Document:

Walton, Hanson & Co. August 4, 2006 Note

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), NOR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND HAS BEEN TAKEN
      FOR INVESTMENT PURPOSES ONLY. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR
      HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH
      SECURITIES UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT
      AN
      OPINION OF COUNSEL SATISFACTORY TO BORROWER THAT SUCH REGISTRATION AND
      QUALIFICATION ARE NOT REQUIRED.

     

    Walton,
      Hansen & Co

     

    NOTE

     

    $24,808.00                                                                                                                                                                                                                                                                                   
       August 4, 2006

                                                                                                                                                                                                                                                                                                                     
       Dallas, TX

     

    FOR
      VALUE RECEIVED,
      IElement
      Corporation (“Maker”) promises to pay to the order of Walton, Hansen & Co
      (the “Lender”), at the offices located at 17194 Preston Road Ste 102, PMB 341 in
      Dallas, TX, the principal sum of Twenty Four Thousand Eight Hundred Eight
      Dollars ($24,808.00), together with all accrued interest thereon, upon the
      terms
      and conditions specified below.

     

    1.
      Interest.
      Interest
      shall accrue and be payable monthly on the balance outstanding under this Note
      at the rate of 10.0% per annum, compounded monthly, or at the maximum rate
      allowed by law, whichever is lower.

     

    2.
      Due
      Date.
      One half
      of the principal balance ($12,404.00) shall become due and payable upon the
      Maker securing one million dollars ($1,000,000) in funding via conversion of
      Maker’s outstanding warrants into shares of Maker’s common stock. The remaining
      principal balance and interest shall become due and payable upon the Maker
      securing an additional one million dollars (total of $2,000,000) in funding
      via
      conversion of Maker’s outstanding warrants into shares of Maker’s common
      stock.

     

    3.
      Payment.
      Payment
      shall be made in lawful tender of the United States and shall be applied first
      to the payment of principal and then to all accrued and unpaid interest.
      Prepayment of the principal balance of this Note, together with all accrued
      and
      unpaid interest on the portion of principal so prepaid, may be made in whole
      or
      in part at any time without penalty.

     

    4.
      Events
      of Acceleration.
      The
      entire unpaid principal balance of this Note, together with all accrued and
      unpaid interest, shall become immediately due and payable prior to the specified
      due date of this Note upon the occurrence of one or more of the following
      events: 

     

    A.
      the
      expiration of the thirty (30)-day period following the date the Maker ceases
      for
      any reason to pay its monthly obligations to the Lender; or 

     

    B.
      the
      insolvency of the Maker, the commission of any act of bankruptcy by the Maker,
      the execution by the Maker of a general assignment for the benefit of creditors,
      the filing by or against the Maker of any petition in bankruptcy or any petition
      for relief under the provisions of the Federal bankruptcy act or any other
      state
      or Federal law for the relief of debtors and the continuation of such petition
      without dismissal for a period of thirty (30) days or more, the appointment
      of a
      receiver or trustee to take possession of any property or assets of the Maker
      or
      the attachment of or execution against any property or assets of the Maker;
      or

     

    C.
      an
      acquisition of the Company (whether by merger, sale of all or substantially
      all
      of the Company’s assets or sale of more than fifty percent (50%) of the
      Company’s outstanding voting securities) for consideration payable in cash or
      freely-tradable securities; provided,
      however, that if the Pooling of Interest Method, as described in Accounting
      Principles Board Opinion No. 16, is used to account for the acquisition for
      financial accounting purposes, then acceleration of this Note shall not occur
      until the end of the sixty (60)-day period immediately following the close
      of
      the applicable transfer restriction period required under Accounting Series
      Release Numbers 130 and 135.

     

    5.
      Collection.
      If
      action
      is instituted to collect this Note, the Maker promises to pay all costs and
      expenses (including reasonable attorney fees) incurred in connection with such
      action.

     

    6.
      Waiver.
      A waiver
      of any term of this Note or of any of the obligations secured thereby must
      be
      made in writing and signed by a duly-authorized officer of the Corporation
      and
      any such waiver shall be limited to its express terms.

     

    No
      delay
      by the Corporation in acting with respect to the terms of this Note shall
      constitute a waiver of any breach, default, or failure of a condition under
      this
      Note or the obligations secured thereby.

     

    7.
      Construction.
      Each
      party acknowledges that it had the opportunity to have its legal counsel review
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    8.
      Conflicting
      Agreements.
      In the
      event of any inconsistencies between the terms of this Note and the terms of
      any
      other document related to the loan evidenced by the Note, the terms of this
      Note
      shall prevail.

     

    9.
      Governing
      Law.
      This
      Note shall be construed in accordance with the laws of the State of Texas
      without resort to that State’s conflict-of-laws rules.

     

    

     

    IElement
      Corporation “MAKER”

     

    August
      4,
      2006

    

      /s/
        Ivan
        Zweig

      -----------------------

      Ivan
        Zweig,

      Director
        & Chief Executive Officer

      IElement
        CorporationWilliam Goatley September 5, 2006 Note

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), NOR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND HAS BEEN TAKEN
      FOR INVESTMENT PURPOSES ONLY. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR
      HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH
      SECURITIES UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT
      AN
      OPINION OF COUNSEL SATISFACTORY TO BORROWER THAT SUCH REGISTRATION AND
      QUALIFICATION ARE NOT REQUIRED.

     

    William
      Goatley

     

    NOTE

     

    $60,000                                                                                                                                                                                                                                                                                     September
      5, 2006

                                                                                                                                                                                                                                                                                                                      
      Dallas,
      TX

     

    FOR
      VALUE RECEIVED,
      IElement
      Corporation (“Maker”) promises to pay to the order of William Goatley (the
“Lender”), at the offices located at 17194 Preston Road Ste 102, PMB 341 in
      Dallas, TX, the principal sum of Sixty Thousand Dollars ($60,000), together
      with
      all accrued interest thereon, upon the terms and conditions specified
      below.

     

    1.
      Interest.
      Interest
      shall accrue and be payable monthly on the balance outstanding under this Note
      at the rate of 10.0% per annum, compounded monthly, or at the maximum rate
      allowed by law, whichever is lower.

     

    2.
      Maturity.
      The full
      principle balance and interest will become due and payable six (6) months from
      the date funds are received.

     

    3.
      Payment.
      Payment
      shall be made in lawful tender of the United States and shall be applied first
      to the payment of principal and then to all accrued and unpaid interest.
      Prepayment of the principal balance of this Note, together with all accrued
      and
      unpaid interest on the portion of principal so prepaid, may be made in whole
      or
      in part at any time without penalty.

     

    4.
      Conversion.
      Lender
      shall have the right to convert the balance of this note to shares of Maker’s
      common stock at any time prior to maturity and at a rate equal to the lowest
      rate offered to any note holder within 6 (six) months after the date of this
      note.

     

    5.
      Collateral. Lender
      shall have the right to file a UCC lien against Maker’s assets for the duration
      of the term.

     

    6.
      Events
      of Acceleration.
      The
      entire unpaid principal balance of this Note, together with all accrued and
      unpaid interest, shall become immediately due and payable prior to the specified
      due date of this Note upon the occurrence of one or more of the following
      events: 

     

     
A.
       the expiration of the thirty (30)-day period following the date the Maker
      ceases for any reason to pay its monthly obligations to the Lender;
      or

     

    
      	B.  	
              the
                insolvency of the Maker, the commission of any act of bankruptcy
                by the
                Maker, the execution by the Maker of a general assignment for the
                benefit
                of creditors, the filing by or against the Maker of any petition
                in
                bankruptcy or any petition for relief under the provisions of the
                Federal
                bankruptcy act or any other state or Federal law for the relief of
                debtors
                and the continuation of such petition without dismissal for a period
                of
                thirty (30) days or more, the appointment of a receiver or trustee
                to take
                possession of any property or assets of the Maker or the attachment
                of or
                execution against any property or assets of the Maker; or
                

            

    

     

    
      	C.  	
              an
                acquisition of the Company (whether by merger, sale of all or
                substantially all of the Company’s assets or sale of more than fifty
                percent (50%) of the Company’s outstanding voting securities) for
                consideration payable in cash or freely-tradable securities; provided,
                however, that if the Pooling of Interest Method, as described in
                Accounting Principles Board Opinion No. 16, is used to account for
                the
                acquisition for financial accounting purposes, then acceleration
                of this
                Note shall not occur until the end of the sixty (60)-day period
                immediately following the close of the applicable transfer restriction
                period required under Accounting Series Release Numbers 130 and
                135.

            

    

     

    7.
      Collection.
      If
      action
      is instituted to collect this Note, the Maker promises to pay all costs and
      expenses (including reasonable attorney fees) incurred in connection with such
      action.

     

    8.
      Waiver.
      A waiver
      of any term of this Note or of any of the obligations secured thereby must
      be
      made in writing and signed by a duly-authorized officer of the Corporation
      and
      any such waiver shall be limited to its express terms.

     

    No
      delay
      by the Corporation in acting with respect to the terms of this Note shall
      constitute a waiver of any breach, default, or failure of a condition under
      this
      Note or the obligations secured thereby.

     

    
      	a.  	
              Construction.
                Each party acknowledges that it had the opportunity to have its legal
                counsel review this Note and, therefore, stipulates that the rule
                of
                construction that ambiguities are to be resolved against the drafting
                party shall not be applied in the interpretation of this Note to
                favor any
                party against the other.

            

    

     

    
      	b.  	
              Conflicting
                Agreements.
                In
                the event of any inconsistencies between the terms of this Note and
                the
                terms of any other document related to the loan evidenced by the
                Note, the
                terms of this Note shall prevail.

            

    

     

    
      	c.  	
              Governing
                Law.
                This Note shall be construed in accordance with the laws of the State
                of
                Texas without resort to that State’s conflict-of-laws
                rules.

            

    

     

    
      	d.  	
              Wire
                Transfer Instructions.

            

    

     

    Swift
      Code:                           
      BOFA
      AUS
      3N

     

    Bank
      ABA/Routing #:               
         026
      00
      9593

     

    Account
      Number:                       
          0047
      8238
      4943

     

    Name
      on
      Bank
      Account:                 
              
IElement

     

    Bank
      Name:                      
         Bank
      of
      America

     

    Bank
      Address:              
      901
      Main
      Street 16th
      Floor

                                                 
                       
Dallas,
      TX 75202

     

    Bank
      Contact:                    
           Lauri
      Waisman

     

    Bank
      Telephone
      Number:                       
(214)
      209-9523

     

    13.
      Signatures.

     

    
      September
        5, 2006

       

      
        /s/
          Ivan
          Zweig

        -----------------------

        Ivan
          Zweig,

        Director
          & Chief Executive Officer

        IElement
          Corporation

         

        
          
            /s/
              William Goatley

            -----------------------

            William
              Goatley,

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