Document:

Exhibit
10.11

 

 

NEITHER THESE
SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("THE SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLDEXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN AN TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.

CONVERTIBLE
PROMISSORY NOTE DUE APRIL 20, 2013

OF

800
COMMERCE INC.

Issuance
Date: April 20, 2012

Holder:
Scott A ClimesPrincipal Amount: $50,000

THIS NOTE ("Note")is a duly authorized
note of 800 Commerce Inc., a corporation duly organized and existing under the laws of the state of Florida (the "Company"),
designated as Convertible Promissory Note issued on May 10, 2012 to Scott A Climes and due on May 10, 2013 (the "maturity
date").

FOR
VALUE RECEIVED, the company hereby promises to pay to the order of Scott A Climes or it's registered assigns or successors-in-interest
("Holder") the principal sum of fifty-thousand dollars ($50,000) together with all accrued but unpaid interest thereon,
if any, on the maturity date, to the extent such principal amount and interest has not been paid or converted into the Company's
Common Stock, $0 .01 par value per share (the Common Stock), in accordance with the terms thereof. Interest on the unpaid balance
hereof, shall accrue at a rate of 8% per annum from the date of the original issuance hereof (The "issuance date") until
the same becomes due and payable on the maturity date, or such earlier date upon acceleration or by conversion or redemption in
accordance with the terms hereof. Interest on this note shall accrue daily commencing on the issuance date and shall be computed
on the basis of a 365 day year and actual days elapsed and shall be paid in accordance with Section 1 hereof. Notwithstanding
anything contained herein, this note shall bear interest on the due and unpaid principal amount from and after the occurrence
and during the continuance of an Event of Default pursuant to Section 4(a) at the rate (the Default Rate) equal to the lower of
(12%) per annum or the highest rate permitted by law., payments will be applied first to any unpaid collection costs, then to
unpaid interest and fees and any remaining amount to principal.

 

    	(1)

    	 

    

 

All
payments of principal and interest on this Note shall be made in lawful money of the United States of America by wire transfer
of immediately available funds to such account as the holder may from time to time designate by written notice in accordance with
the provisions of this note or by Company check. This note may not be prepaid in whole or part except as otherwise provided herein.
Whenever any amount expressed to be due by the terms of this Note is due on any which is not a business day (as defined below),
the same shall instead be due on the succeeding day which is a Business day.

For
the purposes hereof the following terms shall have the meanings ascribed to them below:

"Bankruptcy
Event" means any of the following events: (a) the Company or any subsidiary commences a case or other proceeding under
any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or
similar law of any jurisdiction relating to the company or any subsidiary thereof; (b) there is commenced against the company
or any subsidiary any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company or any
subsidiary is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is
entered; (d) the Company or any subsidiary suffers any appointment of any custodian or the like for it or any substantial part
of its' property that is not discharged or stayed within 60 days; (e) the Company or any subsidiary makes a general assignment
for the benefit of creditors; (f) the Company or any subsidiary fails to pay, or states that it is unable to pay or is unable
to pay its debts generally as they become due; (g)the Company or any subsidiary calls a meeting of its' creditors with a view
to arranging a composition, adjustment or restructuring of its' debts; or (h) the Company or any subsidiary, by any act or failure
to act, expressly indicates its' consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other
action for the purpose of effecting any of the foregoing.

"Business
Day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of Florida are authorized
or required by law or executive order to remain closed.

"Change
in Control Transaction" will be deemed to exist if (I) there occurs any consolidation, merger or other business combination
of the company with or into any other corporation or other entity or person (whether or not the Company is the surviving corporation),
or any other corporate reorganization or transaction or series of related transactions in which in any of such events the voting
stockholders of the company prior to such events cease to own 50% or more of the voting power, or corresponding voting equity
interests, of the surviving corporation after such event (including without limitation any "going private" transaction
under

"Change
in Control Transaction" will be deemed to exist if (i) there occurs any consolidation, merger or other business combination
of the Company with or into any other corporation or other entity or person (whether or not the Company is the surviving corporation),
or any other corporate reorganization or transaction or series of related transactions in which in any of such events the voting
stockholders of the Company prior to such event cease to own SO% or more of the voting power, or corresponding voting equity interests,
of the surviving corporation after such event (including without limitation any "going private" transaction under Rule
13e-3 promulgated pursuant to the Exchange Act or tender offer by the Company
under Rule 13e-4 promulgated pursuant to the Exchange Act for 20% or more of the Company's Common Stock), (ii) any person (as
defined in Section 13(d) of the Exchange Act), together with its affiliates and associates (as such terms are defined in Rule
405 under the Act), beneficially owns or is deemed to beneficially own (as described in Rule 13d-3 under the Exchange Act without
regard to the 60-day exercise period) in excess of 35% of the Company's voting power, (iii) there is a replacement of more than
one-half of the members of the Company's Board of Directors which is not approved by those individuals who are members of the
Company's Board of Directors on the date thereof, (iv) in one or a series of related transactions, there is a sale or transfer
of all or substantially all of the assets of the Company, determined on a consolidated basis, or (v) the Company enters into any
agreement providing for an event set forth in (i), (ii), (iii) or (iv) above.

 

    	(2)

    	 

    
"Conversion
Ratio" means, at anytime, a fraction, of which the numerator is the entire outstanding Principal Amount of this Note
(or such portion thereof that is being redeemed or repurchased), and of which the denominator is the Conversion Price as of the
date such ratio is being determined.

"Conversion
Price" shall equal 65% of the lowest closing bid price for the five trading days preceding the date of the conversion
note (which amount will be stated in the conversion notice).

"Convertible
Securities" means any convertible securities, to exchange for shares of Common Stock.

"Equity
Conditions" shall mean (0 the resale of all Underlying Shares is covered by an effective registration statement which
is not subject to any suspension or stop order (with a current and deliverable prospectus that is not subject at the time to any
blackout or similar circumstance) or permitted pursuant to Rule 144(b)(1)(i) under the Securities Act.

"Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended.

"Market
Price" shall equal the lowest closing bid price per share of the Common Stock on the Principal Market on any Trading
Day during the Pricing Period.

"Principal
Amount" shall refer to the sum of (i) the original principal amount of this Note, (ii) all accrued but unpaid interest
hereunder, and (iii) any default payments owing under the Agreements but not previously paid or added to the Principal Amount.

"Principal
Market" shall mean OTC Bulletin Board or such other principal market or exchange on which the Common Stock is quoted
for trading.

"Securities
Act" shall mean the Securities Act of 1933, as amended.

"Trading
Day" shall mean a day on which there is trading on the Principal Market.

"Underlying
Shares" means the shares of Common Stock into which the Notes are convertible (including interest or principal payments
in Common Stock as set forth herein) in accordance with the terms hereof.

"Variable
Rate Transaction" shall mean a transaction in which the Company issues or sells, or agrees to issue or sell (a) any debt
or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares
of, Common Stock either (x) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the
trading prices of or quotations for the Common Stock at any time after the initial issuance of such debt or equity securities,
(y) with a fixed conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance
of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the
business of the Company or the market for the Common Stock (but excluding standard stock split anti-dilution provisions), or (z)
under a warrant exercisable for a number of shares based upon and/or varying with the trading prices of or quotations for the
Common Stock at any time after the initial issuance of such warrant, or (b) any securities of the Company pursuant to an "equity
line" structure which provides for the sale, from time to time, of securities of the Company which are registered for sale
or resale pursuant to the 1933 Act (which for the purpose of this definition shall include a sale of the Company's securities
"off the shelf' in a registered offering, whether or not such offering is underwritten).

 

The
following terms and conditions shall apply to this Note: Section

 

    	(3)

    	 

    
 

1. Interest Payments.

(a)
Interest Payments. On the Maturity Date, the Company shall pay to the Holder all interest accrued to date on the remaining
unconverted principal balance of this Note ("Interest Amount") in accordance with this Section 1.

(b)
Cash or Common Stock. Subject to the terms hereof, the Company shall have the right
to satisfy payment of the Interest Amount in full on the Maturity Date either in cash or in shares of Common Stock (but not both)
at the Company's option. If the Company elects or is required to pay any Interest Amount in cash on the Maturity Date, then on
such Payment Date the Company shall pay to the Holder an amount equal to such Interest Amount in satisfaction of such obligation.
If the Company elects or is required to pay any Interest Amount in shares of Common Stock, the number of such shares to be issued
for such Payment Date shall be the number determined by dividing (x) the Interest Amount, by (y) the Conversion Price as of such
Payment Date. Such shares shall be issued and delivered within three (3) Trading Days following the Maturity Date and shall be
duly authorized, validly issued, fully paid, non-assessable and free and clear of all encumbrances, restrictions and legends.
If the Holder does not receive the requisite number of shares of Common Stock in the form required above within such three Trading
Day period, the Holder shall have the option of either (a) requiring the Company to issue and deliver all or a portion of such
shares or (b) canceling such election (whether by the Company or Holder) to pay such Interest Amount in Common Stock (in whole
or in part), in which case the Company shall immediately pay in cash the full such Interest Amount due hereunder or such portion
as the Holder specifies is to be paid in cash instead of Common Stock. Except as otherwise provided in this Section 1, all holders
of Notes must be treated the same with respect to such payment of the Interest Amount in shares of Common Stock.

 

(c)       No Equity Conditions. Notwithstanding anything to the contrary
herein, the Company shall be prohibited from exercising its right to pay the Interest Amount in shares of Common Stock (and must
deliver cash in respect thereof) on the applicable Payment Date if at any time from the Notice Date until the time at which the
Holders receive such shares any of the Equity Conditions fail to be satisfied, unless otherwise waived in writing by the Holder
in whole or in part at the Holder's option.

(d)       
Ownership/Issuance Limitations. Notwithstanding anything to the contrary herein, the Company
shall be prohibited from exercising its right to pay the Interest Amount in shares of Common Stock (and must deliver cash in respect
thereof) on the applicable Payment Date to the extent, and only to the extent, that such payment in shares of Common Stock would
result in the Holder hereof exceeding the limitations contained in Section 3(i) below. In such event, then (1) the Company on
the Payment Date shall pay such portion of the Interest Amount in shares of Common Stock as may be effected without exceeding
such limitations, and (ii) the Company shall pay the balance of such Interest Amount in cash.

Section
2. Conversion.

(a)       
Conversion Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have the right,
at such Holder's option, at any time and from time to time to convert the outstanding Current Principal Amount under this Note
in whole or in part by delivering to the Company a fully executed notice of conversion in the form of conversion notice attached
hereto as Exhibit A (the "Conversion Notice"), which may be transmitted by facsimile or email. Notwithstanding anything
to the contrary herein, this Note and the outstanding Principal Amount hereunder shall not be convertible into Common Stock to
the extent that such conversion would result in the Holder hereof exceeding the limitations contained in, or otherwise violating
the provisions of, Section 3(i) below.

(b)       
Common Stock Issuance upon Conversion.

(i)
Conversion Date Procedures. Upon conversion of this Note pursuant to Section 3(a) above, the outstanding Current Principal Amount
of the Note elected to be converted hereunder shall be converted into such number of fully paid, validly issued and non-assessable
shares of Common Stock, free of any liens, claims and encumbrances and without any restrictions or legends, as is determined by
dividing the amount of the Current outstanding Principal Amount of this Restated Note being converted by the then applicable Conversion
Price:

For
example, a $30,000 conversion amount with a Conversion Price of $1.00 would be entitled to 45,000 conversion shares ($45,000 which
equal 35% discount to market).

The
date of any Conversion Notice hereunder and any Payment Date shall be referred to herein as the "Conversion Date". If
the Holder is converting less than all of the outstanding Principal Amount hereunder pursuant to a Conversion Notice, the Company
shall promptly deliver to the Holder (but no later than five Trading Days after the Conversion Date) a Note for such outstanding
Principal Amount as has not been converted if this Note has been surrendered to the Company for partial conversion. The Holder
shall not be required to physically surrender this Note to the Company upon any conversion hereunder unless the full outstanding
Principal Amount represented by this Note is being converted or repaid. The Holder
and the Company shall maintain records showing the outstanding Principal Amount so converted and repaid and the dates of such
conversions or repayments or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to
require physical surrender of this Note upon each such conversion or repayment.

(ii)
DELIVERY. The Company will deliver to the Holder not later than three (3) Trading Days after the Conversion Date, shares (which
certificate(s) shall be free of restrictive legends and trading restrictions) representing the number of shares of Common Stock
being acquired upon the conversion of this Note via Deposits and Withdrawal at Custodian (DWAC) delivery or via unrestricted certificate(s).
If in the case of any conversion hereunder, such shares are not delivered to the Holder by the fifth Trading Day after the Conversion
Date, the Holder shall be entitled by written notice to the Company at any time on or before its receipt of such shares, to rescind
such conversion, in which event the Company shall immediately return this Note tendered for conversion. If the Company fails to
deliver to the Holder such shares pursuant to this Section 3(b) (free of any restrictions on transfer or legends) in accordance
herewith, prior to the eighth Trading Day after the Conversion Date, the Company shall pay to the Holder as liquidated damages,
in cash, an amount equal to 2% of the Principal Amount per month until the free trading shares are delivered.

 

    	(4)

    	 

    
(c)Conversion
Price Adjustments.

(i) 
Stock Dividends, Splits and Combinations. If the Company or any of its subsidiaries, at any time while the Notes are outstanding
(A) shall pay a stock dividend or otherwise make a distribution or distributions
on any equity securities (including instruments or securities convertible into or exchangeable for such equity securities) in
shares of Common Stock, (B) subdivide outstanding Common Stock into a larger number of shares, or (C) combine outstanding Common
Stock into a smaller number of shares, then each Affected Conversion Price (as defined below) shall be multiplied by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding before such event and the denominator of which
shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section 3(c)(1)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision or combination.

As
used herein, the Affected Conversion Prices (each an "Affected Conversion Price") shall refer to: (i) the Conversion
Price, and (ii) each reported lowest closing bid price occurring on any Trading Day included in the period used for determining
the Conversion Price, which Trading Day occurred before the record date in the case of events referred to in clause (A) of this
subparagraph 3(c)(i) and before the effective date in the case of the events referred to in clauses (B) and (C) of this subparagraph
3(c)(i).

(ii)
Distributions. if the Company or any of its subsidiaries, at any time while the Notes are outstanding, shall distribute
to all holders of Common Stock evidences of its indebtedness or assets or cash or rights or warrants to subscribe for or purchase
any security of the Company or any of its subsidiaries (excluding those referred to in Section 3(c)(1) above), then concurrently
with such distributions to holders of Common Stock, the Company shall distribute to holders of the Notes the amount
of such indebtedness, assets, cash or rights or warrants which the holders of Notes would have received had all their Notes been
converted into Common Stock at the Conversion Price immediately prior to the record date for such distribution.

(iii)
Rounding of Adjustments. All calculations under this Section 3 or Section 1 shall be made to 4 decimal places for dollar
amounts or the nearest 1/100th of a share, as the case may be.

(iv)
Notice of Adjustments. Whenever any Affected Conversion Price is adjusted pursuant to Section 3(c)(i), (ii) or (iii) above,
the Company shall promptly deliver to each holder of the Notes, a notice setting forth the Affected Conversion Price after such
adjustment and setting forth a brief statement of the facts requiring such adjustment, provided that any failure to so provide
such notice shall not affect the automatic adjustment hereunder.

(v)           
Change in Control Transactions. In case of any Change in Control Transaction, the Holder
shall have the right thereafter to, at its option, convert this Note, in whole or in part, at the Conversion Price into the shares
of stock and other securities, cash and/or property receivable upon or deemed to be held by holders of Common Stock following
such Change in Control Transaction, and the Holder shall be entitled upon such event to receive such amount of securities, cash
or property as the shares of the Common Stock of the Company into which this Note could have been converted immediately prior
to such Change in Control Transaction would have been entitled if such conversion were permitted, subject to such further applicable
adjustments set forth in this Section 3. The terms of any such Change in Control Transaction shall include such terms so as to
continue to give to the Holders the right to receive the amount of securities, cash and/or property upon any conversion or redemption
following such Change in Control Transaction to which a holder of the number of shares of Common Stock deliverable upon such conversion
would have been entitled in such Change in Control Transaction, and interest payable hereunder shall be in cash or such new securities
and/or property, at the Holder's option. This provision shall similarly apply to successive reclassifications, consolidations,
mergers, sales, transfers or share exchanges.

(vi)         Notice of Certain Events. If:

 

A.         
the Company shall declare a dividend (or any other distribution) on its Common Stock; or

B.         
the Company shall declare a special nonrecurring cash dividend on or a redemption of its Common Stock; or

C.         
the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights; or

D.          the
approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock of the
Company, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the
assets of the Company, of any compulsory share of exchange whereby the Common Stock is converted into other securities, cash or
property; or 

E.the
Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up

of
the affairs of the Company;

then
the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall
cause to be mailed to the Holder at its last address as it shall appear upon the books of the Company, on or prior to the date
notice to the Company's stockholders generally is given, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which
the holders of Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange.

(d)        
Reservation and Issuance of Underlying Securities. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note (including repayments
in stock), free from preemptive rights or any other actual contingent purchase rights of persons other than the holders of the
Notes, not less than such number of shares of Common Stock as shall (subject to any additional requirements of the Company as
to reservation of such shares set forth in the Exchange Agreement) be issuable (taking into account the adjustments under this
Section 3 but without regard to any ownership limitations contained herein) upon the conversion of this Note hereunder in Common
Stock (including repayments in stock). The Company covenants that all shares of Common Stock that shall be so issuable shall,
upon issue, be duly authorized, validly issued, fully paid, nonassessable and freely tradeable.

(e)        
No Fractions. Upon a conversion hereunder the Company shall not be required to issue stock certificates representing fractions
of shares of Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share based
on the closing price of a share of Common Stock at such time. If the Company elects not, or is unable, to make such a cash payment,
the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock, rounded to
the nearest whole share of common stock.

Charges,
Taxes and Expenses. Issuance of certificates for shares of Common Stock upon the conversion of this Note (including repayment
in stock) shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued
;ri the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates
for shares of Common Stock are to be issued in a name other than the name of the Holder, this Note when surrendered for conversion
shall be accompanied by an assignment form; and provided further, that the Company shall not be required to pay any tax or taxes
which may be payable in respect of any such transfer.

 

(g)       
Cancellation. After all of the Principal Amount (including accrued
but unpaid interest and default payments at any time owed on this Note) have been paid in full or converted into Common Stock,
this Note shall automatically be deemed canceled and the Holder shall promptly surrender the Note to the Company at the Company's
principal executive offices.

(h)       
Notices Procedures. Any and all notices or other communications or deliveries to be provided
by the Holder hereunder, including, without limitation, any Conversion Notice, shall be in writing and delivered personally, by
facsimile, by email, or by a nationally recognized overnight courier service to the Company at the facsimile telephone number
or address of the principal place of business of the Company as set forth in the Exchange Agreement. Any and all notices or other
communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile,
or by a nationally recognized overnight courier service addressed to the Holder at the facsimile telephone number or address of
the Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal
place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed delivered (i) upon
receipt, when delivered personally, (ii) when sent by facsimile or email, upon receipt if received on a Business Day prior to
5:00 p.m. (Eastern Time), or on the first Business Day following such receipt if received on a Business Day after 5:00 p.m. (Eastern
Time) or (iii) upon receipt, when deposited with a nationally recognized overnight courier service.

(i)        
Conversion Limitation. Notwithstanding anything to the contrary contained herein, the number
of shares of Common Stock that may be acquired by the Holder upon conversion pursuant to the terms hereof shall not exceed a number
that, when added to the total number of shares of Common Stock deemed beneficially owned by such Holder (other than by virtue
of the ownership of securities or rights to acquire securities (including the Notes) that have limitations on the Holder's right
to convert, exercise or purchase similar to the limitation set forth herein), together with all shares of Common Stock deemed
beneficially owned at such time (other than by virtue of the ownership of securities or rights to acquire securities that have
limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) by the holder's "affiliates"
at such time (as defined in Rule 144 of the Act) ("Aggregation Parties") that would be aggregated for purposes of determining
whether a group under Section 13(d) of the Securities Exchange Act of 1934 as amended, exists, would exceed 4.9% of the total
issued and outstanding shares of the Common Stock (the "Restricted Ownership Percentage"). The Holder shall have the
right at any time and from time to time to reduce its Restricted Ownership Percentage immediately upon notice to the Company and
at any time and from time to time, to increase its Restricted Ownership Percentage immediately in the event of the announcement
as pending or planned, of a Change in Control Transaction.

    	(5)

    	 

    
Section
3. Defaults and Remedies.

(a)Events
of Default. An "Event of Default" is: (I) a default in payment of any amount due hereunder which default continues for
more than 5 business days after the due date thereof; (ii) a default in the timely issuance of Underlying Shares upon and in accordance
with terms hereof which default continues for five Business Days after the Company has received written notice informing the company
that it has failed to issue shares or deliver stock certificates within the fifth day following the Conversion Date; (iii) failure
by the Company for fifteen (15) days after written notice has been received by the Company to comply with any material provision
of any of the Notes (including without limitation the failure to issue the requisite number of shares of Common Stock upon conversion
hereof and the failure to redeem Notes upon the Holder's request following a Change in Control Transaction pursuant to Section
3(c)(v); (iv) a material breach by the Company of its representations or warranties in the Exchange Agreement,; (v) any default
after any cure period under, or acceleration prior to maturity of, any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company for in excess of $100,000
or for money borrowed the repayment of which is guaranteed by the Company for in excess of $100,000, whether such indebtedness
or guarantee now exists or shall be created hereafter; or (vi) if the Company is subject to any Bankruptcy Event.

(b)Remedies.
If an Event of Default occurs and is continuing with respect to any of the Notes, the Holder may declare all of the then outstanding
Principal Amount of this Note and all other Notes held by the Holder, including any interest due thereon, to be due and payable
immediately, except that in the case of an Event of Default arising from events described in clauses (v) and (vi) of Section 4(a),
this Note shall become due and payable without further action or notice. In the event of such acceleration, the amount due and
owing to the Holder shall be the greater of (1) 100% of the outstanding Principal Amount of the Notes held by the Holder (plus
all accrued and unpaid interest, if any) and (2) the product of (A) the highest closing price for the five (5) Trading days immediately
preceding the Holder's acceleration and (B) the Conversion Ratio. In either case the Company shall pay interest on such amount
in cash at the Default Rate to the Holder if such amount is not paid within 7 days of Holder's request. The remedies under this
Note shall be cumulative.

Section
4. General.

(a)       
Payment of Expenses. The Company agrees to pay all reasonable charges and expenses, including attorneys' fees and expenses, which
may be incurred by the Holder in successfully enforcing this Note and/or collecting any amount due under this Note.

(b)       
Savings Clause. In case any provision of this Note is held by a court of competent jurisdiction
to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible,
so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this
Note will not in any way be affected or impaired thereby. In no event shall the amount of interest paid hereunder exceed the maximum
rate of interest on the unpaid principal balance hereof allowable by applicable law. If any sum is collected in excess of the
applicable maximum rate, the excess collected shall be applied to reduce the principal debt. If the interest actually collected
hereunder is still in excess of the applicable maximum rate, the interest rate shall be reduced so as not to exceed the maximum
allowable under law.

(c)       
Amendment. Neither this Note nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument signed by the Company and the Holder, 

(d)Assignment,
Etc. The Holder may assign or transfer this Note. The Holder shall notify the Company
of any such assignment or transfer promptly. This Note shall be binding upon the Company and its successors and shall inure to
the benefit of the Holder and its successors and permitted assigns.

(e)No
Waiver. No failure on the part of the Holder to exercise, and no delay in exercising any right,

remedy
or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Holder of any right, remedy
or power hereunder preclude any other or future exercise of any other right, remedy or power. Each and every right, remedy or
power hereby granted to the Holder or allowed it by law or other agreement shall be cumulative and not exclusive of any other,
and may be exercised by the Holder from time to time.

(f)Governing
Law; Jurisdiction.

(i)  
Governing Law. THIS NOTE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA WITHOUT REGARD
TO ANY CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD OTHERWISE REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

(ii) 
Jurisdiction. This Note shall be deemed to have been executed in Palm Beach County, Florida, the State and County where company
executes this Note and, and the Company and B. Michael Friedman express and agrees and consent that the Palm Beach County Circuit
Court shall have sole jurisdiction of any action pertaining to this note.

The
Company agrees that the service of process upon it mailed by certified or registered mail (and service so made shall be deemed
complete three days after the same has been posted as aforesaid) or by personal service shall be deemed in every respect effective
service of process upon it in any such suit or proceeding. Nothing herein shall affect Holder's right to serve process in any
other manner permitted by law. The Company agrees 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. 

(iii)
NO JURY TRIAL. THE COMPANY HERETO KNOWINGLY AND VOLUNTARILY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY WITH
RESPECT TO ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE.

(g)
Replacement Notes. This Note may be exchanged by Holder at any time and from time to time for a Note or Notes with different denominations
representing an equal aggregate outstanding Principal Amount, as reasonably requested by Holder, upon surrendering the same. No
service charge will be made for such registration or exchange. In the event that Holder notifies the Company that this Note has
been lost, stolen or destroyed, a replacement Note identical in all respects to the original Note (except for registration number
and Principal Amount, if different than that shown on the original Note), shall be issued to the Holder, provided that the Holder
executes and delivers to the Company an agreement reasonably satisfactory to the Company to indemnify the Company from any loss
incurred by it in connection with the Note.

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed on the day and in the year first above written.

 

 

The Company:

SOO COMMERCE, INC. Authorized Signature:

 

 

 

 

Name:
B. Michael Friedman Title: CEO

The
Holder:

Authorized
Signature:

 

Name:
Scott A Climes323 Neptune Ave Encinitas, CA 92024 805.750.8580 Cellex_10-1.htm

  

  

  

Exhibit 10.1

UNIFIRST CORPORATION

 

CEO CASH INCENTIVE BONUS PLAN

 

	
I.  

	
Purpose

 

The purpose of the UniFirst Corporation CEO Cash Incentive Bonus Plan (the “Plan”) is to establish a program of incentive compensation for the Chief Executive Officer of the Company (the “CEO”).  The Plan provides additional annual incentives to the CEO, contingent upon meeting certain corporate goals.

 

	
II.  

	
Definitions

 

“Board” means the Board of Directors of the Company.

 

“Bonus Award” means the award, as determined by the Committee, to be granted to the CEO on an annual basis.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Committee” means the Compensation Committee of the Board.

 

“Company” means UniFirst Corporation.

 

“Employment Agreement” means the Employment Agreement dated as of April 5, 2010 between the CEO and the Company.

 

“162(m) Bonus Award” means a Bonus Award that is intended to qualify for the performance-based compensation exception to Section 162(m) of the Code, as further described in Article VI.

 

“Performance Criteria” means objective performance criteria established by the Committee with respect to 162(m) Bonus Awards.  Performance Criteria shall be measured in terms of any one or more of the following objectives, as such objectives relate to Company-wide objectives:  (i) market value; (ii) book value; (iii) earnings per share; (iv) market share; (v) operating profit; (vi) net income; (vii) cash flow; (viii) return on capital; (ix) return on assets; (x) return on equity; (xi) margins; (xii) shareholder return; (xiii) sales or revenue; (xiv) operating margin; (xv) operating margin as adjusted by objective measurements; (xvi) earnings before interest, taxes, depreciation and amortization; (xvii) net sales; or (xviii) balance sheet measurements.

 

Each grant of a 162(m) Bonus Award shall specify the Performance Criteria to be achieved, a minimum acceptable level of achievement below which no payment or award will be made, a maximum award level and a formula for determining the amount of any payment or award to be made, if any, if performance is at or above the minimum acceptable level but falls short of full achievement of the maximum Performance Criteria.

 

If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Performance Criteria to be unsuitable, the Committee may modify such Performance Criteria, in whole or in part, as the Committee deems appropriate and equitable; provided, however, that no such modification shall be made if the effect would be to cause a 162(m) Bonus Award to fail to qualify for the performance-based compensation exception to Section 162(m) of the Code.  In addition, at the time performance goals are established as to a 162(m) Bonus Award, the Committee is authorized to determine the manner in which the Performance Criteria related thereto will be calculated or measured to take into account certain factors over which the CEO has no control or limited control, including changes in industry margins, general economic conditions, interest rate movements, changes in levels of measurable losses, costs or expenses and changes in accounting principles.

 

“Performance Period” means the period during which performance is measured to determine the level of attainment of a Bonus Award.

 

	
III.  

	
Administration

 

The Committee, in its sole discretion, will establish the award amounts which may be earned by the CEO (which may be expressed in terms of dollar amount, percentage of salary or any other measurement), establish goals for the CEO with respect to the award (which may be objective or subjective, and based on individual or Company performance), calculate and determine the CEO’s level of attainment of such goals, and calculate the Bonus Award for the CEO based upon such level of attainment.

 

Except as otherwise herein expressly provided, full power and authority to construe, interpret, and administer the Plan shall be vested in the Committee, including the power to amend or terminate the Plan.  The Committee may at any time adopt such rules, regulations, policies, or practices as, in its sole discretion, it shall determine to be necessary or appropriate for the administration of, or the performance of its respective responsibilities under, the Plan.  The Committee may at any time amend, modify, suspend, or terminate such rules, regulations, policies, or practices.

 

	
IV.  

	
Bonus Awards

 

It is expected that the Committee, based upon information to be supplied by management of the Company, will establish for the CEO for each Performance Period a minimum, target and maximum award and goals relating to Company and will communicate such award levels and goals to the CEO prior to or during the Performance Period for which such award may be made.  Bonus Awards will be earned by the CEO based upon the level of attainment of his goals during the applicable Performance Period.  As soon as practicable after the end of the applicable Performance Period, the Committee shall determine the level of attainment of the goals and the amount of the Bonus Award payable to the CEO.

 

	
V.  

	
Payment of Bonus Awards

 

Bonus Awards earned during any Performance Period shall be payable as soon as practicable following the end of such Performance Period and the determination of the amount thereof shall be made by the Committee.  Payment of Bonus Awards shall be made in the form of cash.  Bonus Award amounts earned but not yet paid will not accrue interest.

 

	
VI.  

	
162(m) Bonus Awards

 

Unless determined otherwise by the Committee, each Bonus Award awarded under the Plan shall be a 162(m) Bonus Award and will be subject to the following requirements, notwithstanding any other provision of the Plan to the contrary:

 

	
1.  

	
No 162(m) Bonus Award may be paid unless and until the shareholders of the Company have approved the Plan (and to the extent required by Section 162(m) of the Code, re-approved the Plan) in a manner that complies with the shareholder approval requirements of Section 162(m) of the Code.

 

	
2.  

	
A 162(m) Bonus Award may be made only by a Committee that is comprised solely of not less than two directors, each of whom is an “outside director” (within the meaning of Section 162(m) of the Code).

 

	
3.  

	
The performance goals to which a 162(m) Bonus Award is subject must be based solely on Performance Criteria.  Such performance goals, and the minimum, target and maximum Bonus Award payable upon attainment thereof, must be established by the Committee within the time limits required in order for the 162(m) Bonus Award to qualify for the performance-based compensation exception to Section 162(m) of the Code.

 

	
4.  

	
No 162(m) Bonus Award may be paid until the Committee has certified the level of attainment of the applicable Performance Criteria.

 

	
5.  

	
The maximum amount of a 162(m) Bonus Award under this Plan for any Performance Period is $2,000,000.

 

	
VII.  

	
Reorganization or Discontinuance

 

The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.  The Company will make appropriate provision for the preservation of the CEO’s rights under the Plan in any agreement or plan which it may enter into or adopt to effect any such merger, consolidation, reorganization or transfer of assets.

 

	
VIII.  

	
Non-Alienation of Benefits

 

The CEO may not assign, sell, encumber, transfer or otherwise dispose of any rights or interests under the Plan except by will or the laws of descent and distribution.  Any attempted disposition in contravention of the preceding sentence shall be null and void.

 

	
IX.  

	
Taxes

 

The Company shall deduct from all amounts paid under the Plan all federal, state, local and other taxes required by law to be withheld with respect to such payments.

 

	
X.  

	
Termination of Employment

 

In the event the CEO’s employment with the Company is terminated for Cause (as defined in the Employment Agreement), then any outstanding Bonus Award will be terminated and no portion of it will be paid to the CEO.  If the CEO’s employment with the Company is terminated without Cause or by reason of the CEO’s death or Disability (as defined in the Employment Agreement), then any outstanding Bonus Award will remain in effect and a portion (based on the percentage of the applicable Performance Period during which the CEO was employed by the Company) of any amount earned thereunder based on the Company’s achievement of any Performance Criteria will be payable to the CEO.

 

	
XI.  

	
Unfunded Plan

 

The CEO shall have no right, title, or interest whatsoever in or to any investments that the Company may make to aid it in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between the Company and the CEO.  To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company.  All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts.

 

The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

 

	
XII.  

	
Governing Law

 

The terms of the Plan and all rights thereunder shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without reference to principles of conflict of laws.

 

	
XIII.  

	
Other Compensation

 

Neither the establishment of this Plan nor the grant of a Bonus Award pursuant to this Plan shall constitute an amendment to or otherwise modify the Employment Agreement or otherwise prevent the Company from establishing other compensation plans or arrangements or making awards to the CEO pursuant to such other plans or arrangements.

 

	
XIV.  

	
Effective Date

 

The original effective date of the Plan is December 5, 2012.

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