SEC Contract Filing

Filing Date: 2015-06-04

Document Content:
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>form8kitem302ex108june-15.txt
<DESCRIPTION>EXHIBIT 10.8 FORM OF CONVERTIBLE NOTE
<TEXT>

 EXHIBIT 10.8

<PAGE>

1

 12% SECURED NOTE

 FOR VALUE RECEIVED, Diversified Resources, Inc., and its successors and
assigns, (the "Company") promises to pay to the order of ________________ (the
"Holder") or, the principal sum of _______________ in lawful money of the United
States of America, together with interest on so much of the principal balance
thereof as is from time to time outstanding at the rate hereinafter provided,
and payable as hereinafter provided.

 This Note is one of a series of Notes, designated the 12% Secured Notes
(individually referred to herein as a "Note," the series of notes is referred to
herein collectively as the "Notes"), aggregating up to $750,000 issued by the
Company. All the Notes shall rank pari passu in respect to payment of principal
and interest and upon any dissolution, liquidation or winding-up of the Company.

 1. Interest Rate. The unpaid balance of this Note shall bear interest at
the rate of 12% per annum, simple interest. Interest shall be calculated on a
365-day year and the actual number of days in each month. Interest shall be paid
quarterly beginning 6/1/2015 and thereafter within 10 days of the quarterly
interest payment dates. If the interest payment dates fall on a holiday and/or
weekend the payment date shall mean the next business day following the first of
the month of September, December and March.

 2. Payment/Maturity Date. The total outstanding principal balance hereof,
together with all accrued and unpaid interest, shall be paid on _________.

 3. Conversion. At any time prior to the payment in full of this Note, all
or any part of the outstanding principal amount of this Note, plus any accrued
interest (the "PI Amount"), may be converted, one time only, for new securities
("New Securities") offered by the Company. The number of New Securities which
will be issued to the Holder will be determined by the following formula:

 PI = NS
---------
 PNS

Where:

 PI = The principal amount of this Note, plus any unpaid and accrued
 interest tendered for purposes of conversion.

 PNS = Price of New Security

 NS = Number of New Securities to be issued upon conversion.

 No fractional New Securities will be issued upon conversion. If the PI
Amount tendered for the New Securities will result in the amount or number of
New Securities not being a whole number, then the PI Amount tendered will be
reduced to a PI Amount such that the amount or number of New Securities will be
a whole number.

 1
<PAGE>

 The Company agrees to give written notice to the Holder of its intention to
offer any New Securities. The notice will be sent via email or fax.

 The notice will specify the price and amount of the New Securities to be
offered by the Company and a description of the terms of any New Security which
is not common stock.

 10 days after the date the written notice is sent, the Holder must:

 o notify the Company in writing of the Holder's intent to acquire the
 New Securities and the PI Amount which the Holder is tendering; and

 o deliver the original of this Note.

 In the event the PI Amount tendered by all persons entitled to participate
in the conversion exceeds the amount or number of New Securities which the
Company plans to offer, then the PI Amount tendered by the Holder will be
reduced to reflect the PI Amount, on a pro rata basis, tendered by Holder, and
the PI Amount tendered by all other persons entitled to acquire the New
Securities.

 The Company will notify the Holder in writing of any proposed reduction in
the PI Amount which the Subscriber will be allowed to tender. If the reduction
in the PI Amount is more a 10% of the PI Amount originally tendered by the
Holder, then, within 5 days of receiving the notice of the reduction, the
Holder, by written notice to the Company, may withdraw his tender of the PI
Amount.

 If the PI Amount tendered by the Holder exceeds the amount or number of New
Securities which the Company calculates to avoid the issuance of fractional New
Securities, or in the event of an over-subscription, the Company will cause a
new Note to be issued to the Holder representing the difference between the PI
Amount tendered and the PI accepted by the Company.

 Notwithstanding the above, none of the following constitute the offering of
New Securities:

 o the issuance of any options or warrants;

 o the issuance of securities offered by the Company to its employees
 pursuant to any employee benefit plan;

 o securities offered by the Company in exchange for the acquisition of
 assets, the acquisition of securities of another company, or any other
 transaction the primary purpose of which is not to raise capital.

 The Company may at any time elect not to proceed with the proposed offering
of New Securities, in which case it will notify the Holder of such fact and
return the Note tendered by the Holder.

 2
<PAGE>

 4. Prepayment. The Company may prepay the Note at any time during its term.
If the prepayment date is before 365 days from the date of issuance, the
prepayment amount shall include the entire principal amount plus the first
year's interest, excluding any previously paid quarterly interest payments. If
the prepayment date is after the first 365 days the prepayment amount will
include the entire principal plus all accrued interest up to and including the
prepayment date.

 5. Security.

 (a) The Notes will be secured by a first lien on certain producing
 wells the Company owns and their spacing units located in the Horseshoe
 Gallup Field, San Juan County, New Mexico. A list of the producing wells is
 hereby incorporated to this Secured Note as Exhibit "A".

 (b) Each Holder will be a party to an Agreement among Lenders.
 Pursuant to the Agreement among Lenders, the Holders will appoint (to be
 determined) as their custodian for the purpose of holding the security
 document