Document:

Exhibit 10.1

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”), dated as of October 7, 2013, is entered into among STAG INDUSTRIAL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Borrower”), STAG INDUSTRIAL, INC., a Maryland corporation and the sole member of the sole general partner of Borrower (“Parent”), BANK OF AMERICA, N.A., as administrative agent (the “Administrative Agent”) on behalf of the various lenders (the “Lenders”) under the Credit Agreement set forth below, the Swing Line Lender and the L/C Issuer, and the Lenders.

 

WHEREAS, the Borrower, Parent, Lenders, and the Administrative Agent have entered into a certain Credit Agreement dated as of September 10, 2012, as amended by that certain First Amendment to Credit Agreement dated as of February 13, 2013 (as amended, the “Credit Agreement”; unless otherwise defined herein, capitalized terms shall have the meaning provided in the Credit Agreement); and

 

WHEREAS, the parties hereto wish to amend the Credit Agreement as provided herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein and in the Credit Agreement, the parties hereto agree as follows:

 

1.                                      The definition of “Applicable Rate” is hereby deleted in its entirety and shall be replaced by the following:

 

“Applicable Rate” means the following:

 

A. Unless and until the Rating Conditions have been satisfied, with respect to any Loan, the following percentages per annum determined according to the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by Administrative Agent pursuant to Section 7.02(a):

 

Leveraged Based Pricing Grid Revolving Loan:

 

	
Applicable Rate
    

 

	
Pricing
   Level
    	
 
    	
Consolidated
   Leverage Ratio
    	
 
    	
Letters of
   Credit
    	
 
    	
Eurodollar Rate
   Applicable
   Margin
    	
 
    	
Base Rate
   Applicable
   Margin
    	
 
    
	
1
    	
 
    	
< 40%
    	
 
    	
1.45
    	
%
    	
1.45
    	
%
    	
.45
    	
%
    
	
2
    	
 
    	
> 40% but < 45%
    	
 
    	
1.50
    	
%
    	
1.50
    	
%
    	
.50
    	
%
    
	
3
    	
 
    	
> 45% but < 50%
    	
 
    	
1.70
    	
%
    	
1.70
    	
%
    	
.70
    	
%
    
	
4
    	
 
    	
> 50% but < 55%
    	
 
    	
1.85
    	
%
    	
1.85
    	
%
    	
.85
    	
%
    
	
5
    	
 
    	
> 55%
    	
 
    	
2.05
    	
%
    	
2.05
    	
%
    	
1.05
    	
%
    

 

 

Leveraged Based Pricing Grid Term Loan:

 

	
Applicable Rate
    

 

	
Pricing
   Level
    	
 
    	
Consolidated
   Leverage Ratio
    	
 
    	
Eurodollar Rate
   Applicable
   Margin
    	
 
    	
Base Rate
   Applicable
   Margin
    	
 
    
	
1
    	
 
    	
< 40%
    	
 
    	
1.40
    	
%
    	
.40
    	
%
    
	
2
    	
 
    	
> 40% but < 45%
    	
 
    	
1.45
    	
%
    	
.45
    	
%
    
	
3
    	
 
    	
> 45% but < 50%
    	
 
    	
1.65
    	
%
    	
.65
    	
%
    
	
4
    	
 
    	
> 50% but < 55%
    	
 
    	
1.80
    	
%
    	
.80
    	
%
    
	
5
    	
 
    	
> 55%
    	
 
    	
2.00
    	
%
    	
1.00
    	
%
    

 

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first (1st) Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a) provided that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of Required Lenders, Pricing Level 5 shall apply as of the first (1st) Business Day after the date on which such Compliance Certificate was required to have been delivered, provided that if such request is not delivered within thirty (30) days of the date such Compliance Certificate was due, Pricing Level 5 shall apply as of the date of delivery of such request, and shall remain in effect until the date on which such Compliance Certificate is delivered.  The Applicable Rate in effect from the Closing Date until adjusted as set forth above shall be set at Pricing Level 1.

 

Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).

 

or

 

B.                                    If and when the Rating Conditions have been satisfied:

 

(i)                                     with respect to any Revolving Loan, the following percentages per annum, based upon the Debt Rating as set forth below (determined in accordance with the Revolving Loan Pricing Grid set forth below);

 

(ii)                                  with respect to any Term Loan, the following percentages per annum, based upon the Debt Rating as set forth below (determined in accordance with the Term Loan Pricing Grid set forth below); and

 

(iii)                               with respect each Letter of Credit, the Eurodollar Rate Applicable Margin (Revolver), based upon the Debt Rating as set forth below (determined in accordance with the Revolving Loan Pricing Grid set forth below);

 

2

 

Revolving Loan Pricing Grid:

 

	
Debt Rating
    	
 
    	
Pricing
   Level
    	
 
    	
Letters
   of
   Credit
    	
 
    	
Eurodollar
   Rate
   Applicable
   Margin
   (Revolver)
    	
 
    	
Base Rate
   Applicable
   Margin
   (Revolver)
    	
 
    	
Facility Fee
   Rate
   (Revolver)
    	
 
    
	
>A-/A3
    	
 
    	
1
    	
 
    	
0.925
    	
%
    	
0.925
    	
%
    	
0.00
    	
%
    	
0.125
    	
%
    
	
>BBB+/ Baa1
    	
 
    	
2
    	
 
    	
1.00
    	
%
    	
1.00
    	
%
    	
0.00
    	
%
    	
0.15
    	
%
    
	
>BBB/Baa2
    	
 
    	
3
    	
 
    	
1.10
    	
%
    	
1.10
    	
%
    	
0.10
    	
%
    	
0.20
    	
%
    
	
>BBB-/Baa3
    	
 
    	
4
    	
 
    	
1.35
    	
%
    	
1.35
    	
%
    	
0.35
    	
%
    	
0.30
    	
%
    
	
<BBB-/Baa3
    	
 
    	
5
    	
 
    	
1.70
    	
%
    	
1.70
    	
%
    	
0.70
    	
%
    	
0.35
    	
%
    

 

Term Loan Pricing Grid:

 

	
Applicable Rate
    

 

	
Debt Rating
    	
 
    	
Pricing
   Level
    	
 
    	
Base Rate
   Applicable
   Margin
   (Term)
    	
 
    	
Eurodollar
   Rate
   (Term)
    	
 
    
	
>A-/A3
    	
 
    	
1
    	
 
    	
0.05
    	
%
    	
1.05
    	
%
    
	
>BBB+/ Baa1
    	
 
    	
2
    	
 
    	
0.15
    	
%
    	
1.15
    	
%
    
	
>BBB/Baa2
    	
 
    	
3
    	
 
    	
0.30
    	
%
    	
1.30
    	
%
    
	
>BBB-/Baa3
    	
 
    	
4
    	
 
    	
0.65
    	
%
    	
1.65
    	
%
    
	
<BBB-/Baa3
    	
 
    	
5
    	
 
    	
1.05
    	
%
    	
2.05
    	
%
    

 

Each change in the Applicable Rate resulting from a publicly announced change in the Debt Rating shall be effective, in the case of an upgrade, during the period commencing on the date of delivery by the Borrower to the Administrative Agent of notice thereof pursuant to Section 7.03(e) and ending on the date immediately preceding the effective date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change.

 

2.                                      The definition of “Unused Rate” is hereby deleted in its entirety and shall be replaced by the following:

 

“Unused Rate” means with respect to the Aggregate Revolving Commitments as of any date, the following percentages per annum based upon the Daily Usage as set forth below:

 

	
Daily Usage
    	
 
    	
Unused Rate
    	
 
    
	
<50%
    	
 
    	
0.25
    	
%
    
	
>50%
    	
 
    	
0.20
    	
%
    

 

3

 

3.                                      Borrower hereby acknowledges and agrees that it does not have any offsets, defenses, claims, or counterclaims against the Administrative Agent, the L/C Issuer or any Lender or any of their respective affiliates, or their respective officers, directors, employees, affiliates, attorneys, representatives, predecessors, successors, or assigns with respect to the Credit Agreement, any Loan Document or any other documents executed in connection with the Loan, or otherwise, and that if the Borrower now has, or ever did have, any such offsets, defenses, claims, or counterclaims against the Administrative Agent, the L/C Issuer or any Lender or any of their respective affiliates, or their respective officers, directors, employees, affiliates, attorneys, representatives, predecessors, successors, or assigns, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of execution of this Second Amendment, all of them are hereby expressly WAIVED, and the Borrower hereby RELEASES the Administrative Agent, the L/C Issuer and each Lender and their respective affiliates, and their respective officers, directors, employees, affiliates, attorneys, representatives, predecessors, successors, and assigns from any liability therefor.

 

4.                                      Miscellaneous.

 

(a)                                 Borrower represents and warrants that there is no Default or Event of Default under the Loan.

 

(b)                                 This Second Amendment shall be binding upon the Borrower the Administrative Agent, the L/C Issuer and each Lender and their respective successors and assigns and shall enure to the benefit of the Administrative Agent, the L/C Issuer and each Lender and the Borrower and their respective successors and assigns.

 

(c)                                  Except as amended hereby, the Loan Documents shall remain in full force and effect and are in all respects hereby ratified and affirmed.

 

(d)                                 The execution of this Agreement and acceptance of any documents related hereto shall not be deemed to be a waiver of any breach, Default or Event of Default under the Loan Documents, whether or not known to the Administrative Agent, the L/C Issuer or any Lender and whether or not existing on the date of this Second Amendment.

 

(e)                                  Any determination that any provision of this Second Amendment or any application thereof is invalid, illegal, or unenforceable in any respect in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality, or enforceability of any other provision of this Second Amendment.

 

(f)                                   This Second Amendment, together with the agreements, instruments and other documents executed in connection herewith, incorporates all discussions and negotiations between the Borrower, the Administrative Agent, the L/C Issuer and each Lender, either express or implied, concerning the matters included herein and in such other instruments, any custom, usage, or course of dealings to the contrary notwithstanding.  No such discussions, negotiations, custom, usage, or course of dealings shall limit, modify, or otherwise affect the provisions hereof.  No modification,

 

4

 

amendment, or waiver of any provision of this Second Amendment or of any provision of any other agreement between the Borrower, the Administrative Agent, the L/C Issuer and each Lender shall be effective unless executed in writing by the party to be charged with such modification, amendment and waiver, and if such party shall be the Lenders, then by a duly authorized officer thereof.

 

(g)                                  Except as otherwise expressly provided for in this Second Amendment or in the other agreements being executed contemporaneously herewith, all of the terms, conditions and provisions of the Loan Documents shall remain the same.  The Borrower shall continue to comply with all of the terms and conditions of the Loan Documents, as modified hereby or contemporaneously herewith.

 

(h)                                 All rights and obligations hereunder, including matters of construction, validity, and performance, shall be governed by and construed in accordance with the law of the State of New York and are intended to take effect as sealed instruments.

 

(i)                                     The captions of this Second Amendment are for convenience purposes only, and shall not be used in construing the intent of the parties to this Agreement.

 

(j)                                    In the event of any inconsistency between the provisions of this Second Amendment and the Loan Documents, the provisions of this Second Amendment shall govern and control.

 

(k)                                 This Second Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging transmission (e.g. PDF by email) shall be effective as delivery of a manually executed counterpart of this Second Amendment.

 

[Remainder of page intentionally left blank]

 

5

 

It is intended that this Second Amendment be executed as an instrument under seal as of the date first written above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
STAG   INDUSTRIAL OPERATING PARTNERSHIP, L.P., a Delaware limited   partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
STAG   Industrial GP, LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Stephen C. Mecke
    
	
 
    	
 
    	
Name:
    	
Stephen   C. Mecke
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PARENT:
    
	
 
    	
 
    
	
 
    	
STAG   INDUSTRIAL, INC., a Maryland corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen C. Mecke
    
	
 
    	
Name:
    	
Stephen   C. Mecke
    
	
 
    	
Title:
    	
Vice   President
    
					

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
BANK   OF AMERICA, N.A., as Administrative Agent on behalf of the Lenders,   and as Lender,
    
	
 
    	
L/C   Issuer and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew Blomstedt
    
	
 
    	
Name:
    	
Andrew   Blomstedt
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
LENDERS:
    	
ROYAL   BANK OF CANADA, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Gross
    
	
 
    	
Name:
    	
Brian   Gross
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
WELLS   FARGO BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   D. Bryan Gregory
    
	
 
    	
Name:
    	
D.   Bryan Gregory
    
	
 
    	
Title:
    	
Director
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Andrew D. Coler
    
	
 
    	
Name:
    	
Andrew   D. Coler
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
CAPITAL   ONE, NATIONAL ASSOCIATION, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Frederick H. Denecke
    
	
 
    	
Name:
    	
Frederick   H. Denecke
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
RAYMOND   JAMES BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Garrett T. McKinnon
    
	
 
    	
Name:
    	
Garrett   T. McKinnon
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
TD   BANK, N.A., as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J Pappas
    
	
 
    	
Name:
    	
Michael   J Pappas
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
REGIONS   BANK, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lee Surtees
    
	
 
    	
Name:
    	
Lee   Surtees
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature page to Second Amendment to Credit Agreement]

 

 

	
 
    	
BARCLAYS   BANK PLC, as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Noam Azachi
    
	
 
    	
Name:   
    	
Noam   Azachi
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature page to Second Amendment to Credit Agreement]nanolabsexh10_1.htm

Exhibit 10.1

 

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

NANO LABS CORP.  

CONVERTIBLE PROMISSORY NOTE

 

 

	
$350,000.00

	
March 31, 2013

	
                                                                             

	
Detroit, Michigan 

WHEREAS on during third quarter January 1, 2013 through March 31, 2013, Asus Global Holding Inc. (the “Investor”) advanced to Nano Labs Corp., a Colorado corporation (the “Company”), an aggregate of $350,000.00 for working capital purposes; 

WHEREAS the Company and Investor further agreed that such amounts advanced by the Investor to the Company would be evidenced in a convertible note, which convertible note would be convertible into shares of common stock of the Company at the rate of 50% discount to the trading price of the Company's shares of common stock on the OTC Markets on the date of conversion; 

NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the mutual premises and the mutual covenants and agreements contained herein, the parties covenant and agree each with the other as follows:

 

1.  Principal and Interest.

 

1.1 The Company, for value received, hereby promises to pay to the order of the Investor the sum of Three Hundred Fifty Thousand Dollars ($350,000.00), which amount represents those funds advanced to the Company during the third quarter January 1, 2013 through March 31, 2013.  

 

1.2 This Convertible Promissory Note (the "Note") shall not bear interest. This Note shall be payable upon demand ("Demand Date"). Commencing on the Demand Date, all principal shall be payable by the Company upon demand made by the Investor.  

 

1.3 Upon payment in full of the principal, this Note shall be surrendered to the Company for cancellation.

  

  

  

 

 

1.4 The principal under this Note shall be payable at the principal office of the Company and shall be forwarded to the address of the Investor hereof as such Investor shall from time to time designate.

 

2. Attorney's Fees. If the indebtedness represented by this Note or any part thereof is collected in bankruptcy, receivership or other judicial proceedings or if this Note is placed in the hands of attorneys for collection after default, the Company agrees to pay, in addition to the principal payable hereunder, reasonable attorneys' fees and costs incurred by the Investor.

 

3.  Conversion.

 

3.1 Voluntary Conversion. The Investor shall have the right, exercisable in whole or in part, to convert the outstanding principal into a number of fully paid and nonassessable whole shares of the Company's $0.001 par value common stock ("Common Stock") determined in accordance with Section 3.2 below.

 

3.2 Shares Issuable. The number of whole shares of Common Stock into which this Note may be voluntarily converted ("Conversion Shares") shall be determined by dividing the aggregate principal amount borrowed by that price equal to a 50% discount of the then trading price of the Company's shares on the OTC Markets at the date of conversion (the “Note Conversion Price”).  

 

3.3 Notice and Conversion Procedures. After receipt of demand for repayment, the Company agrees to give the Investor notice at least five (5) business days prior to the time that the Company repays this Note. If the Investor elects to convert this Note, the Investor shall provide the Company with a written notice of conversion setting forth the amount to be converted. The notice must be delivered to the Company together with this Note. Within twenty (20) business days of receipt of such notice, the Company shall deliver to the Investor certificate(s) for the Common Stock issuable upon such conversion and, if the entire principal amount was not so converted, a new note representing such balance. 

 

3.4 Other Conversion Provisions. 

 

(a)Adjustment of Note Conversion Price. In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a reverse stock split and subdivision of the Company’s issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be adjusted by proportionately increasing the Note Conversion Price on the date that such subdivision shall become effective.  In the event the Company shall in any manner, subsequent to the issuance of this Note, approve a reclassification involving a forward stock split and subdivision of the Company’s issued and outstanding shares of Common Stock, the Note Conversion Price shall forthwith be adjusted by proportionately decreasing the Note Conversion Price on the date that such subdivision shall become effective.

 

 

 

 

  

-2-

  

 

 

(b)Common Stock Defined. Whenever reference is made in this Note to the shares of Common Stock, the term "Common Stock” shall mean the Common Stock of the Company authorized as of the date hereof, and any other class of stock ranking on a parity with such Common Stock. Shares issuable upon conversion hereof shall include only shares of Common Stock of the Company.

 

3.5 No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to the Investor upon the conversion of this Note, the Company shall pay to the Investor the amount of outstanding principal hereunder that is not so converted.

 

4. Representations, Warranties and Covenants of the Company. The Company represents, warrants and covenants with the Investor as follows:

 

(a) Authorization; Enforceability. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Note and the performance of all obligations of the Company hereunder has been taken, and this Note constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(b) Governmental Consents. No consent, approval, qualification, order or authorization of, or filing with, any local, state or federal governmental authority is required on the part of the Company in connection with the Company's valid execution, delivery or performance of this Note except any notices required to be filed with the Securities and Exchange Commission under Regulation D of the Securities Act of 1933, as amended (the "1933 Act"), or such filings as may be required under applicable state securities laws, which, if applicable, will be timely filed within the applicable periods therefor.

 

(c) No Violation. The execution, delivery and performance by the Company of this Note and the consummation of the transactions contemplated hereby will not result in a violation of its Certificate of Incorporation or Bylaws, in any material respect of any provision of any mortgage, agreement, instrument or contract to which it is a party or by which it is bound or, to the best of its knowledge, of any federal or state judgment, order, writ, decree, statute, rule or regulation applicable to the Company or be in material conflict with or constitute, with or without the passage of time or giving of notice, either a material default under any such provision or an event that results in the creation of any material lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.

  

-3-

  

 

 

5. Representations and Covenants of the Investor. The Company has entered into this Note in reliance upon the following representations and covenants of the Investor:

 

(a) Investment Purpose. This Note and the Common Stock issuable upon conversion of the Note are acquired for investment and not with a view to the sale or distribution of any part thereof, and the Investor has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.

 

(b) Private Issue. The Investor understands (i) that this Note and the Common Stock issuable upon conversion of this Note are not registered under the 1933 Act or qualified under applicable state securities laws, and (ii) that the Company is relying on an exemption from registration predicated on the representations set forth in this Section 8.

 

(c) Financial Risk. The Investor has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.

 

(d) Risk of No Registration. The Investor understands that if the Company does not register with the Securities and Exchange Commission pursuant to Section 12 of the Securities Exchange Act of 1934 (the "1934 Act"), or file reports pursuant to Section 15(d) of the 1934 Act, or if a registration statement covering the securities under the 1933 Act is not in effect when it desires to sell the Common Stock issuable upon conversion of the Note, it may be required to hold such securities for an indefinite period. The Investor also understands that any sale of the Note or the Common Stock which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule.

 

6. Assignment. Subject to the restrictions on transfer described in Section 9 below, the rights and obligations of the Company and the Investor shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

7. Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company and the Investor.

 

8. Transfer of This Note or Securities Issuable on Conversion Hereof. With respect to any offer, sale or other disposition of this Note or securities into which this Note may be converted, the Investor will give written notice to the Company prior thereto, describing briefly the manner thereof. Unless the Company reasonably determines that such transfer would violate applicable securities laws, or that such transfer would adversely affect the Company's ability to account for future transactions to which it is a party as a pooling of interests, and notifies the Investor thereof within five (5) business days after receiving notice of the transfer, the Investor may effect such transfer. The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the 1933 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the 1933 Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

 

 

 

  

-4-

  

 

 

9. Notices. Any notice, other communication or payment required or permitted hereunder shall be in writing and shall be deemed to have been given upon delivery if personally delivered or three (3) business days after deposit if deposited in the United States mail for mailing by certified mail, postage prepaid. Each of the above addressees may change its address for purposes of this Section by giving to the other addressee notice of such new address in conformance with this Section.

 

10. Governing Law. This Note is being delivered in and shall be construed in accordance with the laws of the State of Colorado, without regard to the conflicts of laws provisions thereof.

 

11. Heading; References. All headings used herein are used for convenience only and shall not be used to construe or interpret this Note. Except as otherwise indicated, all references herein to Sections refer to Sections hereof.

 

12. Waiver by the Company. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

13. Delays. No delay by the Investor in exercising any power or right hereunder shall operate as a waiver of any power or right.

 

14. Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of the Note shall be interpreted as if such provision was so excluded and shall be enforceable in accordance with its terms.

 

15. No Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Note and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Investor of this Note against impairment.

 

IN WITNESS WHEREOF, Nano Labs Corp. has caused this Note to be executed in its corporate name and this Note to be dated, issued and delivered, all on the date first above written.

 

	 	
NANO LABS CORP.    

	 
	 	 	 
	 	 	 	 
	
Date: September __, 2013

	
By

	 	 
	 	 	President 	 
	 	 	 	 
	 	 	 	 
	 	ASUS GLOBAL HOLDING INC. 	 
	 	 	 	 
	 	 	 	 
	Date: September __, 2013	By	 	 
	 	 	President	 

 

 

 

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