Exhibit 10.4
DEMAND PROMISSORY NOTE
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New York, New York
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$100,000.00 |
Dated: February 5, 2010
For value received, Rootzoo, Inc., a Delaware corporation having an address at 136 East
36th Street, Suite 8D, New York, New York 10016 (Borrower) promises to pay to the
order of EClips Energy Technologies, Inc., a Florida corporation having an address at 3900A
31st Street N., St. Petersburg, Florida 33714 (the Lender) or at any other address
Lender hereafter designates to the Borrower, in lawful money of the United States, the sum of up to
ONE HUNDRED THOUSAND AND 00/100 DOLLARS ($100,000.00) (the Principal Sum) and interest on the
unpaid portion of the Principal Sum, as such portions of the Principal Sum shall be given by Lender
to Borrower from time to time from the date hereof, in such manner as mutually determined between
the Lender and Borrower.
The Borrower shall pay to Lender interest on the then outstanding principal amount of this
Note ON DEMAND at a rate of six percent (6%) per annum.
Any payment pursuant to this Note shall be applied first to interest that has become due
pursuant to this Note and remains unpaid and then to the outstanding Principal Sum of this Note.
The Borrower shall have the option of paying the Principal Sum to Lender in advance in full or
in part at any time and from time to time without premium or penalty; provided, however, that
together with such payment in full the Borrower shall pay to Lender all interest and all other
amounts owing pursuant to this Note and remaining unpaid.
Upon and at any time and from time to time after the occurrence or existence of an Event of
Default, all amounts owing pursuant to this Note shall, at the sole option of Lender and without
any notice, demand, presentment or protest of any kind (each of which is waived by Borrower),
become immediately due. An Event of Default occurs or exists if Borrower (i) shall default in
the payment of the Principal Sum or interest payable on this Note, when and as the same shall
become due and payable, whether at maturity or by acceleration or otherwise and such default shall
continue unremedied for five (5) business days or (ii) has any receiver, trustee, liquidator,
sequestrator or custodian of Borrower or any of Borrowers assets appointed (whether with or
without Borrowers consent), makes any assignment for the benefit of creditors or commences or has
commenced against Borrower any case or other proceeding pursuant to any bankruptcy or insolvency
statute, regulation or other law of the United States of America or of any state or territory
thereof or of any foreign jurisdiction or any other statute, regulation or other law relating to
the relief of debtors, to the readjustment, composition or extension of indebtedness, to
liquidation or to reorganization or any formal or informal proceeding for the dissolution,
liquidation or winding up of the affairs of, or the settlement of claims against Borrower.
In no event shall interest pursuant to this Note be payable at a rate in excess of the maximum
rate permitted by applicable law and solely to the extent necessary to result in such
interest not being payable at a rate in excess of such maximum rate, any amount that would be
treated as part of such interest under a final judicial interpretation of applicable law shall be
deemed to have been a mistake and automatically canceled, and, if received by Lender, shall be
refunded to the Borrower, it being the intention of Lender and of the Borrower that such interest
not be payable at a rate in excess of such maximum rate.
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE
INTERNAL LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. THE
BORROWER HEREBY IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE COURTS LOCATED IN NEW YORK
CITY, IN THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.
BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT BORROWER MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY LITIGATION, WHETHER BASED ON ANY CONTRACT OR NEGLIGENT,
INTENTIONAL OR OTHER TORT OR OTHERWISE, IN CONNECTION WITH (1) THIS NOTE OR (2) ANY ACTION
HERETOFORE OR HEREAFTER TAKEN OR NOT TAKEN, ANY COURSE OF CONDUCT HERETOFORE OR HEREAFTER PURSUED,
ACCEPTED OR ACQUIESCED IN, OR ANY ORAL OR WRITTEN AGREEMENT OR REPRESENTATION HERETOFORE OR
HEREAFTER MADE, BY OR ON BEHALF OF LENDER IN CONNECTION WITH THIS NOTE.
This Note shall be binding upon the successors, endorsees or assigns of the Borrower and
inure to the benefit of the Lender, its successors, endorsees and assigns. The Borrower may not
delegate any of its obligations, or assign any of its rights, under this Note without the prior
written consent of the Lender.
This Note shall not be extended or modified orally.
If any term or provision of this Note shall be held invalid, illegal or unenforceable, the
validity of all other terms and provisions hereof shall in no way be affected thereby.
All rights and remedies available to the Lender pursuant to the provisions of applicable law
and otherwise are cumulative, not exclusive and enforceable alternatively, successively and/or
concurrently after default by Borrower pursuant to the provisions of this Note.
No delay or failure on the part of the Lender in exercising any right, privilege or option
hereunder shall operate as a waiver thereof or of any event of default, nor shall any single or
partial exercise of any such right, privilege or option preclude any further exercise thereof, or
the exercise of any other right, privilege or option.
In the event the Borrower experiences a Change in Control (as defined below), the unpaid
principal amount under this Note, and all interest accrued but unpaid thereon, shall be immediately
due and payable. A Change in Control means any of the following: (i) the Borrower sells, leases,
transfers or otherwise disposes of all or substantially all of its assets; or (ii) the Borrower
merges or consolidates with or into any other Person, or any other Person merges or
consolidates with or into the Borrower, in each case unless the Lenders of a majority of the
outstanding voting equity interests of the Borrower immediately prior to such merger or
consolidation continue to hold a majority of the outstanding voting equity interests of the
resulting or surviving entity.
As an inducement for the Lender to extend the loans as evidenced by this Note and to secure
the complete and timely payment, performance and discharge in full, as the case may be, of all of
the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several)
due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of
the Borrower to the Lender, Borrower hereby unconditionally and irrevocably pledges, grants and
hypothecates to the Lender a security interest in and to, a lien upon and a right of set-off
against all of their respective right, title and interest of whatsoever kind and nature in and to,
all of the assets of the Borrower pursuant to the terms of that certain security agreement, dated
on even date herewith, by and between the Lender and Borrower.
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ROOTZOO INC.
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By: |
/s/ Jesse Boskoff
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Name: |
Jesse Boskoff |
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Title: |
Founder |
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