payable to the Lender which constitute interest under applicable law) until the
total amount received by the Lender equals the amount it would have received
had no such laws been applicable.

9.                                       Applicable
Law: Venue. This Note shall be governed by, and construed in accordance
with, the laws of the State of FLORIDA, subject, however, to the effect of
applicable federal law. Jurisdiction and venue for any action brought to
enforce or interpret any term or condition set forth in this Note or the other
Security Documents, or which relates in any way to this Note or the other
Security Documents, shall be in the county and state of GULFEAGLE SUPPLY’S
choice, to the exclusion of all other jurisdictions and venues.

10.                                 Assigns.
As used herein, the terms “Borrower,” “Lender” and “Holder” shall be deemed to
include their respective successors, legal representatives and assigns, whether
by voluntary action of the parties or by operation of law.

 

IN WITNESS
WHEREOF, Borrower has caused this Note to be executed and delivered effective
the date above written.

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  PINNACLE ROOFING, INC.,

  
	
   

  	
  a FLORIDA corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry Kiefer

  
	
   

  	
  Name:

  	
  Terry Kiefer

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Terry Kiefer

  
	
   

  	
  Terry Kiefer,
  IndividuallyExhibit 10.7

THIS OPTION AND THE SHARES OF COMMON STOCK ISSUABLE
UPON EXERCISE HAVE NOT BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY OTHER STATE.  SALE, TRANSFER, PLEDGE, HYPOTHECATION OR
OTHER DISPOSITION OF THIS OPTION AND THE SHARES ISSUABLE UPON EXERCISE HEREOF
ARE RESTRICTED AND MAY NOT BE SOLD OR TRANSFERRED UNLESS REGISTERED OR EXEMPT
FROM SUCH REGISTRATION.

OPTION
AGREEMENT

THIS
OPTION AGREEMENT (“Agreement”) is entered into this 24th day of February 2005, by and between Shocker
100 Index, LP, (the “Holder”), and National Storm Management, Inc, a Nevada
Corporation (the “Company”).

WHEREAS,
the Company proposes to issue to Holder an option to purchase shares of its
common stock (the “Common Stock”);

WHEREAS,
the Company hereby grants Holder an option to purchase shares of the Company’s
Common Stock subject to the terms and conditions set forth below.

NOW,
THEREFORE, for and in consideration of the mutual promises
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and subject to the terms and
conditions set forth below, Holder and the Company agree as follows:

1.                                      The
Option

The Company hereby grants to Holder an option (the “Option”) to acquire
Two Million (2,000,000) shares of the Company’s Common Stock, (such shares of
Common Stock are hereinafter referred to as the “Option Shares”), at a purchase
price of Seventy Five Cents ($0.75) per share (“Option Price”).  The Option Price can be adjusted, increased
or decreased, by mutual written consent.

2.                                     Term
and Exercise of Option

A.                                    Term
of Option.  Subject to the terms of
this agreement, Holder shall have the right to exercise the Option in whole or
in part, commencing the date hereof through the close of Three (3) years after
the date above.

B.                                    Exercise
of the Option.  The Option may be
exercised upon written notice to the Company at its principal office setting
out the number of Option Shares to be purchased, together with payment of the
Option Price.

C.                                    Issuance
of Option Shares.  Upon such notice
of exercise and payment of the Option Price, the Company shall issue and cause
to be delivered within five (5) business days following the written order of
Holder, a certificate or certificates for the number of Option Shares so
purchased.  The rights of purchased
represented by the Option shall be exercisable, at the election of the Holder
thereof, either in

 

full or from time to time in part, and in the event the Option is
exercised in respect of less than all of the Option Shares purchasable on such
exercise at any time prior to the date of expiration hereof, the remaining
Option Shares shall continue to be subject to the time constraints set forth
above in paragraph 2 hereof.

3.                                      Reservation
of Option Shares

The Company shall at all times keep reserved and available, out of its
authorized Common stock, such number of shares of Common Stock as shall be
sufficient to provide for the exercise of the rights represented by the
Agreement.  The transfer agent for any
shares of the Company’s capital stock issuable upon the exercise of any of such
rights of purchase, will be irrevocably authorized and directed at all times to
reserve such number of shares as shall be requisite for such purpose.  The company will cause a copy of this
agreement to be kept on file with the transfer agent or its successors.

4.                                      Representations
of Holder

Holder represents and warrants to the Company that Holder is acquiring
this Option (and upon exercise of this Option, the Option Shares ) for its own
account, for investment and not with a view to distribution thereof and that
the Holder is an “accredited investor” as such term is defined in Securities
and Exchange Commission (“SEC”) rules and regulations.  Holder acknowledges that this Option, and the
Option Shares are “restricted securities” as such term is defined under SEC
Rule 144, and consequently neither this Option, nor any of the Option Shares
may be sold or transferred unless they are registered under the Securities Act
of 1933, or an exemption from such registration is available and Holder
provides and opinion of counsel satisfactory to Company that this Option and
the Option Shares may be transferred or sold without registration.  Holder acknowledges that upon exercise
hereof, certificates representing the Option Shares shall bear a legend
restricting transfer, and the Company shall issue stop transfer orders to its
transfer agent restricting any transfer.

5.                                      Assignment

The Option represented by this Agreement may be assigned or transferred
by Holder to an Affiliate or subsidiary, or subject to the requirements of
Section 4 of this Option, as the result of a corporate reorganization or
recapitalization or to any other entity or person.  For the purpose of the Option, the term “Affiliate”
shall be defined as a person or enterprise that directly, or indirectly though
one or more intermediaries, controls, or is controlled by, or is under common
control with the Company otherwise, this Agreement and the rights hereunder shall
not be assigned by either party hereto.

6.                                      Counterparts

A facsimile, telecopy or other reproduction of this instrument may be
executed by one or more parties hereto and such executed copy may be delivered
by facsimile or similar instantaneous electronic transmission device pursuant
to which the signature of or on

 2
 

 

behalf of such party can be seen, and such execution and delivery shall
be considered valid, binding and effective for all purposes.  At the request of any party hereto, all
parties agree to execute an original of this instrument as well as any
facsimile, telecopy or other reproduction hereof.

7.                                      Further
Documentation

Each party hereto agrees to execute such additional instruments and
take such action as may be reasonably requested by the other party to effect
the transaction, or otherwise to carry out the intent and purposes of this
Agreement.

8.                                      Notices

All notices and other communications hereunder shall be in writing and
shall be sent by prepaid first class mail to the parties at the following
addresses, and amended by the parties with written notice to the other:

To:                                                                                                Shocker
100 Index, LP                                   

                                                                                                                  C/O
Interim Capital Corp, GP                        

                                                                                                                  3960
Howard Hughes Parkway, Suite 500  

                                                                                                                  Las
Vegas, Nevada 89109                             

                                                                                                                

To the Company:                      National
Storm Management, Inc.               

                                                                                                                  Mark
V. Noffke                                               

                                                                                                                  Chief
Financial Officer                                   

                                                                                                                  999
North Main Street, Suite 202                 

                                                                                                                  Glen
Ellyn, Illinois 60137                               

 

9.                                      Governing
Law

This Agreement was negotiated, and shall be governed by the laws of
Nevada notwithstanding any conflict-of-law provision to the contrary.

10.                               Entire
Agreement

This Agreement sets forth the entire understanding between the parties
hereto and no other prior written or oral statement or agreement shall be
recognized or enforced.

11.                               Severability

If a court of competent jurisdiction determines that any clause or
provision of the Agreement is invalid, illegal or unenforceable, the other
clauses and provisions of the Agreement shall remain in full force and effect
and the clauses and provisions which are determined to be void, illegal or
unenforceable shall be limited so that they shall remain in effect to the
extent permissible by law.

 3
 

 

12.                               Amendment
or Waiver

Every right and remedy provided herein shall be cumulative with every
other right and remedy, whether conferred herein, at law, or in equity, and may
be enforced concurrently herewith, and no waiver by any party of the
performance of any obligation by the other shall be construed as a waiver of
the same or any other default then, theretofore, or thereafter occurring or
existing.  This Agreement may be amended
by a writing signed by all parties hereto.

13.                               Headings

The section and subsection headings in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

The rest of this page
intentionally left blank

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IN WHITNESS WHEREOF, the
parties have executed this Agreement the day and year first written above

	
   

  	
   

  	
  National Storm Management, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Mark V. Noffke

  
	
   

  	
   

  	
   

  	
   

  	
  Mark V. Noffke

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shocker 100 Index, LP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Mark Lindberg

  
	
   

  	
   

  	
   

  	
   

  	
  Interim Capital Corp, as General Partner

  
	
   

  	
   

  	
   

  	
   

  	
  Mark Lindberg, as President

  

 

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