Document:

EX-10.3.1

 Exhibit 10.3.1 
 NEWTEK BUSINESS SERVICES, INC. 
  

 
 Employment
Agreement with 
 Jennifer Eddelson 

 
  

PREAMBLE. This Agreement entered into this 29th day of March 2013, by and between Newtek Business Services, Inc. (the
“Company”) and JENNIFER EDDELSON (the “Executive”), effective immediately. 
 WHEREAS, the Executive
is to be employed by the Company as an executive officer; and 
 WHEREAS, the parties desire by this writing to set forth
the employment relationship of the Company and the Executive. 
 NOW, THEREFORE, it is AGREED as follows:

 1. Defined Terms 
 When used anywhere in the Agreement, the following terms shall have the meaning set forth herein. 
 (a) “Board” shall mean the Board of Directors of the Company. 

(b) “Change in Control” shall mean any one of the following events: (i) the acquisition of ownership, holding or
power to vote 50% or more of the Company’s voting stock, or (ii) the acquisition of the ability to control the election of a majority of the Company’s directors. Notwithstanding the foregoing, a Change in Control as defined in this
Section 1(b) shall not be treated as a Change in Control for purposes of this Agreement unless it constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under
section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (the “Treasury Regulations”) 

(c) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and as interpreted through
applicable rulings and regulations in effect from time to time. 
 (d) “Code §280G Maximum” shall mean the
product of 2.0 and the Executive’s “base amount” as defined in Code §280G(b)(3). 
 (e)
“Company” shall mean Newtek Business Services, Inc., and any successor to its interest. 
 (f) “Common
Stock” shall mean common shares of the Company. 

 (g) “Effective Date” shall mean the date of execution referenced in the
Preamble of this Agreement. 
 (h) “Executive” shall mean Jennifer Eddelson. 

(i) “Good Reason” shall mean any of the following events, which has not been consented to in advance by the Executive in
writing: (i) the requirement that the Executive move her personal residence, or perform her principal executive functions, more than fifty (50) miles from her primary office as of the Effective Date; (ii) a material reduction in the
Executive’s base compensation as the same may be increased from time to time; (iii) the failure by the Company to continue to provide the Executive with compensation and benefits provided for on the Effective Date, as the same may be
increased from time to time, or with benefits substantially similar to those provided to him under any of the Executive benefit plans in which the Executive now or hereafter becomes a participant, or the taking of any action by the Company which
would directly or indirectly reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by him; (iv) the assignment to the Executive of duties and responsibilities that constitute a material diminution from
those associated with her position on the Effective Date; or (v) a material diminution or reduction in the Executive’s responsibilities or authority (including reporting responsibilities) in connection with her employment with the Company.

 (j) “Just Cause” shall mean the Executive’s willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, conviction for a felony, or material breach of any provision of this Agreement. No act, or failure to act, on the Executive’s part shall be considered “willful” unless she
has acted, or failed to act, with an absence of good faith and without a reasonable belief that her action or failure to act was in the best interests of the Company. 
 (k) “Protected Period” shall mean the period that begins on the date six months before a Change in Control and ends on the earlier of six months following the Change in Control or the
expiration date of this Agreement. 
 (l) “Trigger Event” shall mean (i) the Executive’s voluntary
termination of employment within ninety (90) days of an event that both occurs during the Protected Period and constitutes Good Reason, or (ii) the termination by the Company or its successor(s) in interest, of the Executive’s
employment for any reason other than Just Cause during the Protected Period. 
 2. Employment. The Executive is employed
as Executive Vice President and Chief Accounting Officer of the Company. The Executive shall render such administrative and management services for the Company and its subsidiaries as are currently rendered and as are customarily performed by
persons situated in a similar executive capacity and consistent with the duties of an Executive Vice President as set forth in the bylaws of the Company. The Executive shall report to the Chief Executive Officer. The Executive shall also promote, by
entertainment or otherwise, as and to the extent permitted by law, the business of the Company and its subsidiaries. The Executive’s other duties shall be such as the Board may from time to time reasonably direct, including normal duties as an
officer of the Company. 

  
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 3. Base Compensation. The Company agrees to pay the Executive during the term of this
Agreement a salary at the rate of $ 240,000 per annum, payable in cash not less frequently than monthly. Additionally, the Board shall review, not less often than annually, the rate of the Executive’s salary and may decide to further
increase her salary. 
 4. Cash Bonuses; Incentive Compensation. 

(a) The Board shall determine the Executive’s right to receive incentive compensation in the form of cash bonuses and other awards.
No other compensation provided for in this Agreement shall be deemed a substitute for such incentive compensation. Cash bonuses shall be awarded pursuant to the terms of the Company’s Annual Cash Bonus Plan, if one has been adopted by the Board
and if not, then by action of the Board. 
 (b) Incentive bonus: in addition to all other compensation payable hereunder, the
Executive shall be entitled to participate in consideration for a cash bonus out of a pool to be established for this purpose by the Board. The amount of the Executive’s bonus participation shall be fixed by the Compensation Committee of the
Board if it finds the Executive’s performance to have been a major contributing factor to the success of the Company. 
 5.
Other Benefits. 
 (a) Participation in Retirement, Medical and Other Plans. The Executive shall participate in
any plan that the Company maintains for the benefit of its employees if the plan relates to (i) pension, profit-sharing, or other retirement benefits, (ii) medical insurance or the reimbursement of medical or dependent care expenses, or
(iii) other group benefits, including disability and life insurance plans. 
 (b) Executive Benefits; Expenses. The
Executive shall participate in any fringe benefits which are or may become available to the Company’s senior management Executives, including for example incentive compensation plans, club memberships, and any other benefits which are
commensurate with the responsibilities and functions to be performed by the Executive under this Agreement. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses which she shall incur in connection with her services
under this Agreement upon substantiation of such expenses in accordance with the policies of the Company. 
 6. Term. The
Company hereby employs the Executive, and the Executive hereby accepts such employment under this Agreement, for the period commencing on the Effective Date and ending on March 31, 2014 or such earlier date as is determined in accordance with
Section 11 (the “Term”).” 
 7. Loyalty; Noncompetition. 

(a) During the period of her employment hereunder and except for illnesses, reasonable vacation periods, and reasonable leaves of
absence, the Executive shall devote substantially all her full business time, attention, skill, and efforts to the faithful performance of her duties hereunder; provided, however, from time to time, Executive may serve on the boards of directors of,
and hold any other offices or positions in, companies or organizations, at the 

  
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request of the Company or which will not present, in the opinion of the Board, any conflict of interest with the Company or any of its subsidiaries or affiliates, nor unfavorably affect the
performance of Executive’s duties pursuant to this Agreement, nor violate any applicable statute or regulation. “Full business time” is hereby defined as that amount of time usually devoted to like companies by similarly situated
executive officers. During the Term of her employment under this Agreement, the Executive shall not engage in any business or activity contrary to the business affairs or interests of the Company. 

(b) Nothing contained in this Paragraph 7 shall be deemed to prevent or limit the Executive’s right to invest in the capital stock
or other securities of any business dissimilar from that of the Company or, solely as a passive or minority investor, in any business. 
 8. Standards. The Executive shall perform her duties under this Agreement in accordance with such reasonable standards as the Board may establish from time to time. The Company will provide
Executive with the working facilities and staff customary for similar executives and necessary for him to perform her duties. 

9. Vacation and Sick Leave. At such reasonable times as the Board shall in its discretion permit, the Executive shall be entitled,
without loss of pay, to absent himself voluntarily from the performance of her employment under this Agreement, all such voluntary absences to count as vacation time; provided that: 

(a) The Executive shall be entitled to an annual vacation in accordance with the policies that the Board periodically establishes for
senior management Executives of the Company. 
 (b) The Executive shall not receive any additional compensation from the Company
on account of her failure to take a vacation, and the Executive shall not accumulate unused vacation from one fiscal year to the next, except in either case to the extent authorized by the Board. 

(c) In addition to the aforesaid paid vacations, the Executive shall be entitled without loss of pay, to absent himself voluntarily from
the performance of her employment with the Company for such additional periods of time and for such valid and legitimate reasons as the Board may in its discretion determine. Further, the Board may grant to the Executive a leave or leaves of
absence, with or without pay, at such time or times and upon such terms and conditions as such Board in its discretion may determine. 
 (d) In addition, the Executive shall be entitled to an annual sick leave benefit as established by the Board. 
 10. Indemnification. The Company shall indemnify and hold harmless Executive from any and all loss, expense, or liability that she may incur due to her services for the Company as an officer and or
a director (including any liability she may ever incur under Code § 4999, or a successor, as the result of severance benefits she collects pursuant to Sections 11 or 13), during the full Term of this Agreement and shall at all times
maintain adequate insurance for such purposes. 

  
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 11. Termination and Termination Pay. Subject to Section 13 hereof, the
Executive’s employment hereunder may be terminated under the following circumstances: 
 (a) Just Cause. The Board
may, based on a good faith determination and only after giving the Executive written notice and a reasonable opportunity to cure, immediately terminate the Executive’s employment at any time, for Just Cause. The Executive shall have no right to
receive compensation or other benefits for any period after termination for Just Cause. 
 (b) Without Just Cause. The
Board may, by written notice to the Executive, immediately terminate her employment for a reason other than Just Cause. In such event, the Executive shall be entitled to a total severance payment (the “Severance Payment”) equal to one
(1) times the sum of (i) Executive’s base salary in effect at the time of termination, plus (ii) the amount of all compensation paid to Executive under Section 4 hereof with respect to the immediately preceding fiscal year.
The Severance Payment shall be paid in equal installments over a twelve (12) month period following the Executive’s termination of employment, payable in accordance with the Company’s regularly scheduled payroll (the “Installment
Payments”). Each Installment Payment shall be treated as a separate payment for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii). 
 (c) Resignation by Executive with Good Reason. The Executive may at any time immediately terminate employment for Good Reason, in which case the Executive shall be entitled to receive the Severance
Payment payable in the same manner and on the same basis as provided for under Section 11(b) of the Agreement upon a termination without Just Cause. In addition, the Executive will be entitled to health, life, disability and other benefits
which the Executive would have been eligible to participate in through the expiration of the Term based on the benefit levels substantially equal to those that the Company provided for the Executive at the date of termination of employment, subject
to any restrictions as may be required under Code Section 409A 
 (d) Resignation by Executive without Good Reason.
The Executive may voluntarily terminate employment with the Company during the term of this Agreement, upon at least 60 days’ prior written notice to the Board of Directors, in which case the Executive shall receive only her compensation,
vested rights, and Executive benefits up to the date of her termination of employment. 
 (e) Retirement, Death, or
Disability. If the Executive’s employment terminates during the Term of this Agreement due to her death, a disability that results in her collection of any long-term disability benefits, or retirement at or after age 62, the Executive (or
the beneficiaries of her estate) shall be entitled to receive the compensation and benefits that the Executive would otherwise have become entitled to receive pursuant to subsection (d) hereof upon a resignation without Good Reason. 

12. No Mitigation. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment. 

  
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 13. Change in Control. Notwithstanding any provision herein to the contrary, if a
Trigger Event occurs during the Protected Period, the Executive shall be paid an amount no greater than the Code § 280G Maximum. If the Trigger Event occurs during the portion of the Protected Period that is prior to the date of the Change
in Control, the amount payable shall be payable in the same manner and on the same basis as provided for under Section 11(b) of the Agreement upon a termination without Just Cause. If the Trigger Event occurs during the portion of the Protected
Period that is on or after the date of the Change in Control, the amount payable shall be paid in a lump sum within ten (10) days of his termination of employment. 
 14. Covenants. 
 (a) Definitions. For purposes of this Agreement:

 (i) Restrictive Period. The term “Restrictive Period” shall mean the period beginning on the Effective Date
and ending two (2) years after the termination of the Executive’s employment hereunder. 
 (ii) Covered
Customer. The term “Covered Customer” shall mean (A) during the Term, any customer of the Company and (B) after the Term, any person or entity who was, as of the end of the Term, a customer of the Company. 

(iii) Covered Business. The term “Covered Business” shall mean (A) during the term, any business in which the
Company is engaged and (B) after the Term, any business in which the Company was engaged as of the end of the Term. 

(iv) Covered State. The term “Covered State” shall mean (A) during the Term, any state in the United States and
(B) after the Term, any state (1) in which, as of the end of the Term, the Company was engaged in business or (2) with respect to which the Company, as of the end of the Term, had expended material expense and/or efforts in connection
with preparing to do business therein. 
 (b) Non-Interference. The Executive covenants and agrees that she will not at
any time during the Restrictive Period for whatever reason, whether for her own account or for the account of any other person, firm, corporation or other business organization: (i) interfere with contractual relationships between the Company
and any of its customers or employees; (ii) hire, or solicit for hire, any person who is employed by the Company or any parent or subsidiary of the Company, without the express written consent of the Company; or (iii) other than on behalf
of the Company, solicit any Covered Customer of the Company in connection with the engagement, by any person or entity, in any Covered Business in any Covered State. 
 (c) Confidentiality. The Executive will not, at any time whether during or after her termination of employment, (i) disclose to anyone, without proper authorization from the Company, or
(ii) use, for her or another’s benefit, any confidential or proprietary information of the Company or any parent or subsidiary of the Company, which may include trade secrets, business plans or outlooks, financial data, marketing or sales
programs, customer lists, brand formulations, training and operations manuals, products or price strategies, mergers, acquisitions, and/or Company personnel issues. 

  
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 (d) Blue Pencil; Equitable Relief. The provisions contained in this Section 14
as to the time periods, scope of activities, persons or entities affected and territories restricted shall be deemed divisible so that if any provision contained in this Section is determined to be invalid or unenforceable, such provision shall be
deemed modified so as to be valid and enforceable to the full extent lawfully permitted. The Executive acknowledges that the provisions of this Section 14 are reasonable and necessary for the protection of the Company and that the Company will
be irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive agrees that if she breaches or threatens to breach any of the covenants contained in this Section 14, the Company will be entitled (i) to
damages sufficient to compensate the Company for any harm to the Company caused thereby and (ii) to specific performance and injunctive relief for the purpose of preventing the breach or threatened breach thereof without bond or other security
or a showing that monetary damages will not provide an adequate remedy, in addition to any other relief to which the Company may be entitled under this Agreement.” 
 15. Reimbursement for Litigation Expenses. 
 In the event that any dispute
arises between the Executive and the Company as to the terms or interpretation of this Agreement, whether instituted by formal legal proceedings or otherwise, including any action that the Executive takes to enforce the terms of this Agreement or to
defend against any action taken by the Company, the Executive shall be reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Executive shall obtain a
final judgement by a court of competent jurisdiction in favor of the Executive. Such reimbursement shall be paid within ten (10) days of Executive’s furnishing to the Company written evidence, which may be in the form, among other things,
of a cancelled check or receipt, of any costs or expenses incurred by the Executive. 
 16. Successors and Assigns.

 (a) This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company which
shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company. 
 (b) Since the Company is contracting for the unique and personal skills of the Executive, the Executive shall be precluded from assigning or delegating her rights or duties hereunder without first
obtaining the written consent of the Company. 
 17. Corporate Authority. Company represents and warrants that the
execution and delivery of this Agreement by it has been duly and properly authorized by the Board and that when so executed and delivered this Agreement shall constitute the lawful and binding obligation of the Company. 

18. Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the
parties, except as herein otherwise specifically provided. 

  
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 19. Applicable Law. Except to the extent preempted by Federal law, the laws of the
State of New York shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise. 
 20. Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof. 
 21. Entire Agreement. This Agreement, together with any understanding or modifications thereof as
agreed to in writing by the parties, shall constitute the entire agreement between the parties hereto with respect to the matters addressed and shall supercede all previous agreements with respect to such matters. 

22. Tax Matters. All payments or benefits provided under this Agreement are subject to any applicable employment or tax
withholdings or deductions. In addition, the parties hereby agree that it is their intention that all payments or benefits provided under this Agreement be exempt from, or if not so exempt, comply with, Code Section 409A and this Agreement
shall be interpreted accordingly. Notwithstanding anything in this Agreement to the contrary, if any payments or benefits made or provided under the Agreement are considered deferred compensation subject to Code Section 409A payable on account
of Employee’s separation from service (but that do not meet an exemption under Code Section 409A, including without limitation the short term deferral or the separation pay plan exemption), such payments or benefits shall be paid no
earlier than the date that is six (6) months following Employee’s separation from service (or, if earlier, the date of death) to the extent required by Code Section 409A. 

[signatures on following page] 

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

  

									
	Witnessed by:	 		 	NEWTEK BUSINESS SERVICES, INC.
				
	 /s/ H. Razon
	 		 	By:	 	 /s/ Barry Sloane

		 		 		 	Its Chief Executive Officer
	Witnessed by:	 		 		 	
			
	 /s/ H. Razon
	 		 	 /s/ Jennifer Eddelson

		 		 		 	Jennifer Eddelson

  
 9f8k042213ex10i_carcharging.htm

Exhibit 10.1

 

350 Holdings, LLC

$490,000.00 Promissory Note

 

SECURED PROMISSORY NOTE

 

	
$490,000.00 

	
April 24, 2013

FOR VALUE RECEIVED, 350 Holdings, LLC (“CCGI Sub”) hereby promises to pay to the order of (i) Mariana Gerzanych and (ii) Tim Mason (each a, “350 Member” and collectively, the “350 Members”) the sum of Four Hundred Ninety Thousand Dollars ($490,000.00) (“Principal Amount”) together with interest until paid in satisfaction of all monies owed by CCGI Sub to the 350 Member of April 22, 2013, as a condition of the closing of an equity exchange transaction by and between:  (i) 350 Green, LLC, (ii) Car Charging Group, Inc. (“CCGI”), (iii) 350 Holdings, LLC (“CCGI Sub”), and (iv) the 350 Members, pursuant to the Addendum to the Equity Exchange Agreement, dated April 22, 2013 (“Addendum”), and in accordance with the following terms.  Terms not defined herein are as defined in the Addendum.

1.         Payments.  On the closing date of the Equity Exchange Transaction, and every thirty (30) days thereafter, CCGI Sub shall make a monthly payment to the 350 Members and payable, as follows: (i) Ten Thousand Dollars ($10,000.00) which has been paid on April 23, 2013 (prior to execution hereof), and (ii) Ten Thousand Dollars ($10,000.00) shall be paid on the first thirty (30) day anniversary of the Closing Date; provided, however, that if the 350 Members provide Goldstein Schechter & Koch (the “Auditors”) with all documents and/or information required for the Audit prior to the thirty (30) day anniversary of the Closing Date, their second payment hereunder shall be increased to Twenty Thousand Dollars ($20,0000.00).  On the second thirty (30) day anniversary of the Closing Date, and each thirty-day anniversary thereafter until the Cash Consideration is paid in full (assuming the Agreement has not been terminated pursuant to the terms of Section 4 of the Addendum) CCGI Sub shall pay the 350 Members Twenty Thousand Dollars ($20,000.00) in cash.  Should, at any time after the Closing Date and before the Cash Consideration has been paid in full, CCGI raise at least Five Million Dollars ($5,000,000.00) in any one singular financing or capital raising transaction (a “Financing”), CCGI Sub shall pay any and all outstanding Cash Consideration (as of the closing date of the Financing) to the 350 Members in one lump-sum payment, within a reasonable time of closing said Financing.  The entire sum of the Principal Amount and all other charges due under this Note, less any payments made prior to that date (“Balance Due”) shall be due and payable on or before April 23, 2015.

2.           Default/Notice of Default.  Failure to make any payment when due shall constitute a default.  In the event CGI Sub fails to timely make any payments due under this Secured Promissory Note, the 350 members shall send a written Notice to Cure that allows CCGI Sub three (3) business days (excluding the date of Notice of Cure) to make such payment.  All Notices to Cure any claimed default sent to CCGI Sub must be copied to Michael I. Bernstein, Esq., c/o The Bernstein Law Firm, 1688 Meridian Avenue, Suite 418, Miami Beach, Florida 33139  by email to: michael@bernstein-lawfirm.com and melissa@bernstein-lawfirm.com and by facsimile to (305) 672-4572.   If CCGI Sub fails to cure any default hereunder within the specified cure period, the entire remaining Balance Due shall, at the option of the holder of this Note, become immediately due and payable.

 

a.           CCGI Sub promises to pay reasonable costs of collection, including reasonable attorneys’ fees and costs, if this Note is referred for collection after default to an attorney.

 

  

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350 Holdings, LLC

$490,000.00 Promissory Note

 

3.           Prepayment.  This Note may be prepaid at any time in whole or in part before due without prepayment penalty or premium.

4.           Waiver.  As to this Note and any other instruments securing the indebtedness, CCGI Sub and all guarantors and endorsers severally waive all applicable exemption rights, whether under any state constitution, homestead laws or otherwise, and also severally waive valuation and appraisement, presentment, protest and demand, notice of protest, demand and dishonor and non-payment of this Note, and expressly agree that the maturity of this Note, or any payment pursuant to the Note, may be extended from time to time without in any way affecting the liability of CCGI Sub or any guarantor or endorser.

5.           Governing Law.  CCGI Sub hereby acknowledges, consents, and agrees:  (i) that the provisions of this Note and the rights of all parties mentioned in the Note shall be governed by the laws of the State of Florida and interpreted and construed in accordance with such laws (excluding Florida conflict of laws) and (ii) that the United States District Court for the Southern District of New York or the Supreme Court of the State of New York, New York County, shall have personal jurisdiction over any proceeding instituted to enforce this Note and any objections to venue are hereby waived.

6.           Security Interest.  CCGI Sub hereby assigns, pledges, transfers and grants to the 350 Members, a lien on and continuing security interest in Four Hundred Ninety Thousand Dollars ($490,000.00) worth of CCGI Sub’s assets as listed on Exhibit A hereto (collectively hereinafter referred to as the “Collateral”).  The 350 Members may file a Uniform Commercial Code Security Agreement (UCC-1) to evidence such indebtedness.  This Note shall create a continuing security interest in the Collateral and shall:  (a) remain in full force and effect until the payment in full of all amounts due hereunder, (b) be binding upon CCGI Sub and its successors and assigns and (c) inure to the benefit of the 350 Members and its successors, transferees and assigns.  Upon the occurrence of an Event of Default, the 350 Members shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the State of Florida and elsewhere in the United States.  Upon the payment in full of amounts due hereunder, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to CCGI Sub.  Upon any such termination, the 350 Members shall execute and deliver to CCGI Sub such documents as CCGI Sub shall reasonably request to evidence such termination, and the CCGI Sub shall be entitled to file a UCC-3 to evidence such lien termination.  Notwithstanding anything to the contrary, CCGI Sub hereby pledges to the 350 Members, and creates in the 350 Members for their benefit, a security interest for such time until all of the obligations are paid in full, in and to all assets of CCGI Sub as set forth in Exhibit A attached hereto, whether presently owned or existing or hereafter acquired or coming into existence, and all additions and accessions thereto and all substitutions and replacements thereof.

 

  

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350 Holdings, LLC

$490,000.00 Promissory Note

 

6.1           Subordination of Security Interest.  Notwithstanding the provisions of this Paragraph Six (6), the 350 Members expressly acknowledge and agree that the security interest granted hereunder as to the Collateral shall be expressly subordinate to: (i) the secured debt of 350 Green, LLC to CCGI Sub and/or CCGI up to an amount of Three Hundred Thousand Dollars ($300,000), representing payments/disbursements by CCGI Sub or CCGI on behalf of 350 Green, LLC and/or to the 350 Members pursuant to the Exchange Agreement and Exchange Addendum during the seventy-one (71) day audit period under Section 2.9.1 of the Exchange Addendum and which shall be a priority obligation to which the Security interest herein shall be subordinate.

7.           Termination/Cancellation.  Notwithstanding any obligations of Guarantor hereunder to the contrary, in the event CCGI and/or CCGI Sub shall be required to cancel the Exchange Agreement (and the accompanying Exchange Addendum)  due the inability to complete the Audit as set forth under Section 2.9.1 of the Exchange Agreement (the “Exchange Termination”), it is expressly agreed and acknowledged by each 350 Member, that: (i) this Secured Promissory Note shall, automatically, upon such Exchange Termination, become null and void and of no further legal affect whatsoever with no further payments due thereunder; (ii)  Any and all Guaranty obligations of CCGI under the accompanying Parent Guaranty of CCGI shall cease; (iii) the full amount of any monies disbursed by CCGI Sub under this Promissory Note or by CCGI under the accompanying Parent Guaranty to any of the 350 Members under the Exchange Agreement or this Exchange Addendum shall be a secured debt owed by 350 Green, LLC to CCGI Sub or CCGI, as applicable, which debt shall be memorialized by separate instrument which shall be a priority to any secured obligation to the 350 Members under Section Six (6).

8.           Payment Remittance. All payments to the 350 Members hereunder shall be made via bank wire using the following instructions:

Tim Mason

JP Morgan Chase

1 Chase Manhattan

New York, NY 10005

949-460-9381

Routing Number:   322271627

Account Number: 825727704

 

Mariana Gerzanych

JP Morgan Chase

1 Chase Manhattan

New York, NY 10005

949-460-9381

Routing Number: 071000013

Account Number: 917402372

 

or at such other place as the holder of this Note may from time to time designate in writing and shall be made in coin or currency of the United States of America that at the time of payment is legal tender for the payment of public or private debts.

 

  

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350 Holdings, LLC

$490,000.00 Promissory Note

 

9.           Jury Trial Waiver.  The 350 Members and CCGI Sub each, on behalf of itself and its successors and assigns, WAIVE to the fullest extent permitted by law all right to TRIAL BY JURY of any and all claims between them arising under this Note, or any other documents and agreements executed in connection, directly or indirectly, with this transaction, and any and all claims arising under common law or under any statute of any state of the United States of America, whether any such claims be now existing or hereafter arising, now known or unknown.  In making this waiver the 350 Members and CCGI Sub acknowledge and agree that any and all claims made by the 350 Members against CCGI Sub and all claims made against the 350 Members by CCGI Sub shall be heard by a judge of a court of proper jurisdiction, and shall not be heard by a jury.  The 350 Members and CCGI Sub acknowledge and agree that THIS WAIVER OF TRIAL BY JURY IS A MATERIAL ELEMENT OF THE CONSIDERATION FOR THIS TRANSACTION.  The 350 Members and CCGI Sub, with advice of counsel, each acknowledge that it is knowingly and voluntarily waiving a legal right by agreeing to this waiver provision.

10.         Divisibility.  The provisions of this Note are intended by CCGI Sub to be severable and divisible and the invalidity or unenforceability of a provision or term herein shall not invalidate or render unenforceable the remainder of this Note or any part hereof.

11.         No Conflict. CCGI Sub hereby expressly acknowledges that the 350 Members did not represent it in connection with this Promissory Note, and that the 350 Members have advised it in writing that independent representation is appropriate in connection with execution of this Note.

Time is of the essence.

IN WITNESS WHEREOF, CCGI Sub has executed these premises and affixed its seal this the 24th day of April, 2013.

 

	 	
350 HOLDINGS, LLC, a Florida limited liability company

	 
	 	 	 
	 	By:	
Car Charging, inc., a Delaware corporation, 

its Managing Member

	 
	 	 	 
	 	
/s/ Andy Kinard

	 
	 	

By: Andy Kinard

	 
	 	

Title: President

	 

 

ADDITIONAL SIGNATURE PAGE TO FOLLOW

 

  

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350 Holdings, LLC

$490,000.00 Promissory Note

ACKNOWLEDGEMENT AND AGREEMENT TO SECTION 6.1:

 

	
350 MEMBERS:

	 	 
	 	 	 
	/s/ Mariana Gerzanych 	 	 
	
Mariana Gerzanych, Member

	 	 
	 	 	 
	
/s/ Timothy Mason 

	 	 
	
Timothy Mason, Member

	 	 

  

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EXHIBIT A

COLLATERAL FOR CCGI PROMISSORY NOTE

 

 

 

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