Document:

helix_ex1002.htm

 

Exhibit 10.2

 

 

	
$132,500.00

	
March 5, 2010

HELIX WIND, CORP.

 

Convertible Secured Promissory Note

 

FOR VALUE RECEIVED, Helix Wind, Corp., a Nevada corporation (the “Borrower”), hereby promises to pay to St. George Investments, LLC, an Illinois limited liability company, its successor or assigns (the “Lender,” and together with the Borrower, the “Parties”), the principal sum of $132,500.00 (the “Principal Amount”) together with all accrued and unpaid interest thereon, fees incurred or other amounts owing hereunder, all as set forth below in this Convertible Secured Promissory Note (this “Note”). This Note is issued pursuant to that certain Note Purchase Agreement of even date herewith, entered into by and between the Borrower and the Lender (the “Note Purchase Agreement”).

 

1.           Principal and Interest Payments. Interest on the unpaid principal balance of this Note shall not accrue unless a Trigger Event (as defined in Section 12 below) occurs. Upon the occurrence of a Trigger Event, the Outstanding Balance (as defined below) of this Note shall accrue simple interest at the rate of 18.00% per annum from and after the date of the occurrence of the Trigger Event, whether before or after judgment. Notwithstanding any provision to the contrary herein, in no event shall the applicable interest rate at any time exceed the maximum interest rate allowed under applicable law.  If not sooner converted as provided below, the entire unpaid principal balance and all accrued and unpaid interest, if any, shall be due and payable upon the earlier of (a) the date that is three months from the date of this Note, or (b) the date on which the Borrower has raised in excess of $500,000 from investors or lenders subsequent to the date of this Note (the “Maturity Date”). All payments owing hereunder shall be in lawful money of the United States of America delivered to the Lender at the address furnished to the Borrower for that purpose. All payments shall be applied first to costs of collection, if any, then to accrued and unpaid interest, and thereafter to principal. For purposes hereof, the term “Outstanding Balance” means the sum of the outstanding principal balance of this Note, the Origination Fee (defined below), and any accrued but unpaid interest, collection and enforcement costs, and any other fees incurred under this Note.

 

2.           Prepayment by the Borrower. The Borrower may, in its sole and absolute discretion, pay all or any portion of the Outstanding Balance at any time prior to the Maturity Date without penalty or premium.  Notwithstanding anything to the contrary herein, so long as no Trigger Event or Event of Default (as defined hereafter) has occurred, the Borrower may fully repay this Note (the “April 20 Prepayment Right”) at any time prior to April 20, 2010 for One Hundred Two Thousand Five Hundred Dollars and 00/100 ($102,500.00) (the “April 20 Prepayment Amount”).  For avoidance of doubt, (i) interest hereunder, if applicable, shall at all times be computed based on the greater of the Principal Amount or the Outstanding Balance, and (ii) if a Trigger Event or Event of Default has occurred, the Borrower shall not have the April 20 Prepayment Right.

 

3.           Origination Fee.  The Borrower acknowledges that the initial principal balance of this Note exceeds the Purchase Price (as defined in the Note Agreement) and that such excess is an origination fee (the “Origination Fee”) which shall be fully earned and charged to the Borrower upon the execution of this Note, and shall be paid to the Lender as part of the outstanding principal balance as set forth in this Note; provided, however, that in the event of a failure of the Second Closing (as defined in the Note Purchase Agreement), then the principal balance of this Note shall be reduced according to the terms of the Note Purchase Agreement.   

 

  

 

  

4.           Conversion.

 

 

(a)           Optional Conversion. At any time or from time to time after the date that is six months from the date of this Note and prior to payment in full of the entire outstanding principal balance of this Note, plus accrued interest and fees hereunder (collectively, the “Outstanding Amount”), the Lender shall have the right, at the Lender’s option, to convert the Outstanding Amount, in whole or in part (the “Conversion Amount”), into common stock (the “Common Stock”) of the Borrower.  The number of shares of Common Stock to be issued upon such conversion shall be determined by dividing (a) the Conversion Amount by (b) the lower of (i) the average volume-weighted average price (the “VWAP”) for the three (3) trading days with the lowest average VWAP of the twenty trading days immediately preceding the date set forth on the Conversion Notice (defined below), or (ii) 50% of the VWAP over the five (5) trading days immediately preceding the date set forth in the Conversion Notice (the lower of the foregoing (i) and (ii), the “Conversion Price”).  The trading data used to compute the VWAP shall be as reported by Bloomberg, LP, or if such information is not then being reported by Bloomberg, LP, then as reported by such other data information source as may be selected by the Lender.

 

(b)           Conversion Mechanics. In order to convert this Note into Common Stock, the Lender shall give written notice to the Borrower at its principal corporate office or the notice address provided in the Note Purchase Agreement (which notice, notwithstanding anything herein to the contrary, may be given via facsimile, email, or other means in the discretion of the Lender) pursuant to the form attached hereto as Exhibit A (the “Conversion Notice”) of the election to convert the same pursuant to this Section.  Such Conversion Notice shall state the Conversion Amount, the number of shares of Common Stock to which Lender is entitled pursuant to the Conversion Notice (the “Conversion Shares”), and the account in which the shares of Common Stock are to be deposited (the “Lender Account”).  The Borrower shall immediately, but in no event later than three days after receipt of a Conversion Notice, deliver the Conversion Shares to the Lender Account.  Notwithstanding anything herein to the contrary, all such deliveries of Conversion Shares shall be electronic, via DWAC or DTC.  In the event the Borrower fails to deliver the Conversion Shares within three days of receipt of the Conversion Notice, in addition to all other remedies available to the Lender hereunder and at law or in equity, a penalty equal to 1.5% of the Conversion Amount shall be added to the balance of this Note per day.  The conversion shall be deemed to have been made immediately prior to the close of business on the date of the Conversion Notice, and the person or entity entitled to receive the shares of Common Stock upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock as of such date.

 

(c)           No Fractional Shares. Conversion calculations pursuant to Section 4(a) shall be rounded up to the nearest whole share, and no fractional shares shall be issuable by the Borrower upon conversion of this Note. All shares issuable upon a conversion of this Note (including fractions thereof) shall be aggregated for purposes of determining whether such conversion would result in the issuance of a fractional share.

 

  

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(d)           No Impairment.  The Borrower will not, by amendment of its Articles of Incorporation or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Borrower, but will at all times in good faith assist in the carrying out of all the provisions of this Section 4 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Lender against impairment.

 

5.           Certain Adjustments. The number and class or series of shares into which this Note may be converted under Section 4 shall be subject to adjustment in accordance with the following provisions:

 

(a)           Computation of Adjusted Conversion Price.  Except as hereinafter provided, in case the Borrower shall at any time after the date hereof issue or sell any (i) shares of Common Stock or preferred shares convertible into Common Stock, or (ii) debt, warrants, options or other instruments or securities which are convertible into or exercisable for shares of Common Stock (together herein referred to as “Equity Securities”), in each case for consideration (or with a conversion price) per common share less than the Conversion Price in effect immediately prior to the issuance or sale of such securities or instruments, or without consideration, other than Excepted Issuances (as defined below) then forthwith upon such issuance or sale, the Conversion Price shall (until another such issuance or sale) be reduced to the price (calculated to the nearest full cent) equal to the price (or conversion price) of any such securities or instruments; provided, however, that in no event shall the Conversion Price be adjusted pursuant to this computation to an amount in excess of the Conversion Price in effect immediately prior to such computation. For the purposes of this Section 6, the term Conversion Price shall mean the Conversion Price per share set forth in Section 4(a) hereof, as adjusted from time to time pursuant to the provisions of this Section.

 

“Excepted Issuances” shall mean (i) the Borrower’s issuance of securities in connection with strategic license agreements and other partnering arrangements so long as such issuances are not for the purpose of raising capital and which holders of such securities or debt are not at any time granted registration rights, and (ii) the Borrower’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock to employees, directors, and consultants, pursuant to plans which are constituted on the date of this Note (collectively, the foregoing are “Excepted Issuances”).

 

For purposes of any computation to be made in accordance with this Section 6, the following provisions shall be applicable:

 

(i)           In case of the issuance or sale of any shares of Equity Securities for a consideration part or all of which shall be cash, the amount of the cash consideration shall be deemed to be the amount of cash received by the Borrower for such shares (or, if shares of stock are offered by the Borrower for subscription, the subscription price, or, if either of such securities shall be sold to underwriters or dealers for public offering without a subscription price, the public offering price, before deducting therefrom any compensation paid or discount allowed in the sale, underwriting or purchase thereof by underwriters or dealers or other persons or entities performing similar services), or any expenses incurred in connection therewith and less any amounts payable to security holders or any affiliate thereof, including, without limitation, any employment agreement, royalty, consulting agreement, covenant not to compete, earnout or contingent payment right or similar arrangement, agreement or understanding, whether oral or written; all such amounts shall be valued at the aggregate amount payable thereunder whether such payments are absolute or contingent and irrespective of the period or uncertainty of payment, the rate of interest, if any, or the contingent nature thereof.

 

  

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(ii)           In case of the issuance or sale (otherwise than as a dividend or other distribution on any stock of the Borrower) of shares of Equity Securities for a consideration part or all of which shall be other than cash, the amount of the consideration therefore other than cash shall be deemed to be the value of such consideration as determined in good faith by the Board of Directors of the Borrower.

 

(iii)           Shares of Equity Securities issuable by way of dividend or other distribution on any capital stock of the Borrower shall be deemed to have been issued immediately after the opening of business on the day following the record date for the determination of stockholders entitled to receive such dividend or other distribution and shall be deemed to have been issued without consideration.

 

(iv)           The reclassification of securities of the Borrower other than shares of Equity Securities into securities including shares of Equity Securities shall be deemed to involve the issuance of such shares of Equity Securities for consideration other than cash immediately prior to the close of business on the date fixed for the determination of security holders entitled to receive such shares, and the value of the consideration allocable to such shares of stock shall be determined as provided in this Section 6.

 

(v)           The number of shares of Equity Securities at any one time outstanding shall include the aggregate number of shares issued or issuable (subject to readjustment upon the actual issuance thereof) upon the exercise of then outstanding options, rights, warrants, and convertible and exchangeable securities.

 

(b)            Adjustment for Reorganization or Recapitalization. If, while this Note remains outstanding and has not been converted, there shall be a reorganization or recapitalization of the Borrower (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), all necessary or appropriate lawful provisions shall be made so that the Lender shall thereafter be entitled to receive upon conversion of this Note, the greatest number of shares of stock or other securities or property that a holder of the class of securities deliverable upon conversion of this Note would have been entitled to receive in such reorganization or recapitalization if this Note had been converted immediately prior to such reorganization or recapitalization, all subject to further adjustment as provided in this Section 6. If the per share consideration payable to the Lender for such class of securities in connection with any such transaction is in a form other than cash or marketable securities, then the value of such consideration shall be determined in good faith by the Borrower’s Board of Directors. The foregoing provisions of this paragraph shall similarly apply to successive reorganizations or recapitalizations and to the stock or securities of any other corporation that are at the time receivable upon the conversion of this Note. In all events, appropriate adjustment shall be made in the application of the provisions of this Note (including adjustment of the conversion price and number of shares into which this Note is then convertible pursuant to the terms and conditions of this Note) with respect to the rights and interests of the Lender after the transaction, to the end that the provisions of this Note shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable or issuable after such reorganization or recapitalization upon conversion of this Note.

 

  

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(c)            Adjustments for Split Subdivision or Combination of Shares.   If the Borrower at any time while this Note remains outstanding and unconverted, shall split or subdivide any class of securities into which this Note may be converted into a different number of securities of the same class, the number of shares of such class issuable upon conversion of this Note immediately prior to such split or subdivision shall be proportionately increased and the conversion price for such class of securities shall be proportionately decreased. If the Borrower at any time while this Note, or any portion hereof, remains outstanding and unconverted shall combine any class of securities into which this Note may be converted, into a different number of securities of the same class, the number of shares of such class issuable upon conversion of this Note immediately prior to such combination shall be proportionately decreased and the conversion price for such class of securities shall be proportionately increased.

 

(d)            Adjustments for Dividends in Stock or Other Securities or Property. If, while this Note remains outstanding and unconverted, the holders of any class of securities as to which conversion rights under this Note exist at the time shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefor, other or additional stock or other securities or property (other than cash) of the Borrower by way of dividend, then and in each case, this Note shall represent the right to acquire, in addition to the number of shares of such class of security receivable upon conversion of this Note, and without payment of any additional consideration therefor, the amount of such other or additional stock or other securities or property (other than cash) of the Borrower that such holder would hold on the date of such conversion had it been the holder of record of the class of security receivable upon conversion of this Note on the date hereof and had thereafter, during the period from the date hereof to and including the date of such conversion, retained such shares and/or all other additional stock available by it as aforesaid during said period, giving effect to all adjustments called for during such period by the provisions of this Section 6.

 

(e)            No Change Necessary. The form of this Note need not be changed because of any adjustment in the number of shares of Common Stock issuable upon its conversion.

 

6.           Further Adjustments. In case at any time or, from time to time, the Borrower shall take any action that affects the class of securities into which this Note may be converted under Section 4, other than an action described herein, then, unless such action will not have a material adverse effect upon the rights of the Lender, the number of shares of such class of securities (or other securities) into which this Note is convertible shall be adjusted in such a manner and at such time as shall be equitable under the circumstances.

 

  

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7.           Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to Section 6 or Section 7, the Borrower at its sole expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Lender 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 Lender, furnish or cause to be furnished to the Lender a like certificate setting forth (i) such adjustments and readjustments, and (ii) the number and class of securities and the amount, if any, of other property which at the time would be received upon the conversion of this Note under Section 4.

 

8.           Change of Control.  In the event of (i) any transaction or series of related transactions (including any reorganization, merger or consolidation) that results in the transfer of 50% or more of the outstanding voting power of the Borrower, or (ii) a sale of all or substantially all of the assets of the Borrower to another person or entity, this Note shall be automatically due and payable. The Borrower will give the Lender not less than ten (10) business days prior written notice of the occurrence of any events referred to in this Section 9.

 

9.           Representations and Warranties of the Borrower.  In addition to the representations and warranties set forth in the Note Purchase Agreement, which are incorporated herein, the Borrower hereby represents and warrants to the Lender that:

 

(a)           The Borrower understands and acknowledges that the number of Conversion Shares issuable upon conversion of this Note will increase in certain circumstances. The Borrower further acknowledges that its obligation to issue Conversion Shares upon conversion of this Note in accordance with its terms is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Borrower;

 

(b)           The Conversion Shares are enforceable against the Borrower and that the Borrower presently has no claims or defenses of any nature whatsoever with respect to the Conversion Shares;

 

(c)           The Borrower’s Common Stock is registered under Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”);

 

(d)           The Borrower is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the issuer was required to file such reports); and

 

(e)           The issuance of this Note is duly authorized. Upon conversion in accordance with the terms of this Note, the Conversion Shares, when issued, will be validly issued, fully paid and non-assessable, free from all taxes, liens, claims, pledges, mortgages, restrictions, obligations, security interests and encumbrances of any kind, nature and description. The Borrower has reserved from its duly authorized capital stock the appropriate number of shares of Common Stock for issuance upon conversion of this Note as required by the terms of this Note.

 

  

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10.           Affirmative and Negative Covenants. In addition to the covenants set forth in the Note Purchase Agreement, the Borrower covenants and agrees that, while any amounts under this Note are outstanding, it shall:

 

(a)           Do all things necessary to preserve and keep in full force and effect its corporate existence, including, without limitation, all licenses or similar qualifications required by it to engage in its business in all jurisdictions in which it is at the time so engaged; and continue to engage in business of the same general type as conducted as of the date hereof; and (ii) continue to conduct its business substantially as now conducted or as otherwise permitted hereunder;

 

(b)           Pay and discharge promptly when due all taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its property before the same shall become delinquent or in default, which, if unpaid, might reasonably be expected to give rise to liens or charges upon such properties or any part thereof, unless, in each case, the validity or amount thereof is being contested in good faith by appropriate proceedings and the Borrower has maintained adequate reserves with respect thereto in accordance with GAAP;

 

(c)           Comply in all material respects with all federal, state and local laws and regulations, orders, judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations and requirements applicable to it (collectively, “Requirements”) of all governmental bodies, departments, commissions, boards, companies or associations insuring the premises, courts, authorities, officials or officers which are applicable to the Borrower or any of its properties, except where the failure to so comply would not have a material adverse effect on the Borrower or any of its properties; provided, however, that nothing provided herein shall prevent the Borrower from contesting the validity or the application of any Requirements;

 

(d)           Keep proper records and books of account with respect to its business activities, in which proper entries, reflecting all of their financial transactions, are made in accordance with GAAP;

 

(e)            From the date hereof until all the Conversion Shares either have been sold by the Lender, or may permanently be sold by the Lender without any restrictions pursuant to Rule 144, (the “Registration Period”) the Borrower shall file with the Securities and Exchange Commission (the “SEC”) in a timely manner all required reports under section 13 or 15(d) of the Exchange Act, as amended, and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder;

 

(f)            The Borrower shall furnish to the Lender so long as the Lender owns Common Stock, promptly upon request, (i) a written statement by the Borrower that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Borrower and such other reports and documents so filed by the Borrower, and (iii) such other information as may be reasonably requested to permit the Lender to sell such securities pursuant to Rule 144 without registration;

 

  

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(g)           During the Registration Period, the Borrower shall not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination;

 

(h)           On the date hereof, the Borrower shall reserve for issuance to the Lender 3,000,000 shares for issuance upon conversions of the Note (the “Share Reserve”). The Borrower represents that it has sufficient authorized and unissued shares of Common Stock available to create the Share Reserve after considering all other commitments that may require the issuance of Common Stock. The Borrower shall take all action reasonably necessary to at all times have authorized, and reserved for the purpose of issuance, such number of shares of Common Stock as shall be necessary to effect the full conversion of the Note. If at any time the Share Reserve is insufficient to effect the full conversion of the Note, the Borrower shall increase the Share Reserve accordingly. If the Borrower does not have sufficient authorized and unissued shares of Common Stock available to increase the Share Reserve, the Borrower shall call and hold a special meeting of the shareholders within thirty (30) days of such occurrence, for the sole purpose of increasing the number of shares authorized. The Borrower’s management shall recommend to the shareholders to vote in favor of increasing the number of shares of Common Stock authorized. Management shall also vote all of its shares in favor of increasing the number of authorized shares of Common Stock;

 

(i)            The Borrower’s Common Stock shall be listed or quoted for trading on any of (a) the American Stock Exchange, (b) New York Stock Exchange, (c) the Nasdaq Global Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC Bulletin Board (each, a “Primary Market”). The Borrower shall promptly secure the listing of all of the Securities upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance) and shall maintain such listing of all securities from time to time issuable under the terms of the Transaction Documents;

 

(j)            Notify the Lender in writing, promptly upon learning thereof, of any litigation or administrative proceeding commenced or threatened against the Borrower involving a claim in excess of $100,000;

 

(k)           Use the proceeds from this Note for working capital and general corporate purposes; and

 

(l)            To not issue any instructions to Island Stock Transfer or any other transfer agent contrary to the instructions set forth in the Irrevocable Instructions to Transfer Agent of even date herewith given by the Borrower and Ian Gardner to Island Stock Transfer.

 

11.           Trigger Events. Upon each occurrence of any of the following events (each, a “Trigger Event”), (a) the Outstanding Balance shall immediately increase by the product of 25% multiplied by the Principal Amount, and (b) this Note shall accrue interest at the rate of 18% per annum (the “Trigger Effects”); provided, however, that in no event shall the Trigger Effects be applied more than two (2) times:

 

(a)            Decline in VWAP.  A decline in the VWAP for the Common Stock for ten (10) consecutive trading days to a per share price of less than $0.10.

 

  

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(b)           Decline in Volume. A decline in the five-day average daily dollar volume of the Common Stock in its Primary Market to less than $100,000.00 of volume per day.

 

(c)           Events of Default. The occurrence of any Event of Default hereunder.

 

(d)           Insufficient Authorized Shares. The Borrower’s failure to maintain sufficient authorized but unissued common shares to honor the conversion of this Note.

 

12.           Default. If any of the events specified below shall occur (each, an “Event of Default”) the Lender may (i) declare the unpaid principal balance together with all accrued and unpaid interest thereon immediately due and payable, by notice in writing to the Borrower:

 

(a)           Failure to Pay. The Borrower’s failure to make any payment when due and payable under the terms of this Note including, without limitation, any payment of costs, fees, interest, principal or other amount due hereunder.

 

(b)           Failure to Deliver Shares.  The Borrower’s failure to deliver the Conversion Shares as provided under Section 4(b) of this Note.

 

(c)           Trigger Event. The occurrence of any Trigger Event hereunder that remains uncured for three (3) days.

 

(d)           Breaches of Covenants. The Borrower or its subsidiaries, if any, shall fail to observe or perform any other covenant, obligation, condition or agreement contained in this Note or the other Transaction Documents (as defined in the Note Purchase Agreement).

 

(e)           Representations and Warranties. Any representation, warranty, certificate, or other statement (financial or otherwise) made or furnished by or on behalf of the Borrower to the Lender in writing included in this Note or in connection with any of the Transaction Documents, or as an inducement to the Lender to enter into this Note or any of the Transaction Documents, shall be false, incorrect, incomplete or misleading in any material respect when made or furnished or becomes false thereafter.

 

(f)           Failure to Pay Debts; Voluntary Bankruptcy. If any of the Borrower’s assets are assigned to its creditors, if the Borrower fails to pay its debts generally as they become due, or if the Borrower files any petition, proceeding, case or action for relief under any bankruptcy, reorganization, insolvency or moratorium law, rule, regulation, statute or ordinance (collectively, “Laws and Rules”), or any other Law and Rule for the relief of, or related to, debtors.

 

(g)           Involuntary Bankruptcy. If any involuntary petition is filed under any bankruptcy or similar Law or Rule against the Borrower, or a receiver, trustee, liquidator, assignee, custodian, sequestrator or other similar official is appointed to take possession of any of the assets or properties of the Borrower or any guarantor.

 

(h)           Governmental Action. If any governmental or regulatory authority takes or institutes any action that will materially affect the Borrower’s financial condition, operations or ability to pay or perform the Borrower’s obligations under this Note.

 

  

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13.           Ownership Limitation. Notwithstanding the provisions of this Note, in no event shall the this Note be convertible to the extent that the issuance of Common Stock upon the conversion thereof, after taking into account the Common Stock then owned by the Lender and its affiliates, would result in the beneficial ownership by the Lender and its affiliates of more than 9.99% of the outstanding Common Stock of the Borrower.  For purposes of this paragraph, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act.

 

14.           No Rights or Liabilities as Shareholder. This Note does not by itself entitle the Lender to any voting rights or other rights as a shareholder of the Borrower. In the absence of conversion of this Note, no provisions of this Note, and no enumeration herein of the rights or privileges of the Lender, shall cause the Lender to be a shareholder of the Borrower for any purpose.

 

15.           Binding Effect. This Note shall be binding on the Parties and their respective heirs, successors, and assigns; provided, however, that the Borrower shall not assign its rights hereunder in whole or in part without the express written consent of the Lender.

 

16.           Governing Law; Venue. The terms of this Note shall be construed in accordance with the laws of the State of Illinois as applied to contracts entered into by Illinois residents within the State of Illinois which contracts are to be performed entirely within the State of Illinois.  With respect to any disputes arising out of or related to this Note, the parties consent to the exclusive jurisdiction of, and venue in, the state courts in Illinois (or in the event of federal jurisdiction, the United States District Court Northern District of Illinois).

 

17.           Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of the parties to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.

 

18.            Attorneys’ Fees. If any action at law or in equity is necessary to enforce this Note or to collect payment under this Note, the Lender shall be entitled to recover reasonable attorneys’ fees directly related to such enforcement or collection actions.

 

19.            Amendments and Waivers; Remedies. No failure or delay on the part of a party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party hereto at law, in equity or otherwise. Any amendment, supplement or modification of or to any provision of this Note, any waiver of any provision of this Note, and any consent to any departure by either Party from the terms of any provision of this Note, shall be effective (i) only if it is made or given in writing and signed by the Borrower and the Lender and (ii) only in the specific instance and for the specific purpose for which made or given.

 

  

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20.           Notices. All notices, requests, demands, claims and other communications hereunder shall be in writing.  Any notice, request, demand, claim or other communication hereunder shall be deemed duly given if it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient, as set forth in the Note Purchase Agreement. Any party may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth in the Note Purchase Agreement using any other means (including personal delivery, expedited courier, messenger service, facsimile, ordinary mail, or electronic mail), but no such notice, request, demand, claim or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient or receipt is confirmed electronically or by return mail.  Any party may change the address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other party notice in any manner herein set forth.

 

21.            Final Note. This Note, together with the Transaction Documents, contains the complete understanding and agreement of the Borrower and Lender and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations. THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

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IN WITNESS WHEREOF, the Borrower has executed this Note as of the date set forth above.

Exhibit

Exhibit A – Conversion Notice

	  	
HELIX WIND, CORP.

	  	  
	  	  
	  	
By:   /s/ Scott Weinbrandt      

	  	
           Name: Scott Weinbrandt

	  	
           Title:  Chairman & President

 

 

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

ST. GEORGE INVESTMENTS, LLC

 

By: /s/ John M. Fife                             

      John M. Fife, Manager

 

 

  

12helix_ex1003.htm

 

    
      

    

    Exhibit 10.3

     

     

    
      Final

    

    

      SEPARATION AGREEMENT AND
RELEASE

       

      This
Separation Agreement and Release (the “Agreement”)
is entered into as of March 8, 2010 by and between Ian Gardner (“Mr.
Gardner”), and Helix Wind, Corp., a Nevada corporation (the “Company”).  Mr.
Gardner has resigned as Chief Executive Officer and a member of the Board of
Directors of the Company effective March 8, 2010 (“Employment
Termination Date”).  This Agreement is entered into in
consideration of the commitments made by each party to the other, all of which
commitments are set forth in this Agreement.

       

      1.           The
Company and Mr. Gardner agree as follows:

       

      (a)           Cash
Payments.  The Company acknowledges its outstanding debt
obligations to Mr. Gardner in the amount of $188,722 as follows: (i) $56,740 for
cash advances made by Mr. Gardner to the Company; (ii) $115,365 for a loan
extended by Mr. Gardner to the Company; and (iii) $16,667 in unpaid
vacation.  The Company agrees to repay 50% of the $188,722 concurrent
with the execution of the Agreement, and repay the remaining 50% of the $188,722
upon the Company’s closing of an equity financing resulting in minimum gross
proceeds of $1,000,000.

       

      (b)           Convertible
Note.  The Company acknowledges its outstanding debt
obligations to Mr. Gardner in the amount of $144,833 as follows: (i) $75,667 in
accrued compensation for 2008; (ii) $29,166 in accrued compensation for the time
period between August 2009 and February 2010; and (iii) $40,000 in accrued board
compensation.   The Company agrees to repay the amount of
$144,833 pursuant to the terms of the Convertible Note (the “Convertible
Note”) in the form attached hereto as Exhibit
1(b), which shall be executed by the Company and Mr. Gardner concurrently
with the execution of this Agreement by the Company and Mr.
Gardner..

       

      (c)           Shares of Common
Stock.  The Company shall issue Mr. Gardner 4,800,000
restricted shares of Company common stock concurrently with the execution of
this Agreement by the Company and Mr. Gardner, which shall be subject to the
Lock-Up Agreement referenced in Section 7(a).

       

      2.           Pledged
Shares.  Mr. Gardner acknowledges and agrees that as of the
Employment Termination Date he has relinquished all ownership interest in the
4,800,000 shares of Company Common Stock (including any and all proceeds from
the sale of such shares) which he pledged to St. George Investments, LLC
pursuant to the terms of the Stock Pledge Agreement dated January 27, 2010
between Mr. Gardner and St. George Investments, LLC.

       

      3.           Convertible
Note.  Mr. Gardner and the Company acknowledge and agree that
the 9% Convertible Note in the principal amount of $72,768 dated February 11,
2009 (“9%
Convertible Note”) shall remain in effect pursuant to the terms of the 9%
Convertible Note..

       

      
        
          Confidential

           

        

        
          
          

          
            

          

        

        
           

          Final

        

      

      4.           Warrant.  Mr.
Gardner and the Company acknowledge and agree that the Warrant dated February
11, 2009 (the “Warrant
Agreement”) to purchase up to 145,536 shares of Company Common Stock
shall remain in effect pursuant to the terms of the Warrant
Agreement.

       

      5.           Stock
Options.  Mr. Gardner and the Company acknowledge and agree
that the Share Employee Stock Option Plan Notice of Grant of Incentive Stock
Option/Incentive Stock Option Agreement dated February 11, 2009 (the “Stock Option
Agreement”) to purchase up to 3,253,740 shares of Company Common Stock
shall remain in effect pursuant to the terms of the Stock Option Agreement and
the Company’s Share Employee Incentive Stock Option (“Stock Option
Plan”).  As of the Employment Termination Date, 2,602,992
options under the Stock Option Agreement have vested at an exercise price of
$.55 per share, and the remaining 650,748 options under the Stock Option
Agreement shall be deemed to have expired as provided under Section 7(a) (ii) of
the Share Employee Stock Option Plan.

       

      6.           Facility
Lease.  Mr. Gardner and the Company acknowledge and agree that
the Lease Agreement dated November 1, 2008 between BRER VENTURES, LLC and the
Company for the Company’s headquarters located at 1848 Commercial Street, San
Diego, California 92113 (the “Building”)
is amended as of the Employment Termination Date to provide that (i) the square
footage covered by the Lease Agreement shall be reduced to 1,666 square feet,
and the Company shall determine which section(s) it will now be leasing by March
5, 2010; (ii) the monthly rent shall be $2,500.00 effective as of the date that
Company has reduced its occupied space to 1,666 square feet, duly notified Mr.
Gardner of such reduction, and Mr. Gardner shall have confirmed such reduction
within 1 business day; (iii) the term is converted to a month to month term, and
BRER VENTURES, LLC must provide the Company at least 45 days prior written
notice of termination; and (iv) Mr. Gardner shall not have access to the
Company’s offices from 8:00 a.m. to 5:00 p.m. Mondays through Fridays or on
Saturday or Sunday without first notifying the Company’s President by email,
telephone or text message that Mr. Gardner needs access to the building for
business reasons. In addition, Mr. and Mrs. Gardner and their affiliates shall
not occupy the Building while the Company is leasing any portion of the
Building. All other terms of the current Lease Agreement between Company and
Brer Ventures, LLC shall remain in full force and effect.

       

      7.           Lock-Up Agreement; Status of
Shares.

       

      (a)           Lock-Up.  Mr.
Gardner acknowledges and agrees that all shares of Company Common Stock to be
received from the Company or any third party shall be subject to the Lock-Up
Agreement dated February 5, 2009 executed by Mr. Gardner in favor of the
Company, then called Clearview Acquisitions, Inc. (the “Lock-up
Agreement”), including, without limitation, the shares of Company Common
Stock to be received pursuant to Section 1(b), Section 1(c), Section 3, Section
4 and/or Section 5.

       

      
        
          Confidential

           

        

        
          2

          
            

          

        

        
           

          Final

        

      

      (b)           Restricted
Shares.  Mr. Gardner acknowledges and agrees that all shares of
Common Stock to be received pursuant to Section 1(b), Section 1(c), Section 3,
Section 4 and/or Section 5 (i) are characterized as “restricted securities”
under the Securities Act of 1933 (as amended and together with the rules and
regulations promulgated thereunder, the “Securities
Act”) and that, under the Securities Act and applicable regulations
thereunder, such securities may not be resold, pledged or otherwise transferred
without registration under the Securities Act or an exemption therefrom; (ii)
are being offered in a transaction not involving any public offering in the
United States within the meaning of the Securities Act, and the shares of Common
Stock have not yet been registered under the Securities Act; and (iii) may be
offered, resold, pledged or otherwise transferred only in a transaction
registered under the Securities Act, or meeting the requirements of Rule 144, or
in accordance with another exemption from the registration requirements of the
Securities Act (and based upon an opinion of counsel if the Company so requests)
and in accordance with any applicable securities laws of any State of the United
States or any other applicable jurisdiction.

       

      8.           Voting of Company Shares;
Company Actions.

       

      (a)           Removal of Gene
Hoffman.  Concurrently with the execution of this Agreement by
the Company and Mr. Gardner, Mr. Gardner shall deliver to the Company the
resignation executed by Gene Hoffman providing for his resignation from the
Board of Directors of the Company as of March 8, 2010, in the form provided by
the Company to Gene Hoffman.

       

      (b)           No Proxy
Contest.  Until March 8, 2012, Mr. Gardner agrees not to vote
his shares in favor of any candidate for the Company’s Board of Directors which
is not nominated by Company management, and during this time period, not to
initiate, support in any manner, or directly or indirectly contest management’s
candidate(s) for the Company’s Board of Directors.

       

      (c)           No Bankruptcy or
Reorganization.  On the condition that the Company meets its
obligations under this Agreement, Mr. Gardner agrees not to, directly or
indirectly, petition or apply to any tribunal for the appointment of any
receiver, liquidator, or trustee for the Company or for any substantial part of
the Company’s property or assets, or commence any proceedings under any
bankruptcy, reorganization, arrangement, readjustment of debt, receivership,
dissolution, or liquidation law or statute of any jurisdiction against or
involving the Company.

       

      
        
          Confidential

           

        

        
          3

          
            

          

        

        
           

          Final

        

      

      9.           Morgan Litigation.
Mr. Gardner and the Company acknowledge that on or about July 10, 2009, Kenneth
Morgan filed an action against the Company, Mr. Gardner and Scott Weinbrandt in
the San Diego Superior Court, Central District, Case No. 37-2009-00093802
entitled Kenneth Morgan v.
Helix Wind, et al. alleging, inter alia, breach of the
Kenneth Morgan Employment Agreement, and on or about November 6, 2009, the
Company filed a cross-complaint alleging, inter alia, breach of the Kenneth
Morgan Employment Agreement, naming Kenneth Morgan as
cross-defendant.  Kenneth Morgan’s Complaint and all amendments
thereto, and the Company’s related Cross-Complaint in Case No. 37-2009-00093802
entitled Kenneth Morgan v.
Helix Wind, et al. shall hereinafter be referred to collectively as the
“Morgan
Action”.  Mr. Gardner and the Company agree to use their best
efforts to settle the Morgan Action resulting in a payment by the Company in an
amount no greater than $150,000.  Mr. Gardner and the Company agree to
execute any and all required documents, including a settlement agreement in the
form substantially similar to that previously executed with Kenneth Morgan on or
about December 11, 2009, to settle the Morgan Action.  The settlement
amounts paid by the Company shall be made in accordance with the terms of the
previously executed settlement agreement dated on or about December 11,
2009.  In the event the Morgan Action cannot be settled, Mr. Gardner
and the Company agree to cooperate in good faith with one another in defending
the Morgan Action, with each of Mr. Gardner’s controlled entities, on the one
hand, and the Company on the other hand, bearing their own legal costs in
defending the Morgan Action. The Company agrees to bear the costs in defending
Mr. Gardner personally as it relates to the claims in the Morgan Action against
the Company.

       

      10.           Termination of Employment
and Company Agreements; Fulfillment of Company
Obligations.  Mr. Gardner acknowledges and agrees that
effective as of the Employment Termination Date, (i) his employment with the
Company shall be terminated; (ii) he has resigned all positions as an officer
(including as the Chief Executive Officer) and director of the Company; (iii)
his Employment Agreement dated June 1, 2008, as amended, (the “Employment
Agreement”) with the Company is terminated (except for the provisions
which survive as provided in Section 11); (iv) his Board of Directors Service
and Indemnification Agreement dated March 12, 2008 is terminated although no
rights to indemnification are released; and (v) any and all employment or board
services agreements are terminated.  As of the Employment Termination
Date, Mr. Gardner shall no longer represent himself as an officer, director or
employee of the Company.  Except as set forth in this Agreement, Mr.
Gardner agrees the Company has already paid him any and all salary, other wages,
vacation pay and/or severance pay and expense reimbursement he is owed, and that
no such further payments or amounts are owed or will be owed.

       

      
        
          Confidential

           

        

        
          4

          
            

          

        

        
           

          Final

        

      

      11.           Confidentiality
Agreement.  Mr. Gardner acknowledges and agrees to continue to
be bound by the confidentiality, proprietary rights, invention disclosure and
ownership, and non-solicitation provisions from his Employment Agreement which
are attached hereto as Exhibit 11
(the “Employee
Confidentiality Agreement”), and which shall continue in full force and
effect.

       

      12.           Release by Mr.
Gardner.  Contingent upon the Company meeting its obligations
to Mr. Gardner under this Agreement, and except for any rights or claims created
by or contained in this Agreement, Mr. Gardner, for himself and for each of the
Gardner Owned Entities (as defined in Section 20) and his representatives,
heirs, successors and assigns, does hereby release, acquit and forever discharge
the Company and its past, present and future employees, agents, officers,
directors, shareholders, partners, heirs, executors, administrators, insurers,
successors and assigns (all hereinafter “Releasees”),
from and against any and all claims, rights, demands, actions, obligations,
liabilities and causes of action, whether asserted or unasserted, of any and
every kind, nature and character whatsoever, known or unknown, that he may now
have or has ever had against Releasees, or any of them, including but not
limited to those arising from or in any way connected with or related
to:

       

      (a)           the
employment of Mr. Gardner by Releasees, or any of them, the termination of that
employment, the lack of such employment, or any claims of discrimination or
retaliation, including but not limited to any claims arising under the Civil
Rights Act of 1964, California’s Fair Employment and Housing Act, and any claims
of discrimination arising under any federal, state or local law;
and

       

      (b)           all
acts or omissions of Releasees, or any of them, whatsoever occurring before the
Effective Date of this Agreement (as defined in Section 29 below), except for
(i) any acts or omissions that would constitute a breach of Company’s
obligations under this Agreement, or (ii) any acts of fraud or intentional
misconduct or violations of law.

       

      13.           Release by the
Company.  Contingent upon Mr. Gardner meeting
his  obligations to the Company under this Agreement, and except for
any rights or claims created by or contained in this Agreement, the Company, for
itself and for each of its representatives, successors and assigns, does hereby
release, acquit and forever discharge Mr. Gardner and each of the Gardner owned
entities from and against any and all claims, rights, demands, actions,
obligations, liabilities and causes of action, whether asserted or unasserted,
of any and every kind, nature and character whatsoever, known or unknown, that
it may now have or has ever had against Mr. Gardner, including but not limited
to those arising from or in any way connected with or related to:

       

      
        
          Confidential

           

        

        
          5

          
            

          

        

        
           

          Final

        

      

      (a)           the
employment of Mr. Gardner by Releasees, or any of them, the termination of that
employment, the lack of such employment, or any claims of discrimination,
harassment or retaliation, including but not limited to any claims arising under
the California Fair Employment and Housing Act, Title VII of the Civil Rights
Act of 1964, and the Americans with Disabilities Act, and any claims arising
under any federal, state or local law; and

       

      (b)           all
acts or omissions of Mr. Gardner, whatsoever, occurring before the Effective
Date of this Agreement, except for (i) any acts or omissions that would
constitute a breach of Mr. Gardner’s obligations under this Agreement or the
Employee Confidentiality Agreement, or (ii) any acts of fraud or intentional
misconduct or violations of law.

       

      14.           Section 1542
Waiver.  Mr. Gardner and the Company understand and agree that
this Agreement is a full and final release covering all known and unknown and
unanticipated injuries, debts, claims or damages to him or it that have arisen
or may have arisen from any matters, acts, omissions or dealings released in
Sections 12 and 13 above.  Therefore, as to these matters released
above, Mr. Gardner and the Company hereby expressly waive and relinquish any and
all rights or benefits that he or it may now have, or in the future may have
under the terms of Section 1542 of the California Civil Code and any similar law
of any state or territory of the United States.  Said section provides
as follows:

       

      “A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement with
the debtor.”

       

      Mr.
Gardner and the Company acknowledge that he and it are aware that he or it may
hereafter discover facts in addition to, or different from, those which he or it
now knows or believes to be true, but it is his and its intention hereby, fully
and finally and forever, to settle and to release any and all matters, disputes
and differences, known or unknown, suspected or unsuspected, that do now exist,
may exist or heretofore have existed with respect to those matters described in
Sections 12 and 13.

       

      15.           No
Filings.  Mr. Gardner warrants and represents that he has not
filed any claim, charge, action or complaint concerning any matter referred to
in this Agreement.  Mr. Gardner further agrees neither to file nor to
encourage another to file any claims, charges, actions or complaints for damages
concerning any matter referred to in this Agreement, except as otherwise
provided by law.

       

      
        
          Confidential

           

        

        
          6

          
            

          

        

        
           

          Final

        

      

      16.           Non-Disparagement of the
Company and Parties; No Contact. Mr. Gardner agrees not to engage in any
form of conduct or make any statements or representations that disparage,
criticize or otherwise be critical, or otherwise impair the reputation, goodwill
or commercial interests, of the Company, or its past, present and future
subsidiaries, divisions, affiliates, successors, officers, directors, attorneys,
agents and employees. The Company agrees that neither it nor any of its Senior
Executives shall engage in any form of conduct or make any statements or
representations that disparage, portray in a negative light, or otherwise
impairs the reputation of Mr. Gardner. "Senior
Executives" include Scott Weinbrandt and Kevin Claudio. The Company shall
provide Mr. Gardner with a reasonable opportunity to review in advance any press
release or Form 8-K filing by the Company that refers to Mr.
Gardner.  Mr. Gardner also agrees not to contact any customer,
supplier, vendor, banker, investment banker, investor or shareholder of the
Company for the purposes of discussing the Company, the Senior Executives or any
Company business.

       

      17.           Company Property; Company
Intellectual Property.

       

      (a)           Mr.
Gardner acknowledges and agrees (i) all Company assets (as listed on the
Company’s balance sheet) are owned solely by the Company and Mr. Gardner does
not have any ownership claim in such assets; and (ii) all Company intellectual
property, including, without limitation, all trade secrets, patents, patent
applications, concepts, designs, diagrams, manuals, trademarks, copyrights,
websites, drawings, related to the Company or its business and assets are owned
solely by the Company, and Mr. Gardner does not have any ownership claim in such
assets.

       

      (b)           Whenever
requested by the Company, and at Company’s cost and expense, Mr. Gardner shall
testify in all legal proceedings, sign all lawful papers and otherwise perform
all acts necessary or appropriate to enable the Company and its successors and
assigns to obtain and enforce legal protections for all such Company
intellectual property in all countries.

       

      (c)           The
Company hereby assigns to Mr. Gardner the following Company property: MAC
computer and associated peripherals (keyboard, mouse, hard drives after removal
of Company data, ScanSnap scanner and laptop stand), 2 monitors and cell phone
and headset.  The Company shall not be obligated to maintain Mr.
Gardner’s cell phone service after the effective date (“Employment
Termination Date”), and shall not be obligated to pay any past due
amounts outstanding as of the effective date (“Employment
Termination Date”).

       

      (d)           Mr.
Gardner shall return to the Company on the Employment Termination Date all
Company property in his possession other than as described in subsection (c)
above.  As of the Employment Termination Date, Mr. Gardner’s access to
the Company’s computer system, e-mail server and voice mail shall be
terminated.

       

      
        
          Confidential

           

        

        
          7

          
            

          

        

        
           

          Final

        

      

      18.           Representation; No
Admission.  This settlement was either negotiated for Mr.
Gardner by a legal representative of his own choosing or he, after having had a
reasonable opportunity to obtain a legal representative of his own choosing,
elected to represent himself in such negotiations.  Both the Company
and Mr. Gardner are voluntarily agreeing to this compromise
agreement.  Except as expressly set forth herein, nothing in this
Agreement shall constitute an admission of any liability or
obligation.

       

      19.           Confidentiality.  Mr.
Gardner and the Company agree that he and it will neither disclose nor
voluntarily allow anyone else to disclose either the fact of, the reasons for,
or the provisions of this Agreement without the prior written consent of the
other party, unless required to do so by law, provided, that Mr. Gardner and the
Company nonetheless may disclose this Agreement and its provisions to his or its
attorney, accountants and any taxing authority, and either party may disclose
this Agreement in connection with any legal proceeding relating
thereto.  Mr. Gardner acknowledges that the Company is required to
publicly disclose the resignation of Mr. Gardner and the terms of this
Agreement.

       

      20.           Entire Agreement; Certain
Definitions.  Mr. Gardner and the Company expressly state that
each has read this Agreement and understands all of its terms, that the
preceding paragraphs recite the sole consideration for this Agreement , and that
this Agreement constitutes the entire agreement with respect to any matters
referred to in it.  This Agreement supersedes any and all other
agreements between Mr. Gardner and the Company except for the Employee
Confidentiality Agreement, the Convertible Note, the 9% Convertible Note, the
Warrant Agreement, the Stock Option Plan and the Lock-Up Agreement, each of
which shall remain in full force and effect.  This Agreement may only
be amended in writing signed by Mr. Gardner and the President of the Company,
and it is executed voluntarily and with full knowledge of its
significance.  As used throughout in this Agreement, (i) “Company”
shall include any and all subsidiaries of the Company, and (ii) “Mr. Gardner”
shall include Hyperion Business Services, LLC, BRER VENTURES, LLC, the Fidelis
Charitable Remainder Trust, and all trusts and entities directly or indirectly
owned or controlled by Mr. Gardner (collectively, the “Gardner Owned
Entities”).  Mr. Gardner represents and warrants to the Company
that Hyperion Business Services, LLC and BRER VENTURES, LLC are 100% owned and
controlled by Mr. Gardner and his brother, Brian Scott Gardner.  All
references to “days” in this Agreement shall be calendar days.

       

      21.           Governing
Law.  This Agreement will be interpreted pursuant to the laws
of the State of California.

       

      
        
          Confidential

           

        

        
          8

          
            

          

        

        
           

          Final

        

      

      22.           No
Solicitation.  Mr. Gardner shall not at any time within the one
(1) year period (the “Restricted
Period”) immediately following the Employment Termination Date, directly
or indirectly, in any territory in the United States or any foreign country in
which the Company, or any subsidiary of the Company, (collectively, the "Company
Entities") are doing business, or have actually investigated doing
business, or where their products are sold as of the date hereof: with the
exception of Mr. George Burnett III, attempt to hire any person who is employed
by the Company Entities, assist in the hiring by any other entity or person of
any person who is at the time employed by the Company Entities or encourage any
such employee to terminate his or her relationship with the Company
Entities.

       

      23.           Indemnification.  Nothing
in this Agreement shall be deemed to be a limitation or waiver of the Company’s
rights or obligations to indemnify Mr. Gardner after the Employment Termination
Date under the Bylaws or Certificate of Incorporation of the Company, or
applicable state law.

       

      24.           Severability;
Non-Waiver.  In the event that any of the terms, conditions or
provisions of this Agreement are held to be illegal, unenforceable or invalid by
any court of competent jurisdiction, the remaining terms, conditions or
provisions hereof shall remain in full force and effect.  The failure
or delay of either party to enforce at any time any provision of this Agreement
shall not constitute a waiver of such party’s right thereafter to enforce each
and every provision of this Agreement.

       

      
        25.           Counterparts.  This
Agreement may be executed in any number of counterparts and delivered by
facsimile transmission, all of which taken together shall constitute a single
instrument.

        

        26.           Authority;
Capacity.   Each party to this Agreement hereby represents
and warrants to the other party that (i) the execution, performance and delivery
of this Agreement has been authorized by all necessary corporate action by such
party; (ii) the representative executing this Agreement on behalf of such party
has been granted all necessary corporate power and authority to act on behalf of
such party with respect to the execution, performance and delivery of this
Agreement; and (iii) the representative executing this Agreement on behalf of
such party is of legal age and capacity to enter into agreements which are fully
binding and enforceable against such party.

        

      

      27.           Injunctive
Relief.  Mr. Gardner agrees that any breach of Sections 2, 8,
9, 10, 11 (including the Employee Confidentiality Agreement), 16, 17, 19 or 22
of this Agreement will cause irreparable injury to the Company for which it
would have no adequate remedy at law.  Accordingly, the Company shall
be entitled to immediate injunctive relief prohibiting any breach of those
sections of this Agreement.

      

      
        
          Confidential

           

        

        
          9

          
            

          

        

        
           

          Final

        

      

      28.           Attorneys' Fees and
Costs.  In the event either party shall bring any action to
enforce or protect any of its rights under this Agreement, the prevailing party
shall be entitled to recover, in addition to his or its damages, his or its
reasonable attorneys' fees and costs incurred in connection
therewith.

      

      29.       
     Effective
Date.  This Agreement shall be effective once it is signed by
all Parties (the "Effective
Date").

       

      30.           CIRCULAR 230
DISCLAIMER.  EACH PARTY TO THIS AGREEMENT (FOR PURPOSES OF THIS
SECTION, THE "ACKNOWLEDGING PARTY"; AND EACH PARTY TO THIS AGREEMENT OTHER THAN
THE ACKNOWLEDGING PARTY, AN "OTHER PARTY") ACKNOWLEDGES AND AGREES THAT
(1) NO PROVISION OF THIS AGREEMENT, AND NO WRITTEN COMMUNICATION OR
DISCLOSURE BETWEEN OR AMONG THE PARTIES OR THEIR ATTORNEYS AND OTHER ADVISERS,
IS OR WAS INTENDED TO BE, NOR SHALL ANY SUCH COMMUNICATION OR DISCLOSURE
CONSTITUTE OR BE CONSTRUED OR BE RELIED UPON AS, TAX ADVICE WITHIN THE MEANING
OF UNITED STATES TREASURY DEPARTMENT CIRCULAR 230 (31 CFR PART 10, AS AMENDED);
(2) THE ACKNOWLEDGING PARTY (A) HAS RELIED EXCLUSIVELY UPON HIS OR ITS
OWN, INDEPENDENT LEGAL AND TAX ADVISERS FOR ADVICE (INCLUDING TAX ADVICE) IN
CONNECTION WITH THIS AGREEMENT, (B) HAS NOT ENTERED INTO THIS AGREEMENT
BASED UPON THE RECOMMENDATION OF ANY OTHER PARTY OR ANY ATTORNEY OR ADVISOR TO
ANY OTHER PARTY, AND (C) IS NOT ENTITLED TO RELY UPON ANY COMMUNICATION OR
DISCLOSURE BY ANY ATTORNEY OR ADVISER TO ANY OTHER PARTY TO AVOID ANY TAX
PENALTY THAT MAY BE IMPOSED ON THE ACKNOWLEDGING PARTY; AND (3) NO ATTORNEY
OR ADVISER TO ANY OTHER PARTY HAS IMPOSED ANY LIMITATION THAT PROTECTS THE
CONFIDENTIALITY OF ANY SUCH ATTORNEY'S OR ADVISER'S TAX STRATEGIES (REGARDLESS
OF

       

      
        
          Confidential

           

        

        
          10

          
            

          

        

        
           

          Final

        

      

      

       

      WHETHER
SUCH LIMITATION IS LEGALLY BINDING) UPON DISCLOSURE BY THE ACKNOWLEDGING PARTY
OF THE TAX TREATMENT OR TAX STRUCTURE OF ANY TRANSACTION, INCLUDING ANY
TRANSACTION CONTEMPLATED BY THIS AGREEMENT.

       

      I have
read this Separation Agreement and Release and I accept and agree to the
provisions contained in this Agreement and hereby execute it voluntarily and
with full understanding of its consequences.

       

      

       

      

      

      
        

      

      
        	 
      	
                /s/ Ian
      Gardner                                          
      

                Ian
      Gardner, individually and on behalf of
      all Gardner Owned Entities

                 

                 

                /s/ Brian Scott
      Gardner                              
      

                Brian
      Scott Gardner, as Co-Member of Hyperion Business Services, LLC and BRER
      VENTURES, LLC, solely as this Agreement and Release relates to those
      entities

              
	 	  
	 
      	
                Helix
      Wind, Corp.

                By:  /s/ Scott
      Weinbrandt                               
                                                          

                       Name:
      Scott Weinbrandt

                       Title:
      President

              

      

      

       

       
 

       

      
        
          Confidential

           

        

        
          11

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