Document:

RELEASE AGREEMENT

 Exhibit 10.2 
 RELEASE AGREEMENT 
 THIS RELEASE AGREEMENT (this “Agreement”) is made as of
this 22nd day of March, 2007 (the “Effective Date”), by and among Greens Worldwide Incorporated, an Arizona Corporation (“GRWW”), AJW Partners, LLC, a Delaware limited liability company (“AJW
Partners”), AJW Offshore, Ltd., a Caymans Island corporation (“AJW Offshore”), AJW Qualified Partners, LLC, a New York limited liability company (“AJW Qualified Partners”), New Millennium
Capital Partners, II, LLC, a New York limited liability company (“New Millennium” and together with AJW Partners, AJW Offshore and AJW Qualified Partners, “NIR”), Andara Corporation
(“Andara”), and Dutchess Advisors, LLC (“Dutchess”) (each individually a “Party” and collectively the “Parties”). 
 RECITALS: 
 A. Pursuant to that Securities Purchase Agreement dated as of
the date hereof and other agreements, instruments and documents executed in connection therewith (collectively, the “Restructure Documents”), NIR and GRWW have agreed to restructure certain convertible notes and warrants held by NIR
pursuant to that Securities Purchase Agreement dated as of September 16, 2005, that Securities Purchase Agreement dated as of July 31, 2006, that Securities Purchase Agreement dated as of September 19, 2006, that Letter Agreement
dated as of October 13, 2006, and that Letter Agreement dated as of November 20, 2006 (collectively, the “Prior NIR Agreements”). 
 B. Pursuant to that letter agreement among GRWW, Andara and Dutchess dated September 7, 2005 (the “Andara Agreement”), Andara and Dutchess are entitled to receive certain payments, fees
and warrants from GRWW. 
 C. The Parties desire to terminate the Prior NIR Agreements and the Andara Agreement and any and all other
agreements, statements, instruments (including, without limitation, warrants and notes), certificates or other documents between or among GRWW and any of NIR, Andara and/or Dutchess except the Restructure Documents (collectively, the
“Documents”) in exchange for the consideration received pursuant to the Restructure Documents. 
 D. Each of NIR,
Andara and Dutchess desire to release GRWW from any potential claims, known and unknown, it may have against GRWW as provided in this Agreement, and GRWW desires to release NIR, Andara and Dutchess, from any potential claims, known and unknown, it
may have against any of them as provided in this Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, the Parties agree as follows: 
 1. TERMINATION OF THE DOCUMENTS. The Documents are hereby
declared to be null and void and of no further force and effect. 
  

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 2. RELEASE OF CLAIMS BY EACH PARTY. In consideration of the promises recited in this
Agreement, each of NIR, Andara and Dutchess, on behalf of its successors, assigns, officers, directors, managers, shareholders, members, attorneys, agents, employees and representatives, hereby does, knowingly and voluntarily, release, acquit and
forever discharge GRWW, and its successors, assigns, officers, directors, shareholders, attorneys, agents, employees and representatives, from any and all claims, suits, demands, causes of action, debts, damages, costs, losses, obligations,
judgments, charges, expenses, dues, sums of money, accounts and controversies of whatever kind or nature, direct or indirect, arising in tort or contract, whether known or unknown, contingent or noncontingent, at law or in equity, which have arisen
or may arise by reason of, or in any matter, grown out of the subject matter of the Documents. This release will apply to any actions taken or omissions made by GRWW that, at the time of the execution of this Agreement, NIR, Andara or Dutchess are
unaware. 
 In consideration of the promises recited in this Agreement, GRWW, on behalf of its successors, assigns, officers, directors,
shareholders, attorneys, agents, employees and representatives, hereby does, knowingly and voluntarily, release, acquit and forever discharge NIR, Andara and Dutchess, and their respective successors, assigns, officers, directors, shareholders,
attorneys, agents, employees and representatives, from any and all claims, suits, demands, causes of action, debts, damages, costs, losses, obligations, judgments, charges, expenses, dues, sums of money, accounts and controversies of whatever kind
or nature, direct or indirect, arising in tort or contract, whether known or unknown, contingent or noncontingent, at law or in equity, which have arisen or may arise by reason of, or in any matter, grown out of the subject matter of the Documents.
This release will apply to any actions taken or omissions made by NIR, Andara or Dutchess that, at the time of the execution of this Agreement, GRWW is unaware. 
 3. AGREEMENT NOT TO FILE FUTURE SUITS OR CHARGES. By executing this Agreement, each Party agrees never to file any lawsuits in any court (state or federal) or to file any charges with local, state or
federal administrative agencies concerning the claims released in Section 2 of this Agreement. Each Party, by signing this Agreement, also affirms that it has not filed, consented to be filed, or presently is a party to any claim,
complaint or action against any other Party. 
 4. OTHER OBLIGATIONS. Each of NIR, Andara and Dutchess agree that, as of the
Effective Date, GRWW has no obligations to such Party, in any capacity, other than its respective obligations set forth in the Restructure Documents. 
 5. REPRESENTATIONS AND WARRANTIES. The Parties represent and warrant to each other that each of the following facts is currently true and will be true as of the Effective Date: 
 (a) Each Party has full power to enter into, execute, deliver and perform all of its obligations under this Agreement, including, without
limitation, the release of claims set forth in Section 2 of this Agreement. 
  

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 (b) This Agreement has been duly executed and delivered. It constitutes a legal, valid, and
binding agreement and is enforceable according to its terms. 
 (c) No other person or entity is a necessary party to this Agreement
to accomplish completely the purposes of this Agreement. 
 (d) Each Party has had the opportunity to review this Agreement with
counsel, has fully considered the effect of this Agreement and has voluntarily executed and delivered this Agreement after such review and consideration. 
 6. CONSTRUCTION OF AGREEMENT. The following provisions and principles shall apply to the interpretation, construction, and enforcement of this Agreement: 
 (a) The headings of each section of this Agreement are inserted for the convenience of the parties and shall not affect or be considered in the
interpretation of this Agreement. 
 (b) Each Party has borne equal responsibility for the drafting of each provision of this
Agreement, including the provisions of this section, and no term or provision shall be interpreted against or in favor of any Party by virtue of the Party’s role in drafting this Agreement. 
 (c) When the context in which words are used in this Agreement indicates that such is the intent, words in the singular number shall include the
plural, and vice versa, and words in the masculine gender shall include the feminine and neuter genders and vice versa. 
 (d)
Wherever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 (e) The Recitals are part of this Agreement and are incorporated by reference. 
 6. BINDING EFFECT. This Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns.

 7. ENTIRE AGREEMENT. This Agreement and the Restructure Documents contain the understanding of the Parties related to the
subject matter hereof, and supersede all prior or contemporaneous agreements, undertakings, contracts, offers and acceptances of the Parties not set forth herein. This Agreement may not be modified, amended, superseded, canceled or revoked, in whole
or in part, except in a writing signed by each Party. 
 8. COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The Parties authorize each other to detach 

  

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and combine original signature pages and consolidate them into a single identical original. Any one of such completely executed counterparts shall be
sufficient proof of this Agreement. Confirmation of execution and delivery by telecopy of a facsimile signature page shall constitute a legal, valid, and binding execution of this Agreement by any Party so confirming. 
 9. ATTORNEY’S FEES. In the event that a Party is deemed to have breached the terms of this Agreement by a court of competent
jurisdiction, the breaching Party shall be responsible for the non-breaching Party’s costs and reasonable attorney’s fees. 
 [SIGNATURE PAGES FOLLOW] 
  

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

					
	GREENS WORLDWIDE INCORPORATED
		
	By:	 	 /s/ William Conwell

		 	William Conwell, President and CEO
	
	AJW PARTNERS, LLC
		
	By:	 	SMS Group, LLC
			
		 	By:	 	 /s/ Corey S. Ribotsky

		 		 	Corey S. Ribotsky, Manager
	
	AJW OFFSHORE, LTD.
		
	By:	 	First Street Manager II, LLC
			
		 	By:	 	 /s/ Corey S. Ribotsky

		 		 	Corey S. Ribotsky, Manager
	
	AJW QUALIFIED PARTNERS, LLC
		
	By:	 	AJW Manager, LLC
			
		 	By:	 	 /s/ Corey S. Ribotsky

		 		 	Corey S. Ribotsky, Manager
	
	NEW MILLENNIUM CAPITAL PARTNERS II, LLC
		
	By:	 	First Street Manager II, LLC
			
		 	By:	 	 /s/ Corey S. Ribotsky

		 		 	Corey S. Ribotsky, Manager

  

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	ANDARA CORPORATION
		
	By:	 	 /s/

	Name:	 	  

	Title:	 	  

	
	DUTCHESS ADVISORS, LLC
		
	By:	 	 /s/

	Name:	 	  

	Title:	 	  

  

 6FORM OF PROMISSORY NOTE

 Exhibit 10.3 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT OR UNLESS SOLD
PURSUANT TO RULE 144 OR REGULATION S UNDER THE ACT. 
 CALLABLE SECURED CONVERTIBLE NOTE 
  

			
	Hertford, North Carolina	  	
	Issue Date: March 22, 2007	  	Amount listed on attached Schedule A

 FOR VALUE RECEIVED, GREENS WORLDWIDE INCORPORATED, an Arizona corporation (the
“Borrower”), hereby promises to pay to the order of each of the holders listed on attached Schedule A or registered assigns (the “Holder”) the amount listed on attached Schedule A, on March 22,
2010 (the “Maturity Date”). Any amount of principal on this Note which is not paid when due shall bear interest at the rate of 15% per annum from the due date thereof until the same is paid (the “Default
Interest”). All payments due hereunder (to the extent not converted into common stock, no par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of
America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on
any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which
commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain
Securities Purchase Agreement of even date by and among the Borrower and AJW Partners, LLC, AJW Offshore, Ltd., AJW Qualified Partners, LLC and New Millenium Capital Partners II, LLC (collectively, the “Holders”), pursuant to which
this Note was originally issued (the “Purchase Agreement”). 
 This Note is free from all taxes, liens, claims and
encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof. The obligations of the Borrower
under this Note shall be secured by that certain Security Agreement and Intellectual Property Security Agreement each of even date and by and among the Borrower and the Holders. 
 The following terms shall apply to this Note: 

 ARTICLE I. CONVERSION RIGHTS 
 1.1 Conversion Right. The Holder shall have the right from time to time, and at any time on or prior to the earlier of (i) the
Maturity Date, (ii) the date of delivery of the Optional Prepayment Notice (as defined in Article V) to the Holder and (iii) the date of payment of the Default Amount (as defined in Article III) pursuant to
Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note, to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares
of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the
“Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of
this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the
unconverted portion of this Note or the unexercised or unconverted portion of any other security of the Borrower (including, without limitation, the warrants issued by the Borrower pursuant to the Purchase Agreement) subject to a limitation on
conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made,
would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each
conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit
“A” (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile (or by other means resulting
in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any
conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) Default Interest, if any, on the amounts referred to in the immediately preceding clause (1). 

1.2 Conversion Price. 
 (a) Calculation of Conversion Price. The Conversion Price shall be equivalent to the Variable Conversion Price (as defined herein) (subject, in each case, to equitable adjustments for stock splits, stock dividends or rights
offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable
Conversion Price” shall mean the Applicable Percentage (as defined herein) multiplied by the Market Price (as defined herein). “Market Price” means the average of the three Trading Prices (as defined below) for the Common
Stock during the three Trading Day 

  

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period ending one Trading Day prior to the date the Notice of Conversion is sent by the Holder to the Borrower via facsimile (the “Conversion
Date”). “Trading Price” means, for any security as of any date, the intraday trading price on the Over-the-Counter Bulletin Board (the “OTCBB”) as reported by a reliable reporting service
(“Reporting Service”) mutually acceptable to the Borrower and the Holder and hereafter designated by the Holders of a majority-in-interest of the Notes and the Borrower or, if the OTCBB is not the principal trading market for such
security, the intraday trading price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no intraday trading price of such security is available in any of the foregoing manners, the
average of the intraday trading prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. If the Trading Price cannot be calculated for such security on such date in the
manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the Holders of a majority-in-interest of the Notes being converted for which the calculation of the Trading Price is required in order
to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is traded for any period on the OTCBB, or on the principal securities exchange or other securities market on which the
Common Stock is then being traded. “Applicable Percentage” shall mean 25%. 
 (b) Conversion Price During Major
Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a
merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower)
publicly announces a tender offer to purchase 50% or more of the Borrower’s Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the
“Announcement Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion
Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall
be determined as set forth in Section 1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public
announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly
announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative. 
 1.3 Authorized Shares. The Borrower covenants that, once the Authorized Share Amendment (as defined in the Purchase Agreement) has been
declared effective by the Arizona Corporation Commission as provided in the Purchase Agreement, then during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of
shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note and the other Notes issued pursuant to the Purchase Agreement. Once the Authorized Share Amendment has been declared effective by
the Arizona Corporation Commission as provided in the Purchase Agreement, the Borrower will be 

  

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required at all times to have authorized and reserved the number of shares that is actually issuable upon full conversion of the Notes (based on the
Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant to Section 4(g) of
the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which
would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of
shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. Once the Authorized Share Amendment has been declared effective by the Arizona Corporation Commission as provided in the Purchase
Agreement, the Borrower (i) acknowledges that it will irrevocably instruct its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note and (ii) agrees that the issuance of this Note shall constitute
full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. 

If, at any time after the Authorized Share Amendment has been declared effective by the Arizona Corporation Commission as provided in the Purchase
Agreement, a Holder of this Note submits a Notice of Conversion, and the Borrower does not have sufficient authorized but unissued shares of Common Stock available to effect such conversion in accordance with the provisions of this Article I
(a “Conversion Default”), subject to Section 4.8, the Borrower shall issue to the Holder all of the shares of Common Stock which are then available to effect such conversion. The portion of this Note which the Holder
included in its Conversion Notice and which exceeds the amount which is then convertible into available shares of Common Stock (the “Excess Amount”) shall, notwithstanding anything to the contrary contained herein, not be
convertible into Common Stock in accordance with the terms hereof until (and at the Holder’s option at any time after) the date additional shares of Common Stock are authorized by the Borrower to permit such conversion, at which time the
Conversion Price in respect thereof shall be the lesser of (i) the Conversion Price on the day the holder submits a Notice of Conversion giving rise to a Conversion Default and (ii) the Conversion Price on the Conversion Date thereafter
elected by the Holder in respect thereof. The Borrower shall use its best efforts to authorize a sufficient number of shares of Common Stock as soon as practicable following the earlier of (i) such time that the Holder notifies the Borrower or
that the Borrower otherwise becomes aware that there are or likely will be insufficient authorized and unissued shares to allow full conversion thereof and (ii) a Conversion Default. The Borrower shall send notice to the Holder of the
authorization of a sufficient number of shares of Common Stock to effect conversion of the full outstanding principal balance of this Note. 
 1.4 Method of Conversion. 
 (a) Mechanics of Conversion. Subject to Section 1.1, this Note
may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile or other reasonable means of communication dispatched on the
Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower. 
  

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 (b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth
herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the
Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note
upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as
aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as
the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof. 

(c) Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the
issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the
amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid. 
 (d) Delivery of
Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this
Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three business days after such receipt (and,
solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) (such third business day being hereinafter referred to as the “Deadline”) in accordance with the terms hereof and the Purchase
Agreement (including, without limitation, in accordance with the requirements of Section 2(g) of the Purchase Agreement, that certificates for shares of Common Stock issued on or after the effective date of the Registration Statement
upon conversion of this Note shall not bear any restrictive legend). 
 (e) Obligation of Borrower to Deliver Common Stock.
Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount shall be reduced to reflect such conversion, and,
unless the Borrower defaults on its obligations 

  

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under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the
Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common
Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to
enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any
obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be
the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date. 
 (f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower’s transfer agent is participating in the
Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this
Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through
its Deposit Withdrawal Agent Commission (“DWAC”) system. 
 1.5 Concerning the Shares. The shares of Common
Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished
with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption
from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule
144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase
Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act as contemplated by the Registration Rights Agreement of even
date executed in connection with the initial issuance of this Note and the other Notes issued on the Issue Date (the “Registration Rights Agreement”) or otherwise may be sold pursuant to Rule 144 without any restriction as to the
number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not
been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS 

  

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AMENDED. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR
AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID ACT.” 
 The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefor free of any transfer legend if
(i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may
be made without registration under the Act and the shares are so sold or transferred, (ii) such Holder provides the Borrower or its transfer agent with reasonable assurances that the Common Stock issuable upon conversion of this Note (to the
extent such securities are deemed to have been acquired on the same date) can be sold pursuant to Rule 144 or (iii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under
an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. Nothing in this Note shall
(i) limit the Borrower’s obligation under the Registration Rights Agreement or (ii) affect in any way the Holder’s obligations to comply with applicable prospectus delivery requirements upon the resale of the securities referred
to herein. 
 1.6 Effect of Certain Events. 
 (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a
transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or
Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a
condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited
liability company, partnership, association, trust or other entity or organization. 
 (b) Adjustment Due to Merger, Consolidation,
Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event, as a result of
which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or
substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and
upon the terms and conditions specified herein and in lieu of the 

  

 7 

 
shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to
receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the
rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall
thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not effect any transaction described in this Section 1.6(b) unless
(a) it first gives, to the extent practicable, 30 days prior written notice (but in any event at least 15 days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the
consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or
acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 (c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to
acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of
capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such
Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date
for the determination of shareholders entitled to such Distribution. 
 (d) Purchase Rights. If, at any time when any Notes
are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record holders of any class of Common Stock, then
the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon
complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 
 (e)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such
adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written
request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the
amount, if any, of other securities or property which at the time would be received upon conversion of the Note. 
  

 8 

 1.7 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder,
(i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount) shall be deemed converted into shares of Common Stock and
(ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise
available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the 10th
business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the
Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered,
adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, the right to have the Conversion Price with respect to
subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note. 
 ARTICLE II. CERTAIN COVENANTS 
 2.1 Distributions on Capital Stock. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital
stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except
for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s disinterested directors. 
 2.2 Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for
cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

 2.3 Borrowings. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the
Holder’s written consent, create, incur, assume or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to the
date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds of which shall be used to repay this Note. 
  

 9 

 2.4 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the
Borrower shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a
specified use of the proceeds of disposition. 
 2.5 Advances and Loans. So long as the Borrower shall have any obligation
under this Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees,
subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course
of business or (c) not in excess of $100,000. 
 2.6 Contingent Liabilities. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the Holder’s written consent, which shall not be unreasonably withheld, assume, guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any
person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection and except assumptions, guarantees, endorsements and contingencies (a) in existence or committed on the date
hereof and which the Borrower has informed Holder in writing prior to the date hereof and (b) similar transactions in the ordinary course of business. 
 ARTICLE III. EVENTS OF DEFAULT 
 Each of the following shall constitute an event of default
(“Event of Default”): 
 3.1 Failure to Pay Principal. The Borrower fails to pay the principal hereof when due
on this Note, whether at maturity, upon acceleration or otherwise; 
 3.2 Conversion and the Shares. The Borrower fails to
issue shares of Common Stock to the Holder (or announces or threatens that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note (for a period of at
least 60 days, if such failure is solely as a result of the circumstances governed by Section 1.3 and the Borrower is using its best efforts to authorize a sufficient number of shares of Common Stock as soon as practicable), fails to
transfer or cause its transfer agent to transfer (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note or the
Registration Rights Agreement, or fails to remove any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise
pursuant to this Note as and when required by this Note or the Registration Rights Agreement (or makes any announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall
continue uncured (or any announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for 10 days after the Borrower shall have been notified thereof in writing by the Holder; 
  

 10 

 3.3 Failure to Timely File Registration or Effect Registration. The Borrower fails to file
the Registration Statement within 30 days following an Investor Demand (as set forth in the Registration Rights Agreement) or obtain effectiveness with the Securities and Exchange Commission of the Registration Statement within 120 days following
the Investor Demand (as defined in the Registration Rights Agreement) or such Registration Statement lapses in effect (or sales cannot otherwise be made thereunder effective, whether by reason of the Borrower’s failure to amend or supplement
the prospectus included therein in accordance with the Registration Rights Agreement or otherwise) for more than 20 consecutive days or 40 days in any 12 month period after the Registration Statement becomes effective; 
 3.4 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in Sections 1.3
or 1.6 of this Note, or Sections 4(c), 4(e), 4(h), 4(i), 4(j) or 5 of the Purchase Agreement and such breach continues for a period of 10 days after written notice thereof to the Borrower from
the Holder; 
 3.5 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in
any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement and the Registration Rights Agreement), shall be false or misleading in any material respect
when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note, the Purchase Agreement or the Registration Rights Agreement; 
 3.6 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for
or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed; 
 3.7 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower
or any of its property or other assets for more than $100,000, and shall remain unvacated, unbonded or unstayed for a period of 20 days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld; 
 3.8 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under any bankruptcy law
or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower unless such proceeding shall be stayed within 30 days; 
 3.9 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCBB or an
equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange or the American Stock Exchange; or 
 3.10 Default Under Other Notes. An Event of Default has occurred and is continuing under any of the other Notes issued pursuant to the Purchase Agreement, then, upon the occurrence and during the
continuation of any Event of Default specified in Section 3.1, 3.2,  

  

 11 

 
3.3, 3.4, 3.5, 3.7, 3.9, or 3.10, at the option of the Holders of a majority of the aggregate principal amount of
the outstanding Notes issued pursuant to the Purchase Agreement exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified in
Sections 3.6 or 3.8 (unless, under Section 3.8, such proceeding shall be stayed within 30 days) (the date of delivery of the Default Notice or the date on which an Event of Default specified in Sections 3.6 or 3.8
shall have occurred, the “Mandatory Prepayment Date”), the Notes shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of
(i) 100% times the then outstanding principal amount of this Note plus (y) Default Interest, if any, on the amount referred to in clause (i) (the then outstanding principal amount of this Note to the date of payment
plus the amount referred to in clause (y) shall collectively be known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest
number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion
Date” for purposes of determining the lowest applicable Conversion Price, unless the Event of Default arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date),
multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default
Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal
fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. If the Borrower fails to pay the Default Amount within five business days of written notice that such amount
is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to
immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 
 ARTICLE IV. MISCELLANEOUS 
 4.1 Failure or Indulgence Not Waiver.
No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
 4.2 Notices. Any notice herein required or permitted to be given shall be in writing and may be personally served or delivered by courier
or sent by United States mail and shall be deemed to have been given upon receipt if personally served (which shall include telephone line facsimile transmission) or sent by courier or three days after being deposited in the United States mail,
certified, with postage pre-paid and properly addressed, if sent by mail. For the purposes hereof, the address of the Holder shall be as shown on the records of the 

  

 12 

 
Borrower, and the address of the Borrower shall be 346 Woodland Church Road, Hertford, NC 27944, facsimile number: (252) 264-2068. Both the Holder and
the Borrower may change the address for service by delivery of written notice to the other as herein provided. 
 4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this
instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 
 4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the
Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral
in connection with a bona fide margin account or other lending arrangement. 
 4.5 Cost of Collection. If default is
made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees. 
 4.6 Governing Law. THIS NOTE SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS. THE BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS NOTE, THE AGREEMENTS ENTERED INTO IN
CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A
PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN
ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE. 
 4.7 Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount
(or the portion thereof required to be paid at that time), the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be 

  

 13 

 
so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to
convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such
amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock. 
 4.8 Allocation of Reserved Amount. The Reserved Amount shall be allocated pro rata among the Holders of the Notes based on the principal
amount of such Notes issued to each Holder. Each increase to the Reserved Amount shall be allocated pro rata among the Holders of the Notes based on the principal amount of such Notes held by each Holder at the time of the increase in the Reserved
Amount. In the event a Holder shall sell or otherwise transfer any of such Holder’s Notes, each transferee shall be allocated a pro rata portion of such transferor’s Reserved Amount. Any portion of the Reserved Amount which remains
allocated to any person or entity which does not hold any Notes shall be allocated to the remaining Holders of Notes, pro rata based on the principal amount of such Notes then held by such Holders. 
 4.9 Denominations. At the request of the Holder, upon surrender of this Note, the Borrower shall promptly issue new Notes in the aggregate
outstanding principal amount hereof, in the form hereof, in such denominations of at least $50,000 as the Holder shall request. 
 4.10
Purchase Agreement. By its acceptance of this Note, the Holder agrees to be bound by the applicable terms of the Purchase Agreement. 
 4.11 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The
Borrower shall provide the Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of its
shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation,
reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or
conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least 20 days prior to the record date specified therein
(or 30 days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the
amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with
the notification to the Holder in accordance with the terms of this Section 4.11. 
 4.12 Remedies. The Borrower
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and 

  

 14 

 
purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note
will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the
penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond
or other security being required. 
 ARTICLE V. CALL OPTION 
 The Borrower shall have the right, exercisable on not less than 10 Trading Days prior written notice to the Holders of the Notes, to prepay all or any
portion (if the latter, such prepayment amount shall be allocated pro rata among the Holders of the Notes based on the principal amount of such Notes issued to each Holder) of the outstanding Notes in accordance with this Article V (an
“Optional Prepayment”). Any notice of prepayment hereunder (the “Optional Prepayment Notice”) shall be delivered to the Holders of the Notes at their registered addresses appearing on the books and records of the
Borrower and shall state (1) that the Borrower is exercising its right to prepay all or any portion of the Notes issued on the Issue Date and (2) the date of prepayment (the “Optional Prepayment Date). On the Optional
Prepayment Date, the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holders as specified by the Holders in writing to the Borrower at least one business day prior to the Optional
Prepayment Date. If the Borrower exercises its right to prepay the Notes, the Borrower shall make payment to each Holder of an amount in cash (the “Optional Prepayment Amount”) equal to the sum of the (x) then
outstanding principal amount of the Note (if all of the outstanding Notes are to be prepaid) or such portion of the then outstanding principal amount of this Note allocated to such Holder as provided above (if only a portion of the outstanding Notes
are to be repaid) plus (y) Default Interest, if any, on the amount referred to in clause (x). 
 [SIGNATURE PAGE TO FOLLOW]

  

 15 

 IN WITNESS WHEREOF, Borrower has caused this Callable Secured Convertible Note to be signed in its
name by its duly authorized officer this 22nd day of March, 2007. 
  

			
	GREENS WORLDWIDE INCORPORATED
		
	By:	 	 /s/ William Conwell

		 	William Conwell, Chief Executive Officer

  

 16 

 EXHIBIT A 
 NOTICE OF CONVERSION 
 (To be Executed by the Registered Holder in order to Convert the Notes)

 The undersigned hereby irrevocably elects to convert $            
principal amount of the Note (defined below) into shares of common stock, no par value per share (“Common Stock”), of Greens Worldwide Incorporated, an Arizona corporation (the “Borrower”) according to the
conditions of the convertible note of the Borrower dated as of March 22, 2007 (the “Note”), as of the date written below. If securities are to be issued in the name of a person other than the undersigned, the undersigned will
pay all transfer taxes payable with respect thereto. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. A copy of the Note is attached hereto (or evidence of loss, theft or destruction thereof). 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its
nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 
  

					
	 Name of DTC Prime Broker:
	 	  
	 	
	 Account Number:
	 	  
	 	

 In lieu of receiving shares of Common Stock issuable pursuant to this Notice of Conversion by way
of a DWAC Transfer, the undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the
name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 
  

					
	 Name:
	 	  
	 	
	 Address:
	 	  
	 	

 The undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable to the undersigned upon conversion of the Note shall be made pursuant to registration of the securities under the Securities Act of 1933, as amended (the “Act”), or pursuant to an exemption from registration
under the Act. 
  

					
	 Date of Conversion:
	 	  
	 	
	 Applicable Conversion Price:
	 	  
	 	
	 Number of Shares of Common Stock to be Issued Pursuant to
	 	
	 Conversion of the Note:
	 	  
	 	
	 Signature:
	 	  
	 	
	 Name:
	 	  
	 	
	 Address:
	 	  
	 	

 The Borrower shall issue and deliver shares of Common Stock to or upon the order of the Holder not
later than three business days following receipt of this Notice of Conversion (and, solely in the case of conversion of the entire unpaid principal amount of the Note, surrender of the original Note to be converted). 
  

 17 

 SCHEDULE A 
  

				
	 Holder
	  	Amount
	 AJW Offshore, Ltd.
	  	$	6,246,000
	 AJW Partners, LLC
	  	$	390,375
	 AJW Qualified Partners, LLC
	  	$	936,900
	 New Millennium Capital Partners II, LLC
	  	$	234,225

  

 18

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