Document:

ex10-29.htm

Exhibit 10.29

 

 

 

 

PLEDGE AGREEMENT

This PLEDGE AGREEMENT (this “Agreement”), dated as of December 31, 2011, is executed by JEFFREY SISK  (the “Pledgor”)  in favor of Generation Zero Group, Inc., a Nevada corporation (the “Pledgee”).

 

W I T N E S S E T H:

WHEREAS, Pledgor and the Pledgee are parties to that certain Assignment of effective as of December 31, 2011 (the “Assignment”), in which Pledgor has agreed to indemnify Pledgee from and against certain claims; and

WHEREAS, Pledgor is the legal, record and beneficial owner of 3,000,000 shares of common stock of Generation Zero Group; and

WHEREAS, in order to induce Pledgee to enter into the Assignment and accept the terms of the indemnity provisions therein, Pledgor has agreed to execute and deliver to the Pledgee this Agreement under which Pledgor hereby pledges and assigns to Pledgee, as security for the payment in full of the indemnity obligations of Pledgor under the Assignment, all of Pledgor’s right, title and interest in and to 500,000 shares of restricted common stock of Generation Zero Group, Inc., as further provided in this Agreement;

NOW, THEREFORE, for good and valuable consideration the receipt of which is hereby acknowledged, Pledgor hereby agrees as follows:

ARTICLE 1

DEFINITIONS

SECTION 1.1.     Certain Terms.  The following terms shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):

“Collateral” means the Pledged Shares pledged and delivered to the Pledgee in connection with this Agreement and all proceeds of the foregoing.

“Default” means any Event of Default or any condition or event which, after notice or lapse of time or both, would consti­tute an “Event of Default” under this Agreement.

“Event of Default” means any event described in Sec­tion 5.1.

“Pledged Shares” shall mean the 500,000 shares of Generation Zero Group, Inc. restricted common stock owned by Pledgor.

“Secured Obligations” means the obliga­tions of Pledgor under the indemnity provisions of the Assignment.

“U.C.C.” means the Uniform Commercial Code as in effect in the State of Georgia.

  

  

  

SECTION 1.2.     U.C.C. Definitions.  Unless otherwise defined herein or the context otherwise requires, terms for which meanings are provided in the U.C.C. are used in this Agreement, including its preamble and recitals, with such meanings.

ARTICLE 2 - PLEDGE

SECTION 2.1.     Grant of Security Interest.  Pledgor hereby pledges, assigns, charges, mortgages, delivers, set overs, conveys and transfers to the Pledgee, and hereby grants to Pledgee, a continuing security interest in and to, all of the Collateral. This Agreement shall constitute a security agreement under the U.C.C. as in effect in the State of Georgia.

SECTION 2.2.     Security for Secured Obligations.  This Agreement and the Collateral secure the payment in full and per­formance of all Secured Obligations.

SECTION 2.3.     Delivery of Pledged Property; Transfer, Etc.  Where applicable, all certificates and instruments representing or evidencing any Collateral, including all Pledged Shares, shall be delivered to and held by or on behalf of the Pledgee pursuant hereto, shall be in suitable form for transfer by delivery, and shall be accompanied by all necessary instruments of transfer or assignment (stock power), duly executed in blank.  After the occurrence and during the continuation of an Event of Default, which is not cured within sixty (60) days of the Event of Default, the Pledgee shall have the right, at any time after said 60 days, without notice to Pledgor, to transfer to the Pledgee any or all of the Pledged Shares.  In addition, the Pledgee shall have the right at any time to exchange certificates or instruments representing or evidencing any Pledged Shares for certificates or instruments of smaller or larger denominations.

SECTION 2.4.     Distributions on Pledged Shares.  In the event that any disbursement of any income or distribution of money or property of any kind is to be paid on any Pledged Shares at a time when no Default or Event of Default has occurred and is con­tinuing or would result therefrom, such disbursement or other distribution may be paid directly to the Pledgor; provided that, any disbursement or distribution that is received by Pledgor at any time after 60 days after an Event of Default exists shall be held in trust by Pledgor as part of the Collateral and shall be turned over to the Pledgee upon demand by the Pledgee.

SECTION 2.5.     No Duty to Pledgee.  The powers conferred on the Pledgee hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Beyond reasonable care in the custody of any Col­lateral in its possession and the accounting for moneys actually received by it hereunder, the Pledgee shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any  Collateral.

SECTION 2.6.     Continuing Security Interest; Transfer of Secured Obligation.  This Agreement shall:

(a)              create a continuing security interest in the Col­lateral;

(b)              remain in full force and effect until the Geronimo Note as defined in the Assignment has been settled in full and no other obligations exist thereunder as against Pledgee or Pledgee is released from all obligations under the Geronimo Note;

  

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(c)              be binding upon Pledgor, its successors and assigns, provided, however, that Pledgor may not assign any of its rights or obligations hereunder without the prior written consent of the Pledgee; and

(d)              inure to the benefit of the Pledgee and its respective permitted successors, transferees and assigns.

SECTION 2.7.     Termination of Security Interest. Upon the occurrence of the payment in full and performance of all Secured Obligations or a valid release is issued in favor of Pledgee of all obligations to repay the Geronimo Note, the security interest granted herein shall terminate and all rights to the Collateral shall revert to the Pledgor.  Upon any such termination, the Pledgee will, at the Pledgor’s expense, deliver all certifi­cates and instruments representing or evidencing all Pledged Shares, together with all other Collateral held by the Pledgee hereunder, and execute and deliver to the Pledgor, at the Pledgor’s expense, such documents as the Pledgor shall reasonably request to evidence such termination.

ARTICLE 3 - REPRESENTATIONS AND WARRANTIES

SECTION 3.1.     Pledgor represents and warrants as follows:

(a)              Pledgor is and at all times will be the legal and beneficial owner of, and have and will have at all times good and marketable title to (and has and will at all times have full right and authority to pledge and assign) all Col­lateral, free and clear of all Liens, or other charges or en­cumbrances, except the Lien granted pursuant hereto in favor of the Pledgee and the restrictive legend on the Pledged Shares;

(b)              The execution and delivery of this Agreement and delivery to Pledgee of Pledged Shares is effective to create a valid, perfected, first priority security interest in such Collateral and all pro­ceeds thereof, securing the Secured Obligations, and no filing or other action is necessary to perfect or protect such security interest; and

(c)              No authorization, approval, or other action by and no notice to or filing with, any Governmental Authority is or will be required eitherfor the pledge by Pledgor of any Col­lateral pursuant to this Agreement or for the execution, delivery, or performance of this Agreement by Pledgor.

ARTICLE 4 - COVENANTS

SECTION 4.1.     Protect Collateral; Further Assurances, Etc.  Pledgor shall not sell, assign, transfer, pledge or encumber in any other manner the Collateral (except in favor of the Pledgee hereunder).  Pledgor will warrant and defend the right, title and security interest herein granted to the Pledgee in and to the Collateral (and all right, title and interest repre­sented by the Collateral) against the claims and demands of all Persons whomsoever.  Pledgor agrees that at any time, and from time to time, at the expense of Pledgor, Pledgor will promptly execute and deliver all further instruments, and take all further action, that may be necessary, or that the Pledgee may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Pledgee to exercise and enforce its rights and remedies hereunder with respect to any Collateral, including, but not limited to the filing any financing or continuation statements under the U.C.C. with respect to the security interest granted hereunder. Pledgor also hereby authorizes Pledgee to file any such financing or continuation statement without the signature of Pledgor to the extent permitted by applicable law.

  

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SECTION 4.2.     Taxes.  Pledgor shall pay all taxes, as­sessments and charges levied, assessed or imposed upon the Col­lateral before the same become delinquent or become Liens upon any of the Collateral except where the same may be contested in good faith by appropriate proceedings and as to which adequate reserves have been provided.

SECTION 4.3.     Continuous Pledge.  Subject to Sec­tion 2.7, Pledgor shall, at all times, keep pledged to the Pledgee pursuant hereto all Pledged Shares.

SECTION 4.4.     Additional Information.  Pledgor shall furnish to the Pledgee written notice of the occurrence of any event which would make any representation con­tained in Article 3 untrue at such time.

SECTION 4.5.     Adjustments and Distributions Concerning Collateral.  No part of the Collateral shall ever be converted in any manner by Pledgor into another type of property or any money or other proceeds unless the proceeds will pay in full the Secured Obligations or the Pledgee otherwise consents.

ARTICLE 5 - EVENTS OF DEFAULT; REMEDIES

SECTION 5.1.     Events of Default.  Each of the following shall constitute an “Event of Default” hereunder:

(a)              if there shall occur any Event of Default under the indemnity provisions of the Assignment;

(b)              if any of the Collateral shall be attached or levied upon or seized in any legal proceeding, or held by virtue of any Lien or distress; or

(c)              if any representation or warranty of Pledgor set forth herein shall be untrue in any material respect or if Pledgor shall default in the due performance and observance of any covenant contained herein.

SECTION 5.2.     Actions upon Event of Default.  In addi­tion to its rights and remedies provided hereunder, whenever an Event of Default shall have occurred and be continuing for sixty (60) days, the Pledgee shall have all rights and remedies of a secured party upon default under the U.C.C. or other applicable law.  All rights of Pledgee shall be cumulative and not exclusive.  Any notification required by law of any intended disposition by the Pledgee of any of the Collateral shall be deemed reasonably and properly given if given in writing at least five (5) days before such disposition.  Without limitation of the above, the Pledgee may whenever an Event of Default shall have occurred and be continuing for 60 days, without prior notice to Pledgor, take all or any of the following actions:

(a)              transfer all or any part of the Collateral into the name of the Pledgee or its nominee, without disclosing that such Collateral is subject to the Lien hereunder;

(b)              notify the obligors on any of the Collateral to make payment to the Pledgee of any amount due or to become due thereunder;

(c)              take control of any proceeds of the Collateral; and

  

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(d)              execute (in the name, place and stead of Pledgor) endorsements, assignments, stock powers and other instruments of conveyance or transfer with respect to all or any of the Collateral.

SECTION 5.3.     Attorney-in-Fact.   Pledgor hereby irrevocably appoints the Pledgee as its true and lawful attorney, with full power of substitution, in the name of Pledgor, the Pledgee or otherwise, for the sole use and benefit of the Pledgee, but at Pledgor’s expense, upon the occurrence and during the continuation of an Event of Default for sixty days or more to take any action and to execute any instrument which the Pledgee may deem reasonably necessary or advisable to accomplish the purposes of this Agreement.

SECTION 5.4.     Private Sales.  (a) Pledgor hereby recog­nizes that the Pledgee may be unable, after the occurrence and during the continuance of any Event of Default, to effect a public sale of any or all the Pledged Shares by reason of applicable state securities law or other­wise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers that will be obligated to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favor­able than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.

(b)              Pledgor further agrees to use its best ef­forts, after the occurrence and during the continuance of an Event of Default, to do or cause to be done all such acts as may be necessary to make such sale or sales of all or any portion of the Pledged Shares pursuant to this Section 5.4 valid and binding and in compliance with any and all other applicable Requirements of Law.

SECTION 5.5.     Application of Proceeds.  All cash pro­ceeds received by the Pledgee in respect of any sale of, collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Pledgee, be held by the Pledgee as ad­ditional collateral security for, or then or at any time there­after be applied in whole or in part by the Pledgee against, the Secured Obligations.  After all Secured Obligations have been paid in full, any surplus of such cash or cash proceeds held by the Pledgee and remaining after payment in full of all the Secured Obligations (or provision therefor being made in cash or Cash Equivalent Investments), shall be paid over to the Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

 

SECTION 5.6.     Indemnity and Expenses.  Pledgor hereby agrees to indemnify and hold harmless the Pledgee from and against any and all claims, losses, and liabilities growing out of or resulting from this Agreement (including en­forcement of this Agreement), except claims, losses, or liabilities resulting from the Pledgee’s negligence or willful misconduct.  Upon demand, Pledgor will pay, or cause to be paid, to the Pledgee the amount of any and all reasonable out-of-pocket expenses, including the reasonable fees and disbursements of its counsel and of any experts and agents, which the Pledgee may incur in connection with:

(a)              the administration of this Agreement;

(b)              the custody, preservation, use, or operation of, or the sale of, collection from, or other realization upon, any of the Collateral;

(c)              the exercise or enforcement of any of the rights of the Pledgee hereunder and any action taken by the Pledgee under Section 6.3 hereof; and

  

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(d)              the failure by Pledgor to perform or observe any of the provisions hereof.

 

ARTICLE 6 - MISCELLANEOUS

SECTION 6.1.     Notices.  All notices hereunder shall be in writing and shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; when received if deposited in the mail, postage prepaid, if mailed; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.  Notice addresses are as follows:

                             

	 	 	 
	If to Pledgor:   	Jeff Sisk	 
	  	
199 Daisy Street

	  
	  	
Homosassa, FL  34446

	  
	  	  	  
	
If to Pledgee:

	

c/o The Loev Law Firm, PC

	 
	  	
6300 West Loop South, Suite 280

	  
	  	
Bellaire, TX 77401

	  
	  	
Attn:  David M. Love, Esq.

	  

or to such other Persons or addresses as may be designated in writing by the party to receive such notice as provided above.

SECTION 6.2.     Obligations Not Affected.  The obliga­tions of the Pledgor under this Agreement shall remain in full force and effect without regard to, and shall not be impaired or affected by:

(a)              any amendment or modification or addition or supplement to the Geronimo Note;

(b)              any waiver, consent, extension, indulgence or other action or inaction in respect of this Agreement; or

(c)              any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like, of Pledgor or any other Person, whether or not Pledgor shall have notice or knowledge of any of the forego­ing.

SECTION 6.3.     Protection of Collateral.  The Pledgee may from time to time, at its option, perform any act which the Pledgors agree hereunder to perform and which Pledgor shall fail to perform after being requested in writing to so perform (it being understood that no such request need be given after the occurrence and during the continuance of an Event of Default) and the Pledgee may from time to time take any other action which the Pledgee reasonably deems necessary for the maintenance, preservation or protection of any of the Collateral or of its security interest therein.

SECTION 6.4.     Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any jurisdiction.

SECTION 6.5.     Headings.  The various headings of this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement.

  

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SECTION 6.6.     Governing Law; Jurisdiction.  (a)  THIS AGREEMENT SHALL BE DEEMED TO BE MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF GEORGIA.

(b)              PLEDGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY GEORGIA STATE OR FEDERAL COURT SITTING IN FULTON COUNTY, GEORGIA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT (AND PLEDGOR AGREES THAT SUCH JURISDICTION WILL BE EXCLUSIVE WITH RESPECT TO CLAIMS BROUGHT BY PLEDGOR AGAINST THE PLEDGEE), AND PLEDGOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NORTH CAROLINA STATE OR FEDERAL COURT. PLEDGOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF ANY INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.

SECTION 6.7.     Successors and Assigns.  This Agreement shall be binding upon the Pledgor and shall inure to the benefit of the Pledgee and its respective successors and assigns. Pledgor shall not assign this Agreement or delegate any of its duties hereunder.

SECTION 6.8.     Waiver of Jury Trial, Etc.  THE PLEDGEE AND PLEDGOR HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE PLEDGEE, OR ANY PLEDGOR.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PLEDGEE ENTERING INTO THE NOTE AND THE OTHER LOAN DOCUMENTS.

SECTION 6.9.     Limitation of Liability.  NEITHER THE PLEDGEE NOR ANY AFFILIATE THEREOF, SHALL HAVE ANY LIABILITY WITH RESPECT TO, AND PLEDGOR HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON, ANY CLAIM FOR ANY SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES SUFFERED BY PLEDGOR IN CONNECTION WITH, ARISING OUT OF, OR IN ANY WAY RELATED TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION HEREWITH, OTHER THAN ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PLEDGEE OR ANY AFFILIATE THEREOF.

SECTION 6.10.    INTENTIONALLY DELETED

SECTION 6.11.    Pledgor’s Obligations Absolute.  The obligations of Pledgor under this Agreement shall be direct and immediate and not conditional or contingent upon the pursuit of any remedies against any other person, nor against other security or liens or encumbrances available to Pledgee or any of Pledgee’s heirs, personal representatives, successors, assigns, or agents.  Pledgor hereby waives any right to require that an action be brought against any other person or entity or to require that resort be had to any security prior to any exercise of rights or remedies hereunder.

SECTION 6.12.    Amendment.  Neither this Agreement nor any provisions hereof may be amended, modified, waived, discharged or terminated, except by an instrument in writing signed by Pledgor and Pledgee.

  

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SECTION 6.13.    Counterparts, Effectiveness, etc.  This Agreement may be executed by the parties hereto in several coun­terparts, each of which shall be executed by the Pledgor and the Pledgee and be deemed to be an original and all of which shall constitute together but one and the same agreement.  This Agreement shall become effective when counterparts hereof executed by the Pledgor and the Pledgee (or notice thereof satisfactory to the Pledgee) shall have been received by the Pledgee and notice there­of shall have been given by the Pledgee to the Pledgor.

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first above written.

PLEDGEE:

Generation Zero Group, Inc.

By: /s/ Matthew D. Krieg

         Matthew D. Krieg

        Chief Executive Officer

PLEDGOR:

/s/ Jeffrey Sisk             

Jeffrey Sisk

 

 

 

 

 

 

 

  

8ex10-30.htm

Exhibit 10.30

 

 

 

THIS NOTE, AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE (THE “SECURITIES”) HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT” OR THE “SECURITIES ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE AND ANY SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE (EXCEPT AS OTHERWISE PROVIDED BELOW).

 

CONVERTIBLE PROMISSORY NOTE

 

	
$200,000

	
Effective August 15, 2012 

 

FOR VALUE RECEIVED, Generation Zero Group, Inc., a Nevada corporation (the “Company”), hereby promises to pay to the order of John Strickland and Kimberly Ann Griffith, Joint Tenants, and/or their permitted assigns (the “Holders”), the aggregate principal amount of Two Hundred Thousand Dollars ($200,000), together with interest on the unpaid principal amount hereof, upon the terms and conditions hereinafter set forth.

 

	
1.

	
Loan Amount.  This Convertible Promissory Note (this “Note”, “Promissory Note” or “Agreement”) evidences  Two Hundred Thousand Dollars ($200,000), loaned to the Company by Holders on August 15, 2012 (hereinafter referred to as the “Loan” or the “Principal”).

	  	  	  
	
2.

	
Payment Terms.  The Company agrees to pay the Holders accrued interest hereunder beginning on the thirtieth day following the Effective Date of this Note and continuing on the first Business Day of each month thereafter (each the “Monthly Payment Date” and the “Monthly Payment”), until the earlier of (i) the Maturity Date (when the entire then outstanding balance of this Note shall be due and payable), or (ii) the date that the Principal and accrued interest on the Note has been repaid in full or fully converted into shares of the Company’s Common Stock as provided in Section 4 hereof.  The “Maturity Date” of this Note shall be August 15, 2014.  Payment shall be credited first to the accrued interest then due and payable and the remainder to Principal.

	  	  	  
	
3.

	
Interest.  Interest on the outstanding portion of Principal of this Note shall accrue at a rate of ten percent (10%) per annum.  All past-due principal and interest (which failure to pay such amounts shall be defined herein as an "Event of Default") shall bear interest at the rate of fourteen percent (14%) per annum until paid in full (the “Default Rate”). All computations of interest shall be made on the basis of a 360-day year for actual days elapsed. 

	  	
a.

	
Notwithstanding any provision in this Note, the total liability for payments of interest and payments in the nature of interest, including all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of the State of Georgia or the applicable laws of the United States of America, whichever shall be higher (the “Maximum Rate”).

	  	
b.

	
In the event the total liability for payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions or other sums which may at any time be deemed to be interest, which for any month or other interest payment period exceeds the Maximum Rate, all sums in excess of those lawfully collectible as interest for the period in question (and without further agreement or notice by, among or to the Holders the undersigned) shall be applied to the reduction of the principal balance, with the same force and effect as though the undersigned had specifically designated such excess sums to be so applied to the reduction of the principal balance and the Holders had agreed to accept such sums as a premium-free prepayment of principal; provided, however, that the Holders may, at any time and from time to time, elect, by notice in writing to the undersigned, to waive, reduce or limit the collection of any sums in excess of those lawfully collectible as interest rather than accept such sums as a prepayment of the principal balance.  The undersigned does not intend or expect to pay nor does the Holders intend or expect to charge, accept or collect any interest under this Note greater than the Maximum Rate.

  

 

  

Page 1 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

 

	  	
c.

	
If any payment of principal or interest on this Note shall become due on a Saturday, Sunday or any other day on which national banks are not open for business, such payment shall be made on the next succeeding Business Day. "Business Day" means a day other than (i) a Saturday, (ii) a Sunday or (iii) a day on which commercial banks in Nevada, are authorized or required to be closed for business.

 

	
4.

	
Holders’ Option to Convert this Note.

	  

 

	  	
a.

	
At any time prior to the payment in full by the Company of this Note, Holders shall have the option to convert the unpaid principal balance of this Promissory Note (or any portion thereof), together with all accrued interest into shares of common stock (the “Shares” and the “Common Stock”) of the Company (the “Conversion Option”) at the Conversion Price (each a “Conversion”).  The “Conversion Price” shall be equal to $0.08 per share;

	  	  	  
	  	
b.

	
In order to exercise this Conversion Option, the Holders shall surrender this Promissory Note to the Company, accompanied by written notice of its intentions to exercise this Conversion Option, which notice shall set forth the amount of this Promissory Note to be converted, and the calculation of the Shares to be issued based on the Conversion Price, and shall be in the form of Exhibit A, attached hereto (“Notice of Conversion”). The date that the Company receives the Notice of Conversion shall be defined as the “Conversion Date.” Within five (5) Business Days of the Company’s receipt of the Notice of Conversion and this Note (reflecting a Conversion Price confirmed by the Company), the Company shall deliver or cause to be delivered to the Holders, written confirmation that the Shares have been issued in the name of the Holders (the “Share Delivery Deadline”).  If the Company reasonably believes that there is an error in Holders’ calculation of the Shares issuable in connection with the Notice of Conversion or the Conversion Price provided for therein, the Company shall not be obligated to honor such defective Notice of Conversion and shall promptly notify Holders of such errors;

	  	  	  
	  	
c.

	
In the event of the exercise of the Conversion Option, Holders shall cooperate with the Company to promptly take any and all additional actions required to make Holders a stockholder of the Company including, without limitation, in connection with the issuance of the Shares, such representations as to financial condition, investment intent and sophisticated investor status as are reasonably required by counsel for the Company. Holders shall be deemed to have automatically re-certified the Representations (defined below) at such time or times as Holders exercises its Conversion Option as provided herein, and the Company shall be able to rely on such re-certification for all purposes;

	  	  	  
	  	
d.

	
The Company shall at all times take any and all additional actions as are necessary to maintain the required authority to issue the Shares to the Holders, in the event the Holders exercises their rights under the Conversion Option;

	  	
e.

	
Conversion calculations pursuant to this Section 4, shall be rounded to the nearest whole share of Common Stock, and no fractional shares shall be issuable by the Company upon conversion of this Note. Conversion of this Note in full shall be deemed payment in full of this Note and this Note shall thereupon be cancelled;

	  	  	  

 

 

  

Page 2 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

	  	
f.

	
If the Company at any time after the Effective Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) the shares of Common Stock acquirable hereunder into a greater number of shares, then, after the date of record for effecting such subdivision, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced.  If the Company at any time combines (by reverse stock split, recapitalization, reorganization, reclassification or otherwise) the shares of Common Stock acquirable hereunder into a smaller number of shares, then, after the date of record for effecting such combination, the Conversion Price in effect immediately prior to such combination will be proportionately increased.

 

	  	
g.

	
In the event of the distribution to all holders of its Common Stock of any equity or debt securities of the Company or any of its assets (excluding cash dividends or distributions) or rights to purchase any such securities or assets, then, after such event, the Note will be Convertible into the kind and amount of securities and other property which the Holders would have been entitled to receive if the Holders owned the Shares issuable upon Conversion of the Note immediately prior to the occurrence of such event.

	  	
h.

	
In case of any capital reorganization, reclassification of the stock of the Company (other than a change in par value or as a result of a stock dividend, subdivision, split up or combination of shares), the Note shall be Convertible into the kind and number of shares of stock or other securities or property of the Company to which the Holders would have been entitled to receive if the Holders owned the Shares issuable upon Conversion of the Note immediately prior to the occurrence of such event. The provisions of the foregoing sentence shall similarly apply to successive reorganizations, reclassifications, consolidations, exchanges, leases, transfers or other dispositions or other share exchanges.

	  	  	  
	  	
i.

	
All Shares of Common Stock which may be issued upon Conversion of this Note will, upon issuance by the Company in accordance with the terms of this Note, be validly issued, free from all taxes and liens with respect to the issuance thereof (other than those created by the holders), free from all pre-emptive or similar rights and be fully paid and non-assessable;

	  	  	  
	  	
j.

	
On the date of any Conversion, all rights of any Holder with respect to the amount of this Note converted, will terminate, except only for the rights of any such Holder to receive certificates (if applicable) for the number of Shares of Common Stock which this Note has been Converted;

	  	  	  
	  	
k.

	
Unless the Holders provides a valid opinion from an attorney stating that such Shares can be issued free of restrictive legend, which shall be determined by the Company in its sole discretion, prior to the issuance date of such Shares, such Shares shall be issued as restricted shares of Common Stock; and

	  	  	  
	  	
l.

	
The Company shall pay any and all taxes which may be payable in respect to any transfer involved in the issue and delivery of shares of Common Stock, excluding any federal, state or local income taxes and any franchise taxes or taxes imposed upon the Holders by the jurisdiction, or any political subdivision thereof, under which the Holders are organized or qualified to do business.

	  	  	  
	  	
m.

	
In the event the Company shall propose to take any action which shall result in an adjustment in the Conversion Price, the Company shall give notice to the Holders, which notice shall specify the record date, if any, with respect to such action and the date on which such action is to take place. Such notice shall be given on or before the earlier of ten (10) days before the record date or the date which such action shall be taken. Such notice shall also set forth all facts (to the extent known) material to the effect of such action on the Conversion Price and the number, kind or class of shares or other securities or property which shall be deliverable or purchasable upon the occurrence of such action or deliverable upon conversion of the Note. Following completion of an event pursuant to which the Conversion Price shall be adjusted, the Company shall furnish to the Holders of the Note a statement, signed by an authorized officer of the Company of the facts creating such adjustment and specifying the adjusted Conversion Price then in effect.

	  	  	  

 

 

  

Page 3 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

 

	  	
n.

	
From and after the date hereof, the Company shall at all times reserve for issuance such number of authorized and unissued shares of Common Stock (or other securities substituted therefor as herein above provided) equal to 100% of such number as shall be sufficient for the Conversion of this Note in full.

	
5.

	
Redemption.  This Note may be redeemed by the Company by payment of the entire Principal and interest outstanding under this Note in cash to Holders subject to the following “Prepayment Requirements”: 

 

	  	
a.

	
This Note may be prepaid in whole, but not in part, at any time without penalty provided that the Company shall provide the Holders a minimum of thirty (30) days and a maximum of sixty (60) days prior written notice before the date of the Company’s planned prepayment (the “Prepayment Notice”).  The Prepayment Notice shall be delivered to the name and address of the Holders which appears in the records of the Company and shall further state the date for such planned prepayment.

	  	  	  
	  	
b.

	
The Holders shall have fifteen (15) days from the delivery of the Prepayment Notice by the Company to Holders to either permit the prepayment or to exercise Holders’ right to Convert the Note into Shares as provided in Section 4, above.  If Holders do not exercise such Conversion right prior to the expiration of fifteen (15) days from  receipt of the Prepayment Notice, the Company shall be permitted to proceed with the prepayment of the Note pursuant to the terms and conditions of the Prepayment Notice.

	  	  	  
	  	
c.

	
In the event the Holders do not exercise its Conversion right, on the applicable date set forth for prepayment in the Prepayment Notice (the “Prepayment Date”), the Company shall pay all accrued and unpaid interest on the Note up to and including the Prepayment Date, and the then principal amount of the Note.

 

	
6.

	
Representations and Warranties of the Company. The Company represents and warrants to Holders as follows: 

 

	  	
a.

	
The execution and delivery by the Company of this Note (i) are within the Company’s corporate power and authority, and (ii) have been duly authorized by all necessary corporate action.  Further, the undersigned is a duly authorized representative of the Company and has been authorized by a resolution of the Board of Directors of the Company to exercise any and all documents necessary to effectuate the transaction contemplated hereby.

	  	
b.

	
This Note is a legally binding obligation of the Company, enforceable against the Company in accordance with the terms hereof, except to the extent that (i) such enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights, and (ii) the availability of the remedy of specific performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefore may be brought.

 

 

 

  

Page 4 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

 

	
7.

	
Representations, Warranties and Covenants of Holders. Holders represents and Warrants to the Company, and agrees, as follows (collectively the “Representations”):

  

	  	
a.

	
This Note and any Shares issuable upon conversion of this Note are being acquired by Holders for their own account for investment and not with a view to, or for sale in connection with, any distribution thereof.

  

	  	
b.

	
Holders are “accredited investors” as such term is defined under Rule 501 of the Securities Act of 1933, as amended (the “Act” or the “Securities Act”) as Holders meets one of the following requirements.

	  	  	  
	  	
c.

	
Holders have sufficient knowledge and experience in financial and business matters and are capable of evaluating the risks and merits of Holders’ investment in the Company; Holders believes that Holders have received or had access to all information Holders consider necessary or appropriate to make an informed investment decision with respect to this Note; and Holders are able financially to bear the risk of losing Holders’ full investment in this Note and any Shares issued upon conversion hereof.

	  	  	  
	  	
d.

	
Holders have not become aware of and have not been offered the Note by any form of general solicitation or advertising, including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine, or other similar media or television or radio broadcast or any seminar or meeting where, to such Holders’ knowledge, those individuals that have attended have been invited by any such or similar means of general solicitation or advertising.

	  	  	  
	  	
e.

	
The Holders understand that the Note and the Shares are being offered to them in reliance on specific exemptions from or non-application of the registration requirements of federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Holders set forth herein in order to determine the applicability of such exemptions and the suitability of Holder to acquire the Note and Shares. All information which Holders have provided to the Company concerning the undersigned's financial position and knowledge of financial and business matters is correct and complete as of the date hereof, and if there should be any material change in such information prior to acceptance of this Agreement by the Company, the Holders will immediately provide the Company with such information. 

	  	  	  
	  	
f.

	
Holders understand that this Note and any Shares issuable upon Conversion pursuant hereto have not been registered under the Securities Act or registered or qualified under any securities laws of any state or other jurisdiction, are “restricted securities,” and cannot be resold or otherwise transferred unless they are registered under the Securities Act, and registered or qualified under any other applicable securities laws, or an exemption from such registration and qualification is available. Prior to any proposed transfer of this Note or any Shares, Holders shall, among other things, give written notice to the Company of its intention to effect such transfer, identifying the transferee and describing the manner of the proposed transfer and, accompanied by (i) investment representations by the transferee similar to those made by Holders in this Section 7 and (ii) an opinion of counsel satisfactory to the Company to the effect that the proposed transfer may be effected without registration under the Securities Act and without registration or qualification under applicable state or other securities laws. Each certificate issued to evidence any Shares shall bear a legend as follows:

 

"The securities represented by this certificate have not been registered under the Securities Act of 1933 or any state securities act.  The securities have been acquired for investment and may not be sold, transferred, pledged or hypothecated unless (i) they shall have been registered under the Securities Act of 1933 and any applicable state securities act, or (ii) the corporation shall have been furnished with an opinion of counsel, satisfactory to counsel for the corporation, that registration is not required under any such acts."

 

 

 

  

Page 5 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

 

  

	
8.

	
Events of Default. If an Event of Default (as defined herein or below) occurs (unless all Events of Default have been cured or waived by Holders), Holders may, by written notice to the Company, declare the principal amount then outstanding of, and the accrued interest and all other amounts payable on, this Note to be immediately due and payable.  The following events shall constitute events of default ("Events of Default") under this Note, and/or any other Events of Default defined elsewhere in this Note shall occur:

 

	 	

(a)   the Company shall fail to pay, when and as due, the principal or interest payable hereunder on the due date of such payment, and such payment is not made within ten (10) days following the receipt of written notice of such failure by the Holders to the Company; or

	 	 
	 	

(b)   the Company shall have breached in any respect any material covenant in this Note, and, with respect to breaches capable of being cured, such breach shall not have been cured within ten (10) days following the receipt of written notice of such breach by the Holders to the Company; or

	 	 
	 	

(c)   the Company shall: (i) make an assignment for the benefit of creditors, file a petition in bankruptcy, petition or apply to any tribunal for the appointment of a custodian, receiver or a trustee for it or a substantial portion of its assets; (ii) commence any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation or statute of any jurisdiction, whether now or hereafter in effect; (iii) have filed against it any such petition or application in which an order for relief is entered or which remains undismissed for a period of ninety (90) days or more; (iv) indicate its consent to, approval of or acquiescence in any such petition, application, proceeding or order for relief or the appointment of a custodian, receiver or trustee for it or a substantial portion of its assets; or (v) suffer any such custodianship, receivership or trusteeship to continue undischarged for a period of ninety (90) days or more; or

	 	 
	 	

(e)  the Company shall take any action authorizing, or in furtherance of, any of the foregoing.

 

	 	

In case any one or more Events of Default shall occur and be continuing, Holders may proceed to protect and enforce their rights by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or for an injunction against a violation of any of the terms hereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.  In case of a default in the payment of any principal of or premium, if any, or interest on this Note, the Company will pay to Holders such further amount as shall be sufficient to cover the reasonable cost and expenses of collection, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.  No course of dealing and no delay on the part of Holders in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice Holders’ rights, powers or remedies.  No right, power or remedy conferred by this Note upon Holders shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.

 

No failure or delay by the Holders to require the performance of any term or terms of the Note or not to exercise any right, or any remedy shall constitute a waiver of any such term or of any right or of any default, nor shall such delay or failure preclude the Holders from exercising any such right, power or remedy at any later time or times. By accepting payment after the due date of any amount payable under the Note, the Holders shall not be deemed to waive the right either to require payment when due of all other amounts payable, or to later declare a default for failure to effect the payment when due of any such other amount. The failure of the Holders to give notice of any failure or breach of the Company under the Note shall not constitute a waiver of any right or remedy in respect of such continuing failure or breach or any subsequent failure or breach.

 

 

 

  

Page 6 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

	
9.

	
Certain Waivers by the Company.  Except as expressly provided otherwise in this Note, the Company and every endorser or guarantor, if any, of this Note waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note, and assent to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of collateral available to Holders, if any, and to the addition or release of any other party or person primarily or secondarily liable.

	
10.

	
Assignment by Holder.  If and whenever this Note shall be assigned and transferred, or negotiated, including transfers to substitute or successor trustees, in each case subject to Section 7(f), applicable law and an exemption from registration for such transfer, which shall be approved by the Company subject to the Holders providing the Company a legal opinion for such transfer, which opinion shall be reasonably accepted by the Company, the Holder hereof shall be deemed the “Holder” for all purposes under this Note.

 

	
11.

	
Notices.  Any and all notices, requests or other communications hereunder shall be given in writing and delivered by: (a) regular, overnight or registered or certified mail (return receipt requested), with first class postage prepaid; (b) hand delivery; (c) facsimile transmission; or (d) overnight courier service, to the parties at the following addresses or facsimile numbers:

 

	 	(i) if to Holders, to: 	

John Strickland and

Kimberly Ann Griffith,

Joint Tenants

2696 Redding Road NE

Atlanta, Georgia  30319

	 	 	 
	 	(ii) if to the Company, to:   	
Generation Zero Group, Inc.

Attn: Matthew Krieg

20225 NE 34th Court, #413

Aventura, FL  33180

	 	 	 	 
	 	Copies to:  	

The Loev Law Firm, PC

Attn: David M. Loev, Esq.

6300 West Loop South, Suite 280,

Bellaire, Texas 77401

Telephone Number:  (713) 524-4110

Facsimile Number:  (713) 524-4122

 

	 	

or at such other address or number as shall be designated by either of the parties in a notice to the other party given in accordance with this Section.  Except as otherwise provided in this Note, all such communications shall be deemed to have been duly given: (A) in the case of a notice sent by regular or registered or certified mail, three business days after it is duly deposited in the mails; (B) in the case of a notice delivered by hand, when personally delivered; (C) in the case of a notice sent by facsimile, upon transmission subject to telephone confirmation of receipt; and (D) in the case of a notice sent by overnight mail or overnight courier service, the next business day after such notice is mailed or delivered to such courier, in each case given or addressed as aforesaid.

 

 

 

  

Page 7 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

 

 

	
12.

	
Amendment.  This Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

 

	
13.

	
Costs and Fees.  Anything else in this Note to the contrary notwithstanding, in any action arising out of this Agreement, the prevailing party shall be entitled to collect from the non-prevailing party all of its attorneys’ fees.  For the purposes of this Note, the party who receives or is awarded a substantial portion of the damages or claims sought in any proceeding shall be deemed the “prevailing” party and attorneys’ fees shall mean the reasonable fees charged by an attorney or a law firm for legal services and the services of any legal assistants, and costs of litigation, including, but not limited to, fees and costs at trial and appellate levels.

	  	  
	
14.

	
Governing Law.  It is the intention of the parties hereto that the terms and provisions of this Note are to be construed in accordance with and governed by the laws of the State of Georgia, except as such laws may be preempted by any federal law controlling the rate of interest which may be charged on account of this Note.

  

	
15.

	
No Third Party Benefit.  The provisions and covenants set forth in this Agreement are made solely for the benefit of the parties to this Agreement and are not for the benefit of any other person, and no other person shall have any right to enforce these provisions and covenants against any party to this Agreement.

	  	  
	
16.

	
Jurisdiction, Venue and Jury Trial Waiver.  The parties hereby consent and agree that, in any actions predicated upon this Note, venue is properly laid in Nevada and that the Circuit Court in and for Clark County, Nevada, shall have full subject matter and personal jurisdiction over the parties to determine all issues arising out of or in connection with the execution and enforcement of this Note.

	  	  
	
17.

	
Interpretation.  The term “Company” as used herein in every instance shall include the Company’s successors, legal representatives and assigns, including all subsequent grantees, either voluntarily by act of the Company or involuntarily by operation of law and shall denote the singular and/or plural and the masculine and/or feminine and natural and/or artificial persons, whenever and wherever the contexts so requires or properly applies.  The term “Holders” as used herein in every instance shall include the Holders’ successors, legal representatives and assigns, as well as all subsequent assignees, endorsees and holders of this Note (subject to the provisions of this Note providing for transfers and assignments by Holders), either voluntarily by act of the parties or involuntarily by operation of law.  Captions and paragraph headings in this Note are for convenience only and shall not affect its interpretation.

	  	  
	
17.

	
WAIVER OF JURY TRIAL.  THE COMPANY AND HOLDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS, (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.  THE COMPANY ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT TO THE HOLDER IN EXTENDING CREDIT TO THE COMPANY, THAT THE HOLDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT THE COMPANY HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.

 

 

 

  

Page 8 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

 

	
18.

	
Entire Agreement.  This Agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understanding or written or oral agreements between the parties respecting the subject matter hereof.

	
19.

	
Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.  A copy of this Agreement signed by one party and faxed or scanned and emailed to another party (as a PDF or similar image file) shall be deemed to have been executed and delivered by the signing party as though an original.  A photocopy or PDF of this Agreement shall be effective as an original for all purposes.

[Remainder of page left intentionally blank.  Signature page follows.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Page 9 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

IN WITNESS WHEREOF, the undersigned have caused this Convertible Promissory Note to be executed and delivered by a duly authorized officer as of the date first above written, to be effective as of the effective date set forth above.

 

	  	
“COMPANY”

	  
	  	  	  
	  	
GENERATION ZERO GROUP, INC.

	  
	  	  	  
	  	  	  
	  	
By: /s/ Matthew D. Krieg

	  
	  	  	  
	  	
Its: CEO

	  
	  	  	  
	  	
Printed Name:  Matthew D. Krieg

 

 

	  
	  	  	  
	  	
“HOLDERS”

	  
	
 

	  	  
	  	  	  
	  	
/s/ John Strickland

	  
	  	
John Strickland

 

 

	  
	  	
/s/ Kimberly Ann Griffith

	  
	  	
Kimberly Ann Griffith

	  
	  	  	  
	  	  	  

 

 

 

 

 

 

 

 

 

  

Page 10 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

  

 

EXHIBIT A

Conversion Election Form

____________, 20__

Generation Zero Group, Inc.

Re:           Conversion of Promissory Note

Gentlemen:

You are hereby notified that, pursuant to, and upon the terms and conditions of that certain Convertible Promissory Note of Generation Zero Group, Inc. (the “Company”), in the initial principal amount of $200,000 (as increased from time to time, the “Note”), held by us, we hereby elect to exercise our Conversion Option (as such term in defined in the Note), in connection with $__________ of the amount currently owed under the Note (including $___________ of accrued interest), effective as of the date of this writing, which amount will convert into ________________ shares of the Company’s Common Stock (the “Conversion”), based on a Conversion Price (as defined in the Note) of $0.08 per share.  In connection with the Conversion, we hereby re-certify, re-confirm and re-warrant the Representations; as such Representations are defined in Section 7 of the Note.  We have attached the original version of the Note in connection with such Conversion.

Please issue certificate(s) for the applicable shares of the Company’s Common Stock issuable upon the Conversion, in the name of the person provided below.

	  	
Very truly yours,

	  	  
	  	  
	  	
___________________________

	  	  
	  	  
	  	  
	  	
____________________________

	  	  
	  	  

 

Please issue certificate(s) for Common Stock as follows:

______________________________________________

Holder Name(s)

______________________________________________

Address

______________________________________________

Social Security No./EIN of Shareholder

Please send the certificate(s) evidencing the Common Stock to:

Attn:___________________________________________

Address:________________________________________

 

 

 

 

 

  

Page 11 of 11

Convertible Promissory Note

Between Generation Zero Group, Inc. and

John Strickland and Kimberly Ann Griffith, Joint Tennants

August 15, 2012

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