Document:

Filed by Bowne Pure Compliance

Exhibit
10.1

	 	 	 
	

	 	ROSS MILLER

Secretary of State

204 North Carson Street, Ste 1

Carson City, Nevada 89701-4299

(775) 684 5708

Website: www.nvsos.gov

Certificate of Designation

(PURSUANT TO NRS 78.1955)

			
	 	 	 
	USE BLACK INK ONLY — DO NOT HIGHLIGHT
	 	ABOVE SPACE IS FOR OFFICE USE ONLY
	 	 	 

Certificate of Designation For

Nevada Profit Corporations 

(Pursuant to NRS 78.1955)

1. Name of corporation:

Immediatek, Inc.

2. By resolution of the board of directors pursuant to a provision in the articles of incorporation
this certificate establishes the following regarding the voting powers, designations, preferences,
limitations, restrictions and relative rights of the following class or series of stock.

RESOLVED, that, pursuant to the authority vested in the Board of Directors by the provisions of
Article V of the Restated Articles and in accordance with the provisions of NRS 78.1955, the Board
of Directors hereby creates and provides for the issue of a series of Preferred Stock consisting of
69,726 shares herein designated as the “Series B Convertible Preferred Stock” (the “Series B
Preferred Stock”), having the powers, designations, preferences and relative, participating,
optional or other special rights, and the qualifications, limitations or restrictions thereof, of
the shares of such series (in addition to the powers, designations preferences and relative,
participating, optional or other special rights, and the qualifications, limitations or
restrictions thereof, set forth in the Restated Articles that are applicable to the Preferred Stock
of all series) are hereby fixed as follows (certain terms used herein being defined in Section B.1. hereof):

Continuation attached.

3. Effective date of filing: (optional)

(must not be later than 90 days after the certificate is filed)

4. Signature: (required)

Signature of Officer

Filing Fee: $175.00

IMPORTANT: Failure to include any of the above information and submit with the proper fees may
cause this filing to be rejected.

			
	 	 	 
	This form must be accompanied by appropriate fees.
	 	Nevada Secretary of State Stock Designation
	 
	 	Revised: 7-1-08
	 	 	 

 

 

 

A. PROVISIONS RELATING TO THE SERIES B PREFERRED STOCK

1. Dividends. The holders of the Series B Preferred Stock shall not be entitled to any
preferential dividends. The holders of the Series B Preferred Stock shall be entitled to
participate on an as-converted basis in any cash dividends declared and paid on the Common Stock.

2. Liquidation.

(a) Upon any Liquidation Event, the holders of shares of Series B Preferred Stock then
outstanding, pari passu with holders of the Series A Convertible Preferred Stock (the “Series A
Preferred Stock”) then outstanding, shall be entitled to receive, out of the funds and assets of
the Corporation legally available therefor (the “Available Assets and Funds”), before any payment
shall be made to the holders of shares of Junior Stock, an amount per share equal to the greater of
(i) the Stated Value for a share of Series B Preferred Stock or (ii) the amount such holder would
have received had such holder converted such share of Series B Preferred Stock into shares of
Common Stock immediately prior to such Liquidation Event. If, upon any such Liquidation Event, the
Available Assets and Funds shall be insufficient to pay the holders of shares of Series B Preferred
Stock and the Series A Preferred Stock the full amount to which they shall be entitled, the holders
of shares of Series B Preferred Stock and Series A Preferred Stock and any other Parity Stock shall
share ratably in any distribution of the Available Assets and Funds in proportion to the respective
amounts that would otherwise be payable in respect of the shares held by them upon such
distribution if all amounts payable on or with respect to such shares were paid in full.

3. Ranking. The Series B Preferred Stock shall, with respect to redemption rights,
rights on liquidation, winding up, corporate reorganization and dissolution, rank pari passu with
Series A Preferred Stock and senior to the Junior Stock.

4. Optional Redemption.

(a) Holders’ Redemption Rights. Upon an Event of Default, the holders of a
Majority-in-Interest of the Series B Preferred Stock then outstanding may require the Corporation
to redeem the Series B Preferred Stock at any time or from time to time, in whole but not in part,
at a redemption price per share equal to the Stated Value, plus declared and unpaid dividends, if
any, to the Redemption Date (the “Redemption Price”). Such redemption shall be effected in
accordance with the procedures set forth in subsections A.4.(b) and A.4.(c) hereof.

(b) Notice. Upon an Event of Default, the Corporation shall mail notice of such Event
of Default within ten (10) days of such Event of Default to the holders of record of the Series B
Preferred Stock. Within a twenty-day period following such notice by the Company to the holders of
the Series B Preferred Stock, each record holder of the Series B Preferred Stock shall be entitled
to provide notice to the Corporation of his election to require the Company to redeem the
outstanding shares of Series B Preferred Stock. In the event that the holders of a
Majority-in-Interest of the Series B Preferred Stock then outstanding elect to require the
Corporation to redeem shares of the Series B Preferred Stock pursuant to this subsection
A.4., the Corporation shall mail notice of such redemption by first-class mail, postage
prepaid, and mailed not less than ten (10) days nor more than sixty (60) days after the date the
holders of a Majority-in-Interest of the Series B Preferred Stock elected to cause the redemption
of

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the Series B Preferred Stock (each such date, a “Redemption Date”) to the holders of record of the shares of
Series B Preferred Stock to be redeemed, at their respective addresses as such addresses shall
appear in the records of the Corporation; provided, however, that failure to give such notice or
any defect therein or in the mailing thereof shall not affect the validity of the proceeding for
the redemption of any shares so to be redeemed. Each such notice shall state: (i) the Redemption
Date, (ii) the number of shares of Series B Preferred Stock to be redeemed, (iii) the Redemption
Price, and (iv) the place or places where certificates for such shares are to be surrendered for
payment of the Redemption Price.

(c) Right of the Holders of Series B Preferred Stock upon Redemption. Following
the Redemption Date, said shares of Series B Preferred Stock to be redeemed shall no longer be
deemed to be outstanding and shall not have the status of shares of Series B Preferred Stock, and
all rights of the holders thereof as stockholders of the Company (except the right to receive the
applicable Redemption Price on the Redemption Date) shall cease, unless the Corporation defaults in
the payment of the Redemption Price on the Redemption Date, in which case all rights of the holders
to whom payment of the Redemption Price was not made on the Redemption Date shall continue until
the Redemption Price is paid to such holders, and such holders shall have the rights of the terms
of the Series B Preferred Stock set forth herein.

5. Conversion.

(a) Right to Convert. Subject to and in compliance with this Section A.5.,
each share of Series B Preferred Stock shall be convertible, at the option of the holder thereof,
at any time and from time to time, into that number of fully paid and nonassessable shares of
Common Stock as is determined by dividing the Stated Value for such share by the Conversion Price
(defined below) for such share in effect at the time of conversion. The price at which shares of
Common Stock shall be deliverable upon conversion of Series B Preferred Stock without the payment
of additional consideration by the holder thereof (the “Conversion Price”) shall initially be
$2.162676 per share. Such initial Conversion Price shall be subject to adjustment from time to time
as provided in this Section A.5.

(b) Mechanics of Conversion. Each holder of Series B Preferred Stock who desires to
convert the same into shares of Common Stock shall surrender the certificate or certificates
therefor, duly endorsed, at the office of the Corporation or of any transfer agent for the Series B
Preferred Stock or Common Stock, and shall give written notice to the Corporation at such office
that such holder elects to convert the same and shall state therein the number of shares of Series
B Preferred Stock being converted. Thereupon, the Corporation shall promptly issue and deliver at
such office to such holder a certificate or certificates for the number of shares of Common Stock
to which such holder is entitled. Such conversion shall be deemed to have been made immediately
prior to the close of business on the date of such surrender of the certificate representing the
shares of Series B Preferred Stock to be converted, and the person entitled to receive the shares
of Common Stock issuable upon such conversion shall be treated for all purposes as the record
holder of such shares of Common Stock on such date.

 

2

 

(c) Adjustments for Stock Splits and Combinations. If the Corporation at any time or
from time to time after the Original Issue Date (as defined below) effects a subdivision of the
outstanding Common Stock, the Conversion Price then in effect immediately before the subdivision
shall be proportionately decreased, and conversely, if the Corporation at any time or from time to
time after the Original Issue Date combines the outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price then in effect immediately before the
combination shall be proportionately increased. Any adjustment under this subsection
A.5.(c) shall become effective at the close of business on the date the subdivision or
combination becomes effective. “Original Issue Date” means the date on which shares of Series B
Preferred Stock are originally issued under this Certificate of Designation.

(d) Adjustments for Certain Dividends and Distributions. If the Corporation at any
time or from time to time after the Original Issue Date makes or issues, or fixes a record date for
the determination of holders of Common Stock entitled to receive, a dividend or other distribution
payable in Additional Shares of Common Stock, then and in each such event the Conversion Price then
in effect shall be adjusted as of the time of such issuance or, in the event such record date is
fixed, as of the close of business on such record date, so that it will equal the price determined
by multiplying the Conversion Price then in effect by a fraction (1) the numerator of which is the
total number of shares of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date and (2) the denominator of which shall be the
total number of shares of Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date plus the number of shares of Common Stock
issuable in payment of such dividend or distribution; provided, however, that if such record date
is fixed and such dividend is not fully paid or if such distribution is not fully made on the date
fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on
such record date and thereafter the Conversion Price shall be adjusted pursuant to this
subsection A.5.(d) as of the time of actual payment of such dividends or distributions.

(e) Adjustments for Dividends and Other Distributions. In the event the Corporation at
any time or from time to time after the Original Issue Date makes or issues, or fixes a record date
for the determination of holders of Common Stock entitled to receive, a dividend or other
distribution payable in securities of the Corporation other than shares of Common Stock, then and
in each such event provision shall be made so that the holders of Series B Preferred Stock shall
receive upon conversion thereof, in addition to the number of shares of Common Stock receivable
thereupon, the amount of securities of the Corporation which they would have received had their
Series B Preferred Stock been converted into Common Stock on the date of such event and had they
thereafter, during the period from the date of such event to and including the conversion date,
retained such securities receivable by them as aforesaid during such period, subject to all other
adjustments called for during such period under this Section A.5 with respect to the rights
of the holders of the Series B Preferred Stock.

(f) Adjustment for Reclassification, Exchange and Substitution. In the event that, at
any time or from time to time after the Original Issue Date, the Common Stock issuable upon the
conversion of the Series B Preferred Stock is changed into the same or a different number of shares
of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other
than a subdivision or combination of shares or stock dividend or a reorganization, merger,
consolidation or sale of assets, provided for elsewhere in this Section A.5), then and in
any such event each holder of Series B Preferred Stock shall have the right thereafter to convert
such Series B Preferred Stock into the kind and amount of stock and other securities and property
receivable upon such recapitalization, reclassification or other change, by holders of shares of
Common Stock into which such shares of Series B Preferred Stock could have been converted
immediately prior to such recapitalization, reclassification or change, all subject to further
adjustment as provided herein.

 

3

 

(g) No Adjustment for Certain Issuances. Notwithstanding anything to the
contrary herein, no adjustment will be made to the Conversion Price (1) for issuances of Common
Stock upon conversion of shares of the Series B Preferred Stock or the Series A Preferred Stock; or
(2) for issuances of Common Stock, options, warrants or other convertible securities as a dividend
or distribution on the Series B Preferred Stock.

(h) Sale of Shares.

(1) If at any time or from time to time after the Original Issue Date, the Corporation
issues or sells, or is deemed by the express provisions of this subsection A.5.(h)
to have issued or sold, Additional Shares of Common Stock (as hereinafter defined), other
than as a dividend or other distribution on any class of stock as provided in subsection
A.5.(d) above and other than upon a subdivision or combination of shares of Common Stock
as provided in subsection A.5.(c) above, then and in each such event the Conversion
Price then in effect shall be adjusted as of the time of such issuance or sale so that it
will equal the price determined by multiplying the Conversion Price then in effect by a
fraction (1) the numerator of which is the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or sale and (2) the denominator
of which shall be the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or sale plus the number of shares of Common
Stock issued or sold.

(2) For the purpose of the adjustment required under this subsection A.5.(h),
if the Corporation issues or sells any rights or options for the purchase of, or stock or
other securities convertible or exchangeable, with or without consideration, into Additional
Shares of Common Stock (such convertible or exchangeable stock or securities being
hereinafter referred to as “Convertible Securities”), then in each case the Corporation
shall be deemed to have issued at the time of the issuance of such rights or options or
Convertible Securities the maximum number of Additional Shares of Common Stock issuable upon
exercise or conversion thereof. No further adjustment of the Conversion Price, adjusted upon
the issuance of such rights, options or Convertible Securities, shall be made as a result of
the actual issuance of Additional Shares of Common Stock on the exercise of any such rights
or options or the conversion of any such Convertible Securities.

If any such rights or options, or the conversion or exchange privilege represented by
any such Convertible Securities, shall expire without having been exercised, the Conversion
Price adjusted upon the issuance of such rights, options or Convertible Securities shall be
readjusted to the Conversion Price which would have been in effect had an adjustment been
made on the basis that the only Additional Shares of Common Stock so issued were the
Additional Shares of Common Stock, if any, actually issued or sold on the exercise of such
rights or options or rights of conversion or exchange of such Convertible Securities.
Further, if any shares of Common Stock issuable upon the exercise or conversion of options
or warrants that are issued and outstanding on the Original Issue Date shall no longer be
issuable thereunder due to expiration, termination or otherwise, the Conversion Price shall
be adjusted as of the time of such expiration so that it will equal the price determined by
multiplying the Conversion
Price then in effect by a fraction (1) the numerator of which is the total number of
 shares of Common Stock issued and outstanding immediately prior to the time of such
expiration,
plus the number of shares of Common Stock no longer exercisable pursuant to such option or
warrant and (2) the denominator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such expiration.

 

4

 

(3) For the purpose of the adjustment required under this subsection
A.5.(h), if the Corporation issues or sells any rights or options for the purchase of
Convertible Securities, then in each such case the Corporation shall be deemed to have
issued at the time of the issuance of such rights or options the maximum number of
Additional Shares of Common Stock issuable upon conversion or exchange of the total amount
of Convertible Securities covered by such rights or options. No further adjustment of the
Conversion Price, adjusted upon the issuance of such rights or options, shall be made as a
result of the actual issuance of the Convertible Securities upon the exercise of such rights
or options or upon the actual issuance of Additional Shares of Common Stock upon the
conversion of such Convertible Securities. The provisions of paragraph (2) above for the
readjustment of the Conversion Price upon the expiration of rights or options or the rights
of conversion or exchange of Convertible Securities shall apply mutatis
mutandis to the rights, options and Convertible Securities referred to in this
paragraph (3).

(i) Notices of Record Date. In the event of (a) any taking by the Corporation
of record of the holders of any class of securities for the purpose of determining the holders
thereof who are entitled to receive any dividend or other distribution, or (ii) any capital
reorganization of the Corporation, any reclassification or recapitalization of the capital stock of
the Corporation, any merger or consolidation of the Corporation with or into any other corporation,
or any transfer of all or substantially all of the assets of the Corporation to any other Person or
any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, the
Corporation shall mail to each holder of Series B Preferred Stock at least thirty (30) days prior
to the record date specified therein, a notice specifying (1) the date on which any such record is
to be taken for the purpose of such dividend or distribution and a description of such dividend or
distribution, (2) the date on which any such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding up is expected to become effective, and
(3) the date, if any, that is to be fixed, as to when the holders of record of Common Stock (or
other securities) shall be entitled to exchange their shares of Common Stock (or other securities)
for securities or other property deliverable upon such reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding up.

(j) Fractional Shares. No fractional shares of Common Stock shall be issued
upon conversion of Series B Preferred Stock. If more than one share of Series B Preferred Stock
shall be surrendered for conversion at any one time by the same holder, the number of full shares
of Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate
number of shares of Series B Preferred Stock so surrendered. In lieu of any fractional share to
which the holder would otherwise be entitled, the Corporation shall pay cash equal to the product
of such fraction multiplied by the Fair Market Value of one share of the Corporation’s Common Stock
on the date of conversion.

 

5

 

(k) Reservation of Stock Issuable Upon Conversion. The Corporation shall at all
times reserve and keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of the shares of the Series B Preferred Stock, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Series B Preferred Stock; and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion
of all then outstanding shares of the Series B Preferred Stock, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(1) Notices. All notices and other communications required by the provisions of
this Section A.5 shall be in writing and shall be deemed to have been duly given if
delivered personally, mailed by certified mail (return receipt requested) or sent by overnight
delivery service, cable, telegram, facsimile transmission or telex to each holder of record at the
address of such holder appearing on the books of the Corporation. Notice so given shall, in the
case of notice so given by mail, be deemed to be given and received on the fourth calendar day
after posting, in the case of overnight delivery service, on the date of actual delivery and, in
the case of notice so given by cable, telegram, facsimile transmission, telex or personal delivery,
on the date of actual transmission or, as the case may be, personal delivery.

(m) Payment of Taxes. The Corporation will pay all taxes (other than taxes based
upon income) and other governmental charges that may be imposed with respect to the issue or
delivery of shares of Common Stock upon conversion of shares of Series B Preferred Stock,
including, without limitation, any tax or other charge imposed in connection with any transfer
involved in the issue and delivery of shares of Common Stock in a name other than that in which the
shares of Series B Preferred Stock so converted were registered.

(n) No Dilution or Impairment. The Corporation shall not amend its Amended and
Restated Articles of Incorporation or participate in any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, for
the purpose of avoiding, or seeking to avoid, the observance or performance of any of the terms to
be observed or performed hereunder by the Corporation, but will at all times in good faith assist
in carrying out all such action as may be reasonably necessary or appropriate in order to protect
the conversion rights of the holders of the Series B Preferred Stock against dilution or other
impairment.

6. Voting. The holders of shares of Series B Preferred Stock shall be entitled
to vote on all matters required or permitted to be voted upon by the stockholders of the
Corporation and, except to the extent specifically provided herein, each holder shall be entitled
to the number of votes equal to the largest number of full shares of Common Stock into which all
shares of Series B Preferred Stock held by such holder could be converted, pursuant to the
provisions of Section A.5, at the record date for the determination of the stockholders
entitled to vote on such matters or, if no record date is established, at the date such vote is
taken or any written consent of stockholders is first executed. Except as otherwise expressly
provided herein or as required by law, the holders of Series B Preferred Stock shall vote together
as a single class with the holders of Series A Preferred Stock and Common Stock on all matters.

 

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B. GENERAL PROVISIONS

1. Definitions. As used herein with respect to the Series B Preferred
Stock, the following terms have the following meanings:

“Additional Shares of Common Stock” means all shares of Common Stock issued after the
Original Issue Date, in each event other than shares of Common Stock issued upon conversion of the
Series A Preferred Stock or the Series B Preferred Stock.

“Common Stock”  means the common stock of the Corporation, $0.001 par value per share.

An “Event of Default” shall exist if within 45 days from the Original Issue Date any representation
or warranty made or deemed made by or on behalf of the Corporation in the Purchase Agreement, or
any amendment or modification thereof or waiver thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection the Purchase
Agreement, or any amendment or modification thereof or waiver thereunder, shall prove to have been
materially incorrect when made or deemed made.

“Fair Market Value” means (i) if the Common Stock is listed on a national securities exchange, the
closing sale price per share on the principal exchange on which the Common Stock is listed as
reported by such exchange, (ii) if the Common Stock is quoted in the National Market System, the
closing sale price per share as reported by Nasdaq, (iii) if the Common Stock is traded in the
over-the-counter market but not quoted in the National Market System, the average of the closing
bid and asked quotations per share as reported by Nasdaq, or any other nationally accepted
reporting medium if Nasdaq quotations shall be unavailable, or (iv) if none of the foregoing
applies, the fair market value of such stock as reasonably determined in good faith by the Board of
Directors of the Corporation.

“Junior Stock” means shares of Common Stock and any other class or series of capital stock of the
Corporation that by its express terms provides that is ranks junior to the Series A Preferred Stock
and Series B Preferred Stock as to distribution of assets on liquidation, dissolution or winding
up.

“Liquidation Event”means the liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, and also includes (i) the acquisition of the Corporation by another
entity by means of any transaction or series of related transactions (including, without
limitation, any reorganization, merger or consolidation) that results in the sale, disposition or
other transfer of more than fifty percent (50%) of the outstanding voting power of the Corporation
or (ii) a sale, exclusive license or other disposition of all or substantially all of the assets of
the Corporation.

“Majority-in-Interest” means the holders of a majority of the Series B Preferred Stock.

“Parity Stock” means Series A Preferred Stock and any class or series of capital stock of the
Corporation ranking on a parity with the Series B Preferred Stock as to distribution of assets on
liquidation, dissolution or winding up.

“Person” means any individual, corporation, partnership, trust, joint venture, organization,
association, government or agency or political subdivision thereof, or any other entity.

“Purchase Agreement” means that certain Securities Purchase Agreement, dated as of July 18, 2008,
by and between the Corporation and Radical Holdings LP.

“Stated Value” means a stated value per share equal to $7.17092619 with respect to the Series B
Preferred Stock.

 

7ex10-1.htm

    Exhibit
10.1

     

     

     

     

    THIS
CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO
THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION.  THIS CONVERTIBLE PROMISSORY NOTE AND SUCH
OTHER SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF A REGISTRATION STATEMENT AND LISTING
APPLICATION IN EFFECT WITH RESPECT TO THIS CONVERTIBLE PROMISSORY NOTE OR SUCH
OTHER SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES
LAW, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
AND LISTING NOT REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE
SECURITIES ACT AND THE APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER
JURISDICTION.

     

    CONVERTIBLE
PROMISSORY NOTE

     

    
      	
              $450,000.00

            	
                            June
      3, 2008 

            

    

     

    FOR VALUE
RECEIVED, ACIES Corporation, a Nevada Corporation (the “Company”), having an
address of 14 Wall Street, Suite 1620, New York, NY  1005, hereby
promises to pay to the order of Pinnacle Three Corporation and/or
assigns (the “Holder”), at the
offices of Holder at 1445 Windjammer Way, Hollywood, FL  33160, or
such other place as may be designated by Holder to the Company in writing, the
aggregate principal amount of Four Hundred Fifty Thousand Dollars ($450,000.00),
together with interest on the unpaid principal amount hereof, upon the terms and
conditions hereinafter set forth.

     

    
      	
              1.

            	
              Loan
      Amount.  Upon execution of this Note, Holder shall
      provide the Company with a loan of Four Hundred Fifty Thousand Dollars
      ($450,000.00) (hereinafter referred
      to as the “Loan” or the “Principal”).

            
	 
      	 
      	 
      
	
              2.

            	
              Payment
      Terms.  The Company promises to pay to Holder the
      balance of Principal, together with accrued and unpaid interest, on
      November 23, 2010 (the “Maturity
      Date”), unless this Note is earlier prepaid as herein provided or
      earlier converted into Common Stock (as hereinafter defined) of the
      Company pursuant to Section 3
      hereof.  All payments hereunder shall be made in lawful money of the
      United States of America.  Payment shall be credited first to the
      accrued interest then due and payable and the remainder to
      Principal.

            
	 
      	 
      	 
      
	
              3.

            	
              Interest.  Interest
      on the outstanding portion of Principal of this Note shall accrue at a
      rate of eight percent (8%) per annum.  All computations of interest
      shall be made on the basis of a 360-day year for actual days
      elapsed.  Such interest shall accrue and be paid upon the Maturity
      Date of the Loan.

            

    

    
      	 
      	 
      	 
      
	 
      	
              a.

            	
              Notwithstanding
      any provision in this Note, the total liability for payments of interest
      and payments in the nature of interest, including all charges, fees,
      exactions, or other sums which may at any time be deemed to be interest,
      shall not exceed the limit imposed by the usury laws of the State of
      Florida or the applicable laws of the United States of America, whichever
      shall be higher (the “Maximum
      Rate”).

            
	 
      	 
      	 
      
	 
      	
              b.

            	
              In
      the event the total liability for payments of interest and payments in the
      nature of interest, including, without limitation, all charges, fees,
      exactions or other sums which may at any time be deemed to be interest,
      which for any month or other interest payment period exceeds the Maximum
      Rate, all sums in excess of those lawfully collectible as interest for the
      period in question (and without further agreement or notice by, among or
      to the Holder the 

                undersigned)
      shall be applied to the reduction of the principal balance, with the same
      force and effect as though the undersigned had specifically designated
      such excess sums to be so applied to the reduction of the principal
      balance and the Holder had agreed to accept such sums as a premium-free
      prepayment of principal; provided, however, that the Holder may, at any
      time and from time to time, elect, by notice in writing to the
      undersigned, to waive, reduce or limit the collection of any sums in
      excess of those lawfully collectible as interest rather than accept such
      sums as a prepayment of the principal balance.  The undersigned
      does not intend or expect to pay nor does the Holder intend or expect to
      charge, accept or collect any interest under this Note greater than the
      Maximum Rate.

              

            

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

    
      	 
      	 
      	 
      
	
              4.

            	
              Option
      to Convert this Note.

            	 
      

    

     

    
      	 
      	 
      	 
      
	 
      	
              a.

            	
              At
      any time prior to the Maturity Date or prior to payment in full by the
      Company, Holder shall have the option to convert the unpaid principal
      balance of this Promissory Note, together with all accrued interest, into
      that number of shares of common stock (the “Shares”) of the
      Company  (the “Conversion
      Option”) at price of $.02 per common share; or

            
	 
      	 
      	 
      
	 
      	
              b.

            	
              In
      order to exercise this Conversion Option, the Holder shall surrender this
      Promissory Note to the Company, accompanied by written notice of its
      intentions to exercise this Conversion Option, which notice shall set
      forth the principal amount of this Promissory Note to be converted (“Notice of
      Conversion”). Within ten (10) business days of the Company’s
      receipt of the Notice of Conversion and this Note, the Company shall
      deliver or cause to be delivered to the Holder, written confirmation that
      the Shares have been issued in the name of the Holder;

            
	 
      	 
      	 
      
	 
      	
              c.

            	
              In
      the event of the exercise of the Conversion Option, Holder shall cooperate
      with the Company to promptly take any and all additional actions required
      to make Holder a stockholder of the Company including, without limitation,
      in connection with the issuance of the Shares, such representations as to
      financial condition, investment intent and sophisticated investor status
      as are reasonably required by counsel for the Company. Holder recognizes
      that the Shares issued upon conversion of this Note will constitute “restricted
      securities” under the Securities
      Act of 1933, as amended, and the resale of which will be subject to the
      limitations of such rules.

            
	 
      	 
      	 
      
	 
      	
              d.

            	
              The
      Company shall at all times take any and all additional actions as are
      necessary to maintain the required authority to issue the Shares to the
      Holder, in the event the Holder exercises its rights under the Conversion
      Option.

            
	 
      	 
      	 
      
	 
      	
              e.

            	
              Payment
      to Company prior to Holder’s delivery of a Notice of Conversion shall
      terminate Holder’s option to convert.

            
	 
      	 
      	 
      
	 
      	
              f.

            	
              Conversion
      Calculations: No Fractional Shares. Conversion calculations
      pursuant to this Section 4 shall
      be rounded to the nearest whole share of Common Stock, and no fractional
      shares shall be issuable by the Company upon conversion of this Note.
      Conversion of this Note shall be deemed payment in full of this Note and
      this Note shall thereupon be cancelled.

            
	 
      	 
      	 
      
	 
      	
              g.

            	
              Anti-Dilution
      Protection. In the event of subsequent sales of, or rights
      to acquire, Common Stock of the Company, the Shares received pursuant to
      Holder’s exercise of the Conversion Option shall be subject to a customary
      anti-dilution adjustment to retain the ownership percentage
      afforded by the Conversion.  Under the terms and conditions of
      this Paragraph Four (4) subsection (g), the Company expressly warrants and
      represents that the Shares issued to Holder hereunder will not be affected
      in any manner by a reverse stock split of any issued Company shares and
      such representation is a material inducement to Holder executing this Note
      with Company.

            

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

     

     

     

    
      	 
      	 
      	 
      
	
              5.

            	
              Redemption.  This
      Note may be redeemed by the Company by payment of the entire Principal and
      interest outstanding under this Note in cash to Holder.  The Company
      must provide notice to Holder not less than thirty (30) days prior to
      affecting such redemption.  During the period from providing of such
      notice to Holder and the Company affecting the redemption, the Company may
      cancel such redemption by providing notice of such cancellation to
      Holder.

            

    

     

    
      	 
      	 
      	 
      
	 
      	
              a.

            	
              This
      Note may be prepaid in whole or in part at any time without
      penalty.

            
	 
      	 
      	 
      
	 
      	
              b.

            	
              Any
      partial prepayment shall be applied to any principal Loan amount
      outstanding and shall not postpone the due date of any subsequent monthly
      installment or change the minimum amount of such monthly
      installment.

            
	 
      	 
      	 
      
	 
      	
              c.

            	
              The
      Holder may apply any and all amounts received by it for application to the
      Loan evidenced hereby in such order and manner as the Holder in its
      discretion may determine. The undersigned understands and agrees that if
      for any reason the undersigned fails to pay any amount due under this Note
      on or before the date when due, the Holder shall be entitled to damages
      for the detriment caused thereby, but that it is extremely difficult and
      impractical to ascertain the extent of such
  damages.

            

    

     

    
      	 
      	 
      	 
      
	
              6.

            	
              Representations and Warranties
      of the Company. The Company represents and warrants to Holder as
      follows:

            	 
      

    

     

    
      	 
      	 
      	 
      
	 
      	
              a.

            	
              The
      execution and delivery by the Company of this Note (i) are within the
      Company’s corporate power and authority, and (ii) have been duly
      authorized by all necessary corporate action.  Further, the
      undersigned is a duly authorized representative of the Company and has
      been authorized by a resolution of the board of Directors of the Company
      (a copy of which is attached hereto as Exhibit A) to exercise any and all
      documents necessary to effectuate the transaction contemplated
      hereby.

            
	 
      	 
      	 
      
	 
      	
              b.

            	
              This
      Note is a legally binding obligation of the Company, enforceable against
      the Company in accordance with the terms hereof, except to the extent that
      (i) such enforceability is limited by bankruptcy, insolvency,
      reorganization, moratorium or other laws relating to or affecting
      generally the enforcement of creditors’ rights and (ii) the availability
      of the remedy of specific performance or in injunctive or other equitable
      relief is subject to the discretion of the court before which any
      proceeding therefore may be
brought.

            

    

    
      	 
      	 
      	 
      
	
              7.

            	
              Representations, Warranties and
      Covenants of Holder. Holder represents and warrants to the Company,
      and agrees, as follows:

            

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

     

     

     

    
      	
               

            	a.	
              This
      Note and any Conversion Shares issuable upon conversion of this Note are
      being acquired by Holder for its own account for investment and not with a
      view to, or for sale in connection with, any distribution
      thereof.

            
	 
      	 
      	 
      
	 
      	
              b.

            	
              Holder
      is an “accredited investor” within the meaning of Rule 501 under the
      Securities Act.

            
	 
      	 
      	 
      
	 
      	
              c.

            	
              Holder
      has sufficient knowledge and experience in financial and business matters
      and is capable of evaluating the risks and merits of Holder’s investment
      in the Company; Holder believes that Holder has received or had access to
      all information Holder considers necessary or appropriate to make an
      informed investment decision with respect to this Note; and Holder is able
      financially to bear the risk of losing Holder’s full investment in this
      Note.

            
	 
      	 
      	 
      
	 
      	
              d.

            	
              Holder
      understands that this Note and any Shares converted pursuant hereto have
      not been registered under the Securities Act or registered or qualified
      under any the securities laws of any state or other jurisdiction, are
      “restricted securities,” and cannot be resold or otherwise transferred
      unless they are registered under the Securities Act, and registered or
      qualified under any other applicable securities laws, or an exemption from
      such registration and qualification is available. Prior to any proposed
      transfer of this Note or any Shares, Holder shall, among other things,
      give written notice to the Company of its intention to effect such
      transfer, identifying the transferee and describing the manner of the
      proposed transfer and, if requested by the Company, accompanied by (i)
      investment representations by the transferee similar to those made by
      Holder in this Section 7 and
      (ii) an opinion of counsel satisfactory to the Company to the effect that
      the proposed transfer may be effected without registration under the
      Securities Act and without registration or qualification under applicable
      state or other securities laws. Each certificate for any Shares shall bear
      a legend to the foregoing effect.

            

    

    
      	 
      	 
      
	
              8.

            	
              Certain
      Waivers by the Company.  Except as expressly provided
      otherwise in this Note, the Company and every endorser or guarantor, if
      any, of this Note waive presentment, demand, notice, protest and all other
      demands and notices in connection with the delivery, acceptance,
      performance, default or enforcement of this Note, and assent to any
      extension or postponement of the time of payment or any other indulgence,
      to any substitution, exchange or release of collateral available to
      Holder, if any, and to the addition or release of any other party or
      person primarily or secondarily liable.

            
	 
      	 
      
	
              9.

            	
              Assignment
      by Holder.  If and whenever this Note shall be
      assigned and transferred, or negotiated, including transfers to substitute
      or successor trustees, the holder hereof shall be deemed the “Holder” for
      all purposes under this Note.

            
	 
      	 
      
	
              10.

            	
              Amendment.  This
      Note may not be changed orally, but only by an agreement in writing,
      signed by the party against whom enforcement of any waiver, change,
      modification or discharge is
sought.

            

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

     

     

     

     

     

    
      	 
      	 
      
	
              11.

            	
              Costs
      and Fees.  Anything else in this Note to the
      contrary notwithstanding, in any action arising out of this Agreement, the
      prevailing party shall be entitled to collect from the non-prevailing
      party all of its attorneys’ fees.  For the purposes of this
      Note, the party who receives or is awarded a substantial portion of the
      damages or claims sought in any proceeding shall be deemed the
      “prevailing” party and attorneys’ fees shall mean the reasonable fees
      charged by an attorney or a law firm for legal services and the services
      of any legal assistants, and costs of litigation, including, but not
      limited to, fees and costs at trial and appellate
  levels.

            
	 	 
	
              12.

            	
              Governing
      Law.  It is the intention of the parties
      hereto that the terms and provisions of this Note are to be construed in
      accordance with and governed by the laws of the State of Florida, except
      as such laws may be preempted by any federal law controlling the rate of
      interest which may be charged on account of this Note.

            
	 
      	 
      
	
              13.

            	
              No
      Third Party Benefit.  The provisions and covenants
      set forth in this Agreement are made solely for the benefit of the parties
      to this Agreement and are not for the benefit of any other person, and no
      other person shall have any right to enforce these provisions and
      covenants against any party to this Agreement.

            
	 	 
	
              14.

            	
              Jurisdiction,
      Venue and Jury Trial Waiver.  The parties hereby
      consent and agree that, in any actions predicated upon this Note, venue is
      properly laid in Miami-Dade County, Florida and that the Circuit Court in
      and for Miami-Dade County, Florida, shall have full subject matter and
      personal jurisdiction over the parties to determine all issues arising out
      of or in connection with the execution and enforcement of this
      Note.

            
	 
      	 
      
	
              15.

            	
              Interpretation.  The
      term “Company” as used herein in every instance shall include the
      Company’s successors, legal representatives and assigns, including all
      subsequent grantees, either voluntarily by act of the Company or
      involuntarily by operation of law and shall denote the singular and/or
      plural and the masculine and/or feminine and natural and/or artificial
      persons, whenever and wherever the contexts so requires or properly
      applies.  The term “Holder” as used herein in every instance
      shall include the Holder’s successors, legal representatives and assigns,
      as well as all subsequent assignees, endorsees and holders of this Note,
      either voluntarily by act of the parties or involuntarily by operation of
      law.  Captions and paragraph headings in this Note are for
      convenience only and shall not affect its
  interpretation.

            
	 
      	 
      
	
              16.

            	
              WAIVER
      OF JURY TRIAL.  THE COMPANY AND HOLDER HEREBY
      KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE
      TO TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING OUT
      OF, UNDER OR IN CONNECTION WITH THIS NOTE AND ANY AGREEMENT CONTEMPLATED
      TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE
      OF DEALING, STATEMENTS, (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER
      PARTY.  THE COMPANY ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL
      IS A MATERIAL INDUCEMENT TO THE HOLDER IN EXTENDING CREDIT TO THE COMPANY,
      THAT THE HOLDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY
      TRIAL WAIVER, AND THAT THE COMPANY HAS BEEN REPRESENTED BY AN ATTORNEY OR
      HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS
      JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS
      WAIVER.

            

    

    

    

    
      	
              SIGNATURE PAGE TO FOLLOW
      -

            

    

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

     

     

     

    
 

    IN
WITNESS WHEREOF, the undersigned has caused this Convertible Promissory Note to
be executed and delivered by a duly authorized officer as of the date first
above written.

     

    
      
        	 
      	
                ACIES CORPORATION, a
      Nevada Corporation

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:
      /s/ Oleg Firer

              	 
      
	 
      	
                Oleg
      Firer, President

              	 
      

      

      
        	
                STATE
      OF FLORIDA

              	}
	 
      	 
      
	
                COUNTY
      OF MIAMI-DADE

              	}
      ss:

      

    

     

    The
foregoing promissory note was executed and acknowledged before me on June 5,
2008, by Oleg Firer, as President for ACIES Corporation, who ___ is known to me,
or ______ produced proof of his identity in the form of Florida
D.L.

    

    

    
      	 
      	 
      
	 
      	
              Notary
      Public, State of Florida

            
	 	/s/
      Adrian E. Rentas
	 
      	
              Notary’s
      name printed:

            
	 	Adrian
      E. Rentas
	 	#787760

    

    

    

    

     

     

     

    
 

    
      
        
        

      

      
        -6-

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