Document:

ex-10.55

 EXHIBIT 10.55
 

 

 A M E N D M E N T NO. 1
 

 This Amendment No. 1 is made and effective as of June 20, 2013, by and between Blue Earth, Inc. (the “Company”), a Nevada corporation with an address at 2298 Horizon Ridge Parkway, Suite 205, Henderson, NV 89052, and David J. Lies (“Lies”) an individual with an address at 1701 E. Lake Avenue, Suite 260, Glenview, IL 60025.
 

 W I T N E S S E T H 
 

 WHEREAS, the Company has issued an aggregate of 2,110,720 Class A Warrants (the “Warrants) to Lies in connection with the Company’s Series A, Series B, and Series C Preferred Stock Offerings, and December 31, 2010 warrant distribution as set forth on Schedule A attached hereto; and
 

 WHEREAS, the parties to the Warrants desire to execute an amendment to the Warrants pursuant to the Board of Directors resolutions dated as of June 20, 2013.
 

 NOW THEREFOR, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties agree as follows:
 

 1.
 The following provision is hereby added as Section 1.6 of each Warrant:
 

 
 “1.6
 Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates (as defined in the 1933 Act), and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 1.6, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 1.6 applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be 
 

 
 in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.  For the purposes of this Section 1.6, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s trading agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 1.6, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 1.6 shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1.6 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.”
 

 

 2.
 Except as set forth herein, the Warrants, as amended, remain in full force and effect.
 

 

 [SIGNATURE PAGE FOLLOWS]
 

 

 

 
 

 

 IN WITNESS WHEREOF, the undersigned have caused this Amendment No. 1 to be executed as an instrument under seal as of the date first above written.
 

 

 

 BLUE EARTH, INC.
 

 

 By: /s/ Johhny Thomas
 Johnny R. Thomas, CEO
 

 

 

 

 

 ACCEPTED AND AGREED TO:
 

 

 /s/ David Lies                            
 David Lies
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 SCHEDULE A
 

 David Lies Warrants
 

 Series A Offering
 

 	 	
	 Date
	 No Warrants

	  
	  

	 09/29/11
	 500,000

	 12/16/11
	 155,000

	 02/10/12
	 50,000

	 02/21/12
	 100,000

	  
	  

	  
	  

	 Series B Offering

	  
	  

	 08/02/12
	 255,720

	 08/29/12
	 200,000

	  
	  

	  
	  

	 Series C Offering

	  
	  

	 04/30/13
	 150,000

	 06/14/13
	 650,000

	  
	  

	 Warrant Distribution

	  
	  

	 12/31/10
	 50,000

	  
	  

	 Total
	 2,110,720ex-10.56

 EXHIBIT 10.56
 

 

 PROMISSORY NOTE
 

 	 	
	 $1,000,000
	 Henderson, Nevada

 

 October 30, 2013
 

 FOR VALUE RECEIVED, the undersigned, David J. Lies (“Maker”), with principal offices located  at 1701 E. Lake Avenue, Suite 260, Glenview, Illinois 60025, does hereby promise to pay to the order of Blue Earth, Inc. ("Payee"), its successors and assigns, with an address at 2298 Horizon Ridge Parkway, Suite 205, Henderson, Nevada 89052, or at such other place as the Payee or any holder hereof may from time to time designate, the principal sum of One Million Dollars ($1,000,000), in lawful money of the United States in immediately available funds, as follows:
 

 1.
 Payment.  The principal amount of this Note totals One Million Dollars ($1,000,000), which sum shall be paid in one lump sum no later than December 21, 2013 (the “Maturity Date”).
 2.
 Use of Loan Proceeds.  The Maker hereby agrees that the proceeds of this loan shall be used solely for the purchase of 333,334 shares of common stock underlying Class A Warrants of the Payee held by the Maker (the “Class A Warrants”).
 3.
 Pledge of Shares; Limited Recourse.  Upon the exercise of the Class A Warrants, the shares of common stock of the Payee (the “Shares”) issuable to the Maker shall be pledged by the Maker to the Payee as collateral for the repayment of this Note.  Upon any event of default hereunder, the Payee’s sole and exclusive remedy for repayment hereunder shall be in connection with the Shares pursuant to the terms and conditions of a pledge agreement entered into on the date hereof.  
 4.
 Interest.  The principal of this Note shall bear no interest.
 5.
 Prepayment.  Maker may prepay, at any time, the unpaid principal balance of this Note or any portion thereof.
 6.
 Events of Default.  Upon the occurrence of any of the following events (each, an “Event of Default" and collectively, the “Events of Default”):
 (a)
 failure by Maker to pay the principal of the Note when due, whether on the date fixed for payment or by acceleration or otherwise; provided, however, that failure to pay any principal when due shall not be an Event of Default if such overdue payment is paid within seven (7) days of such due date; or
 

 

 
 
 (b)
 if Maker shall make a general assignment for the benefit of creditors or consent to the appointment of a receiver, liquidator, custodian, or similar official of all or substantially all of its properties, or any such official is placed in control of such properties, or Maker shall commence any action or proceeding or take advantage of or file under any federal or state insolvency statute, including, without limitation, the United States Bankruptcy Code or any political subdivision thereof, seeking to have an order for relief entered with respect to it or seeking adjudication as a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution, administration, a voluntary arrangement, or other relief with respect to it or its debts; or
 (c)
 there shall be commenced against Maker any action or proceeding of the nature referred to in paragraph (b) above or seeking issuance of a warrant of attachment, execution, distraint, or similar process against all or any substantial part of the property of Maker, which results in the entry of an order for relief which remains undismissed, undischarged or unbonded for a period of sixty (60) days; then, in addition to all rights and remedies of Payee under applicable law or otherwise, all such rights and remedies being cumulative, not exclusive and enforceable alternatively, successively and concurrently, at its option, Payee may declare all amounts owing under this Note, to be due and payable, whereupon the then unpaid balance hereof shall forthwith become due and payable plus all costs and expenses of collection or enforcement hereof, including, but not limited to, attorneys' fees and expenses. 
 7.
 Miscellaneous.
 (a)
 Maker (i) waives diligence, demand, presentment, protest and notice of any kind, (ii) agrees that it will not be necessary for any holder hereof to first institute suit in order to enforce payment of this Note and (iii) consents to any one or more extensions or postponements of time of payment, release, surrender or substitution of collateral security or forbearance or other indulgence, without notice or consent.  The pleading of any statute of limitations as a defense to any demand against Maker is expressly hereby waived.
 (b)
 All payments shall be made into such account or accounts as the Payee may from time to time specify for that purpose.  All payments to be made to the Payee under this Note shall be made free and clear of and without deduction for or on account of any tax, withholding, charges, set-off or counterclaim.
 (c)
 All notices, demands, requests and other communications required or otherwise given under this Note shall be in writing and shall be deemed to have been duly given if: (i) delivered by hand against written receipt therefor, (ii) forwarded by a third party company or governmental entity providing delivery services in the ordinary course of business which guarantees delivery the following business day, (iii) mailed by registered or certified mail, return receipt requested, postage prepaid, or (iv) transmitted by facsimile transmission electronically confirmed for receipt, in full, by the other party no later than 5:00 pm, local time, on the date of transmission, to the address first above written, or at such other address as such party shall have furnished to each of the other parties hereto in accordance with this Section 7(c).  Each such notice, demand, request or other communication shall be deemed given (i) on the date of such delivery by hand, (ii) on the first business day following the date of such delivery to the overnight delivery service or facsimile transmission, or (iii) three (3) business days following such mailing. 
 

 2
 

 
 
 (d)
 The provisions of this Note may not be changed, modified or terminated orally, but only by an agreement in writing signed by the party to be charged, nor shall any waiver be applicable except in the specific instance for which it is given.
 (e)
 This Note shall be governed by and construed, and all rights and obligations hereunder determined, in accordance with the laws of the State of Nevada without regard to the conflicts of laws principles thereof and shall be binding upon the successors and assigns of Maker and inure to the benefit of the Payee, its successors, endorsees and assigns.
 (f)
 If any term or provision of this Note shall be held invalid, illegal or unenforceable, the validity of all other terms and provisions shall in no way be affected thereby.
 (g)
 Whenever used herein, the terms "Maker" and "Payee" shall be deemed to include their respective successors and permitted assigns.
 IN WITNESS WHEREOF, this Note has been executed and delivered on the date first written above by the duly authorized representative of the Maker.
 

 

 /s/ David Lies_
 David J. Lies
 

 

 

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