Are you trying to insert Live365's own ads into your stream? My understanding is you need to schedule a specific track so their stream can replace it with the appropriate real ad: https://help.live365.com/support/solutions/articles/43000533544-livedj-ad-triggers
Answering your question, Break Notes are effectively playing silence and will therefore broadcast silence into your stream.
From what Live 365 say the requirement is to play an item of exactly the right duration and with the metadata (tags) that their advert files have.
The easiest thing would be to take the 120 second advert files from Live 365 and make a unique track group of the files called "Live365 120 seconds" or similar and then schedule those tracks when you need an advert break to conform to Live 365's rules.
What I think will then happen is generally Live 365 will recognise the metadata in the "now playing" and replace the advert audio with something else (you would only be able to monitor what by listening to the stream "off air).
Teen Day Broadcasting Program
Hi Jason. This should be the final question I have before attempting a test stream with Live365. I've built all of my clocks and using 2-minute break notes for the Live365 commercial breaks. Will the PlayIt Live Internet Broadcast plugin recognize those 2-minute break notes as on-air content? Please see attached snapshot. I don't see a setting to prevent a silence gap that would cause PlayIt Live to go off-air. Want to make sure everything is set to go prior to an actual stream test. Thanks. Have a Blessed Day, Dan