Document:

Employment
Agreement

 

This
Employment Agreement dated as of June 19, 2017 (the “Agreement”), is made by and between OmniMetrix LLC, a
Georgia limited liability company, with an address at 4295 Hamilton Mill Rd #100, Buford, GA 30518 (together with any successor
thereto, the “Company”) and Walter Czarnecki, an individual with an address at 4295 Hamilton Mill Road, #100,
Buford, GA 30518 (the “Executive”).

 

		RECITALS	

 

	A.	It
    is the desire of the Company to assure itself of the continued services of the Executive by entering into this Agreement.
	 	 
	B.	The
    Executive and the Company mutually desire that Executive provide services to the Company on the terms herein provided as of
    the Effective Date.

 

		AGREEMENT	

 

NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below the parties hereto
agree as follows:

 

		1.	Employment.

 

	(a)	 	General.
    The Company shall employ the Executive and the Executive shall enter the employ of the Company, for the period set forth in
    Section 1(b), in the position set forth in Section 1(c), and upon the other terms and conditions herein provided.
    
	 	 	 
	(b)	 	Employment
    Term. The term of employment under this Agreement (the “Term”) shall commence on June 1, 2017 (the
    “Effective Date”) and shall continue until May 31, 2020, unless sooner terminated by either party, as hereinafter
    provided.
	 	 	 
	(c)	 	Position
    and Duties. The Executive shall serve as the President and CEO of the Company, the principal executive officer of the
    Company, with such customary responsibilities, duties and authority as may from time to time be assigned. Notwithstanding
    anything to the contrary set forth herein, the Executive shall report to, and be subject to general oversight and control
    of, the Board of Managers (the “Board”) of the Company. The Executive shall devote all of his working time
    and efforts to the business and affairs of the Company (which may include service to its parent and its affiliates) and shall
    not engage in any outside business activities without the prior written consent of the Board. The Executive agrees to observe
    and comply with the rules and policies of the Company as adopted by the Company from time to time. 

 

    	 

    	 

    

 

		2.	Compensation
                                         and Related Matters.

 

	(a)	 	Annual
    Base Salary. The Executive shall receive a base salary (the “Annual Base Salary”) of $220,000 per annum
    (subject to applicable withholding and taxes, in accordance with law), which shall be paid in accordance with the customary
    payroll practices of the Company. For each Fiscal Year, the Board shall determine performance goals for the Company and the
    Executive, which may include, but shall not be not limited to, targets relating to cash sales, gross profit, EBITDA, net income
    and amount of working capital support from Acorn Energy, Inc. (the “Performance Goals”). Each Fiscal Year’s
    Performance Goals shall be provided to the Executive in writing. The Executive shall be entitled to increases in Annual Base
    Salary for each new Fiscal Year upon determination by March 31st if the Company and the Executive have satisfied
    the Performance Goals for the preceding Fiscal Year. If the Performance Goals have been achieved, such Annual Base Salary
    increases shall be retroactive to January 1st.
	 	 	 
	(b)	 	Annual
    Bonus. During the Term, the Executive shall be eligible for an Annual Bonus (“Annual Bonus”) opportunity
    relating to each Fiscal Year subject to the conditions and upon achievement of Performance Goals determined by the Board and
    provided to the Executive in writing. The amount, if any, of the Executive’s Annual Bonus shall be based on the Board’s
    determination that the target annual Performance Goals have been satisfied, including the Company’s objectives and the
    Executive’s individual objectives, as determined and weighted each year by the Board. To the extent that the Annual
    Bonus objectives have been satisfied for any completed Fiscal Year, unless Executive shall have resigned prior to the March
    31st following the completion of a Fiscal Year for which an Annual Bonus has been earned, the Executive shall receive
    payment of such Annual Bonus on or before April 30st of the calendar year following the Fiscal Year for which the
    Annual Bonus has been earned. 
	 	 	 
	(c)	 	Benefits.
    During the Term, the Executive shall be entitled to participate in employee benefit plans, programs and arrangements of the
    Company, as may be amended from time to time, which are applicable to the senior officers of the Company, including medical
    and dental insurance coverage.
	 	 	 
	(d)	 	Vacation.
    For each year of the Term, the Executive shall be entitled to four (4) weeks of vacation. The Executive shall also receive
    paid holidays consistent with the Company’s then current practices, as it may be amended from time to time. Any vacation
    shall be taken at the reasonable and mutual convenience of the Company and the Executive. In no event shall any unused vacation
    time be carried over from year to year or paid to the Executive upon his termination of employment. 
	 	 	 
	(e)	 	Expenses.
    During the Term, the Company shall reimburse the Executive for all travel, lodging, entertainment and out-of-pocket expenses
    which are reasonably and necessarily incurred by the Executive in the performance of his duties to the Company hereunder,
    provided, that the Executive properly accounts therefor in accordance with the Company’s expense reimbursement policies
    in effect from time to time.

 

    	2

    	 

    

 

		3.	Termination.

 

The
Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of
this Agreement only under the following circumstances:

 

		(a)	Circumstances.

 

	 	(i)	Death.
    The Executive’s employment hereunder shall terminate upon his death. 
	 	 	 
	 	(ii)	Disability.
    If the Executive has incurred a Disability, the Company may give the Executive written notice of its intention to terminate
    the Executive’s employment. 
	 	 	 
	 	(iii)	Termination
    for Cause. The Company may terminate the Executive’s employment for Cause.
	 	 	 
	 	(iv)	Termination
    without Cause. The Company may terminate the Executive’s employment without Cause.
	 	 	 
	 	(v)	Resignation
    by Executive. The Executive may resign his employment.

 

		(b)	Notice
    of Termination. Any termination of the Executive’s employment by the Company or by the Executive under this Section
    3 (other than termination pursuant to paragraph (a)(i)) shall be communicated by a written notice to the other party hereto
    indicating the specific termination provision in this Agreement relied upon, and in the case of a termination for Cause under
    Section 3(a)(iii), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for such termination
    for Cause, and specifying a Date of Termination which, if submitted by the Executive under Section 3(a)(v), shall be at least
    30 days following the date of such notice (a “Notice of Termination”); provided, however, provided
    that in the event of a resignation by the Executive pursuant to Section 3(a)(v) the Company may, in its sole discretion, choose
    not to utilize the Executive’s services during some or all of the 30 day notice period, while continuing to provide
    compensation, bonus and benefits identified herein to Executive during that notice period. A Notice of Termination submitted
    by the Company where the Executive’s employment is being terminated without Cause shall provide for a Date of Termination
    that is at least thirty (30 days following the date of such Notice of Termination. A Notice of Termination submitted by the
    Company where the Executive’s employment is being terminated with Cause may provide that the date of such Notice of
    Termination shall be the Date of Termination, or such later date as shall be set forth in such Notice of Termination. In the
    event of a termination for Cause by the Company under Section 3(a)(iii), the failure by the Company to set forth in the Notice
    of Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company hereunder
    or preclude the Company from asserting such fact or circumstance in enforcing the Company’s rights hereunder.

 

    	3

    	 

    

 

	(c)	 	Company
    obligations upon termination. Upon termination of the Executive’s employment, the Executive (or the Executive’s
    estate) shall be entitled to receive the sum of the Executive’s Annual Base Salary through the Date of Termination not
    theretofore paid, any expenses owed to the Executive under Section 2(e), and any amount accrued and arising from the
    Executive’s participation in, or benefits accrued under, any employee benefit plans, programs or arrangements under
    Section 2(c), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans,
    programs or arrangements, and such other or additional benefits as may be, or become, due to him under the applicable terms
    of applicable plans, programs, agreements, corporate governance documents and other arrangements of the Company and its subsidiaries
    (collectively, the “Company Arrangements”). Company shall also pay Executive any Annual Bonus that has
    been earned, but remains unpaid on the Date of Termination, pursuant to Section 2(b).

 

		4.	[Intentionally
                                         Omitted]

 

		5.	Severance
                                         Payments.

 

	(a)		Termination
    for Cause, upon death or upon Disability. If the Executive’s employment shall terminate pursuant to Section 3(a)(iii)
    for Cause, or as a result of Executive’s death pursuant to Section 3(a)(i) or Disability pursuant to Section
    3(a)(ii), or if the Executive resigns for reasons other than Company’s unremedied material breach of this Agreement,
    the Executive shall not be entitled to any severance payment or benefits (other than as expressly provided for herein or under
    any benefit plan). Notwithstanding the foregoing, if the Executive’s employment shall have been terminated for “Cause”
    identified in Section 11(a)(i) and/or Section 11(a)(ii) and the Company did not provide Executive written advance notice and
    a reasonable opportunity to cure the “Cause” identified under either subjection, Executive shall be entitled to
    receive severance from Company on the same terms and to the same extent as that provided for in Section 5(b) herein.
	 	 	 
	(b)		Termination
    without Cause. If the Executive’s employment shall terminate without Cause pursuant to Section 3(a)(iv) the
    Company shall, subject to the Executive’s continuing fulfillment of his obligations under this Agreement (including,
    without limitation, all post-employment obligations) and the Executive signing and not revoking a release of claims in the
    form provided to the Executive by the Company that is used for departing senior executives (the “Release”),
    pay to the Executive, in equal installments over the six (6) month period following the effective date of the Release in accordance
    with the Company’s regular payroll practice, an amount equal to the sum of the Annual Base Salary that the Executive
    would have been entitled to receive if the Executive had continued his employment hereunder for a period of six (6) months
    following the Date of Termination.
	 	 	 
	(c)		Survival.
    The expiration or termination of the Term shall not impair the rights or obligations of any party hereto, which shall have
    accrued prior to such expiration or termination. 

 

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		6.	Competition.

 

	(a)	 	The
    Executive shall not, at any time during the Term or during the six (6) month period following the Date of Termination (the
    “Non-Compete Period”), directly or indirectly engage in, have any equity interest in, or manage or operate
    any person, firm, corporation, partnership, consumer products manufacturer or business (whether as director, officer, employee,
    agent, representative, partner, security holder, consultant or otherwise) that engages in any business which competes in any
    material respect with any Business (as defined below) of the Company or its affiliates that exists in the United States or
    beyond; provided, however, that the Executive shall be permitted to acquire a passive stock interest in such
    a business provided the stock acquired is publicly traded and is not more than five percent (5%) of the outstanding interest
    in such business.
	 	 	 
	(b)	 	During
    the Non-Compete Period, the Executive shall not, directly or indirectly, recruit or otherwise solicit or induce any employee,
    customer or supplier of the Company (i) to terminate its employment or arrangement with the Company, (ii) to otherwise change
    its relationship with the Company or (iii) to establish any relationship with the Executive or any of his affiliates for any
    business purpose competitive with the Business of the Company.
	 	 	 
	(c)	 	The
    Executive acknowledges that the Company conducts its business operations around the world and has invested considerable time
    and effort to develop the international brand and goodwill associated with its name. To that end, the Executive further acknowledges
    that the obligations set forth in this Section 6 are by necessity international in scope and necessary to protect the
    international operations and goodwill of the Company and its affiliates. In the event the terms of this Section 6 shall
    be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period
    of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted
    to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which
    it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined
    by such court in such action.
	 	 	 
	(d)	 	As
    used in Section 6, Section 7 and Section 8, (i) the term “Company” shall include the
    Company and its direct or indirect parents, if any, and subsidiaries, and (ii) the term “Business” shall
    mean any business that competes with the business of the Company in any markets in which the Company is engaged, which includes
    but is not limited to any business that involves wireless, remote monitoring and control systems for on-site power generation
    and pipelines and ongoing service to support them. Power Generation (“PG”) and Corrosion Protection (“CP”)
    monitoring. These products and services are provided by our OmniMetrixTM, LLC (“OmniMetrix”) subsidiary.
    OmniMetrix’s PG activities provide wireless remote monitoring and control systems and services for critical assets as
    well as Internet of Things applications. Its CP activities provide for remote monitoring of cathodic protection systems on
    gas pipelines for gas utilities and pipeline companies.
	 	 	 

 

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	(e)	 	During
    his employment and following termination of his employment with the Company, the Executive agrees (x) not to disparage in
    any material respect the Company, any of its products or practices, or any of its directors, officers, agents, representatives,
    stockholders or affiliates, either orally or in writing; and (y) not to interfere in the Company’s business relationships
    with distributors, suppliers, manufacturers, or any other entity engaged in business with the Company.

 

		7.	Nondisclosure
                                         of Proprietary Information.

 

	(a)	 	Except
    in connection with the faithful performance of the Executive’s duties hereunder or pursuant to Section 7(c),
    the Executive shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate,
    disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any confidential
    or proprietary information or trade secrets of or relating to the Company (including, without limitation, intellectual property
    in the form of patents, trademarks, trade names, designs and copyrights and applications therefor, ideas, inventions, works,
    discoveries, improvements, information, documents, formulae, practices, processes, methods, developments, source code, modifications,
    technology, techniques, data, programs, other know-how or materials, owned, developed or possessed by the Company, whether
    in tangible or intangible form, information with respect to the Company’s operations, processes, products, inventions,
    business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices,
    contractual relationships, regulatory status, prospects and compensation paid to employees or other terms of employment),
    or deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository
    of or containing any such confidential or proprietary information or trade secrets. The parties hereby stipulate and agree
    that as between them the foregoing matters are important, material and confidential proprietary information and trade secrets
    and affect the successful conduct of the businesses of the Company (and any successor or assignee of the Company).
	 	 	 
	(b)	 	Upon
    termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the
    Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents,
    or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes.
    

 

    	6

    	 

    

 

	(c)	 	The
    Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest possible
    notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel
    the documents and other information sought and shall assist such counsel at Company’s expense in resisting or otherwise
    responding to such process.
	 	 	 
	(d)	 	Nothing
    in this Agreement shall prohibit the Executive from (i) disclosing information and documents when required by law, subpoena
    or court order (subject to the requirements of Section 7(c) above), (ii) disclosing information and documents to his attorney
    or tax adviser for the purpose of securing legal or tax advice, (iii) disclosing the post-employment restrictions in this
    Agreement to any potential new employer, (iv) retaining, at any time, his personal correspondence, his personal rolodex or
    outlook contacts and documents related to his own personal benefits, entitlements and obligations, or (v) disclosing or retaining
    information that is already generally available to the public or otherwise was part of the public domain at the time of disclosure.
    

 

		8.	Inventions.

 

All
rights to discoveries, inventions, improvements and innovations (including all data and records pertaining thereto) related to
the Business of the Company as defined in Section 6(d) above, whether or not patentable, copyrightable, registrable as a trademark,
or reduced to writing, that the Executive may discover, invent or originate during the Term, either alone or with others and whether
or not during working hours or by the use of the facilities of the Company (“Inventions”), shall be the exclusive
property of the Company. The Executive shall promptly disclose all Inventions to the Company, shall execute at the request of
the Company any assignments or other documents the Company may deem reasonably necessary to protect or perfect its rights therein,
and shall assist the Company, upon reasonable request and at the Company’s expense, in obtaining, defending and enforcing
the Company’s rights therein. The Executive hereby appoints the Company as his attorney-in-fact to execute on his behalf
any assignments or other documents reasonably deemed necessary by the Company to protect or perfect its rights to any Inventions

 

		9.	Injunctive
                                         Relief.

 

It
is recognized and acknowledged by the Executive that a breach of the covenants contained in Sections 6, 7 or 8 will cause
irreparable damage to Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that
the remedies at law for any such breach will be inadequate. Accordingly, the Executive agrees that in the event of a breach of
any of the covenants contained in Sections 6, 7 or 8, in addition to any other remedy which may be available at law or
in equity, the Company will be entitled to specific performance and injunctive relief. The Executive also agrees the Company shall
not be bound by Section 18 of this Agreement with respect to a breach of any covenant contained in Section 6, 7 or 8.

 

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		10.	Assignment
                                         and Successors.

 

The
Company may assign its rights and obligations under this Agreement to any affiliate and any successor to all or substantially
all of the business or the assets of the Company (by merger or otherwise), and may assign or encumber this Agreement and its rights
hereunder as security for indebtedness of the Company and its affiliates. This Agreement shall be binding upon and inure to the
benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors,
administrators, heirs, distributees, devisees, and legatees, as applicable. None of the Executive’s rights or obligations
may be assigned or transferred by the Executive, other than the Executive’s rights to payments hereunder, which may be transferred
only by will or operation of law. Notwithstanding the foregoing, the Executive shall be entitled, to the extent permitted under
applicable law and applicable Company Arrangements, to select and change a beneficiary or beneficiaries to receive compensation
hereunder following his death by giving written notice thereof to the Company.

 

		11.	Certain
                                         Definitions.

 

	(a)	 	Cause.
    The Company shall have “Cause” to terminate the Executive’s employment hereunder upon:

 

	 	(i)	the
    Board’s determination that the Executive failed to substantially perform his duties as an employee or officer of the
    Company (including, without limitation, failing to coordinate with and inform representatives of the Company and its affiliates
    regarding the business and affairs of the Company) or that the Executive failed to comply in any material respect with any
    applicable policy, rule, or directive of the Company or its affiliates; 
	 	 	 
	 	(ii)	the
    Board’s determination that the Executive failed to carry out, or comply with, in any material respect, any lawful and
    reasonable directive of the Board consistent with the terms of this Agreement;
	 	 	 
	 	(iii)	the
    Executive’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation
    for any felony or crime involving moral turpitude; 
	 	 	 
	 	(iv)	the
    Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s
    premises or while performing the Executive’s duties and responsibilities under this Agreement;
	 	 	 
	 	(v)	the
    Executive’s commission of an act of fraud, embezzlement, misappropriation, willful misconduct, or breach of fiduciary
    duty against the Company; or
	 	 	 
	 	(vi)	the
    Executive’s breach of any of the representations and covenants contained in Section 7 or Section 17 of
    this Agreement.

 

    	8

    	 

    

 

		(b)	Date
    of Termination. “Date of Termination” shall mean (i) if the Executive’s employment is terminated by
    his death, the date of his death; or (ii) if the Executive’s employment is terminated pursuant to Section 3(a)(ii)
    – (v) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section
    3(b), whichever is earlier.
	 	 	 
	 	(c)	Disability.
    “Disability” shall mean the Executive’s inability to perform, with or without reasonable accommodation,
    the essential functions of his position hereunder for a total of three months during any six-month period as a result of incapacity
    due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the
    Executive or the Executive’s legal representative, such agreement as to acceptability not to be unreasonably withheld
    or delayed. Any refusal by the Executive to submit to a medical examination for the purpose of determining Disability shall
    be deemed to constitute conclusive evidence of the Executive’s Disability. 

 

		12.	Governing
                                         Law.

 

This
Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance
with the substantive laws of Georgia.

 

		13.	Notices.

 

Any
notice, request, claim, demand, document and other communication hereunder to any party shall be effective upon receipt (or refusal
of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid,
as follows:

 

		(a)	If
    to the Company:
	 	 	 
	 	 	OmniMetrix
    LLC
	 	 	4295
    Hamilton Mill Rd, #100
	 	 	Buford,
    GA 30518
	 	 	Attention:
    Chairman of the Board
	 	 	 
	 	 	and
    a copy to:
	 	 	 
	 	 	Eilenberg
    & Krause LLP
	 	 	11
    East 44th Street
	 	 	New
    York, NY 10017
	 	 	Attention:
    Sheldon Krause, Esq
	 	 	Facsimile:
    (212) 986-2399

 

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		(b)	If
    to the Executive: 
	 	 	 
	 	 	Walter
    Czarnecki
	 	 	OmniMetrix
    LLC
	 	 	4295
    Hamilton Mill Rd, #100
	 	 	Buford,
    GA 30518
	 	 	 
	 	 	and
    a copy to:
	 	 	 
	 	 	Graebe
    Hanna & Sullivan, PLLC_______________
	 	 	4350
    Lassiter at North Hills Avenue, Suite 375______________
	 	 	Raleigh,
    North Carolina_27609____________
	 	 	Attention:
    M. Todd Sullivan, Esq.
	 	 	Facsimile:
    (__919_) _863__-_9095___

 

or
at any other address as any party shall have specified by notice in writing to the other party.

 

		14.	Counterparts.

 

This
Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together
will constitute one and the same Agreement. Signatures delivered by pdf and email shall be deemed effective for all purposes.

 

		15.	Entire
                                         Agreement.

 

The
terms of this Agreement are intended by the parties to be the final expression of their agreement with respect to the employment
of the Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties
further intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

 

		16.	Amendments;
                                         Waivers.

 

This
Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized
officer of Company. By an instrument in writing similarly executed, the Executive or a duly authorized officer of the Company
may waive compliance by the other party or parties with any specifically identified provision of this Agreement that such other
party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or
estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy,
or power hereunder preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in
equity. Except as otherwise set forth in this Agreement, the respective rights and obligations of the parties under this Agreement
shall survive any termination of Executive’s employment.

 

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		17.	No
                                         Conflict.

 

The
Executive represents and warrants that he is not subject to any agreement or other obligation or understanding that would prevent
him from entering into this Agreement and performing his duties hereunder, and that in the course of performing his duties hereunder
he shall not in any manner use protected confidential or proprietary information from any previous employer or other source.

 

		18.	Construction.

 

This
Agreement shall be deemed drafted equally by both the parties. Its language shall be construed as a whole and according to its
fair meaning. Any presumption or principle that the language is to be construed against any party shall not apply. The headings
in this Agreement are only for convenience and are not intended to affect construction or interpretation. Any references to paragraphs,
subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.
Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the
plural; (b) “and” and “or” are each used both conjunctively and disjunctively; (c) “any,”
“all,” “each,” or “every” means “any and all,” and “each and every”;
(d) “includes” and “including” are each “without limitation”; (e) “herein,” “hereof,”
“hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any
particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations thereof shall be deemed to
refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require.

 

		19.	Enforcement.

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during
the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or
by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be
added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision
as may be possible and be legal, valid and enforceable.

 

		20.	Withholding.
                                         

 

The
Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding
or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel
if any questions as to the amount or requirement of withholding shall arise.

 

		21.	Employee
                                         Acknowledgement.

 

The
Executive acknowledges that he has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance
upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this
Agreement freely based on his own judgment.

 

[Remainder
of this page left intentionally blank]

 

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IN
WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

 

	 	COMPANY
	 	 	 
	 	OMNIMETRIX LLC
	 	 	 
	 	By:
    	 
	 	 	____________
	 	 	
	 	EXECUTIVE
	 	    	 
	 	By:	 
	 	 	Walter
    Czarnecki

 

    	12Exhibit 10.1

 

 

 

PNAT MAMMOTH NOTE NUMBER 2

 

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIDLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

 

CONVERTIBLE PROMISSORY NOTE 

DUE NINE MONTHS AFTER ISSUANCE DATE

 

OF

 

PURA NATURALS, INC.

 

Issuance Date: July 14, 2017 

Original Principal Amount: $300,000 

Original Issue Discount: $330,000 (Original Issue Discount and Fees)

 

This NOTE ("Note") is one of a duly authorized issue of Promissory Notes of PURA NATURALS, INC. a corporation duly organized and existing under the laws of the State of Colorado (the "Company"),

 

FOR VALUE RECEIVED, the Company hereby promises to pay to the order of Mammoth Corporation or its assigns or successors-in-interest ("Holder") up to the principal sum of Three Hundred Thirty Thousand Dollars (U.S. $330,000), which principal amount shall include any commission paid by the Company, together with all accrued but unpaid interest thereon, if any, Due Nine Months after the Issuance Date, to the extent such principal amount and interest has not been repaid or converted into the Company's Common Stock, $0.00 I par value per share (the "Common Stock"), in accordance with the terms hereof. Interest on the unpaid principal balance hereof shall not accrue, except as otherwise provided herein, during the term of this note, unless an uncured default occurs, at which time Interest on this Note shall accrue daily commencing on the date of the uncured default and shall be computed on the basis of a 36S-day year and actual days elapsed and shall be payable in accordance with Section 1 hereof Notwithstanding anything contained herein, this Note shall bear interest on the due and unpaid Principal Amount from and after the occurrence and during the continuance of an Event of Default pursuant to Section 4(a) at the rate (the "Default Rate") equal to the lower of eighteen (18%) per annum or the highest rate permitted by law. Unless otherwise agreed or required by applicable law, payments will be applied first to any unpaid collection costs, then to unpaid interest and fees and any remaining amount to principal.

 

All payments of principal and interest on this Note shall be made in lawful money of the United States of America by wire transfer of immediately available funds to such account as the Holder may from time to time designate by written notice in accordance with the provisions of this Note or by a bank certified check. This Note may not be prepaid in whole or in part except as otherwise provided herein. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next succeeding day which is a Business Day.

 

 

Exhibit 10.1 -- Page 1

 

 

 

For purposes hereof the following terms shall have the meanings ascribed to them below:

 

"Bankruptcy Event' means any of the following events: (a) the Company commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any subsidiary thereof; (b) there is commenced against the Company or any subsidiary any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered; (d) the Company suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 days; (e) the Company makes a general assignment for the benefit of creditors; (f) the Company fails to pay, or states that it is unable to payor is unable to pay, its debts generally as they become due; (g) the Company calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or (h) the Company, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

"Business Day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City of New York are authorized or required by law or executive order to remain closed.

 

"Change in Control Transaction" will be deemed to exist if (I) there occurs any consolidation, merger or other business combination of the Company with or into any other corporation or other entity or person (whether or not the Company is the surviving corporation), or any other corporate reorganization or transaction or series of related transactions in which in any of such events the voting stockholders of the Company prior to such event cease to own 50% or more of the voting power, or corresponding voting equity interests, of the surviving corporation after such event (including without limitation any "going private" transaction under Rule l3e-3 promulgated pursuant to the Exchange Act or tender offer by the Company under Rule l3e-4 promulgated pursuant to the Exchange Act for 20% or more of the Company's Common Stock), (ii) any person (as defined in Section l3(d) of the Exchange Act), together with its affiliates and associates (as such terms are defined in Rule 405 under the Act), beneficially owns or is deemed to beneficially own (as described in Rule l3d-3 under the Exchange Act without regard to the 60-day exercise period) in excess of35% of the Company's voting power, (iii) there is a replacement of more than one-half of the members of the Company's Board of Directors which is not approved by those individuals who are members of the Company's Board of Directors on the date thereof, (iv) in one or a series of related transactions, there is a sale or transfer of all or substantially all of the assets of the Company, determined on a consolidated basis, or (v) the Company enters into any agreement providing for an event set forth in (I), (ii), (iii) or (iv) above.

"Conversion Ratio" means, at any time, a fraction, of which the numerator is the entire outstanding Principal Amount of this Note (or such portion thereof that is being redeemed or repurchased), and of which the denominator is the Conversion Price as of the date such ratio is being determined.

 

 

 

Exhibit 10.1 -- Page 2

 

 

"Conversion Price" shall equal 65% of the Market Price.

 

"Conversion Shares" means the shares delivered pursuant to a Conversion Notice

 

"Convertible Securities" means any convertible securities, to exchange for shares of Common Stock.

 

"Equity Conditions" shall mean (i) the resale of all Underlying Shares is covered by an effective registration statement which is not subject to any suspension or stop order (with a current and deliverable prospectus that is not subject at the time to any blackout or similar circumstance) or permitted pursuant to an exemption including pursuant to Rule 144(b)(1) under the Securities Act.

 

"Exchange Ad" shall mean the Securities Exchange Act of 1934, as amended.

 

"Market Price" shall equal the low trade of the Common Stock for any Trading Day(s) during the Pricing Period.

 

"Pricing Period" shall mean the thirty trading days preceding the date of the applicable conversion notice. The Pricing Period will be extended to the date the Conversion Shares are Delivered, in the event the Conversion Shares are not delivered on the same date as the Conversion Notice. Delivered shall mean the date the shares clear deposit into Holder's brokerage account, which shall be the date Holder is able to trade the shares free from restrictions of any kind including by the Holder's Brokerage fume, DTC, Issuer or Issuer's Transfer Agent (the "Extended Pricing Period"). Extending the pricing period will not adjust the number of shares delivered but will adjust the, market price, conversion price and the amount the note is reduced as a result of the conversion, and will be memorialized by and Amended Conversion Notice, which will be submitted to the Issuer by the Holder, if applicable.

 

"Principal Amount" shall refer to the sum of (i) the original principal amount of this Note, (ii) all accrued but unpaid interest hereunder, and (iii) any default payments owing under the Agreements but not previously paid or added to the Principal Amount.

 

"Principal Market" shall mean the OTC Markets or such other principal market or exchange on which the Common Stock is quoted for trading.

                                                                                                            

"Securities Ad' shall mean the Securities Act of 1933, as amended.

 

"Trading Day" shall mean a day on which there is trading on the Principal Market.

 

"Underlying Shares" means the shares of Common Stock into which the Notes are convertible (including interest or principal payments in Common Stock as set forth herein) in accordance with the terms hereof

 

The following terms and conditions shall apply to this Note:

 

 

 

 

Exhibit 10.1 -- Page 3

 

 

 

 

Section 1. Payments.

(a) Interest Payments. As long as a default does not occur, further Interest shall not accrue on the remaining unconverted principal balance of this Note ("Interest Amount").

  

Section 2. Conversion.

(a) Conversion Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have the right, at such Holder's option, at any time and from time to time to convert the outstanding Current Principal Amount under this Restated Note in whole or in part by delivering to the Company a fully executed notice of conversion in the form of conversion notice attached hereto as Exhibit A (the "Conversion Notice"), which may be transmitted by facsimile or email. Notwithstanding anything to the contrary herein, this Note and the outstanding Principal Amount hereunder shall not be convertible into Common Stock to the extent that such conversion would result in the Holder hereof exceeding the limitations contained in, or otherwise violating the provisions of, Section 2(I) below.

(b) Common Stock Issuance upon Conversion.

(i) Conversion Date Procedures. Upon conversion of this Note pursuant to Section 2(a) above, the outstanding Current Principal Amount of the Restated Note elected to be converted hereunder shall be converted into such number of fully paid, validly issued and non-assessable shares of Common Stock, free of any liens, claims and encumbrances and without any restrictions or legends (provided the shares are registered or an exemption from registration is available with the Company providing a legal opinion), as is detained by dividing the amount of the Current outstanding Principal Amount of this Restated Note being converted by the then applicable Conversion Price:

For example, a $40,000 conversion amount with a Conversion Price of$0.25 would be entitled to 160,000 conversion shares ($40,000/$0.25).

 

The Company shall pay holder liquidated damages in the event holder does not receive free trading shares after a conversion notice has been sent. The Liquidated Damages are not a penalty but are designed to set and limit damages, which are uncertain and cannot be known at this time. The damages will be the greater of: (I) 100% of the outstanding Principal Amount of the Notes held by the Holder (plus all accrued and unpaid interest, if any); (2) the product of(A) the average of the 20 highest closing prices at any time up to the date a judgment is entered by the Court times the number of shares that would be delivered antedate of the default if the entire note were converted using the thirty days preceding the date of the default as the Pricing Period.

 

(ii) Delivery. The Company will deliver to the Holder not later than three (7) Calendar Days after the Conversion Date, shares (which certificate(s) shall be free of restrictive legends and trading restrictions) (provided the shares are registered or an exemption from registration is available with the Company providing a legal opinion) representing the number of shares of Common Stock being acquired upon the conversion of this Note via Deposits and Withdrawal at Custodian (DWAC), if possible and unrestricted certificates if the shares cannot be sent via DWAC. If in the case of any conversion hereunder, such shares are not delivered to the

 

 

 

Exhibit 10.1 -- Page 4

 

 

 

Holder by the third Trading Day after the Conversion Date, the Holder shall be entitled by written notice to the Company at any time on or before its receipt of such shares, to rescind such conversion, in which event the Company shall immediately return this Note tendered for conversion. If the Company fails to deliver to the Holder such shares pursuant to this Section 2 of this Agreement (free of any restrictions on transfer or legends) (provided the shares are registered or an exemption from registration is available with the Company providing a legal opinion) in accordance herewith, prior to the fifth Trading Day after the Conversion Date, the Company note shall be in default.

 

(iii) Surrender a/Note Not Required. The date of any Conversion Notice hereunder and any Payment Date shall be referred to herein as the "Conversion Date". If the Holder is converting less than all of the outstanding Principal Amount hereunder pursuant to a Conversion Notice, the Company shall promptly deliver to the Holder (but no later than five Trading Days after the Conversion Date) a Note for such outstanding Principal Amount as has not been converted if this Note has been surrendered to the Company for partial conversion. The Holder shall not be required to physically surrender this Note to the Company upon any conversion hereunder unless the full outstanding Principal Amount represented by this Note is being converted or repaid. The Holder and the Company shall maintain records showing the outstanding Principal Amount so converted and repaid and the dates of such conversions or repayments or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon each such conversion or repayment.

 

(c) Conversion Price Adjustments.

(i) Stock Dividends, Splits and Combinations. If the Company or any of its subsidiaries, at any time while the Notes are outstanding (A) shall pay a stock dividend or otherwise make a distribution or distributions on any equity securities (including instruments or securities convertible into or exchangeable for such equity securities) in shares of Common Stock, (B) subdivide outstanding Common Stock into a larger number of shares, or (C) combine outstanding Common Stock into a smaller number of shares, then each Affected Conversion Price (as defined below) shall be multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding before such event and the denominator of which shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section 3(c)(i) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision or combination.

As used herein, the Affected Conversion Prices (each an "Affected Conversion Price") shall refer to: (i) the Conversion Price, and (ii) each reported lowest closing bid price occurring on any Trading Day included in the period used for determining the Conversion Price, which Trading Day occurred before the record date in the case of events referred to in clause (A) of this subparagraph 3(c)(I) and before the effective date in the case of the events referred to in clauses (B) and (C) of this subparagraph 3(c)(I).

 

(ii) Distributions. If the Company or any of its subsidiaries, at any time while the Notes are outstanding, shall distribute to all holders of Common Stock evidences of its indebtedness or assets or cash or rights or warrants to subscribe for or purchase any security of the Company or any of its subsidiaries (excluding those referred to in Section 3(c)(i) above), then

 

(ii) Distributions. If the Company or any of its subsidiaries, at any time while the Notes are outstanding, shall distribute to all holders of Common Stock evidences of its indebtedness or assets or cash or rights or warrants to subscribe for or purchase any security of the Company or any of its subsidiaries (excluding those referred to in Section 3(c)(i) above), then

 

 

 

Exhibit 10.1 -- Page 5

 

 

concurrently with such distributions to holders of Common Stock, the Company shall distribute to holders of the Notes the amount of such indebtedness, assets, cash or rights or warrants which the holders of Notes would have received had all their Notes been converted into Common Stock at the Conversion Price immediately prior to the record date for such distribution.

 

(iii) Rounding of Adjustments. All calculations under this Section 3 or Section I shall be made to 4 decimal places for dollar amounts or the nearest 1/1 Dot of a share, as the case may be.

(iv) Notice of Adjustments. Whenever any Affected Conversion Price is adjusted pursuant to Section 3(c)(I), (ii) or (iii) above, the Company shall promptly deliver to each holder of the Notes, a notice setting forth the Affected Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment, provided that any failure to so provide such notice shall not affect the automatic adjustment hereunder.

(v) Change in Control Transactions. In case of any Change in Control Transaction, the Holder shall have the right thereafter to, at its option, convert this Note, in whole or in part, at the Conversion Price into the shares of stock and other securities, cash and/or property receivable upon or deemed to be held by holders of Common Stock following such Change in Control Transaction, and the Holder shall be entitled upon such event to receive such amount of securities, cash or property as the shares of the Common Stock of the Company into which this Note could have been converted immediately prior to such Change in Control Transaction would have been entitled if such conversion were permitted, subject to such further applicable adjustments set forth in this Section 3. The terms of any such Change in Control Transaction shall include such terms so as to continue to give to the Holders the right to receive the amount of securities, cash and/or property upon any conversion or redemption following such Change in Control Transaction to which a holder of the number of shares of Common Stock deliverable upon such conversion would have been entitled in such Change in Control Transaction, and interest payable hereunder shall be in cash or such new securities and/or property, at the Holder's option. This provision shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers or share exchanges.

(vi) Notice of Certain Events. If:

 

A.   the Company shall declare a dividend (or any other distribution) on its Common Stock; or

 

B.   the Company shall declare a special non recurring cash dividend on or a redemption of its Common Stock; or

 

C.   the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; or

 

D.   the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock of the Company, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share of exchange whereby the Common Stock is converted into other securities, cash or property; or

 

 

Exhibit 10.1 -- Page 6

 

 

 

E.   the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company;

 

then the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be mailed to the Holder at its last address as it shall appear upon the books of the Company, on or prior to the date notice to the Company's stockholders generally is given, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange.

(d) Reservation and Issuance of Underlying Securities. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note (including repayments in stock), free from preemptive rights or any other actual contingent purchase rights of persons other than the holders of the Notes, not less than such number of shares of Common Stock as shall (subject to any additional requirements of the Company as to reservation of such shares set forth in the Exchange Agreement) be issuable (taking into account the adjustments under this Section 3 but without regard to any ownership limitations contained herein) upon the conversion of this Note hereunder in Common Stock (including repayments in stock). The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, he duly authorized, validly issued, fully paid, nonassessable and freely tradeable.

(e) No Fractions. Upon a conversion hereunder the Company shall not be required to issue stock certificates representing fractions of shares of Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share based on the closing price of a share of Common Stock at such time. If the Company elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock, rounded to the nearest whole share of common stock.

(f) Charges. Taxes and Expenses. Issuance of certificates for shares of Common Stock upon the conversion of this Note (including repayment in stock) shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for shares of Common Stock are to be issued in a name other than the name of the Holder, this Note when surrendered for conversion shall be accompanied by an assignment form; and provided further, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any such transfer.

 

 

Exhibit 10.1 -- Page 7

 

(g) Cancellation. After all of the Principal Amount (including accrued but unpaid interest and default payments at any time owed on this Note) have been paid in full or converted into Common Stock, this Note shall automatically be deemed canceled and the Holder shall promptly surrender the Note to the Company at the Company's principal executive offices.

(h) Notices Procedures. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Conversion Notice, shall be in writing and delivered personally, by facsimile, by email, or by a nationally recognized overnight courier service to the Company at the facsimile telephone number or address of the principal place of business of the Company as set forth in the Exchange Agreement. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, or by a nationally recognized overnight courier service addressed to the Holder at the facsimile telephone number or address of the Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed delivered (i) upon receipt, when delivered personally, (ii) when sent by facsimile or email, upon receipt if received on a Business Day prior to 5:00 p.m. (Eastern Time), or on the first Business Day following such receipt if received on a Business Day after 5:00 p.m. (Eastern Time) or (iii) upon receipt, when deposited with a nationally recognized overnight courier service.

(i) Conversion Limitation. Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon conversion pursuant to the terms hereof shall not exceed a number that, when added to the total number of shares of Common Stock deemed beneficially owned by such Holder (other than by virtue of the ownership of securities or rights to acquire securities (including the Notes) that have limitations on the Holder's right to convert, exercise or purchase similar to the limitation set forth herein), together with all shares of Common Stock deemed beneficially owned at such time (other than by virtue of the ownership of securities or rights to acquire securities that have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) by the holder's "affiliates" at such time (as defined in Rule 144 of the Act) ("Aggregation Parties") that would be aggregated for purposes of determining whether a group under Section 13(d) of the Securities Exchange Act of 1934 as amended, exists, would exceed 9.9% of the total issued and outstanding shares of the Common Stock (the "Restricted Ownership Percentage"), unless the company becomes obligated to file periodic reports with the SEC, in which case the Restricted Ownership Percentage shall be 4.9%.

Section 3. Defaults and Remedies.

(a) Events of Default. An "Event of Default" is: (i) a default in payment of any amount due hereunder which default continues for more than 5 business days after the due date thereof; (ii) a default in the timely issuance of Underlying Shares upon and in accordance with terms hereof, which default continues for five Business Days after the Company has received written notice informing the Company that it has failed to issue shares or deliver stock certificates within the fifth day following the Conversion Date; (iii) failure by the Company for fifteen (15)

 

 

Exhibit 10.1 -- Page 8

 

 

 

days after written notice has been received by the Company to comply with any material provision of any of the Notes or the Exchange Agreement (including without limitation the failure to issue the requisite number of shares of Common Stock upon conversion hereof and the failure to redeem Notes upon the Holder's request following a Change in Control Transaction pursuant to Section 3(c)(v); (iv) a material breach by the Company of its representations or warranties in the Exchange Agreement,; (v) any default after any cure period under, or acceleration prior to maturity of, any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company for in excess of $500,000 or for money borrowed the repayment of which is guaranteed by the Company for in excess of $500,000, whether such indebtedness or guarantee now exists or shall be created hereafter; or (vi) if the Company is subject to any Bankruptcy Event.

(b) Remedies. If an Event of Default occurs and is continuing with respect to any of the notes, the Holder may declare all of the then outstanding Principal Amount of this note and all other Notes held by the Holder, including any interest due thereon, to be due and payable immediately, without further action or notice. In the event of such acceleration, the amount due and owing to the Holder shall be: (I) 120% often outstanding Principal Amount of the Notes held by the Holder (plus all accrued and unpaid interest, if any).

(i) General.

(c) Payment of Expenses. The Company agrees to pay all reasonable charges and expenses, including attorneys' fees and expenses, which may be incurred by the Holder in successfully enforcing this Note and/or collecting any amount due under this Note.

(d) Savings Clause. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby. In no event shall the amount of interest paid hereunder exceed the maximum rate of interest on the unpaid principal balance hereof allowable by applicable law. If any sum is collected in excess of the applicable maximum rate, the excess collected shall be applied to reduce the principal debt. If the interest actually collected hereunder is still in excess of the applicable maximum rate, the interest rate shall be reduced so as not to exceed the maximum allowable under law.

(e) Amendment. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

(f) Assignment, Etc. The Holder may assign or transfer this Note. The Holder shall notify the Company of any such assignment or transfer promptly. This Note shall be binding upon the Company and its successors and shall inure to the benefit of the Holder and its successors and permitted assigns.

(g) No Waiver. No failure on the part of the Holder to exercise, and no delay in exercising any right, remedy or power hereunder shall not operate as a waiver thereof, nor shall any single or partial exercise by the Holder of any right, remedy or power hereunder preclude any other or future exercise of any other right, remedy or power. Each and every right, remedy or power hereby granted to the Holder or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Holder from time to time.

 

 

 

Exhibit 10.1 -- Page 9

 

 

(h) Governing Law; Jurisdiction.

(i) Governing Law. THIS NOTE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS WITHOUT REGARD TO ANY CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD OTHERWISE REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

(ii) Jurisdiction. This Note shall be deemed to have been executed in Lake County, Illinois, the State and County where Holder executes this Note and the County, from where funds are being sent and to where funds are to be repaid. The Company and Robert Doherty expressly agree and consent that the Nineteenth Judicial Circuit in Lake County Illinois or the United States District Court for the Northern District of Illinois shall have sole jurisdiction of any action pertaining to this note.

The Company agrees that the service of process upon it mailed by certified or registered mail (and service so made shall be deemed complete three days after the same has been posted as aforesaid) or by personal service shall be deemed in every respect effective service of process upon it in any such suit or proceeding. Nothing herein shall affect Holder's right to serve process in any other manner permitted by law. The Company agrees that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.

 

(iii) NO JURY TRIAL. THE COMPANY AND THE LIMITED GUARANTOR HERETO KNOWINGLY AND VOLUNTARILY WAIVE ANY AND ALL RIGHTS EACH MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, OR IN ANY WAY RELATING OR REFERRING TO THIS NOTE.

(i) Replacement Notes. This Note may be exchanged by Holder at any time and from time to time for a Note or Notes with different denominations representing an equal aggregate outstanding Principal Amount, as reasonably requested by Holder, upon surrendering the same. No service charge will be made for such registration or exchange. In the event that Holder notifies the Company that this Note has been lost, stolen or destroyed, a replacement Note identical in all respects to the original Note (except for registration number and Principal Amount, if different than that shown on the original Note), shall be issued to the Holder, provided that the Holder executes and delivers to the Company an agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by it in connection with the Note.

(j) Waiver. The Company hereby waives any and all demands of any nature whatsoever, any and all notices of any nature whatsoever, dishonor, presentment of any kind whatsoever, and protest odor in connection with the Note or any Indebtedness.

(k) Limitation on Conversions by Others. The Company agrees that it will not convert any security into shares of Common Stock of the Company pursuant to any request by the Former Holder, or any assigns or transferees thereof (persons or entities receiving an interest in a convertible security from the Former Holder), after the date of this Note, while a balance remains due and owing under this Note.

 

 

Exhibit 10.1 -- Page 10

 

 

 

 

 

 

(I) Piggyback Registration. If at any time the Company proposes or is required to register any of its equity securities under the Securities Act or file an amendment to any registration statement covering any of its securities or if the company files a Form I-A, Form-S1, Form S-3, or other Registration, (other than registrations on Form S-4 or Form S-8 or any similar successor forms thereto or any registration statement contemplated by the Structured Shelf Financing Term Sheet dated March 16, 2017), the Company shall use commercially reasonable efforts to cause all shares issuable pursuant to conversions of any Note held by Holder, to be registered under the Securities Act or included in the offering with the other securities which the Company at the time proposes to register or offer. Any registration shall include, if necessary, the filing with the SEC a post-effective amendment or a supplement to the registration statement filed by the Company or the prospectus related thereto.  There is no limitation on the number of such piggyback registrations pursuant to the preceding sentence which the Company is obligated to effect.

 

 

[Signature page follows]

 

 

 

 

  

 

Exhibit 10.1 -- Page 11

 

 

 

The Company

PURA NATURALS, INC.

 

By: /s/ Robert Doherty

Name: Robert Doherty

Title:  CEO of Pura Naturals, Inc.

The Holder:

MAMMOTH CORPORATION

By: /s/ Brad Hare

Name: Brad Hare

Title:  President

 

 

 

 

 

 

 

Exhibit 10.1 -- Page 12

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be executed by the Holder in order to convert the Debenture)

 

 

TO:      PURA NATURALS, INC. 

 

RE:       PNAT MAMMOTH NOTE NUMBER 2

 

 

 

The undersigned hereby irrevocably elects to convert a portion of the of the principal amount of the above Debenture into Shares of Common Stock of PURA NATURALS, INC. , according to the conditions stated therein, as of the Conversion Date written below. Please note that should the Conversion Price in effect for this conversion be less than the Par Value ($0.001) of the Company's Common Stock, the principal reduction resulting from this conversion will be less than the dollar amount of the conversion as set forth below.

 

 

	
Conversion Date:

	 	 	 
	 	 	 	 
	
Amount to be converted:

	 	
$

	 	 
	 	 	 	 	 
	
Market Price

	 	
$

	 	 
	 	 	 	 	 
	
Conversion Price per share:

	 	
$

	 	 
	 	 	 	 	 
	
Number of shares of Common Stock

	 	 	 	 
	
to be issued:

	 	 	 	 
	 	 	 	 	 
	
Amount of Principal Reduced:

	 	
$

	 	 
	 	 	 	 	 
	
Amount of Debenture unconverted:

	 	
$

	 	 
	 	 	 	 	 
	
Please issue the shares of Common

	 	
Mammoth Corporation

	 
	
Stock in the following name and to

	 	 	 	 
	
the following address:

	 	
DELIVERY INSTRUCTIONS:

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Issue to:

	 	
Mammoth Corporation

	 
	 	 	 	 	 
	
Name:

	 	
Brad Hare

	 
	 	 	 	 	 
	
Authorized Signature:

	 	 	 	 
	 	 	 	 	 
	
Title:

	 	
President

	 
	 	 	 	 	 
	
Phone Number:

	 	
(847) 540-5044

	
	 	 	 	 	 
	
Broker OTC Participant Code:

	 	 	 	 
	 	 	 	 	 
	
Account Number:

	 	 	 	 

 

 

 

Exhibit 10.1 -- Page 13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]