Document:

Exhibit 10.1

 

AMENDMENT NO. 1
 TO
 SEVENTH AMENDED AND RESTATED
 AGREEMENT OF LIMITED PARTNERSHIP
 OF
 ASHFORD HOSPITALITY LIMITED PARTNERSHIP

 

July 12, 2016

 

This Amendment No. 1 to the Seventh Amended and Restated Agreement of Limited Partnership of Ashford Hospitality Limited Partnership (this “Amendment”) is made as of July 13, 2016, by Ashford OP General Partner LLC, a Delaware limited liability company, as general partner (the “General Partner”) of Ashford Hospitality Limited Partnership, a Delaware limited partnership (the “Partnership”), pursuant to the authority granted to the General Partner in Section 11.1(b) of the Seventh Amended and Restated Agreement of Limited Partnership of Ashford Hospitality Limited Partnership, dated April 14, 2016 (the “Partnership Agreement”), for the purpose of issuing additional Partnership Units in the form of Preferred Partnership Units.  Capitalized terms used and not defined herein shall have the meanings set forth in the Partnership Agreement.

 

WHEREAS, the Board of Directors (the “Board”) of Ashford Hospitality Trust, Inc. (the “Company”) and a duly authorized committee thereof adopted resolutions on June 27, 2016 and July 6, 2016 classifying and designating 4,800,000 shares of Preferred Stock (as defined in the Articles of Amendment and Restatement of the Company (the “Charter”)) as Series F Preferred Stock;

 

WHEREAS, the Board filed Articles Supplementary to the Charter with the State Department of Assessments and Taxation of Maryland on July 11, 2016, establishing the Series F Preferred Stock, with such preferences, rights, powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption as described in the Series F Articles Supplementary;

 

WHEREAS, Section 11.1(b) of the Partnership Agreement permits the General Partner to amend the Partnership Agreement without the approval of any other Partner if such amendment is to create, issue or reflect the creation or issuance of additional Partnership Interests;

 

WHEREAS, the General Partner has determined that, in connection with the issuance of the Series F Preferred Stock, it is necessary and desirable to amend the Partnership Agreement to create additional Partnership Units in the form of Preferred Partnership Units having designations, preferences and other rights which are substantially the same as the economic rights of the Series F Preferred Stock; and

 

WHEREAS, the General Partner desires to so amend the Partnership Agreement as of the date first set forth above.

 

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the General Partner hereby amends the Partnership Agreement as follows:

 

1.                                      Article I is amended to add the following defined terms in their respective alphabetical order within Article I:

 

“Series F Articles Supplementary” shall mean the Articles Supplementary Establishing and Fixing the Rights and Preferences of a Series of Preferred Stock, designating the rights and preferences of the 7.375% Series F Cumulative Preferred Stock, filed as part of the Company’s charter with the State Department of Assessments and Taxation of Maryland, on July 11, 2016.

 

“Series F Preferred Partnership Interests” shall mean a partnership interest in the Partnership evidenced by the Series F Preferred Partnership Units, having a preference in payment of distributions or on liquidation as set forth in Exhibit R to this Agreement.

 

“Series F Preferred Partnership Units” shall mean the series of Preferred Partnership Units established pursuant to this Agreement, representing a fractional, undivided share of the Series F Preferred Partnership Interests of all Partners issued under this Agreement.

 

“Series F Preferred Stock” shall mean the Series F Cumulative Preferred Stock of the Company, with such preferences, rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption as described in the Series F Articles Supplementary.

 

2.                                      In accordance with Section 4.3 of the Partnership Agreement, set forth in Exhibit R hereto are the terms and conditions of the Series F Preferred Partnership Units which are hereby established and issued to Ashford OP Limited Partner, LLC in consideration of its contribution to the Partnership of the proceeds from the issuance and sale of the Series F Preferred Stock by the Company.  The Partnership Agreement is hereby amended to incorporate such Exhibit R as Exhibit R thereto and to replace Exhibit A thereto with a revised Exhibit A to reflect the issuance of the Series F Preferred Partnership Units.

 

3.                                      Except as modified herein, all terms and conditions of the Partnership Agreement shall remain in full force and effect, which terms and conditions the General Partner hereby ratifies and confirms.

 

4.                                      This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to conflicts of law.

 

5.                                      If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

 

(The remainder of this page intentionally left blank.)

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date first set forth above.

 

 

	
 
    	
Ashford OP General   Partner LLC,
    
	
 
    	
a Delaware limited   liability company, as General Partner of Ashford Hospitality Limited   Partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David A. Brooks
    
	
 
    	
 
    	
David A. Brooks, Vice   President
    

 

Amendment No. 1 to Seventh Amended and Restated LP Agreement of Ashford Hospitality Limited Partnership

 

 

EXHIBIT R

 

DESIGNATION OF TERMS AND CONDITIONS OF SERIES F 
 PREFERRED PARTNERSHIP UNITS

 

A.                                    Designation and Number.  A series of Preferred Partnership Units, designated as Series F Preferred Partnership Units, is hereby established.  The number of authorized Series F Preferred Partnership Units shall be 4,800,000.

 

B.                                    Rank.  The Series F Preferred Partnership Units, with respect to rights to distributions and payments to Partners, the distribution of assets upon the liquidation, dissolution or winding up of the Partnership, rank (a) prior or senior to the Common Partnership Units and all Partnership Units issued by the Partnership (“Junior Units”) the terms of which specifically provide that such Partnership Units rank junior to the Series E Preferred Partnership Units; (b) on a parity with the Series A Preferred Partnership Units, Series D Preferred Partnership Units, Series E Preferred Partnership Units and all other Partnership Units issued in the future by the Partnership (“Parity Units”) the terms of which specifically provide that such Partnership Units rank on a parity with the Series F Preferred Partnership Units; (c) junior to all Partnership Units issued by the Partnership the terms of which specifically provide that such Partnership Units rank senior to the Series F Preferred Partnership Units; and (d) junior to all of the Partnership’s existing and future indebtedness.

 

C.                                    Distributions.

 

(i)                                     Pursuant to Section 8.1 of the Partnership Agreement but subject to the rights of holders of any Preferred Partnership Units ranking senior to the Series F Preferred Partnership Units as to the payment of distributions, Ashford OP Limited Partner LLC, in its capacity as the holder of the then outstanding Series F Preferred Partnership Units, shall be entitled to receive, when, as and if authorized by the General Partner, from the Cash Flow, cumulative quarterly preferential cash distributions in an amount per Series F Preferred Partnership Unit equal to 7.375% of the $25.00 liquidation preference per annum (equivalent to a fixed annual amount of $1.84375 per Series F Preferred Partnership Unit).  Distributions of Preferred Return on the Series F Preferred Partnership Units shall be cumulative from (and including) the date of original issuance, whether or not in any distribution period or periods (i) such distributions shall be authorized by the General Partner, (ii) there shall be funds legally available for the payment of such distributions or (iii) any agreement prohibits the Partnership’s payment of such distributions, and such distributions shall be payable quarterly on the 15th day of January, April, July and October of each year (or, if not a Business Day, the next succeeding Business Day with the same force and effect as if paid on such distribution date, and no interest or additional distributions or other sums shall accrue on the amount so payable from such distribution date to such next succeeding Business Day).  Any distribution of Preferred Return payable on the Series F Preferred Partnership Units for any distribution period (as defined below) will be computed on the basis of twelve 30-day months and a 360-day year.  Distributions of Preferred Return will be payable in arrears to holders of record as they appear on the records of the Partnership at the close of business on the last day of each of March, June, September and December, as the case

 

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may be, immediately preceding the applicable distribution payment date, which dates shall be the Partnership Record Dates for the Series F Preferred Partnership Units.  Except for distributions in liquidation or redemption as provided in Sections D and E, respectively, holders of Series F Preferred Partnership Units will not be entitled to receive any distributions in excess of cumulative Preferred Returns accrued on the Series F Preferred Partnership Units at the rate specified in this paragraph.  No interest will be paid in respect of any distribution payment or payments on the Series F Preferred Partnership Units that may be in arrears. As used herein, “distribution period” shall mean the respective periods commencing on, and including, the 1st day of January, April, July and October of each year and ending on, and including, the last day of each March, June, September and December, respectively (other than the initial distribution period with respect to units issued on July 13, 2016, which shall commence on (and include) July 13, 2016 and end on (and include) September 30, 2016, and other than the distribution period during which any Series F Preferred Partnership Units shall be redeemed pursuant to Section E, which shall end on, and include, the day preceding the redemption date with respect to the Series F Preferred Partnership Units being redeemed).

 

(ii)                                  When distributions of Preferred Return are not paid in full upon the Series F Preferred Partnership Units or any other series of Parity Units, or a sum sufficient for such payment is not set apart, all distributions of Preferred Return authorized by the General Partner upon the Series F Preferred Partnership Units and any other series of Parity Units shall be authorized by the General Partner ratably in proportion to the respective amounts of such distributions accumulated, accrued and unpaid on the Series F Preferred Partnership Units and accumulated, accrued and unpaid on such Parity Units.  Except as set forth in the preceding sentence, unless distributions on the Series F Preferred Partnership Units equal to the full amount of accumulated, accrued and unpaid distributions of Preferred Return have been or contemporaneously are authorized by the General Partner and paid, or authorized by the General Partner and a sum sufficient for the payment thereof set apart for such payment for all past distribution periods, no distributions (other than distributions paid in Junior Units or options, warrants or rights to subscribe for or purchase Junior Units) shall be authorized by the General Partner or paid or set aside for payment by the Partnership with respect to any class or series of Parity Units.  Unless full cumulative distributions of Preferred Return on the Series F Preferred Partnership Units have been paid or authorized by the General Partner and set apart for payment for all past distribution periods, no distributions (other than distributions paid in Junior Units or options, warrants or rights to subscribe for or purchase Junior Units) shall be authorized by the General Partner or paid or set apart for payment by the Partnership with respect to any Junior Units, nor shall any Junior Units or Parity Units be redeemed, purchased or otherwise acquired for any consideration, or any monies be paid to or made available for a sinking fund for the redemption of any Junior Units or Parity Units (except by conversion or exchange for Junior Units, or options, warrants or rights to subscribe for or purchase Junior Units), nor shall any other cash or property be paid or distributed to or for the benefit of holders of Junior Units or Parity Units.  Notwithstanding the foregoing, the General Partner shall not be prohibited from (i) authorizing or paying or setting apart for payment any Preferred Return or distribution on any Junior Units or Parity Units or (ii) redeeming, purchasing or otherwise acquiring any Junior Units or Parity Units, in

 

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each case, if such authorization, payment, redemption, purchase or other acquisition is necessary to maintain the Company’s qualification as a REIT.

 

(iii)                               No distribution of Preferred Return on the Series F Preferred Partnership Units shall be authorized by the General Partner or paid or set apart for payment at such time as the terms and provisions of any agreement of the Partnership, including any agreement of the Partnership relating to the Partnership’s indebtedness, prohibits such authorization, payment or setting apart for payment or provides that such authorization, payment or setting apart for payment would constitute a breach thereof, or a default thereunder, or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

 

(iv)                              In determining whether a distribution (other than upon voluntary or involuntary liquidation, dissolution or winding up of the Partnership) of Preferred Return or in redemption or otherwise, is permitted, amounts that would be needed, if the Partnership were to be dissolved at the time of the distribution, to satisfy the liquidation preference of the Series F Preferred Partnership Units (as provided in Section D below) will not be added to the Partnership’s total liabilities.

 

D.                                    Liquidation Preference.

 

(i)                                     Upon any voluntary or involuntary liquidation, dissolution or winding up of the Partnership, before any payment or distribution shall be made to or set apart for the holders of any Junior Units, Ashford OP Limited Partner LLC, in its capacity as holder of the Series F Preferred Partnership Units, shall be entitled to receive a liquidation preference distribution of $25.00 per Series F Preferred Partnership Unit, plus an amount equal to all accumulated, accrued and unpaid Preferred Return to the date of final distribution, but Ashford OP Limited Partner LLC shall not be entitled to any further payment with respect thereto.  If upon any liquidation, dissolution or winding up of the Partnership, its assets, or proceeds thereof, distributable among Ashford OP Limited Partner LLC, in its capacity as the holder of the Series F Preferred Partnership Units, shall be insufficient to pay in full the above described preferential distribution and liquidating distributions on any other series of Parity Units, then such assets, or the proceeds thereof, shall be distributed among Ashford OP Limited Partner LLC, in its capacity as the holder of the Series F Preferred Partnership Units, and the holders of any such other Parity Units ratably in the same proportion as the respective amounts that would be payable on such Series F Preferred Partnership Units and any such other Parity Units if all amounts payable thereon were paid in full.

 

(ii)                                  Upon any liquidation, dissolution or winding up of the Partnership, after payment shall have been made in full to Ashford OP Limited Partner LLC, in its capacity as the holder of the Series F Preferred Partnership Units, holders of the Series F Preferred Partnership Units shall have no right or claim to any of the remaining assets of the Partnership.

 

(iii)                               None of a consolidation or merger of the Partnership with or into another entity, a merger of another entity with or into the Partnership, a statutory unit exchange

 

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by the Partnership or a sale, lease or conveyance of all or substantially all of the Partnership’s property or business shall be considered a liquidation, dissolution or winding up of the affairs of the Partnership.

 

E.                                     Redemption.  In connection with the redemption by the Company of any shares of Series F Preferred Stock in accordance with the provisions of the Series F Articles Supplementary, the Partnership shall provide cash to Ashford OP Limited Partner LLC for such purpose which shall be equal to the redemption price (as set forth in the Series F Articles Supplementary), plus all distributions of Preferred Return accumulated and unpaid to, but not including, the Redemption Date (as defined in the Series F Articles Supplementary), and one Series F Preferred Partnership Unit shall be concurrently redeemed with respect to each share of Series F Preferred Stock so redeemed by the Company.  From and after the applicable Redemption Date, the Series F Preferred Partnership Units so redeemed shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series F Preferred Partnership Units shall cease.

 

F.                                      Voting Rights.  Except as required by applicable law, the holder of the Series F Preferred Partnership Units, as such, shall have no voting rights.

 

G.                                    Conversion.  In connection with the conversion by the Company of any shares of Series F Preferred Stock into shares of REIT Common Shares in accordance with the provisions of the Series F Articles Supplementary, the Partnership shall convert Series F Preferred Partnership Units into Common Partnership Units and issue such Common Partnership Units to Ashford OP Limited Partner LLC.  The number of Common Partnership Units into which the Series F Preferred Partnership Units are convertible shall be equal to the number of REIT Common Shares into which the Series F Preferred Stock is then being converted, as set forth in the Series F Articles Supplementary.  From and after the applicable Change of Control Conversion Date (as such term is defined in the Series F Articles Supplementary), the Series F Preferred Partnership Units so converted shall no longer be outstanding and all rights hereunder, to distributions or otherwise, with respect to such Series F Preferred Partnership Units shall cease.

 

H.                                   Restriction on Ownership.  The Series F Preferred Partnership Units shall be owned and held solely by Ashford OP Limited Partner LLC.

 

I.                                        Allocations.  Allocations of the Partnership’s items of income, gain, loss and deduction allocable with respect to Series F Preferred Partnership Units shall be allocated pro rata among holders of Series F Preferred Partnership Units in accordance with Article V of the Partnership Agreement.

 

4Code Green Apparel Corp. 8-K

 

Exhibit 10.1

 

 

PROMISSORY
NOTE

 

	US
$200,000	June 23, 2016

  

NOW
THEREFORE FOR VALUE RECEIVED, the undersigned, Code Green Apparel Corp., a Nevada corporation
(“Code Green”), hereby promises to pay to the order of 10Star LLC, a Texas limited liability
company (“10Star”), the principal sum of Two Hundred Thousand Dollars ($200,000)(the
“Principal”), in lawful money of the United States of America, which shall be legal tender, bearing
interest and payable as provided herein. This Promissory Note (this “Note” or “Promissory
Note”) has an effective date of June 23, 2016 (the
“Effective Date”). This Note is entered into in order to evidence amounts owed by Code Green
to 10Star pursuant to the terms of that certain Asset Purchase Agreement by and between Code Green and 10Star dated 
June 23, 2016 (the “Asset Purchase Agreement”). Certain capitalized terms used herein but
not otherwise defined have the meanings given to such terms in the Asset Purchase Agreement.

1.

Interest
on the Principal amount of this Note shall be computed on the basis of a 365-day year, shall accrue on the actual number of days
elapsed for any whole or partial month in which interest is being calculated, shall accrue at a rate of ten percent (10%) per annum,
compounded monthly in arrears (“Interest”), and shall accrue until and be payable at Maturity, if not
paid earlier as result of the Gross Profit Payments described below. All past-due Principal and Interest shall bear interest at
the rate of twelve percent (12%) per annum until paid in full (the “Default Rate”). This Note (including
all Principal and Interest) is payable on June 23, 2018, the “Maturity Date”.

2.

This
Note may be prepaid in whole or in part, at any time and from time to time, without premium or penalty (each a “Prepayment”).

3.

Until the earlier of
(a) the Maturity Date, at which time the balance of Principal and accrued and unpaid Interest hereon shall be due and payable in
full; and (b) the date this Note is paid in full, Code Green shall pay 10Star fifty percent (50%) of the Gross Profits generated
by Code Green for the “On the Border”, “Sports Clips” and “7-Eleven”
accounts (the “Gross Profit Payments” and the “Applicable Accounts”). The Gross
Profit Payments shall be paid in cash no later than the end of the calendar month following the month during which Code Green has
generated such Gross Profits and received payment of such applicable underlying sales, or part thereof, unless otherwise agreed
between Code Green and 10Star. “Gross Profit” means: (x) the total gross revenues of Code Green derived
from the Applicable Accounts, less (y) (i) cost of goods sold, (ii) returns, (iii) discounts, (iv) adjustments, and (v) allowances,
and those other items that are customarily subtracted from total gross revenue to determine gross profit in accordance with generally
accepted accounting principles (“GAAP”). Gross Profit shall be determined in good faith by the principal
accounting officer of Code Green, based upon (A) GAAP, and (B) Code Green’s financial statements prepared in accordance with
GAAP consistent with past practice to the extent permissible and practicable. 10Star shall have the right to review any documents
related to the calculation of Gross Profit for a specified period and to receive a written explanation of how Gross Profit was
determined for any specified period.

    	 

    	 

    

 

4.

Each Prepayment and each
Gross Profit Payment made hereunder shall be credited first to accrued Interest and second to Principal.

5.

If
any payment of Principal or Interest on this Note shall become due on a Saturday, Sunday or any other day on which national banks
are not open for business, such payment shall be made on the next succeeding business day.

6.

This
Note shall be binding upon Code Green and its successors and assigns and inure to the benefit of 10Star and 10Star’s successors
and assigns.

7.

No
provision of this Note shall alter or impair the obligation of Code Green to pay the Principal of and Interest on this Note at
the times, places and rates, and in the coin or currency, herein prescribed.

8.

Code
Green will do or cause to be done all things reasonably necessary to preserve and keep in full force and effect its corporate existence,
rights and franchises and comply with all laws applicable to Code Green, except where the failure to comply could not reasonably
be expected to have a material adverse effect on Code Green.

9.

Notwithstanding
anything to the contrary in this Note or any other agreement entered into in connection herewith, whether now existing or hereafter
arising and whether written or oral, it is agreed that the aggregate of all Interest and any other charges constituting Interest,
or adjudicated as constituting Interest, and contracted for, chargeable or receivable under this Note shall under no circumstances
exceed the Maximum Rate (as defined below).

10.

If
an Event of Default (as defined herein or below) occurs (unless all Events of Default have been cured or waived by 10Star), 10Star
may, by written notice to Code Green, declare the Principal amount then outstanding of, and the accrued Interest (if any) and all
other amounts payable on, this Note to be immediately due and payable. The following events and/or any other Events of Default
defined elsewhere in this Note are “Events of Default” under this Note:

(a)

Code
Green shall fail to pay, when and as due, the Principal, Interest or Gross Profit Payments payable hereunder (if any) within ten
(10) days from the due date of such payment; or

(b)

Code
Green shall have breached in any material respect any covenant in this Note, and, with respect to breaches capable of being cured,
such breach shall not have been cured within thirty (30) days following the occurrence of such breach; or

(c)

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

 

    	 

    	 

    

 

(d)

Code
Green shall take any action authorizing, or in furtherance of, any of the foregoing.

11.

In
case any one or more Events of Default shall occur and be continuing, 10Star may proceed to protect and enforce its rights by an
action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained
herein or for an injunction against a violation of any of the terms hereof, or in aid of the exercise of any power granted hereby
or thereby or by law or otherwise. In case of a default in the payment of any Principal of or premium, if any, or Interest on this
Note, Code Green will pay to 10Star such further amount as shall be sufficient to cover the reasonable cost and expenses of collection,
including, without limitation, reasonable attorneys’ fees, expenses and disbursements. No course of dealing and no delay
on the part of 10Star in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice 10Star’s
rights, powers or remedies. No right, power or remedy conferred by this Note upon 10Star shall be exclusive of any other right,
power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.

12.

If
from any circumstance any holder of this Note shall ever receive Interest or any other charges constituting Interest, or adjudicated
as constituting Interest, the amount, if any, which would exceed the Maximum Rate shall be applied to the reduction of the Principal
amount owing on this Note, and not to the payment of Interest; or if such excessive Interest exceeds the unpaid balance of Principal
hereof, the amount of such excessive Interest that exceeds the unpaid balance of Principal hereof shall be refunded to Code Green.
In determining whether or not the Interest paid or payable exceeds the Maximum Rate, to the extent permitted by applicable law
(i) any non-Principal payment shall be characterized as an expense, fee or premium rather than as Interest; and (ii) all Interest
at any time contracted for, charged, received or preserved in connection herewith shall be amortized, prorated, allocated and spread
in equal parts during the period of the full stated term of this Note. The term “Maximum Rate” shall
mean the maximum rate of Interest allowed by applicable federal or state law.

13.

It
is the intention of the parties hereto that the terms and provisions of this Note are to be construed in accordance with and governed
by the laws of the State of Texas, except as such laws may be preempted by any federal law controlling the rate of Interest which
may be charged on account of this Note. The parties hereby consent and agree that, in any actions predicated upon this Note, venue
is properly laid in Texas and that the courts in and for Tarrant County, Texas, shall have full subject matter and personal jurisdiction
over the parties to determine all issues arising out of or in connection with the execution and enforcement of this Note.

    	 

    	 

    

 

14.

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

15.

Every
provision of this Note is intended to be severable. If, in any jurisdiction, any term or provision hereof is determined to be invalid
or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such term or provision in any other jurisdiction, and (c) the
invalid or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision
that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.
If a court of competent jurisdiction determines that any covenant or restriction or portion thereof, set forth in this Note is
unreasonable or unenforceable, the court shall reduce or modify such covenants or restrictions to those which it deems reasonable
and enforceable under the circumstances and, as so reduced or modified, the parties hereto agree that such covenants and restrictions
shall remain in full force and effect as so modified. In the event a court of competent jurisdiction determines that any provision
of this Note is invalid or against public policy and cannot be so reduced or modified so as to be made enforceable, the remaining
provisions of this Note shall not be affected thereby, and shall remain in full force and effect.

16.

No
modification, amendment, addition to, or termination of this Note, nor waiver of any of its provisions, shall be valid or enforceable
unless in writing and signed by all the parties hereto.

17.

The
Note constitutes the entire agreement of the parties regarding the matters contemplated herein, or related thereto, and supersedes
all prior and contemporaneous agreements, and understandings of the parties in connection therewith, except for the Asset Purchase
Agreement and the exhibits thereto.

18.

This
Note and the repayment of this Note shall be unsecured by Code Green and 10Star shall have no rights to any collateral or security
interests in connection herewith or the payment of this Note.

 

 

 

 

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

 

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, Code Green has duly executed this Promissory Note as of the day and year first above written, with an Effective
Date as provided above.

	 	“Code Green”
	 	 
	 	 
	 	Code Green Apparel Corp.
	 	(A Nevada Corporation)
	 	 
	 	 
	 	/s/ George J. Powell, III	 
	 	George J. Powell, III
	 	Chief Executive Officer

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