Document:

EXHIBIT 10.2

 

NEITHER THE ISSUANCE NOR SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

 

	Principle Basis: $205,082
    	Issue Date: June 30, 2015

 

CONVERTIBLE PROMISSORY NOTE (N6 NOTE)

 

FOR VALUE
RECEIVED, NATIONAL AUTOMATED SERVICES, INC., or it’s surviving entity whether change in name only, a NEVADA
corporation (hereinafter called the “Borrower” or “Company”), hereby promises to pay to the order of Energy
Management Capital, Inc., a Nevada corporation, or registered assigns (the “Holder”) the principle sum of $205,082
(“Maturity Amount” or “Principle Basis” or “Principle”) on January 1, 2016 (the
“Maturity Date”), and to pay interest and fees on the unpaid principle balance hereof at the annual rate of nine
percent (9%) (the “Interest Rate”) from the date hereof (the “Issue Date”) until the same becomes due
and payable, whether at maturity or upon acceleration or by prepayment or otherwise, as set forth by the terms contained
herein (the “Note” or sometimes referred to as “Agreement”).

 

This Note replaces
the previous unpaid principle Note N5 of $159,000 and $10,000 (unpaid fees) dated January 31st, 2015, having matured
on March 31st, 2015, currently earning interest at 22% (“N5”). The Principle Basis includes the unpaid
principle, fees, approximately $21,686 in interest (which includes two additional months of interest coverage till August) on
the unpaid principle and interest, and seven point five five percent (7.55%) of the unpaid principle and interest combined ( equal
to $14,396), as “Additional Consideration” in lieu of the 50% default rate right currently available under N5. Borrower
understands Additional Consideration compensates the Holder for the new terms contained herein and provides considerable benefit
to the Company including curing of previous maturity, lower interest, favorable general terms and specific warranties, lower default
interest, lower default amount, significantly favorable conversion terms for the Borrower, and borrower flexibility. If Holder
and Borrower both agree in writing, and Borrower derives benefit on its financial balance statements; Borrower may extend the
term of this Note (“Right to Extend”) and all of its provisions toa June 30, 2018 (“New Maturity Date”),
provided; the Holder is further provided Additional Consideration of the then combined unpaid Principle and calculated interest
due at the time of such exercise, and such Additional Consideration increases the Principle by no less than 108% of the Principle
Basis at Issue Date. Borrower shall provide written request as provided in this Note using Exhibit B, no sooner than 30 days after
Issue Date, but no later than 90 days after Issue Date.

 

    	 

    	 

    

 

Interest is to
be paid and received quarterly within 5 business days of the close of each calendar quarter no later than 5PM EST. Quarterly
interest is calculated by multiplying the Principle Basis by the Interest Rate (or Default Interest if an Event of Default
exists per the terms of this Note) divided by four. Holder retains the option to waive the interest payment and increase the
Principle Basis by such amount and agrees to give at least a 20 day written notice to the Borrower if this option is
exercised. Accrued and calculated Interest shall be paid either by electronic funds transfer, or by other reasonable means.
This Note may not be prepaid in whole or in part except as otherwise set forth in this Note. Any amount of principal or
interest on this Note which is not paid when due shall bear penalty interest at the rate of eighteen percent (18%) per annum
calculated from the Issue Date and accrue $250 per day from the due date thereof until the same is paid (“Default
Interest”). If Borrower determines an inability to pay Default Interest, (1) and the Event of Default is for payment of
quarterly Interest only, (2) and Holder has either notified or been notified by the Borrower of the Event of Default,
Borrower is to apply a minimum of 10 days Default Interest and increase the Principle Basis by such calculated amount. Holder
agrees that such increase cures that specific Event of Default. Nothing in the preceding prevents a new Event of Default
being triggered after the original Event of Default is cured and additional Default Interest being calculated and due for
each new Event of Default. After curing the Event of Default(s) the original Interest Rate will be reset and calculated
thereafter unless another Event of Default occurs. Interest shall commence accruing on the Issue Date, shall be computed on
the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder in accordance with the terms
hereof shall be made in lawful money of the United States of America. Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a
business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the
extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due
on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a
day on which commercial banks are authorized or required by law or executive order to remain closed.

  

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

  

The following terms shall apply to this
Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1           Conversion Right. The Holder shall
have the right, after ninety (90) days of the Issue Date, to convert all or part of the outstanding unpaid remaining amounts into
fully paid and non-assessable shares of the Company class A common stock (“Common Stock”), as such Common Stock exists
on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter
be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”).

 

1.2           Conversion Price.

 

(a)           Calculation
of Conversion Price. The conversion price (the “Conversion Price”) shall be the Conversion Price (as defined herein)(subject
to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s
securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary
distributions and similar events). The “Conversion Price” shall be at a fixed price based on the closing price of the
Common Stock as quoted by a Reporting Service (as defined herein) on the Issue Date multiplied by 135% (“Fixed Price”).
Should the closing price of the Common Stock fall greater than thirty-five percent below the Fixed Price, the Conversion Price
shall be calculated using a twenty percent (20%) discount to the lowest trading price recorded in the previous 30 Trading Days
of written notice to convert, but not more than the Fixed Price. “Trading Price” means, Common Stock of the Borrower
as of any date, the lowest trading price on the Over-the-Counter Bulletin Board, (the “OTCQB”), (the “NYSE”),
(the “NYSE MRKTS”), (the “NASDAQ”) or other U.S. national trading market as reported by a reliable reporting
service (“Reporting Service”) mutually acceptable to Borrower and Holder (i.e. Bloomberg, Scottrade, etc.). “Trading
Day” shall mean any day on which the Common Stock is traded for any period on such market, or on the principal securities
exchange or other securities market on which the Common Stock is then being traded. If the Issuer’s Common stock is chilled
for deposit at DTC and/or becomes chilled at any point while this Agreement remains outstanding, an additional eight percent discount
will be attributed to the Conversion Price defined hereof (the “Default Discount”). If during the term of this Note
any Event of Default exists, regardless if cured, and Holder learns of such default without the Borrower providing written notice
to the Holder on nature of the Event of Default, within Ten (10) days, using electronic mail (“Email”) or other acceptable
means as provided herein; the Holder shall retain the right to use the Default Discount as the new Conversion Price and Holder
shall retain the right to make all future conversions, at the Default Discount. If the Borrower is unable to issue any shares under
this provision due to the fact that there is an insufficient number of authorized and unissued shares available, the Holder promises
not to force the Borrower to issue these shares or trigger an Event of Default, provided that Borrower takes immediate steps required
to get the appropriate level of approval from shareholders or the board of directors, where applicable to raise the number of authorized
shares to satisfy the Notice of Conversion, herein as Exhibit A.

 

    	 

    	 

    

 

1.3           Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from
its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, (the “Reserve”)
to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the this Agreement. The Borrower
is required to adjust the “Reserve” at least annually or after any Event of Default. The Borrower (i) acknowledges
that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this
Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged
with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance
with the terms and conditions of this Note.

 

If, at any time the Borrower does not maintain
the Reserve it will be considered an Event of Default under Section 3.2 of the Note.

 

1.4           Method
of Conversion.

 

(a)          Mechanics of
Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time, from time to
time, 90 days after the Issue Date, by: (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section
1.4.

 

(b)          Surrender of
Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted or paid in full as provided herein.

  

(c)          Payment of Taxes.
The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery
of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or
in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless
and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the
Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have
established to the satisfaction of the Borrower that such tax has been paid.

  

(d)          Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other
reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided herein, the Borrower
shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock
issuable upon such conversion within five (5) business days after such receipt ( but in any event the fifth (5th) business
day being hereinafter referred to as the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal
amount hereof, surrender of the this Note).

  

(e)          Obligation of
Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be
the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued
and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations
under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the
right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder
shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates
for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce
the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower,
and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.
The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received
by the Borrower before 6:00 p.m., EST, on such date.

 

    	 

    	 

    

 

1.5           Removed

 

1.6           Effect of Certain Events.

  

(a)          Effect of Merger,
Consolidation, Etc. If at any time hereafter exists, the sale, conveyance or disposition of all or substantially all of the
assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than
50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower
with or into any other Person (as defined below) or Persons when the Borrower is not the survivor, “Effect of Merger”,
then the Holder has right to either: (i) accelerate all interest payments calculated through the Maturity Date of this Agreement,
had the Effect of Merger not occurred, including all remaining unpaid principle balance, and fees, and Default Interest remaining
and unpaid, or; (ii) to consider the Effect of Merger to be an Event of Default (as defined herein) pursuant to which the Borrower
or its successor shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount
equal to the Default Amount (as defined below). “Person” shall mean any individual, corporation, limited liability
company, partnership, association, trust or other entity or organization. Default Amount shall be equal to 138% multiplied by the
combined outstanding unpaid Principle Basis, Default Interest, and fees.

  

(b)          Adjustment Due
to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding, there shall be any merger, consolidation,
exchange of shares, recapitalization, reorganization, amendment to its articles of incorporation, or other similar event, as a
result of which shares of Common Stock of the Borrower shall be changed into the same, or a different number of shares of another
class, or classes of stock or securities of the Borrower, or another entity, or in case of any sale or conveyance of all or substantially
all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, “Event Default
Due to Merger Consolidation” then the Holder of this Note shall thereafter have the right “Election of Adjustment Due
to Merger Consolidation” to either i) immediately or within one year thereafter, exchange this Note for a Convertible Note
equal to the Default Amount with a conversion discount no less than, the Default Discount, to the lowest trading price in the previous
30 days to the Event of Default Due to Merger Consolidation (if merger, consolidation, or otherwise is a publicly traded entity)
or ii) to accelerate the total payment of Default Amount due within 5 business days of written notification of Event of Default
Due to Merger Consolidation and Borrower receiving the Election of Adjustment Due to Merger Consolidation. If converted into shares,
the Holder shall immediately be eligible to convert such Note and receive in lieu of the principle, interest, and penalty fees,
and/ or Default Amount in shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets
which the Holder would have been entitled to receive in such transaction had this Note been a convertible instrument converted
in full immediately prior to such transaction without regard to any limitations on conversion.

 

(c)          Ownership Transfer.
The Holder reserves the right to sell, convey, assign, or transfer the Note and all of it’s provisions, rights, and benefits
for any or no consideration the market will support with or without providing notice to the Borrower previous to the transaction.
Reasonable notice will be provided after the transaction describing the nature, date, and person(s) or entities involved in the
transaction hereinafter (“Transaction Notice”). Under such event, the borrower agrees that the ownership of Holder
is transferred and that Holder no longer has claim to the rights contained herein. Borrower agrees to transfer all such rights
and privileges of this Note to the other party listed in the Transaction Notice and provide acknowledgement to the event to the
new owner of the Note within 3 days of receipt of the Transaction Notice.

 

    	 

    	 

    

 

1.7           Prepayment
Option-Notwithstanding anything to the contrary contained in this Note, so long as the Borrower is not currently
in default of this Note and the Event of Default will be cured before or within 5days of the Optional Prepayment Notice, the
Borrower shall have the right, exercisable in five (5) Business Days post written notice to the Holder of the Note to prepay
the outstanding Note based on the Incentive Amount plus interest. Any notice of prepayment herein (Optional Prepayment
Notice) hereunder shall be delivered to the Holder of the Note at its registered address and shall state: (1) that
the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than Five
(5) Business Days from the date of the Optional Prepayment Notice (the Optional Prepayment Date) (3) the calculated interest
and principle due on the Date of the Optional Prepayment Notice, (4) and the title and address of payment per section 8(f)
of this Agreement. If the Borrower exercises its right to prepay the Note before July 31, 2015 under the provision
herein, the Holder will assign an early prepayment incentive discount of $20,000, reducing the Principle Basis on the Note
to $185,082 (the “Incentive Discount”). Should the Borrower exercise this right within 90 days of the
Issue Date, the pre-payment amount shall be the unpaid Principle Basis and unpaid interest due at such notice. Thereafter, if
the Borrower exercises this right the Borrower shall make payment of an amount (the “Incentive Amount”) equal
to 105%, multiplied by the sum of: (A) the then outstanding Principle amount of this Note plus (B) any and all
accrued and unpaid interest on the unpaid Principle amount of this Note to the Optional Prepayment Notice. If the Company
delivers the Optional Prepayment Notice and fails to pay the Optional Prepayment due to the Holder of the Note within five
(5) business days following the Optional Prepayment Date on either the Incentive Discount or the Incentive Amount, the new
incentive amount shall increase to 109% of the Principle Basis, and Conversion Price shall be increased to the
Default Discount at the option of the Holder.

  

ARTICLE II. CERTAIN COVENANTS

 

2.1           Negative
Covenants As long as any portion of this Note remains outstanding, unless the Holder shall have otherwise given prior written
consent, the Borrower shall not, and shall not, directly or indirectly:

 

(a)           amend its charter
documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely
affects any rights of the Holder;

 

(b)           repay, repurchase
or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common Stock
equivalents;

  

(c)           pay cash dividends or distributions on any equity securities
of the Borrower;

  

(d)           sell, lease or otherwise
dispose of any portion of its assets outside the ordinary course of business, other than de minimis sales. Any consent to the disposition
of any assets may be conditioned on a specified use of the proceeds of disposition;

  

(e)           so long as the Borrower
shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, lend money, give
credit or make advances to any person, firm, joint venture or corporation, with the limitation to, officers, directors, employees,
subsidiaries and affiliates of the Borrower, made in the ordinary course of business;

  

(f)           repay, or prepay
any other indebtedness of the Borrower (excluding it’s subsidiary(s)) without the written approval by the Holder unless it
is in the ordinary course of business, materially improves the shareholder value of the Borrower, and is part of its overall strategic
execution.

  

ARTICLE III. EVENTS OF DEFAULT

 

The
following are events of default (each, an “Event of Default”) and shall result in Default Interest, Default Discount,
and acceleration of payment due:

  

3.1           Failure to Pay
Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at
maturity, upon acceleration, or otherwise.

  

3.2           Conversion
and the Shares. The Borrower fails to issue shares of Common Stock to the Holder upon exercise by the Holder of the
conversion rights of the Holder in accordance with the terms of this Note.

 

    	 

    	 

    

 

3.3           Breach
of Covenants. The Borrower breaches any covenant or term or condition contained in this Note and such breach continues for
a period of ten (10) days after written notice thereof to the Borrower from the Holder;

  

3.4           Breach of Representations
and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given
in writing pursuant hereto or in connection herewith shall be false or misleading in any material respect when made and the breach
of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder;

 

3.5           Bankruptcy, Receiver
or Trustee. The Borrower or any subsidiary of the Borrower shall commence, announce, or there shall be commenced against the
Borrower or any subsidiary of the Borrower under any applicable bankruptcy or insolvency laws as now or hereafter in effect or
any successor thereto, or the Borrower or any subsidiary of the Borrower commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether
now or hereafter in effect relating to the Borrower or any subsidiary of the Borrower or there is commenced against the Borrower
or any subsidiary of the Borrower any such bankruptcy, insolvency or other proceeding which remains undismissed or the Borrower
or any subsidiary of the Borrower makes a general assignment for the benefit of creditors; or the Borrower or any subsidiary of
the Borrower shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they
become due; or the Borrower or any subsidiary of the Borrower shall by any act or failure to act expressly indicate its consent
to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Borrower or any subsidiary
of the Borrower for the purpose of effecting any of the foregoing;

 

3.6           Judgments.
Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or
any of its property or other assets for more than $250,000, and shall remain unvacated, unbonded or unstayed for a period of twenty
(20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld;

 

3.7           Delisting of Common
Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCQB or an equivalent replacement
exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or other Stock Exchange or there
shall be no bid price for the stock for a period of two business days.

 

3.8           Failure to Comply
with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower
shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9           Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

  

3.10         Cessation of
Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as
such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern”
shall not be an admission that the Borrower cannot pay its debts as they become due.

 

ARTICLE IV. MISCELLANEOUS

 

4.1           Failure or Indulgence
Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and
not exclusive of, any rights or remedies otherwise available.

 

    	 

    	 

    

 

4.2           Notices. All
notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and,
unless otherwise specified herein, shall be (i) transmitted by hand delivery, telegram, electronic mail
(“Email”) or facsimile, or by US Mail, addressed as set forth below or to such other address as such party shall have
specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall
be:

	 	 
	If to the Borrower, to:	If to the Holder:
	NATIONAL AUTOMATED SERVICES, INC.	Energy Management Capital, Inc.
	8965 S. EASTERN #120E 	9380 Central Avenue NE, Suite 340,
    
	LAS VEGAS, NV 89123	Blaine MN, 55434
	Rchance@nasv.biz	Beadle@emcapital.biz
	Attn: Mr. Robert Chance, CEO	Attn: Mr. Beadle, President

 

4.3          Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term
“Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes
issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

  

4.4          Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and
its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a)
of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with
a bona fide margin account or other lending arrangement.

  

4.5          Cost of Collection.
If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable
attorneys’ fees.

  

4.6          Governing Law.
This Note shall be governed by and construed in accordance with the laws of the State of Minnesota without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state courts of Minnesota or in the federal courts located in the state and county of Minnesota. The
parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder
waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

4.7          Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for
a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law
or in equity, and in addition to the penalties assessable herein, and to enforce specifically the terms and provisions thereof,
without the necessity of showing economic loss and without any bond or other security being required.

 

    	 

    	 

    

 

4.8          Severability.  If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and
if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate
of interest. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Borrower from paying all or any portion of the principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture,
and the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder,
but will suffer and permit the execution of every such as though no such law has been enacted.

  

4.9          No trading.
Holder represents and warranties that it has not nor has it engaged any party on behalf of the Holder to sell securities of the
Company’s Common Stock in the open market within 90 days of, after, and including the Issue Date. Holder provides additional
warranty that it will not, nor will it engage other parties on behalf of the Holder to sell Common Stock in the open market within
30 days of exercising its right to convert as a means of reducing its conversion price.

 

(Signature Page Follow)

 

    	 

    	 

    

  

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this June 30, 2015.

 

	 	 	 
	 	National Automation Services, Inc.
	 	 	 
	 	By:	/s/ Robert Chance
	 	 	President & Chief Executive Officer

 

	 	 	Agreed to:
	 	 	 
	 	 	/s/ Chris Beadle
	 	 	Energy Management Capital, Inc.

 

    	 

    	 

    

 

Exhibit A

  

Notice of Conversion

 

The undersigned hereby elects to
convert $                       of
the principal of the Note N6 (Indicated below) into Shares of Common Stock of NATIONAL AUTOMATED SERVICES, INC., a NEVADA
Corporation (the “Borrower”) according to the conditions of the Convertible Note of the Borrower dated as
of June 1, 2015 (the “Note”). No fee will be charged to the Holder or Holder’s Custodian for any
conversion, except for transfer taxes, if any.

  

Box Checked as to applicable instructions:

	 	 	 	 
	 	[  ]	The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name of DTC Prime Broker:	 

 

	 	 	 	 
	 	 	Account Number:	 
	 	 	 
	 	[  ]	The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below:
	 	 	 
	 	 	Energy Management Capital, Inc. a Nevada Corporation
	 	 	EIN #: 46-4717146

	 	 	 	 
	Date of Conversion: 	 	 	 
	 	 	 	 
	Conversion Price:	 	 	 
	 	 	 	 
	Shares to Be Delivered:	 	 	 
	 	 	 	 
	Remaining Principal Balance Due	 	 	 
	 	 	 	 
	After This Conversion:	 	 	 
	 	 	 	 
	Signature	 	 	 
	 	 	 	 

 

    	 

    	 

    

 

Exhibit B

  

Right to Extend

 

The undersigned hereby
accepts the Borrower’s request for Right to Extend the Note, with original Principle Basis, $205,082.00 according to the
conditions and terms of the Convertible Note N6 of the Borrower dated as of June 1, 2015 (the “Note”) and extended
to June 1, 2018 (the “New Maturity Date”). Energy Management Capital, Inc., a Nevada Corporation (“Holder”)
understands that it shall receive as Additional Consideration (defined in Note) no less than 108% of the Principle Basis, to be
added to all unpaid amounts of Principle, forming (“New Principle Basis”), in which all interest to be calculated from
the Issue Date to the Maturity Date and /or until paid in full now uses the New Principle Basis. Both Borrower and Holder agree
to all other conditions and terms of the Note with exception to Borrower’s right to prepayment and any right to extend maturity
past the New Maturity Date.

 

This serves
as written acceptance of change in Maturity and change in Principle Basis on the Note only.

  

IN WITNESS WHEREOF, Borrower has caused this Right to Extend
on the Note to be signed in its name by its duly,

 

Authorized Officer

 

below: Request By:

	 	 	 	 
	Authorized Officer Signature of Borrower:	 	 	 
	 	 	 	 
	Print Name:	 	 	 
	 	 	 	 
	Date:	 	 	 
	 	 	 	 
	Acceptance Signature By:	 	 	 
	 	 	 	 
	Holder:	 	 	 
	 	 	 	 
	Date:Exhibit 10.3

 

NEITHER
THE ISSUANCE NOR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.  

 

	Principal Amount: $10,000	Issue Date: July 15,
    2015

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, NATIONAL ENERGY SERVICES, INC., a NEVADA corporation (hereinafter called the “Borrower”),
hereby promises to pay to the order of Jeffery Krueger, an individual investor, or registered assigns (the “Holder”)
the sum of Ten Thousand (10,000), a  six month note  to Jan 15, 2016 (the “Maturity Date”), and
to pay interest on the unpaid principal balance hereof at the rate of ten percent (10%) (The “Interest Rate”) per
annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon
acceleration or by prepayment or otherwise, compounded on a monthly basis. This Note may not be prepaid in whole or in part except
as otherwise explicitly set forth in Section 1.9 hereof. Interest shall commence accruing on the Issue Date, shall be computed
on the basis of a 365-day year and the actual number of days elapsed. All payments d u e hereunder (to the extent not converted
into common stock, (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the
United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written
notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note
is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day
and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due
date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this
Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks
in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term
used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Exchange Agreement
dated the date hereof, pursuant to which this Note was originally issued (the “Exchange Agreement”). 

 

This
Note is free from all taxes, liens, claims and encumbrances w i t h respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following terms shall apply to this Note: 

 

ARTICLE
I. CONVERSION RIGHTS 

 

1.1
         Conversion Right. The Holder shall have the right from time to
time, and at any time during the period beginning 6 mo n t h s after the date of this Note and ending on the later of (i) the
Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or
Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the
outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such
Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such
Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”)
determined as provided herein (a “Conversion”); provided, however, that in no event shall the
Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares
of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the
unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise
analogous to the limitations contained herein). The number of shares of Common Stock to be issued upon each conversion of
this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in
effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of
Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile (or by other means resulting in, or reasonably expected to result in, notice) to the
Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term
“Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) at the Borrower’s option, accrued and unpaid interest,
if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, provided, however, that
the Company shall have the right to pay any or all interest in cash plus (3) at the Borrower’s option, Default
Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the
Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

    	1

    	 

    

  

1.2
           Conversion Price. The conversion price (the “Conversion Price”)
shall be at a fixed price. Conversion Price (as defined herein)(subject to equitable adjustments for stock splits, stock dividends
or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower,
combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Fixed Conversion
Price” shall mean $0.05. If the Trading Price cannot be calculated for such security on such date in the manner
provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority
in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the
Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is traded for any period
on the OTCQB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

1.3
           Method of Conversion. 

 

(a)
         Mechanics of Conversion. Subject to Section 1.1, this Note may be
converted by the Holder in whole or in part at any time from time to time after the Issue Date, by : (A) submitting to the Borrower
a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior
to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the
Borrower. 

(b)
         Surrender of Note Upon Conversion. Notwithstanding anything to the
contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required
to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The
Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or
shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of
this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall, prima
facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of
this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this
Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like
tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the
aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and
unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof. 

(c)
         Payment of Taxes. The Borrower shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities
or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not
be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other
than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the
issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the
Borrower that such tax has been paid.

(d)
         Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower
from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting
the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and
delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3)
business days after such receipt ( but in any event the fifth (5th) business day being hereinafter referred to as the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of the this Note) in accordance
with the terms hereof and the Exchange Agreement.

(e)
         Obligation of Borrower to Deliver Common Stock. Upon receipt by the
Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such
conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect
such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion
of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash
or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein,
the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective
of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the
recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any
other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which
might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified
in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before
6:00 p.m., New York, New York time, on such date.

 

 

    	2

    	 

    

 

(f)

         Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower’s transfer agent is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

(g)
         Failure to Deliver C o mmo n S t o c k Prior to Deadline. Without
in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties
agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than
a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower
shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common
Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or,
at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has
accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with
the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms
of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure,
attempt to frustrate, and interference with such conversion right are difficult if not impossible to qualify. Accordingly the
parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified. 

 

1.5
            Concerning the Shares. The shares of Common Stock
issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective
registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect
that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii)
such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv)
such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Exchange Agreement).
Except as otherwise provided in the Exchange Agreement (and subject to the removal provisions set forth below), until such time
as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately
sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective
registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits
removal of the legend, shall bear a legend substantially in the following form, as appropriate: 

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 

 

The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not
accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration,
such as Rule 144 or Regulations S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

    	3

    	 

    

 

1.6             Effect
of Certain Events.

(a)
          Effect of Merger, Consolidation, Etc. At the option of the
Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the
Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed
of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below)
or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article
III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such
transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof.
“Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other
entity or organization.

(b)          Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all
of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of
all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon
the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that
the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least
fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no
such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other
similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor
or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

(c)          Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets)
to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this
Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such
Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such
Distribution, but only if such Distribution occurs within 365 days of the date of this Note.

(d)
          Purchase Rights. If, at any time when any Notes are issued
and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property
(the “Purchase Rights”) pro rata to the record holders of any class of Common Stock, then the Holder of this Note
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder
could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note
(without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of
Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

(e)
          Notice of Adjustments. Upon the occurrence of each adjustment
or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense,
shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall,
upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment
or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount,
if any, of other securities or property which at the time would be received upon conversion of the Note. 

 

1.7
             Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market
on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant
to this Note and the other Notes issued pursuant to the Exchange Agreement more than the maximum number of shares of Common Stock
that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is
then traded (the “Maximum Share Amount”), which shall be 9.99% of the total shares outstanding on the Closing Date
(as defined in the Exchange Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations,
capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share
Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of
any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or
any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum Share Amount, in
lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note.

 

    	4

    	 

    

 

1.8
          Status as Shareholder. Upon submission of a Notice of Conversion
by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would
exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares
of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate,
excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise
available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding
the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day
after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the
Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain
the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as
practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect
that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including,
without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby
for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect
to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note. 

 

1.9
          Prepayment Option-Notwithstanding anything to the contrary
contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, the Borrower shall have
the right, exercisable in ten (10) Business Days post written notice to the Holder of the Note to prepay the outstanding Note
with principal and accrued interest. Any notice of prepayment herein (Optional Prepayment Notice) hereunder shall be delivered
to the Holder of the Note at its registered address and shall state: (1) that the Borrower is exercising its right to prepay the
Note, and (2) the date of prepayment which shall be not more than Five (5) Business Days from the date of the Optional Prepayment
Notice (the Optional Prepayment Date) (3) the calculated interest and principle due on the Date of the Optional Prepayment Notice,
(4) the title and address of payment per section 8(f) of this Agreement. If the Borrower exercises its right to prepay the Note,
the Borrower shall make payment to the Holder of an amount (the “Optional Prepayment Amount”) equal to 135% ,multiplied
by the sum of: (A) the then outstanding principal amount of this Note plus (B) accrued and unpaid interest on the unpaid
principal amount of this Note to the Optional Prepayment Notice. If the Company delivers the Optional Prepayment Notice and fails
to pay the Optional Prepayment due to the Buyer of the Note within two (2) business days following the Optional Prepayment Date,
the Company shall forfeit its right to prepay the Note. 

 

ARTICLE
II. CERTAIN COVENANTS 

 

2.1
          Negative Covenants As long as any portion of this Note remains outstanding,
unless the holders of all of the outstanding Notes shall have otherwise given prior written consent, the Borrower shall not, and
shall not permit any of its subsidiaries (whether or not a subsidiary on the Issue Date) to, directly or indirectly:

(a)
          other than indebtedness existing as of the Initial Date or incurred
in the ordinary course of business for trade expenses (not borrowed money) (“Permitted Indebtedness”), enter into,
create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited
to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or
any income or profits therefrom, which indebtedness shall be senior is respect to security to this Note;

(b)

          other than Permitted Liens (as defined below), enter into, create, incur, assume or suffer to exist any liens, charges or encumbrances
of any kind or nature (“Liens”), on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom. “Permitted Lien” means the individual and collective reference
to the following: (a) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments
and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves
(in the good faith judgment of the management of the Borrower) have been established in accordance with GAAP; (b) Liens imposed
by law which were incurred in the ordinary course of the Borrower’s business, such as carriers’, warehousemen’s
and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in the ordinary course of the Borrower’s
business, and which (x) do not individually or in the aggregate materially detract from the value of such property or assets or
materially impair the use thereof in the operation of the business of the Borrower and its consolidated subsidiaries or (y) are
being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable
future the forfeiture or sale of the property or asset subject to such Lien; (c) Liens incurred in connection with Permitted Indebtedness
under clauses (a), and (b) thereunder; and (d) Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder,
provided that such Liens are not secured by assets of the Borrower or its subsidiaries other than the assets so acquired or leased.
Other permitted liens: Borrower and its subsidiaries may incur liens and indebtedness for purchase of equipment and property that
will be used in the ordinary course of Borrower’s or its subsidiaries’ businesses, providing that such liens and indebtedness
are of a limited purpose for such a purchase, and such equipment or property has a fair market value greater than 60% of the debt
or lien incurred.

(c)

          amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

(d)
          repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common
Stock equivalents;

 

    	5

    	 

    

 

(e)
          repay, repurchase or offer to repay, repurchase or otherwise acquire
any indebtedness, other than the Notes if on a pro-rata basis, other than regularly scheduled principal and interest payments
as such terms are in effect as of the Issue Date, provided that such payments shall not be permitted if, at such time, or after
giving effect to such payment, any Event of Default exist or occur;

(f)          pay
cash dividends or distributions on any equity securities of the Borrower;

(g)         sell,
lease or otherwise dispose of any portion of its assets outside the ordinary course of business, other than de minimis sales.
Any consent to the disposition o f any assets may be conditioned o n a specified u s e of the proceeds of disposition;

(h)         so
long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent,
lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers,
directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed
on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course
of business or (c) not in excess of $1,000;

(i)          enter
into any transaction with any affiliate of the Borrower which would be required to be disclosed in any public filing with the
Commission, unless such transaction is made on an arm’s length basis and expressly approved by a majority of the disinterested
directors of the Borrower (even if less than a quorum otherwise required for board approval); or

(j)          enter
into any agreement with respect to any of the foregoing. 

 

ARTICLE
III. EVENTS OF DEFAULT 

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
          Failure to Pay Principal or Interest. The Borrower fails to
pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise. 

 

3.2
          Conversion and the Shares. The Borrower fails to issue shares
of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise
by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its
transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued
to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its
transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing( electronically
or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise
pursuant to this Note as and when required by this Note, or fails to remove ( or directs its transfer agent not to remove or impairs,
delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions
in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend
to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement,
statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder
shall have delivered a Notice of Conversion. 

 

3.3
          Breach of Covenants. The Borrower breaches any material covenant
or other material term or condition contained in this Note and any collateral documents including but not limited to the Exchange
Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder; 

 

3.4
          Breach of Representations and Warranties. Any representation
or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection
herewith (including, without limitation, the Exchange Agreement), shall be false or misleading in any material respect when made
and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with
respect to this Note or the Exchange Agreement; 

 

3.5
          Bankruptcy, Receiver or Trustee. The Borrower or any
subsidiary of the Borrower shall commence, or there shall be commenced against the Borrower or any subsidiary of the Borrower
under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Borrower or
any subsidiary of the Borrower commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in
effect relating to the Borrower or any subsidiary of the Borrower or there is commenced against the Borrower or any
subsidiary of the Borrower any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61
days; or the Borrower or any subsidiary of the Borrower is adjudicated insolvent or bankrupt; or any order of relief or other
order approving any such case or proceeding is entered; or the Borrower or any subsidiary of the Borrower suffers any
appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property
which continues undischarged or unstayed for a period of sixty one (61) days; or the Borrower or any subsidiary of the
Borrower makes a general assignment for the benefit of creditors; or the Borrower or any subsidiary of the Borrower shall
fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or
the Borrower or any subsidiary of the Borrower shall call a meeting of its creditors with a view to arranging a composition,
adjustment or restructuring of its debts; or the Borrower or any subsidiary of the Borrower shall by any act or failure to
act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action
is taken by the Borrower or any subsidiary of the Borrower for the purpose of effecting any of the foregoing;

 

    	6

    	 

    

 

3.6
          Indebtedness Default. The Borrower or any subsidiary of the
Borrower shall default in any of its obligations under any other Note or any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of the Borrower or any subsidiary
of the Borrower in an amount exceeding $100,000, whether such indebtedness now exists or shall hereafter be created and such default
shall result in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become
due and payable; and Borrower or any subsidiary of Borrower fails to timely cure said default upon reasonable notice of default.
If Borrower is contesting that a default occurred on any other Note or any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, it shall not be considered a default of this
Note until such default is determined to exist and be valid by binding arbitration or a court of competent jurisdiction 

 

3.7
          Delisting of Common Stock; DTC Chill. The Borrower shall fail
to maintain the listing of the Common Stock on at least one of the OTCQB or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange or there shall be no bid price
for the stock for a period of one business day OR the Depository Trust Company places a chill on new deposits of Common Stock,
which is not removed within ten (10) trading days; 

 

3.8
          Failure to Comply with the Exchange Act. The Borrower shall
fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting
requirements of the Exchange Act. 

 

3.09         Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business. 

 

3.10
         Cessation of Operations. Any cessation of operations by Borrower
or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure
of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot
pay its debts as they become due. 

 

3.11
         Maintenance of Assets. The failure by Borrower to maintain any material
intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now
or in the future). 

 

3.12
          Replacement of Transfer Agent. In the event that the Borrower
proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, fully
executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Exchange Agreement (including
but not limited to the provision to irrevocable reserve shares of Common Stock in the Reserved Amount) signed by the successor
transfer agent to Holder and the Borrower. 

 

3.13
          Delisting. From and after the initial trading, listing or quotation
of the Common Stock on a Principal Market, an event resulting in the Common Stock no longer being traded, listed or quoted on
a Principal Market; failure to comply with the requirements for continued quotation on a Principal Market; or notification from
a Principal Market that the Borrower is not in compliance with the conditions for such continued quotation and such non-compliance
continues for seven (7) trading days following such notification. 

 

3.14
          Cross-Default. Notwithstanding anything to the contrary
contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or
other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or
grace periods, shall, at the option of the Borrower, be considered a default under this Note and the Other Agreements, in
which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the
terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other
Agreements” means collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the
benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided,
however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of
the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of
Borrower to the Holder.

 

    	7

    	 

    

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE
SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGTAIONS HEREUNDER,
AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation
of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8,
3.9, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17, 3.18, 3.19, and/or 3.20 exercisable through the delivery of written notice to the
Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified in the remaining
sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in
Section 3.1 hereof), Borrower must remedy or cure the Default described within the Default Notice within ten (10) business days
or the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations
hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount
of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the
“Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or
(x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal
amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively
be known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity
value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default
Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion
Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of
such breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date, multiplied
by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event
of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts
payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are
expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder
shall be entitled to exercise all other rights and remedies available at low or in equity.

  

If
the Borrower fails to pay the Default Amount within ten (10) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect.

 

    	8

    	 

    

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
          Failure or Indulgence Not Waiver. No failure or delay on the
part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right,
power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available. 

 

4.2
          Notices. All notices, demands, requests, consents, approvals,
and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be
(i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered
by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or
other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by
facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below
(if delivered on a business day during normal business hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or
(b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

	 	 	 
	 	If to the Borrower, to:	 
	 	NATIONAL ENERGY SERVICES, INC.	 
	 	8965 S. EASTERN #120E	 
	 	LAS VEGAS, NV 89123	 
	 	Attn: Mr. Robert Chance, CEO	 
	 	 	 
	 	If to the Holder:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

4.3
          Amendments. This Note and any provision hereof may only be
amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto,
as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Exchange Agreement)
as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

 

4.4
          Assignability. This Note shall be binding upon the Borrower
and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee
of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything
in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement. 

 

4.5          Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees. 

 

4.6
          Governing Law. This Note shall be governed by and
construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action
brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the
state courts of Nevada or in the federal courts located in the state and county of Nevada. The parties to this Note hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by
jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the
event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform to such statute or rule of law. Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any
agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.

 

    	9

    	 

    

 

4.7
          Certain Amounts. Whenever pursuant to this Note the Borrower
is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that
time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual
damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid
by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the
opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this
Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that
such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash
payment without the opportunity to convert this Note into shares of Common Stock. 

 

4.8
          Exchange Agreement. By its acceptance of this Note, each party
agrees to be bound by the applicable terms of the Exchange Agreement. 

 

4.9
          Notice of Corporate Events. Except as otherwise provided below,
the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note
into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower’s shareholders
(and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record
of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution,
any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization)
any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders
who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of
the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder,
at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction
or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution,
right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other
event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the
Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section
4.9. 

 

4.10
          Remedies. The Borrower acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated
hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be
inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the
Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable
herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically
the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being
required. Both the Borrower and the Holder may seek specific performance of the terms and provisions herein. 

 

4.11
          Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain
in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all
other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum
permitted rate of interest. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other
law which would prohibit or forgive the Borrower from paying all or any portion of the principal of or interest on this Note as
contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance
of this indenture, and the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of
any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein
granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this July 15, 2015. 

	 	 	 
	 	NATIONAL ENERGY SERVICES, INC.
	 	 	 
	 	By:	/s/ Robert Chance
	 	 	Robert Chance
	 	 	Chief Executive Office
	 	 	 
	 	By:	/s/ Jeremy W Briggs
	 	 	Jeremy Briggs
	 	 	Chief Financial Officer
	 	 	 
	 	 	NOTE HOLDER:
	 	 	 
	 	By:	/s/ Jeffery Krueger

 

    	11

    	 

    

 

Exhibit
A. 

 

NOTICE
OF CONVERSION

 

The undersigned hereby elects to convert $                                                 of
the principal amount of the Note (defined below) into Shares of Common Stock of NATIONAL ENERGY SERVICES, INC., a(n) NEVADA Corporation
(the “Borrower”) according to the conditions of the Convertible Note of the Borrower dated as of _________________
(the “Note”). No fee will be charged to the Holder or Holder’s Custodian for any conversion, except for
transfer taxes, if any. 

 

Box
Checked as to applicable instructions: 

 

[   ]
       The Borrower shall electronically transmit the Common Stock issuable pursuant
to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission
system (“DWAC Transfer”). 

 

Name
of DTC Prime Broker: _____________________________________________________

 

Account
Number: ____________________________________________________________

 

[  ]
        The undersigned hereby requests that the Borrower issue a certificate
or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation
attached hereto) in the name(s) specified immediately below: 

	 	 	 
	Date of Conversion:	 	 
	 	 	 
	Conversion Price:	 	 
	 	 	 
	Shares to Be Delivered:	 	 
	 	 	 
	Remaining Principal Balance Due	 	 
	After This Conversion:	 	 
	 	 	 
	Signature:	 	 
	 	 	 
	Print Name:	 	 

    	12

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