0001445866-12-000246.txt : 20120416 0001445866-12-000246.hdr.sgml : 20120416 20120416172615 ACCESSION NUMBER: 0001445866-12-000246 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20111231 FILED AS OF DATE: 20120416 DATE AS OF CHANGE: 20120416 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Green Endeavors, Inc. CENTRAL INDEX KEY: 0001487997 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 273270121 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-54018 FILM NUMBER: 12762071 BUSINESS ADDRESS: STREET 1: 59 WEST 100 SOUTH STREET 2: SECOND FLOOR CITY: SALT LAKE CITY STATE: UT ZIP: 84101 BUSINESS PHONE: 801-575-8073 MAIL ADDRESS: STREET 1: 59 WEST 100 SOUTH STREET 2: SECOND FLOOR CITY: SALT LAKE CITY STATE: UT ZIP: 84101 FORMER COMPANY: FORMER CONFORMED NAME: Green Endeavors, Ltd. DATE OF NAME CHANGE: 20100325 10-K 1 form-10k.htm 10-K form-10k.htm
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
 
 
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the year ended December 31, 2011
 
 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to_________.
Commission file number 000-54018
GREEN ENDEAVORS, INC.
(Exact name of registrant as specified in its charter)
 
 
Utah
27-3270121
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
59 West 100 South, 2nd Floor, Salt Lake City, Utah 84101
(Address of Principal Executive Offices) (Zip Code)
(801) 575-8073
(Registrant's Telephone Number, including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
 
 
Title of Each Class
Names of Each Exchange on which Registered
$0.001 Common Stock
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o      No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o      No x
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x      No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (check one):
 
 
 
 
Large accelerated filer o
Accelerated filer o
Non-accelerated filer o
Smaller reporting company x
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o      No x
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the registrant's most recently completed second quarter ended June 30, 2011 was $543,048.
On April 5, 2012, approximately 862,355,708 shares of the Registrant's Common Stock, $0.001 par value, were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
None

 
 
 
Green Endeavors, Inc.
Annual Report on Form 10-K
For the Year Ended December 31, 2011
Table of Contents
 
 
 
 
 
 
 
Page
 
 
 
 
 
 
 
 
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43
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PART I.
Item 1. Business
          This Annual Report on Form 10-K and the documents incorporated by reference in this Annual Report on Form 10-K contain forward-looking statements. Certain of such statements, including, but not limited to, statements regarding the extent and timing of future revenues and expenses and customer demand, statements regarding our reliance on third parties and other statements using words such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "should," "will" and "would," and words of similar import and the negatives thereof, constitute forward-looking statements. These statements are predictions based upon our current expectations about future events. Actual results could vary materially as a result of certain factors, including but not limited to, those expressed in these statements. We refer you to the "Competition," "Risk Factors," "Results of Operations," and "Liquidity and Capital Resources" sections contained in this Annual Report on Form 10-K and the risks discussed in our other Securities Exchange Commission, or SEC, filings, which identify important risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.
          We urge you to consider these factors carefully in evaluating the forward-looking statements contained in this Annual Report on Form 10-K. All subsequent written or spoken forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this Annual Report on Form 10-K are made only as of the date of this Annual Report on Form 10-K. We do not intend, and undertake no obligation, to update these forward-looking statements.
Overview
          Green Endeavors, Inc. ("Green") is a Utah corporation originally formed on April 25, 2002. Our fiscal year ends on December 31. We have never filed bankruptcy nor been through any similar financial reorganization.
          We run two high-quality hair care salons that feature Aveda(TM) products for retail sale. Landis Salons, Inc. ("Landis I") operates its business within a 4,000 square foot space located in the Liberty Heights District of Salt Lake City, Utah as an Aveda Lifestyle Salon. Landis Salons II, Inc. ("Landis II") operates within a 3,024 square foot space located in the Marmalade District of Salt Lake City, Utah under the Landis Lifestyle Salon brand as an Aveda Lifestyle Salon. Aveda Lifestyle Salons can be distinguished from Aveda Concept Salons in that Aveda Lifestyle Salons are required to carry all of Aveda's products and must meet a higher threshold for product sales than Aveda(TM) Concept Salons. An Aveda(TM) Lifestyle Salon is the highest level within the Aveda hierarchy of salons which is classified by higher purchasing volume, location, array of products carried and size of retail space.
          The salon operations consist of three major components, an Aveda(TM) retail store, an advanced hair salon, and a training academy, which educates and prepares future staff about the culture, services, and products provided by the salon. The design of the salons is intended to look modern and feel comfortable, appealing to both genders and all age groups.
          Additional information on Landis can be found on its website at www.landissalon.com.
Products and Services
          The salons offer high quality hair care and other salon services such as makeup, skin care and nail care. The salons incorporate the use of the Aveda line of products in all the services performed and exclusively offer Aveda retail product for sale. The Aveda brand, owned by Estee Lauder Companies, Inc., manufactures professional plant-based hair care, skin care, makeup, Pure-Fume(TM), and other lifestyle products. The products used during services and which are available for purchase, include the following for both men and women:
3

 

 
 
 
 
 
Hair care - hair color and styling products, shampoos, conditioners and finishing sprays.
 
 
 
 
Makeup - lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes-remove nail polishes and powders.
 
 
 
 
Skincare - moisturizers, creams, lotions, cleansers and sunscreens.
 
 
 
 
Fragrance - oils, candles, and a variety of fragrance products used on hair, the body, and in the home.
          These products are sold directly to a broad consumer base for personal use. Therefore, we do not rely on any single customer for product sales.
Marketing and Sales
          The target market for the salons are 70% female and 30% male, seeking customers with high expectations at a reasonable cost. The average customer in Salt Lake City is expected to visit the salon 6-8 times per year and will spend an average of $66 on services and purchase about $12 of Aveda products per visit.
          The Liberty Heights location was selected for its central location, high income demographics within easy driving distance, and the trendy nature of the area. The Marmalade location was chosen because of the high traffic count, high visibility, easy access from an I-15 freeway exit, trendy up and coming neighborhood, high income demographics within a 1 mile area east of the salon, ample parking, proximity to the new City Creek Shopping mall and the modern building that houses our facility. The primary marketing efforts of the salons continue to be word of mouth, supplemented by targeted advertising campaigns and referrals from existing customers. Our marketing campaigns are heavily focused on organically ranking under certain search terms online, and online sites such as Yelp and CitySearch, coupled with other social media sites.
          Another form of marketing is done through community and charitable involvement. Our salons pride themselves in giving back to the community by sponsoring as many charitable events as possible which align with our values revolving around women's issues, high fashion, environmental conservation and other community based programs.
Competition
          The Company's primary competition comes from other high end salons offering above-and-beyond customer service in the Salt Lake City market. The closest competitors offering a similar level of service that are within our area include: Lunatic Fringe, Salon Zazou, and Salon Keiji. Low cost salons with large scale hair cutting operations, such as Great Clips, Supercuts, and Fantastic Sams also compete for clients, and may be competing directly with our stylists that are training to become senior stylists. The price point of our entry level hair and color services in most cases is only slightly higher than some of the above mentioned discount hair cutting operations. However, they do not offer comparable extra services and products which is our competitive point of difference.
Employees
          As of December 31, 2011, Landis employed 73 individuals, with approximately 70 providing salon and support services and 3 in management, administration and finance. None of our employees are represented by labor unions and we have experienced no work stoppages. We believe that our employee relations are good.
ITEM 1A. RISK FACTORS
          Our business faces many risks. Described below are what we believe to be the material risks that we face. If any of the events or circumstances described in the following risks actually occurs, our business, financial condition or results of operations could suffer.
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Our ability to continue as a going concern is in doubt absent obtaining adequate new debt or equity financing and achieving sufficient sales levels.
          We have limited capital. Because we do not have sufficient working capital for continued operations for at least the next 12 months our continued existence is dependent upon us sustaining operating profitability or obtaining the necessary capital to meet our expenditures. Our operating capital requirements, in excess of what is generated from operations, for the next 12 months are approximately $500,000. This primarily consists of the costs associated with our financial statement reporting obligations and costs associated with future expansion plans in 2012. We have signed a 7 year lease for an Aveda Experience Center which is a shop that sells retail Aveda products only. The cost associated with construction, stocking the store and negative cash flow is expected to be $250,000 for 2012. At this time, we are still in the process of identifying additional salon locations within the Salt Lake valley. The funding for our operations will primarily come from private investors purchasing our Preferred stock as well as obtaining traditional lines of credit and loans to finance equipment, furniture, leasehold improvements and operations. We cannot assure you that we will be able to generate sufficient sales or raise adequate capital to meet our future working capital needs.
The voting control held by Nexia Holdings Inc. creates an anti-takeover or change of control limitation. Nexia currently holds voting control of the Company through its ownership of Supervoting preferred stock.
          The 5,850,000 shares of Supervoting Preferred Stock (100 votes for each share) held by Nexia combined with the 250,000,000 shares of common stock provide Nexia with voting control over any proposal requiring a vote of the shareholders. Through its ownership of the preferred voting shares and common stock it holds voting rights equal to 835,000,000 shares of common stock. This effectively gives Nexia a veto over any attempt to take over or change control of the Company. Such an event would include a vote by the board of directors to conduct a reverse or forward split of the common stock. The shares held by Nexia thus have a strong anti-takeover effect. The interests of Nexia may not always conform to the interests of the common stockholders, in general, and thus its voting rights may not always be exercised in the best interests of the common stockholders of the Company.
Our business and our industry are affected by cyclical factors in the State of Utah, including the risk of a prolonged recession.
          Our financial results are substantially dependent upon overall economic conditions in the State of Utah. General economic factors that are beyond our control, such as interest rates, recession, inflation, deflation, tax rates and policy, energy costs, unemployment trends, and other matters that influence consumer confidence and spending, may impact our business. In particular, visitation patterns to our salons can be adversely impacted by increases in unemployment rates and decreases in discretionary income levels.
          A prolonged or a deepening recession in the United States, specifically in Utah, could substantially decrease the demand for our products and services below current levels and adversely affect our business. Our industry has historically been vulnerable to significant declines in consumption and product and service pricing during prolonged periods of economic downturn such as at present.
          Recessions and other periods of economic dislocation typically result in a lower level of discretionary income for consumers. To the extent discretionary income declines, consumers may be more likely to reduce discretionary spending. This could result in our salon customers foregoing salon treatments or using home treatments as a substitute.
          We believe that the economic downturn slightly affected our financial results for the fiscal year ended December 31, 2011, with some increase in sales from the previous year. However, we continue to have sales in the first months of 2012 increase from the comparable months of 2011. If economic conditions result in negative sales in future periods and we are unable to offset the impact with operational savings, our financial results may be further affected.
If we cannot improve same-store sales our business and results of operations may be affected.
          Our success depends, in part, upon our ability to improve sales, as well as both gross margins and operating margins. A variety of factors affect comparable sales, including fashion trends, competition, current economic conditions, changes in our product assortment, the success of marketing programs and weather conditions. These factors may cause our comparable store sales results to differ materially from prior periods and from our expectations. If we are unable to improve our comparable sales on a long-term basis or offset the impact with operational savings, our financial results may be affected.
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Changes in our key relationships may adversely affect our operating results.
          We maintain key relationships with certain companies, including Aveda(tm). Termination or modification of any of these relationships could significantly reduce our revenues and have a material and adverse impact on our business, our operating results and our ability to expand.
Changes in fashion trends may impact our revenue.
          Changes in consumer tastes and fashion trends can have an impact on our financial performance. For example, trends in wearing longer hair may reduce the number of visits to, and therefore, sales at our salons.
We are dependent on key personnel, specifically Richard Surber, our President, CEO, and CFO.
          We are dependent on the services of Richard Surber, our President, CEO, CFO, and a director. The Company does not have an employment agreement with Mr. Surber, and losing his services would likely have an adverse effect on our ability to conduct business.
The salon operations are dependent on key personnel.
          The operations of the two salons are dependent on the day to day management of current staff at those locations who work in the salons and train their personnel. Losing the services of these long term employees would likely have an adverse effect on the operations and business development of the salons.
Our success depends on our ability to attract and retain trained stylists in order to support our existing salon business and to staff future expansion.
          The salons are actively recruiting qualified candidates to fill stylist positions. There is substantial competition for experienced personnel in this area, which we expect to continue. We will compete for experienced candidates with companies who have substantially greater financial resources than we do. If we fail to attract, motivate and retain qualified stylists, it could harm our business and limit our ability to be successful and hamper expansion plans. For example, we will depend upon the expertise and training abilities of our current staff and management at the salons. Since we do not maintain insurance policies on any of our employees, if we lose the services of any key officers or employees it could harm our business and results of operations.
Changes in regulatory and statutory laws may result in increased costs to our business.
          Our financial results can be adversely impacted by regulatory or statutory changes in laws. Due to the number of people we employ, laws that increase costs to provide employee benefits may result in additional costs to our business. Compliance with new, complex and changing laws may cause our expenses to increase. In addition, any non-compliance with these laws could result in fines, product recalls and enforcement actions or otherwise restrict our ability to market certain products, which could adversely affect our business, financial condition and results of operations.
If we are not able to successfully compete in our business segments, our financial results may be affected.
          Competition on a market by market basis remains strong. Therefore, our ability to raise prices in certain markets can be adversely impacted by this competition. If we are not able to raise prices, our ability to grow same-store sales and increase our revenue and earnings may be impaired.
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We face significant competition in the salon business, which could harm our sales and profitability.
          The primary competition to our operations comes from salons offering excellent customer service in the Salt Lake Area market. We have identified our main competitors as Lunatic Fringe, Salon Zazou and Salon Keiji. We are also in competition with large scale hair cutting operations such as Great Clips, Supercuts, and Fantastic Sams, though these operations do not compete in offering the high-end services and products of our salons.
The loss of the Aveda(tm) line of products would damage the operation of our salons and have a significant and negative impact on our ability to operate and generate revenues.
          Our salons offer the Aveda(tm) line of products, which are used exclusively in the services provided to customers of the salon and offered for retail sale at the salon location. Loss of the Aveda(tm) product line would have a significant and negative impact on the operation of the salons and their ability to generate revenues from either retail sales of health and beauty products or from providing services to consumers at the salon. We believe that the high quality and reputation of this line of products is key to our current operations and future success.
Changes in manufacturers' choice of distribution channels may negatively affect our revenues.
          The retail products that we sell are licensed to be carried exclusively by professional salons. The products we purchase for sale in our salons are purchased pursuant to purchase orders, as opposed to long-term contracts, and generally can be terminated by the producer without much advance notice. Should the various product manufacturers decide to utilize other distribution channels, such as large discount retailers, it could negatively impact the revenue earned from product sales.
If we fail to protect the security of personal information about our customers, we could be subject to costly government enforcement actions or private litigation and our reputation could suffer.
          The nature of our business involves processing, transmission and storage of personal information about our customers. If we experience a data security breach, we could be exposed to government enforcement actions and private litigation. In addition, our customers could lose confidence in our ability to protect their personal information, which could cause them to stop visiting our salons altogether. Such events could lead to lost future sales and adversely affect our results of operations.
Our stock price may be volatile.
          The market price of our common stock is highly volatile and fluctuates widely in price in response to various factors, many of which are beyond our control, including the following:
 
 
 
 
significant dilution;
 
 
 
 
our services or our competitors;
 
 
 
 
additions or departures of key personnel;
 
 
 
 
our ability to execute our business plan;
 
 
 
 
operating results that fall below expectations;
 
 
 
 
loss of any strategic relationship;
 
 
 
 
economic and other external factors; and,
 
 
 
 
period-to-period fluctuations in our financial results.
          In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock.
Investors bear a risk that a liquid market may never develop and as a result, you may not be able to buy or sell our securities at the times you may wish and market liquidity may be limited.
          Even though our securities are quoted on the "Pink Sheets," that may not permit our investors to sell securities when and in the manner that they wish. There is not currently a significant volume of shares trading in the Company's common stock and there may never be sufficient volume to create a liquid market such as to allow all shareholders to sell or buy shares whenever they desire. A liquid market for the sale of shares of the Companies securities may never develop.
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Our common stock is currently deemed to be "penny stock", which makes it more difficult for investors to sell their shares.
          Our common stock is and will be subject to the "penny stock" rules adopted under section 15(g) of the Exchange Act. The penny stock rules apply to companies whose common stock is not listed on the NASDAQ Stock Market or other national securities exchange and trades at less than $5.00 per share or that have tangible net worth of less than $5,000,000 ($2,000,000 if the company has been operating for three or more years). These rules require, among other things, that brokers who trade penny stock to persons other than "established customers" complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided not to trade penny stocks because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. If we remain subject to the penny stock rules for any significant period, it could have an adverse effect on the market, if any, for our securities. If our securities are subject to the penny stock rules, investors will find it more difficult to dispose of our securities.
Item 1B. Unresolved Staff Comments
          None.
Item 2. Properties
          We lease two facilities for our salon operations in Salt Lake City Utah. We believe that these facilities are adequate for our current needs and that suitable additional or substitute space will be available as needed to accommodate any expansion of our operations.
          Our Liberty Heights facility is located at 1298 South 900 East, Salt Lake City, Utah 84105. This lease is for a 4,000 square foot free standing commercial building with a preliminary term of ten years beginning on October 1, 2005 and the lease provides for one five year extended term.
          Our Landis II facility is located at 600 North 300 West, Salt Lake City, Utah 84103. This lease is for a 3,000 square foot commercial building with a term of ten years beginning on September 15, 2010 and the lease provides for two, five year extended terms.
          Subsequent Event. On March 10, 2012, we signed a lease through a newly formed subsidiary, Landis Experience Center, LLC to operate an Aveda(tm) experience center in the newly opened City Creek Mall located in downtown Salt Lake City, Utah. This 430 square foot store will focus on the sale of products only, no salon services will be provided. The lease is for a period of seven years beginning when the store opens in a few months.
Item 3. Legal Proceedings
          From time to time, we are involved in various disputes and litigation that arise in the ordinary course of business. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, we accrue a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation matters and may revise estimates.
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While the outcome of disputes and litigation matters cannot be predicted with any certainty, management does not believe that the outcome of any current matters will have a material adverse effect on our consolidated financial position, liquidity or results of operations.
At the current time there are no material pending legal proceedings to which Green or its subsidiaries are parties.
Item 4. Submission of Matters to a Vote of Security Holders
          None.
PART II.
Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
          Our common stock is traded on the Pink Sheets under the symbol GRNE. We have never declared or paid any cash dividends on our common stock in the past, and we do not plan to pay cash dividends in the foreseeable future. Currently, there are no securities authorized for issuance and no compensation plans in place. All share and per share information included in this Annual Report on Form 10-K has been adjusted to reflect our August 2010 five for one forward stock split.
          As of February 29, 2012, we had approximately 3,500 registered stockholders and approximately four beneficial owners of our common stock.
          The following table sets forth the high and low sales prices of our common stock for each quarter in the two-year period ended December 31, 2011:
 
 
 
 
 
 
 
 
 
 
High
 
Low
 
2010
 
 
 
 
 
 
 
First Quarter
 
$
0.0180
 
$
0.0010
 
Second Quarter
 
 
0.0134
 
 
0.0050
 
Third Quarter
 
 
0.0002
 
 
0.0042
 
Fourth Quarter
 
 
0.0200
 
 
0.0044
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
First Quarter
 
$
0.0065
 
$
0.0032
 
Second Quarter
 
 
0.0100
 
 
0.0021
 
Third Quarter
 
 
0.0062
 
 
0.0012
 
Fourth Quarter
 
 
0.0035
 
 
0.0001
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
First Quarter
 
$
0.0012
 
$
0.0001
 
Unregistered Sales of Equity Securities
          On March 10, 2011, Green issued 14,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.74 per share which was mutually agreed upon by the Board of Directors and the individual investor. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
          On March 16, 2011, Green issued 16,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
          On April 5, 2011, Green issued an 8% Convertible Promissory Note in the principal face amount of $75,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of January 9, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
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          On April 26, 2011, Green issued 10,000 Series B Preferred shares to an investor for $15,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
          On June 14, 2011, Green issued an 8% Convertible Promissory Note in the principal face amount of $32,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of March 16, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On July 19, 2011, Green issued an 8% Convertible Promissory Note in the principal face amount of $25,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of April 25, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On December 7, 2011, Green issued an 8% Convertible Promissory Note in the principal face amount of $22,500 to Asher Enterprises Inc. in exchange for a cash payment of the same amount. The note has a due date of September 12, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 56% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) trading day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          SUBSEQUENT EVENTS
          On January 11, 2012, the Board of Directors approved the conversion of $4,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 21,052,632 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On January 13, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 26,315,789 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On January 24, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 27,272,727 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On February 2, 2012, Green issued an 8% Convertible Promissory Note in the principal face amount of $42,500 to Asher Enterprises Inc. in exchange for a cash payment of the same amount. The note has a due date of November 6, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) trading day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On February 17, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 29,666,667 shares of Common Stock. The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.
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          On February 23, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 28,666,667 shares of Common Stock. The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.
          On February 27, 2012, Green and Landis Experience Center LLC issued an 11% Convertible Note in the principal face amount of $50,000 to William and Nina Wolfson in exchange for a cash payment of the same amount. The note has a due date of February 27, 2016. The note provides for monthly payments in the amount of $1,292.28 of principal and interest. The note provides for potential conversion of Green's common stock with the conversion price set at 50% of the bid price on the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On March 2, 2012, the Board of Directors approved the conversion of $6,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 31,578,947 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On March 14, 2012, the Board of Directors approved the conversion of $7,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 30,434,783 shares of Common Stock. The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.
          On March 16, 2012, the Board of Directors approved the conversion of 3,888 Series B Preferred shares into 38,880,000 shares of Common Stock for an investor. The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.
          On March 29, 2012 the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares. This action was taken after notice to the shareholders and having consent from a majority of the voting rights.
          All other unregistered sales of equity securities that have occurred during the years December 31, 2011 and 2010 have previously been reported in our Form 10, Quarterly Report on Form 10-Q or in a Current Report on Form 8-K.
Item 6. Selected Financial Data
          Item 301(c) of Regulation S-K states that Smaller reporting companies, as defined by section 229.10(f)(1) of Regulation S-K, are not required to provide this information.
11

 

 
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
          This annual report, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf of the Company contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to competition within the personal hair care industry, price sensitivity; changes in economic conditions and in particular, continued weakness in the U.S. economies; changes in consumer tastes and fashion trends; the ability of the Company to maintain compliance with financial covenants in its credit agreements; labor and benefit costs; legal claims; the continued ability of the Company to obtain suitable locations and financing for new salon development and to maintain satisfactory relationships with landlords with respect to existing locations; governmental initiatives such as minimum wage rates, taxes; the ability of the Company to maintain satisfactory relationships with suppliers; or other factors not listed above. The ability of the Company to meet its expected revenue growth is dependent on salon acquisitions, new salon construction and same-store sales increases, all of which are affected by many of the aforementioned risks. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of this Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC.
          The forward-looking statements included in this Annual Report on Form 10-K are made only as of the date of this Annual Report on Form 10-K. We do not intend, and undertake no obligation, to update these forward-looking statements.
Results of Operations
          Through our two wholly-owned subsidiaries, Landis Salons, Inc. and Landis Salons II, Inc., we operate two full-service hair and retail salons featuring the Aveda(TM) line of products. In August 2010, we determined that Newby Salons, LLC, which operated our Bountiful salon, did not meet our operational performance or real estate requirements and was closed. Revenue and expenses from the Bountiful salon are included in the following analysis of our operations until December 1, 2010 when Newby Salons, LLC was sold. The following discussion examines our results of operations and financial condition based on our consolidated financial statements for the years ended December 31, 2011 and 2010.
Revenue
          We generate revenue through the sale of services and products in the hair salon industry. For the years ended December 31, 2011 and 2010, we had net sales of $2,814,026 and $2,250,998, respectively. Our net sales increased $563,028 or 25.0% for the year ended December 31, 2011 as compared to an increase of $206,647 or 10.1% for the year ended December 31, 2010. These increases in revenue were driven by the following factors:
 
 
 
 
 
 
Percentage Increase (Decrease) in Revenues For the Years Ended
 
Factor
 
December 31, 2011
 
December 31, 2010
 
Same-store
 
 
25.0
%
 
6.2
%
New salon construction
 
 
0.0
%
 
7.6
%
Closed salon
 
 
0.0
%
 
(3.7
)%
Total
 
 
25.0
%
 
10.1
%
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          The following table shows the same-store change in service revenue for the years ended December 31, 2011 and 2010:
 
 
Years Ended
 
Increase (Decrease)
Over Prior Calendar Year
 
Salon
 
December 31, 2011
 
December 31, 2010
 
Dollar
 
Percentage
 
Liberty Heights
 
$
1,572,863
 
$
1,496,401
 
$
76,463
 
 
5
%
Marmalade
 
 
557,321
 
 
110,451
 
 
446,870
 
 
405
%
Bountiful
 
 
-
 
 
61,572
 
 
(61,572
)
 
(100
)%
Total Service Revenue
 
$
2,130,184
 
$
1,668,424
 
$
461,761
 
 
28
%
          The following table shows the same-store change in product revenue for the years ended December 31, 2011 and 2010:
 
 
 
 
 
 
 
 
Years Ended
 
Increase (Decrease)
Over Prior Fiscal Year
 
Salon
 
December 31, 2011
 
December 31, 2010
 
Dollar
 
Percentage
 
Liberty Heights
 
$
495,352
 
$
510,910
 
$
(15,558
 
 
(3%
)
Marmalade
 
 
188,490
 
 
44,707
 
 
143,783
 
 
322
%
Bountiful
 
 
-
 
 
26,957
 
 
(26,957
)
 
(100
)%
Total Product Revenue
 
$
683,842
 
$
582,574
 
$
101,066
 
 
17
%
Cost of Revenue
          The following table shows cost of revenue as a percentage of related revenue for the years ended December 31, 2011 and 2010:
 
 
 
 
 
 
Years Ended
 
 
 
December 31,
 
December 31,
 
Revenue Type
 
2011
 
2010
 
Services
 
 
55.7
%
 
59.6
%
Product
 
 
62.6
%
 
53.3
%
Operating Expenses
          We had a net loss of $264,379 for the year ended December 31, 2011 as compared to net income of $13,939 for the year ended December 31, 2010. The single largest item that accounts for this $278,318 change from net income in 2010 to net loss in 2011 was the $320,770 gain from the sale of Green's Newby salon subsidiary in Bountiful during 2010. The amount is recorded in the other income and expense section of the consolidated statements of operations as it is not considered part of normal salon operations. The increased general and administrative expenses are explained below in more detail.
          General and administrative
          The following table shows General and administrative expense for the years ended December 31, 2011 and 2010:
 
 
Years Ended
 
 
 
December 31,
2011
 
December 31,
2010
 
Change
 
Salaries and wages
 
$
346,730
 
$
300,919
 
$
45,811
 
Rent
 
 
154,615
 
 
115,214
 
 
39,401
 
Advertising
 
 
102,176
 
 
106,207
 
 
(4,031
)
Credit card merchant fees
 
 
39,170
 
 
52,546
 
 
(13,376
)
Insurance
 
 
44,576
 
 
44,369
 
 
207
 
Utilities and telephone
 
 
43,676
 
 
35,596
 
 
8,080
 
Professional services
 
 
186,571
 
 
143,448
 
 
43,123
 
Repairs and maintenance
 
 
18,508
 
 
22,593
 
 
(4,085
)
Dues and subscriptions
 
 
19,226
 
 
18,330
 
 
896
 
Office expense
 
 
58,121
 
 
69,947
 
 
(11,826
)
Travel
 
 
16,473
 
 
11,681
 
 
4,793
 
Other
 
 
20,714
 
 
39,101
 
 
(18,387
)
Total General and administrative expenses
 
$
1,050,556
 
$
959,951
 
$
90,605
 
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          The increase in general and administrative expenses over the comparable annual period is primarily due to increases in salaries and wages, rent, professional services, and office expense. These 2011 increases over 2010 were primarily related to the opening and full year of operations for the Landis II salon.
          Depreciation expense for the year ended December 31, 2011 increased to $93,983 from $77,042 for the year ended December 31, 2010. The increase is primarily due to having a full year of depreciation for new assets placed into service toward the end of 2010 due to the opening of the Landis II salon in 2010.
Other Income (Expenses), net
 
 
 
 
 
 
Years Ended
 
 
 
December 31,
2011
 
December 31,
2010
 
Interest expense
 
$
(321,745
)
$
(253,514
)
Interest income
 
 
834
 
 
 
 
Gain on sale of subsidiary
 
 
-
 
 
320,770
 
Other income, net
 
 
1,560
 
 
38,083
 
Total Other income (expenses), net
 
$
(319,351
)
$
105,339
 
          Other income (expenses), net, went from $105,339 for the year ended December 31, 2010 to $(319,351) for the year ended December 31, 2011 for a change of $(424,690) or (403)%. This change is primarily due to a gain on sale of subsidiary in 2010 as can be seen in the table above.
Liquidity and Capital Resources
          Cash and Investments in marketable securities
          As of December 31, 2011, our principal source of liquidity consisted of $97,983 of cash, as compared to $67,593 as of December 31, 2010. Our primary sources of cash during the year ended December 31, 2011 were customer payments for salon services and products and cash proceeds from the sale of our Preferred Series B shares and from the issuance of convertible notes payable. Our primary uses of cash in the year ended December 31, 2011 were payments relating to salaries, benefits, rent, and other general operating expenses.
          Working Capital As of December 31, 2011 and December 31, 2010
          We had a working capital deficit of $4,229,734 as of December 31, 2011. Our current assets were $213,840, which consisted of $97,983 in cash, $109,470 in inventory, $6,244 in prepaid expenses and $143 in accounts receivable. Our total assets were $1,036,562, which included $420,089 in property and equipment (net), and $402,631 in other assets. Our current liabilities were $4,443,574, including $293,794 in accounts payable and accrued expenses, $838,274 due to related parties, and $310,523 in the current portion of notes payable, and a $2,943,160 derivative liability. Our long-term liabilities were $2,949,483. Our total stockholders' deficit at December 31, 2011, was $6,356,495.
          Working capital decreased by $2,942,861 as of December 31, 2011, as compared to December 31, 2010 primarily due to the addition of the 2011 current derivative liability of $2,943,160. This addition is most of the overall change in working capital from 2010 to 2011.
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          Cash Flows from Operating Activities
          Cash flows from operating activities include net income (loss), adjusted for certain non-cash charges, as well as changes in the balances of certain assets and liabilities. Our net cash used in operating activities decreased by $304,918 as of December 31, 2011, as compared to December 31, 2010 primarily due to the overall $278,318 change from having net income in 2010 to having a net loss in 2011. Most of the net loss, as discussed earlier, was due to the $320,770 gain on sale of a subsidiary.
          Cash Flows from Investing Activities
          Net cash used in investing activities decreased by $284,299 during the year ended December 31, 2011, as compared to the year ended December 31, 2010 primarily due to decreased purchases of property, plant, and equipment by $259,214.
          As resources are available, we expect to continue our investing activities, including purchasing property, plant and equipment and making short and long-term equity investments.
          Cash Flows from Financing Activities
Net cash provided by financing activities decreased by $592,764 during the year ended December 31, 2011, as compared to the year ended December 31, 2010. This is primarily due to a decrease of proceeds from the sale of preferred stock by $546,000. Other less significant financing activities net to a decrease of $46,764 in cash provided.
Other Factors Affecting Liquidity and Capital Resources
          8% Series A Senior Subordinated Convertible Redeemable Debentures
          On April 30, 2008, we entered into a stock transfer agreement with our parent company Nexia and Nexia's wholly-owned subsidiary DHI whereby they would each sell their holdings in Landis and Newby in exchange for an 8% Series A Senior Subordinated Convertible Debenture with a face amount of $3,000,000. Interest on the debenture commenced on December 30, 2008. DHI has the option, at any time, to convert all or any amount over $10,000 of principal face amount and accrued interest into shares of Common stock, $0.001 par value per share, at a conversion price equal to 95% of the average closing bid price of the common stock three days prior to the date we receive notice. In February of 2011, DHI transferred the Debenture to Nexia in exchange for the release of debt obligations owed to Nexia by DHI and Nexia is the current holder of the Debenture.
          Impact of Inflation
          We compensate some of our salon employees with percentage commissions based on sales they generate. Accordingly, this provides us certain protection against inflationary increases, as payroll expense is a variable cost of sales. In addition, we may increase pricing in our salons to offset any significant increases in wages and cost of services provided. Therefore, we do not believe inflation has had a significant impact on the results of our operations.
Off-Balance Sheet Arrangements
          As of December 31, 2011 and December 31, 2010, we had no off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
Critical Account Policies and Estimates
          The preparation of our consolidated financial statements in accordance with U.S. generally accepted accounting principles, or "GAAP," is based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. We consider the accounting policies discussed below to be critical to the understanding of our financial statements. Actual results could differ from our estimates and assumptions, and any such differences could be material to our consolidated financial statements.
15

 

 
New Accounting Standards
          In June 2011, the FASB issued amendments to existing standards for reporting comprehensive income. Accounting Standards Update (ASU) 2011-05 rescinds the requirement to present a Consolidated Statement of Changes in Share Owners' Equity and introduces a new statement, the Consolidated Statement of Comprehensive Income. The new statement begins with net income and adds or deducts other recognized changes in assets and liabilities that are not included in net earnings under GAAP. For example, unrealized changes in currency translation adjustments are included in the measure of comprehensive income but are excluded from net earnings. The amendments are effective for our first quarter 2012 financial statements. The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.
          In May 2011, the FASB issued amendments to existing standards for fair value measurement and disclosure, which are effective in the first quarter of 2012. The amendments clarify or change the application of existing fair value measurements, including: that the highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity's holding are not permitted in a fair value measurement. The impact of adopting these amendments is expected to be immaterial to the financial statements.
Item 8. Financial Statements and Supplementary Data
          The financial statements required by Item 8 are submitted as a separate section of this Annual Report on Form 10-K. See Item 15, "Exhibits and Financial Statement Schedules."
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
          None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
          We carried out an evaluation required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, under the supervision and with the participation of our management, including our Chief Executive Officer, or CEO, and our Chief Financial Officer, or CFO, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2011.
          The evaluation of our disclosure controls and procedures included a review of our processes and the effect on the information generated for use in this Annual Report on Form 10-K. In the course of this evaluation, we sought to identify any material weaknesses in our disclosure controls and procedures, to determine whether we had identified any acts of fraud involving personnel who have a significant role in our disclosure controls and procedures, and to confirm that any necessary corrective action, including process improvements, was taken. This type of evaluation is performed every fiscal quarter so that our conclusions concerning the effectiveness of these controls can be reported in our periodic reports filed with the SEC. We intend to maintain these disclosure controls and procedures, modifying them as circumstances warrant.
16

 

 
          Based on evaluation as of December 31, 2011, the CEO and CFO has concluded that our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in our reports filed or submitted under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
          Based on management's most recent evaluation of our company's internal control over financial reporting, management determined that there were no changes in our company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting that occurred during the most recent fiscal quarter.
Inherent Limitations on Effectiveness of Internal Control over Financial Reporting and Disclosure Controls and Procedures
          Our management, including the CEO and CFO, does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and all fraud. An internal control framework, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of internal control are met. Further, the design of internal control must reflect the fact that there are resource constraints, and the benefits of the controls must be considered relative to their costs. While our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of their effectiveness, because of the inherent limitations in internal control, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Green have been detected.
Management's Report on Internal Control Over Financial Reporting
          Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2011. Our management has concluded that, as of December 31, 2011, our internal control over financial reporting is effective. This Annual Report on Form 10-K does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Our management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this annual report.
Item 9B. Other Information
          None.
PART III.
Item 10. Directors, Executive Officers and Corporate Governance
Executive Officers of the Registrant
          The following table provides information regarding the executive officers of Green as of December 31, 2011:
 
 
 
 
 
Name
 
Age
 
Positions and Offices
Richard D. Surber
 
38
 
President, CEO, CFO, and Director
 
 
 
 
 
Logan C Fast
 
25
 
Vice President and Director
          Our executive officers are appointed by the Board of Directors and serve at the discretion of the Board of Directors.
Richard D. Surber - Mr. Surber graduated from the University of Utah with a Bachelor of Science degree in Finance and then with a Juris Doctorate with an emphasis in corporate law, including securities, taxation and bankruptcy. He has served as President and Director of Nexia Holdings, Inc. since May of 1999. He has been an officer and director of several public companies. He was appointed as president and to the board of Green Endeavors, Inc. in September of 2007. Mr. Surber holds 37,134 shares of Series B Preferred stock and 12,972,625 shares of Voting Common stock of Green Endeavors, Inc.
17

 

 
Logan C. Fast - Mr. Fast was appointed to these offices as of August 28, 2008. He is currently working as a grand salon stylist and as an instructor at the Landis Salon locations. Mr. Fast does not hold any position as officer or director of any other publicly held company. Mr. Fast holds 2,000 shares of Series B Preferred stock in Green Endeavors, Inc.
          There are no family relationships among any officer or director of Green Endeavors, Inc.
Item 11. Executive Compensation
          The following table sets forth the compensation of the named executive officer for each of the two years ended December 31, 2011 and 2010:
 
 
 
 
 
 
 
 
 
 
 
 
Name and Principal Position
 
Year
 
Salary ($)
 
Bonus ($)
 
Stock
Awards ($)
 
Total ($)
 
Richard D. Surber (3) - President, CEO, CFO, and Director
 
 
2011
 
$
40,419
(1)
$
-
 
$
-
 
$
40,419
 
 
 
 
2010
 
$
35,000
(1)
$
-
 
$
-
 
$
35,000
 
Richard G. Clegg (3) - former CFO and former Director
 
 
2011
 
$
11,512
(1)
$
-
 
$
-
 
$
40,419
 
 
 
 
2010
 
$
7,415
(1)
$
2,500
 
$
125,000
 
$
134,915
 
Logan C. Fast - Vice President, Director
 
 
2011
 
$
57,301
(2)
$
-
 
$
-
 
$
57,301
 
 
 
 
2010
 
$
51,212
(2)
$
-
 
$
10,000
 
$
61,212
 
 
 
(1)
Compensation for services not related to positions as director.
(2)
Wages received for services performed as a stylist at the salons.
(3)
Mr. Clegg resigned as CFO and Director in October, 2011, and the Board appointed Mr. Surber as CFO at that time.
     
          No director compensation was paid or accrued during the years ended December 31, 2011 and 2010.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Beneficial Owners of More than Five Percent, Directors, and Management
          The following table sets forth certain information concerning the ownership of the Company's stock with respect to: (i) each person known to the Company to be the beneficial owner of more than five percent of the Company's stock; (ii) all directors; and (iii) directors and executive officers of the Company as a group. The notes accompanying the information in the table below are necessary for a complete understanding of the figures provided below. As of April 5, 2012, there were 862,355,708 shares of common stock issued and outstanding.
18

 

 
 
 
 
 
 
 
 
 
Title of Class
 
Name and Address of Beneficial Owner
 
Amount
And Nature of
Beneficial
Ownership
 
Percent of
Class
 
Supervoting Preferred ($0.001 par value)
 
Nexia Holdings, Inc.
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
5,850,000
 
 
100
%
Preferred Series
"B" Stock
($0.001par value)
 
Richard Surber, President and Director
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
37,134
 
 
6.3
%
Voting Common Stock
($0.001 par value)
 
Richard Surber, President, CEO, CFO, and Director
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
12,972,625
 
 
1.5
%
Voting Common Stock
($0.001 par value)
 
Logan Fast, Vice President and Director
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
-
 
 
-
 
Preferred Series
"B" Stock
($0.001par value)
 
Logan Fast, Vice President and Director
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
2,000
 
 
0.3
%
Voting Common Stock ($0.001 par value)
 
AmeriResource Technologies, Inc.
3440 E. Russell Road, Suite 89120
Las Vegas, Nevada 89120
 
 
25,000,005
 
 
2.9
%
Voting Common Stock
($0.001 par value)
 
Nexia Holdings, Inc.
59 West 100 South, Second Floor
Salt Lake City, Utah 84101
 
 
250,000,000
 
 
29
%
Preferred Series
"B" Stock
($0.001par value)
 
Directors and Executive Officers as a Group
 
 
39,134
 
 
10.8
%
Voting Common Stock
($0.001 par value)
 
Directors and Executive Officers as a Group
 
 
12,972,625
 
 
1.5
%
Change in Control
          There are no agreements, pledges or arrangements of any kind that could affect a change in control of Green Endeavors, Inc.
Item 13. Certain Relationships and Related Transactions and Director Independence
Related Transactions
          On April 30, 2008, Green entered into a stock transfer agreement with its parent company Nexia and Nexia's wholly-owned subsidiary DHI whereby they would each sell their holdings in Landis and Newby in exchange for an 8% Series A Senior Subordinated Convertible Debenture with a face amount of $3,000,000. Interest on the debenture commenced on December 30, 2008. DHI has the option, at any time, to convert all or any amount over $10,000 of principal face amount and accrued interest into shares of Common stock, $0.001 par value per share, at a conversion price equal to 95% of the average closing bid price of the Common stock three days prior to the date notice is received by Green. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $150,000 as of April 30, 2008. This discount is being amortized to the maturity date of the debenture, which is 10 years. During 2011, this Debenture was transferred from DHI to Nexia which currently holds the Debenture.
          On September 30, 2009, Landis issued 1,315,000 new shares of its Common stock to Green thereby increasing the amount of controlling interest in Landis to 99%. In addition to the issuance of Common stock, Green issued a note payable in the amount of $250,000 to Nexia. For consideration of the additional interest in Green, Nexia transferred $250,000 of restricted non-marketable securities in AmeriResource Technologies, Inc. to Landis. During the nine months ended September 30, 2009, Green recognized an other-than-temporary loss on its investment in AmeriResource Technologies, Inc. of $250,000 due to continued decline and duration in market value of the investment.
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          On December 23, 2009, the board of directors approved a partial settlement of debt represented by the $3,000,000 Debenture. Green agreed to issue 250,000,000 shares of common stock to Nexia in exchange for a credit against the Debenture in the amount of $125,000. The shares were valued based on the average closing price of the stock prior to the date of issuance. Green also adjusted the debt discount to account for the change in the related beneficial conversion feature.
          On June 24, 2010, the Board of Directors approved the purchase of 650,000 shares of Green's Supervoting Preferred stock from AmeriResource Technologies, Inc. in exchange for 52,000 shares of Green's Series B Preferred stock. The number of Series B Preferred shares issued in this transaction was determined based on one share of Green's Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred share is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000. At the time of this filing, AmeriResource Technologies is no longer considered a related party.
          On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, at the time an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc. The shares were issued pursuant to The 2008 Benefit Plan of Green to a natural person, providing bona fide services and not in conjunction with a capital raising transaction, exempt from registration under Rule 701 of the Securities Act of 1933. These shares are subject to being redeemed as a result of Mr. Clegg's resignation under the terms of his employment contract.
          On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II, Inc. to serve as the location for a new Landis Lifestyle Salon. The shares are held by the landlord of the Marmalade facility to be converted and liquidated in the event of default on the part of Landis II. The shares will be returned to Landis II on the second anniversary of the lease commencement date provided that all obligations under the lease are current and the shares are reflected as an other non-current asset on Green's Consolidated Balance Sheet.
          Green shares its corporate office space, certain personnel, and lines of credit with Nexia Holdings, Inc. or entities controlled by Nexia Holdings under the direction of Richard Surber. A Consulting Agreement is expected to be formalized in 2012 to memorialize costs related to shared office space, utilization of certain staff members and lines of credit that are guaranteed by Richard Surber.
Director Independence
          Our Board of Directors does not have any independent members. Both are employed in some capacity by the Company or its affiliates. There are no committees made up of less than all members of the board for audit, nominating, compensation or hiring purposes. Based upon the size of the Company and its limited resources there are currently not sufficient resources to expand the size of the board and operate committees for these purposes. Richard D. Surber has the education and experience to be the financial expert on the board. The Board of Directors has always operated as a whole and has not proceeded without the other member(s) of the board consenting to any action.
Item 14. Principal Accountant Fees and Services
          Madsen & Associates CPA's, Inc. served as our independent registered public accounting firm for the years ended December 31, 2011 and 2010. The following fees were paid to our independent registered public accounting firm for services rendered during our last two fiscal years:
Audit Fees
          The aggregate fees billed for professional services rendered by our principal accountant for the audit of our annual financial statements, review of financial statements included in the quarterly reports and other fees that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years ended December 31, 2011 and 2010 were $36,035 and $31,685, respectively.
20

 

 
Audit Related Fees
          There were no fees billed for assurance and related services by our principal accountant that are reasonably related to the performance of the audit or review of the financial statements, other than those previously reported above, for the years ended December 31, 2011 and 2010.
Tax Fees
          There were no fees billed for professional services rendered by our principal accountant for tax compliance, tax advice and tax planning for the years ended December 31, 2011 and 2010, respectively.
All Other Fees
          There were no other fees billed for products or services provided by our principal accountant, other than those previously reported above, for the years ended December 31, 2011 and 2010.
21

 

 
PART IV.
Item 15. Exhibits and Financial Statement Schedules
 
 
Page
(a)
1. Financial Statements
 
 
 
 
 
23
 
 
 
 
24
 
 
 
 
25
 
 
 
 
26
 
 
 
 
27
 
 
 
 
28
 
 
 
(a)
2. Financial Statement Schedules
 
 
 
 
 
All other schedules are omitted because they are not required or the required information is shown in the Consolidated Financial Statements or Notes thereto.
 
 
 
 
(a)
44
 
 
 
 
The exhibits listed in the accompanying Exhibit Index (following the Signatures section of this Annual Report on Form 10-K) are filed or incorporated by reference as part of this Annual Report on Form 10-K.
 
 
 
 
 
The exhibits filed or incorporated by reference as part of this Annual Report on Form 10-K contain agreements to which Green Endeavors, Inc. is a party. These agreements are included to provide information regarding their terms and are not intended to provide any other factual or disclosure information about Green Endeavors, Inc. or the other parties to the agreements. Certain of the agreements contain representations and warranties by each of the parties to the applicable agreement, and any such representations and warranties have been made solely for the benefit of the other parties to the applicable agreement as of specified dates, may apply materiality standards that are different than those applied by investors, and may be subject to important qualifications and limitations that are not necessarily reflected in the agreement. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time, and should not be relied upon as statements of factual information.
 
___________________
22

 

 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of Green Endeavors, Inc. and Subsidiaries
We have audited the accompanying consolidated balance sheets of Green Endeavors, Inc. and Subsidiaries (the Company) as of December 31, 2011 and 2010, and the related consolidated statements of operations, stockholders' deficit, and cash flows for each of the years in the two-year period ended December 31, 2011. The Company's management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Green Endeavors, Inc. and Subsidiaries as of December 31, 2011 and 2010, and the consolidated results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As disclosed in the notes to the consolidated financial statements, the Company will need additional working capital for its planned activity and to service its debt. This raises substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding these matters are described in the notes to the consolidated financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Madsen & Associates CPA's, Inc.
Madsen & Associates CPA's, Inc.
Salt Lake City, Utah
April 12, 2012
23

 

 
Green Endeavors, Inc. and Subsidiaries
Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
2011
 
2010
 
Assets
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
Cash
 
$
97,983
 
$
67,593
 
Accounts receivable
 
 
143
 
 
941
 
Inventory
 
 
109,470
 
 
107,365
 
Prepaid expenses
 
 
6,244
 
 
3,317
 
Total current assets
 
 
213,840
 
 
179,216
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net of accumulated depreciation of $342,923 and $248,939 respectively
 
 
420,093
 
 
493,205
 
Other assets
 
 
402,629
 
 
408,614
 
Total Assets
 
$
1,036,562
 
$
1,081,035
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders' Deficit
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
Accounts payable and accrued expenses
 
$
293,794
 
$
200,327
 
Deferred revenue
 
 
57,823
 
 
48,525
 
Due to related parties
 
 
838,274
 
 
893,405
 
Derivative liability
 
 
2,943,160
 
 
-
 
Current portion of notes payable related party
 
 
-
 
 
125,584
 
Current portion of notes payable
 
 
200,629
 
 
198,248
 
Convertible notes payable, net of debt discount of $30,606 and $0, respectively
 
 
109,894
 
 
-
 
Total current liabilities
 
 
4,443,574
 
 
1,466,089
 
 
 
 
 
 
 
 
 
Long-Term Liabilities:
 
 
 
 
 
 
 
Notes payable related party
 
 
112,723
 
 
105,000
 
Notes payable
 
 
72,128
 
 
102,056
 
Convertible debentures, net of debt discount of $95,168 and $110,193, respectively
 
 
2,764,632
 
 
2,749,607
 
Total long-term liabilities
 
 
2,949,483
 
 
2,956,663
 
 
 
 
 
 
 
 
 
Stockholders' Deficit:
 
 
 
 
 
 
 
Convertible Supervoting preferred stock, $0.001 par value, 10,000,000 shares authorized; 5,850,000 and 5,850,000 shares issued and outstanding at December 31, 2011 and 2010; respectively, no liquidation value
 
 
5,850
 
 
5,850
 
Convertible preferred series B stock - $0.001 par value 2,000,000 shares authorized, 630,732 and 610,332 shares issued and outstanding at December 31, 2011and 2010, respectively
 
 
631
 
 
610
 
Preferred stock - $0.001 par value 3,000,000 shares authorized, no shares issued and outstanding at December 31, 2011 and 2010, respectively
 
 
-
 
 
-
 
Common stock, $0.001 par value, 2,500,000,000 shares authorized; 570,886,764 and 430,149,464 shares issued and outstanding at December 31, 2011 and 2010, respectively
 
 
570,887
 
 
430,150
 
Additional paid-in capital
 
 
(4,585,663
)
 
(1,694,506
)
Accumulated deficit
 
 
(2,348,200
)
 
(2,083,821
)
 
 
 
 
 
 
 
 
Total stockholders' deficit
 
 
(6,356,495
)
 
(3,341,717
)
Total Liabilities and Stockholders' Deficit
 
$
1,036,562
 
$
1,081,035
 
The accompanying notes are an integral part of these Consolidated Financial Statements.
24

 

 
Green Endeavors, Inc. and Subsidiaries
Consolidated Statements of Operations
 
 
 
 
 
 
Years Ended
 
 
 
December 31,
2011
 
December 31,
2010
 
Revenue:
 
 
 
 
 
 
 
Services, net of discounts
 
$
2,130,184
 
$
1,668,424
 
Product, net of discounts
 
 
683,842
 
 
582,574
 
Total revenue
 
 
2,814,026
 
 
2,250,998
 
 
 
 
 
 
 
 
 
Costs and Expenses:
 
 
 
 
 
 
 
Cost of services
 
 
1,186,726
 
 
994,765
 
Cost of product
 
 
427,789
 
 
310,640
 
Depreciation
 
 
93,983
 
 
77,042
 
General and administrative
 
 
1,050,556
 
 
959,951
 
Total costs and expenses
 
 
2,759,054
 
 
2,342,398
 
 
 
 
 
 
 
 
 
Income (loss) from operations
 
 
54,972
 
 
(91,400
)
 
 
 
 
 
 
 
 
Other income (expenses), net:
 
 
 
 
 
 
 
Interest expense
 
 
(321,745
)
 
(253,514
)
Interest income
 
 
834
 
 
-
 
Gain on sale of subsidiary
 
 
-
 
 
320,770
 
Other income
 
 
1,560
 
 
38,083
 
Total other income (expenses), net
 
 
(319,351
)
 
105,339
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(264,379
)
$
13,939
 
 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per share
 
$
(0.00
)
$
0.00
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic and diluted
 
 
459,868,549
 
 
381,748,573
 
The accompanying notes are an integral part of these Consolidated Financial Statements.
25

 

 
Green Endeavors, Inc. and Subsidiaries
Consolidated Statements of Stockholders' Deficit
December 31, 2009 through December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supervoting Preferred Stock
 
Series B
Preferred Stock
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Shares
 
Amount
 
Shares
 
Amount
 
Additional
Paid-
in Capital
 
Retained Earnings (Deficit)
 
Non- controlling Interest
 
Total Stockholders'Deficit
 
Balance, December 31, 2009
 
 
6,500,000
 
$
6,500
 
 
183,800
 
$
183
 
 
321,395,650
 
$
321,396
 
$
(1,778,595
)
$
(2,100,450
)
$
2,690
 
$
(3,548,276
)
Series B preferred shares issued in settlement agreement issued
 
 
-
 
 
-
 
 
10,000
 
 
10
 
 
-
 
 
-
 
 
(6,010
)
 
-
 
 
-
 
 
(6,000
)
Series B preferred shares issued to repurchase Supervoting preferred stock issued
 
 
(650,000
)
 
(650
)
 
52,000
 
 
52
 
 
-
 
 
-
 
 
598
 
 
-
 
 
-
 
 
-
 
Write-off of related party receivables
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(702,572
)
 
-
 
 
-
 
 
(702,572
)
Acquisition of remaining 1% ownership of Landis Salons, Inc.
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
2,690
 
 
(2,690
)
 
-
 
Conversion of series B preferred shares
 
 
-
 
 
-
 
 
(54,200
)
 
(54
)
 
108,753,814
 
 
108,754
 
 
(108,700
)
 
-
 
 
-
 
 
-
 
Series B preferred shares sold for cash between $1.50 and $2.50 per share
 
 
-
 
 
-
 
 
337,732
 
 
338
 
 
-
 
 
-
 
 
510,662
 
 
-
 
 
-
 
 
511,000
 
Series B preferred shares issued pursuant to employment agreement with related party issued
 
 
-
 
 
-
 
 
25,000
 
 
25
 
 
-
 
 
-
 
 
124,975
 
 
-
 
 
-
 
 
125,000
 
Series B preferred shares issued as collateral pursuant to the facility lease agreement for Landis II issued
 
 
-
 
 
-
 
 
50,000
 
 
50
 
 
-
 
 
-
 
 
249,950
 
 
-
 
 
-
 
 
250,000
 
Amortization of debt discount on convertible debenture
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(14,808
)
 
-
 
 
-
 
 
(14,808
)
Series B preferred shares issued for key employees issued
 
 
-
 
 
-
 
 
6,000
 
 
6
 
 
-
 
 
-
 
 
29,994
 
 
-
 
 
-
 
 
30,000
 
Net income for year ended December 31, 2010
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
13,939
 
 
-
 
 
13,939
 
Balance, December 31, 2010
 
 
5,850,000
 
 
5,850
 
 
610,332
 
 
610
 
 
430,149,464
 
 
430,150
 
 
(1,694,506
)
 
(2,083,821
)
 
-
 
 
(3,341,717
)
Write-off of related party receivables
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(1,588
)
 
-
 
 
-
 
 
(1,588
)
Conversion of series B preferred shares
 
 
-
 
 
-
 
 
(20,266
)
 
(20
)
 
44,414,417
 
 
44,414
 
 
(44,394
)
 
-
 
 
-
 
 
-
 
Debt discount on 8% convertible notes payable
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
104,512
 
 
-
 
 
-
 
 
104,512
 
Stock options granted for services
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
 
 
 
 
25,364
 
 
-
 
 
-
 
 
25,364
 
Exercise of common stock options granted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
60,000,000
 
 
60,000
 
 
(60,000
)
 
 
 
 
 
 
 
-
 
Conversion of convertible note payable to common shares
 
 
-
 
 
-
 
 
-
 
 
-
 
 
36,322,883
 
 
36,323
 
 
(21,823
)
 
-
 
 
-
 
 
14,500
 
Series B preferred shares sold for cash at $1.50 per share
 
 
-
 
 
-
 
 
40,666
 
 
41
 
 
-
 
 
-
 
 
64,959
 
 
-
 
 
-
 
 
65,000
 
Amortization of debt discount on convertible debenture
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(15,027
)
 
-
 
 
-
 
 
(15,027
)
Derivative Liability      -      -      -      -      -      -      (2,943,160 )    -      -      (2,943,160
Net income for year ended December 31, 2011
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(264,379
)
 
-
 
 
(264,379
)
Balance, December 31, 2011
 
 
5,850,000
 
$
5,850
 
 
630,732
 
$
631
 
 
570,886,764
 
$
570,887
 
$
(4,585,663
)
$
(2,348,200
)
$
-
 
$
(6,356,495
)
The accompanying notes are an integral part of these Consolidated Financial Statements.
26

 

 
Green Endeavors, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
 
 
 
 
 
 
Years Ended
 
 
 
December 31,
2011
 
December 31,
2010
 
Cash Flows from Operating Activities:
 
 
 
 
 
 
 
Net income (loss)
 
$
(264,379
)
$
13,939
 
Adjustments to reconcile net loss attributable to controlling interest to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation
 
 
93,983
 
 
77,042
 
Gain on sale of subsidiary
 
 
-
 
 
(320,770
)
Accretion of convertible debt discounts
 
 
73,905
 
 
-
 
Write-down of related party receivables
 
 
(1,588
)
 
(40,349
)
Stock-based compensation
 
 
25,364
 
 
30,000
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
 
 
799
 
 
-
 
Due from related parties
 
 
(55,131
)
 
(643,962
)
Inventories
 
 
(2,105
)
 
(14,331
)
Prepaid expenses
 
 
(2,927
)
 
(3,317
)
Other assets
 
 
5,983
 
 
(190,175
)
Accounts payable and accrued expenses
 
 
93,467
 
 
661,431
 
Deferred revenue
 
 
9,298
 
 
19,030
 
Other long-term liabilities
 
 
7,723
 
 
90,936
 
Net cash provided by (used in) operating activities
 
 
(15,608
)
 
(320,526
)
 
 
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
Purchases of long-term investment
 
 
-
 
 
(25,085
)
Purchases of property, plant, and equipment
 
 
(20,871
)
 
(280,085
)
Net cash provided by (used in) investing activities
 
 
(20,871
)
 
(305,170
)
 
 
 
 
 
 
 
 
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
Proceeds from bank loan
 
 
-
 
 
100,000
 
Payments made on bank loan
 
 
(8,569
)
 
(51,367
)
Payments made on notes payable
 
 
(18,978
)
 
-
 
Payments made on related party notes payable
 
 
(125,584
)
 
-
 
Proceeds from issuance of convertible notes payable
 
 
155,000
 
 
-
 
Proceeds from issuance of preferred stock
 
 
65,000
 
 
611,000
 
Net cash provided by (used in) financing activities
 
 
66,869
 
 
659,633
 
 
 
 
 
 
 
 
 
Increase in cash
 
 
30,390
 
 
33,937
 
 
 
 
 
 
 
 
 
Cash at Beginning of Year
 
 
67,593
 
 
33,656
 
 
 
 
 
 
 
 
 
Cash at end of year
 
$
97,983
 
$
67,593
 
 
 
 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
 
 
Cash paid during the year for:
 
 
 
 
 
 
 
Interest
 
$
5,699
 
$
7,317
 
Non-cash investing and financing activities:
 
 
 
 
 
 
 
Issuance of series B preferred shares
 
$
5,699
 
$
369,000
 
Issuance of common stock options
 
$
25,364
 
$
-
 
Conversion of convertible note payable to common shares
 
$
(14,500
)
$
-
 
Derivative Liability
  $  2,943,160    -  
Conversion of B preferred shares
 
$
44,394
 
$
108,700
 
The accompanying notes are an integral part of these Consolidated Financial Statements.
27

 

 
Green Endeavors, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
          Cash Flows from Operating Activities
          Cash flows from operating activities include net income (loss), adjusted for certain non-cash charges, as well as changes in the balances of certain assets and liabilities. Our net cash used in operating activities decreased by $304,918 as of December 31, 2011, as compared to December 31, 2010 primarily due to a change from net income in 2010 to a net loss in 2011 in the amount of $278,318, an increase of $93,467 of accounts payable and accrued expenses, partially offset by an increase of $320,770 of gain on sale of subsidiary.
Note 1 - Organization and Basis of Financial Statement Presentation
Business Description
          Green Endeavors, Inc., ("Green") owns and operates two hair salons carrying the Aveda(tm) product line through its wholly-owned subsidiaries Landis Salons, Inc. ("Landis") and Landis Salons II, Inc. ("Landis II") in Salt Lake City Utah.
Organization
          Green Endeavors, Inc. was incorporated under the laws of the State of Delaware on April 25, 2002 as Jasper Holdings.com, Inc.. During the year ended December 2004, Green changed its name to Net2Auction, Inc. In July of 2007, Green changed its name to Green Endeavors, Ltd. On August 23, 2010, Green changed its name to Green Endeavors, Inc. and moved the corporate domicile from Delaware to Utah. On August 26, 2010, Green effected a forward split of the issued and outstanding shares of its common stock on a one for five basis and by the same proportion the number of authorized shares were increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares and amended the designations of its Preferred Stock. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share, and the amendment to the designation of the Series B Preferred Shares will modify the language in the designation regarding changes in the Common stock and the time period allowed to the corporation to respond to request for conversion up to 90 days. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. Green is quoted on the Pink Sheets as an OTCQB issuer under the symbol GRNE.
          Green is a 90% controlled subsidiary of Nexia Holdings, Inc ("Nexia").  Nexia acquired Green from AmeriResource Technologies, Inc. in October 2007 in exchange for 150,000 shares of Nexia Series C Preferred Stock valued at $750,000. Nexia is not currently a reporting company and is quoted on the Pink Sheets under the symbol NXHD.
          Landis Salons, Inc., a Utah corporation, was organized on May 4, 2005 for the purpose of operating an Aveda Lifestyle Salon. As of December 31, 2009, Landis was 99% owned by Green and a noncontrolling interest of 1% was held by a former employee. During the three months ended March 31, 2010, Green issued 10,000 Series B Preferred shares for the remaining 1% noncontrolling interest in Landis.
          Landis Salons II, Inc., a Utah corporation was organized on March 17, 2010 as a wholly-owned subsidiary of Green for the purpose of opening a second Aveda Lifestyle Salon. On September 20, 2010, Landis II opened its doors for operations.
28

 

 
Basis of Financial Statement Presentation
          The consolidated financial statements include the accounts of Green and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly-owned by Green as of December 31, 2011 and 2010.
          Green consolidates entities under control and records a noncontrolling interest for the portions not owned by Green. Control is determined, where applicable, by the sufficiency of equity invested and the rights of the equity holders, and by the ownership of a majority of the voting interests, with consideration given to the existence of approval or veto rights granted to the minority shareholder. If the minority shareholder holds substantive participating rights, it overcomes the presumption of control by the majority voting interest holder. In contrast, if the minority shareholder simply holds protective rights (such as consent rights over certain actions), it does not overcome the presumption of control by the majority voting interest holder.
Note 2 - Summary of Significant Accounting Policies
Use of Estimates
          The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
          The carrying values of all financial instruments are deemed to approximate fair value due to the short maturity of these instruments and interest rates that approximate current market rates.
Cash and Cash Equivalents
          Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of December 31, 2011 and 2010, Green had no cash equivalents.
Inventory
          Inventory consists of items held for resale and is carried at the lower of cost or market. Cost is determined using the first in, first out ("FIFO") method.
Property, Plant and Equipment
          Property, plant and equipment is stated at historical cost. Depreciation is generally provided over the estimated useful lives, using the straight-line method, as follows:
Leasehold improvements
Shorter of the lease term or the estimated useful life
Computer equipment and related software
3 years
Furniture and fixtures
3-10 years
Equipment
3-10 years
Vehicle
7 years
Signage
10 years
          During the years ending December 31, 2011 and 2010, Green recorded depreciation expense in the amount of $93,983 and $77,042, respectively.
          The following is a summary of Green's Property, plant, and equipment by major category as of December 31, 2011:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
 
Accumulated
Depreciation
 
Net
 
Computer equipment and related software
 
$
18,992
 
$
11,733
 
$
7,259
 
Leasehold improvements
 
 
443,579
 
 
204,377
 
 
239,202
 
Furniture and fixtures
 
 
21,504
 
 
11,652
 
 
9,852
 
Equipment
 
 
205,593
 
 
107,431
 
 
98,162
 
Vehicle
 
 
48,193
 
 
4,590
 
 
43,603
 
Signage
 
 
25,154
 
 
3,139
 
 
22,015
 
Total
 
$
763,015
 
$
342,992
 
$
420,093
 
29

 

 
          The following is a summary of Green's Property, plant, and equipment by major category as of December 31, 2010:
 
 
Cost
 
Accumulated
Depreciation
 
Net
 
Computer equipment and related software
 
$
15,859
 
$
4,249
 
$
11,610
 
Leasehold improvements
 
 
438,678
 
 
155,993
 
 
282,685
 
Furniture and fixtures
 
 
20,473
 
 
9,239
 
 
11,234
 
Equipment
 
 
194,838
 
 
76,463
 
 
118,375
 
Vehicle
 
 
48,193
 
 
2,295
 
 
45,898
 
Signage
 
 
24,103
 
 
700
 
 
23,403
 
Total
 
$
742,144
 
$
248,939
 
$
493,205
 
Investments in Equity Securities
          Marketable Securities
          Green considers all of its investments in marketable securities as available-for-sale. Available-for-sale securities are stated at fair value, with the unrealized gains and losses presented net of tax and reported as a separate component of Stockholders' deficit. Realized gains and losses are determined using the specific identification method. Gains are recognized when realized and are recorded in the Consolidated Statements of Operations as Other income. Losses are recognized as realized or when Green has determined that an other-than-temporary decline in fair value has occurred.
          Non-Marketable Securities
          Green uses either the cost or equity method of accounting to account for its long-term, non-marketable investment securities. If Green determines that an other-than-temporary decline exists in a non-marketable equity security, Green writes down the investment to its fair value and records the related write-down as an impairment loss in the Consolidated Statements of Operations.
Series B Preferred Stock
          The Series B preferred stock is voting, convertible preferred. Each share of Green's Series B Preferred Stock is convertible into $5.00 worth of common stock. The number of common shares received is based on the market value of the common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash or common stock upon conversion. The Preferred Stock is classified as equity as long as there are sufficient shares available to effect the conversion. In some instances certain contracts may pass the option to receive cash or Common Stock to the shareholder. In this case, it is assumed that a cash settlement will occur and balance sheet classification of the affected Preferred Stock and related preferred paid-in capital as a liability.
30

 

 
Deferred Revenue
          Deferred revenue arises when customers pay for products and/or services in advance of revenue recognition. Green's deferred revenue consists solely of unearned revenue associated with the purchase of gift certificates for which revenue is recognized only when the service is performed or the product is delivered.
Revenue Recognition
          Revenue is recognized at the time the service is performed or the product is delivered.
Stock-Based Compensation
          Green recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the restricted stock award, option, or purchase right and is recognized as expense, less expected forfeitures, over the requisite service period, which typically equals the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of each restricted stock issuance is determined using the fair value of Green's common stock on the grant date.
          Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the following:
 
 
 
 
Expected volatility of Green's stock;
 
 
Expected term of stock options;
 
 
Risk-free interest rate for the period;
 
 
Expected dividends (if any); and,
 
 
Expected forfeitures.
          The computation of the expected volatility assumption used in the Black-Scholes option pricing model for new grants is based on implied volatility when the remaining maturities of the underlying traded options are at least one year and, when the remaining maturities of the underlying traded options are less than one year, it is based on an equal weighting of historical and implied volatilities.
          When establishing the expected life assumption, Green reviews annual historical employee exercise behavior with respect to option grants having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes in effect at the time of grant. Green has not historically paid dividends, thus the expected dividends used in any calculations are zero. Judgment is required in estimating the amount of stock-based awards that Green expects to be forfeited. Green calculates an expected forfeiture rate for stock options issuances based on historical trends.
          The valuation of all options, including the expected life and forfeiture rates of stock options, are calculated based on one employee pool because there is no significant difference in exercise behavior between classes of employees.
          During the year ended December 31, 2011, Green issued 60,000,000 shares of common stock to three individuals for services calculated at $25,364 using the Black-Scholes option pricing model. See footnotes to the financial statements for additional disclosures regarding the Company's stock-based compensation.
Income Taxes
          Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Also, Green's practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
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          The following is a table of Green's net operating losses (NOL), related estimated deferred tax assets, and expiration dates of the NOLs:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating
Income (Loss)
 
Deferred
Tax Asset (Liability)
 
Expiration
Year of NOL
 
2008
 
$
(1,697,742
)
$
577,000
 
 
2028
 
2009
 
 
(385,160
)
 
131,000
 
 
2029
 
2010
 
 
13,939
 
 
(4,800
)
 
2030
 
2011
 
 
(264,379
)
 
90,000
 
 
2031
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
(2,333,342
)
$
793,200
 
 
 
 
          The related deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The deferred tax asset above has been fully offset by a valuation allowance because the Company expects that it will not realize the benefits of the deferred tax asset in the near future.
Net Loss Per Share
          Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the specified period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and potential common shares during the specified period. For the year ended December 31, 2011, potential common shares are not included in the diluted net loss per share calculation as their effect would be anti-dilutive.
Recent Accounting Pronouncements
          In January 2010, the FASB issued ASU No. 2010-06, "Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"). ASU 2010-06 requires new disclosures for (i) transfers of assets and liabilities in and out of levels one and two fair value measurements, including a description of the reasons for such transfers and (ii) additional information in the reconciliation for fair value measurements using significant unobservable inputs (level three). This guidance also clarifies existing disclosure requirements including (i) the level of disaggregation used when providing fair value measurement disclosures for each class of assets and liabilities and (ii) the requirement to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for level two and three assets and liabilities. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about activity in the roll forward for level three fair value measurements, which is effective for fiscal years beginning after December 15, 2010. The adoption of this guidance has not had a material impact on Green's financial position and results of operations.
          In February 2010, the FASB issued ASU No. 2010-09, "Amendments to Certain Recognition and Disclosure Requirements" ("ASU 2010-09"), which amends ASC Topic 855, "Subsequent Events." The amendments to ASC Topic 855 do not change existing requirements to evaluate subsequent events, but: (i) defines a "SEC Filer," which we are; (ii) removes the definition of a "Public Entity"; and (iii) for SEC Filers, reverses the requirement to disclose the date through which subsequent events have been evaluated. ASU 2010-09 was effective for us upon issuance. This guidance did not have a material impact on Green's financial position and results of operations.
         In April 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-13, "Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades" ("ASU 2010-13"). ASU 2010-13 addresses the classification of a share-based payment award with an exercise price denominated in the currency of a market in which the underlying equity security trades. FASB Accounting Standards Codification ("ASC") Topic 718 was amended to clarify that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity's equity securities trade shall not be considered to contain a market, performance or service condition. Therefore, such an award is not to be classified as a liability if it otherwise qualifies for equity classification. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010, with early application permitted. We do not anticipate that the adoption of this guidance will have a material impact on Green's financial position and results of operations.
32

 

 
          In May 2011, the FASB issued amendments to existing standards for fair value measurement and disclosure, which are effective in the first quarter of 2012. The amendments clarify or change the application of existing fair value measurements, including: that the highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity's holding are not permitted in a fair value measurement. The impact of adopting these amendments is expected to be immaterial to the financial statements.
          In June 2011, the FASB issued amendments to existing standards for reporting comprehensive income. Accounting Standards Update (ASU) 2011-05 rescinds the requirement to present a Consolidated Statement of Changes in Share Owners' Equity and introduces a new statement, the Consolidated Statement of Comprehensive Income. The new statement begins with net income and adds or deducts other recognized changes in assets and liabilities that are not included in net earnings under GAAP. For example, unrealized changes in currency translation adjustments are included in the measure of comprehensive income but are excluded from net earnings. The amendments are effective for our first quarter 2012 financial statements. The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.
          Management believes the impact of other recently issued standards and updates, which are not yet effective, will not have a material impact on Green's consolidated financial position, results of operations or cash flows upon adoption.
Note 3 - Inventory
          Green's inventory consists of items held for resale and product that is used in services by the Landis and Landis II Salons. Inventory is carried at the lower of cost or market. As of December 31, 2011 and 2010, inventory amounted to $109,470 and $107,365, respectively.
Note 4 - Other Assets
          The following table shows other assets as of December 31, 2011 and 2010:
 
 
 
 
 
 
 
 
 
 
December 31,
2011
 
December 31,
2010
 
Green Series B Preferred shares pledged as collateral for the Landis II facility lease (1)
 
$
250,000
 
$
250,000
 
Note receivable pledged as collateral for the Landis II facility lease (2)
 
 
105,000
 
 
105,000
 
Lease and utility deposits
 
 
21,403
 
 
23,684
 
Certificate of deposit
 
 
26,226
 
 
25,462
 
Other
 
 
-
 
 
4,468
 
Total other assets
 
$
402,629
 
$
408,614
 
______________
(1)

On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000.

(2)
On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms. As of December 31, 2011 and 2010, there was $7,724 and $2,474 of accrued interest on the note, respectively.
33

 

 
Note 5 - Derivative Liability
Derivative Liability
          On December 31, 2011, it was determined that Green's authorized number of common shares of stock (2,500,000,000) was insufficient to cover the potential conversion of the Company's convertible debt instruments, Preferred Series B stock, and Preferred Supervoting stock into common stock. Green has recorded a derivative liability to account for such potential conversion. The shortage of authorized common stock was approximately 9,810,532,249 shares. This number of needed authorized shares was multiplied by the quoted price of Green's stock on December 31, 2011 ($.0003). The result of the shortage is a current liability in the amount of $2,943,160. This amount will be remeasured at each reporting period as long as the shortage in authorized common shares exists.
          On March 29, 2012, the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares. This action was taken after notice to the shareholders and having consent from a majority of the voting rights.
Note 6 - Lease Commitments
Operating Leases
          Facilities are leased under operating leases expiring at various dates through 2020. Certain of these leases contain renewal options. For the years ended December 31, 2011 and 2010, rent expense was $154,615 and $115,214, respectively.
          As of December 31, 2011, future minimum lease payments under non-cancelable operating leases were as follows:
 
 
 
 
 
For the fiscal years:
 
Operating
Leases
 
2012
 
 
141,528
 
2013
 
 
145,066
 
2014
 
 
148,693
 
2015
 
 
132,415
 
2016
 
 
75,741
 
Thereafter
 
 
301,087
 
Total lease payments
 
$
944,530
 
Capital Leases
          The following is a summary of the gross amount of assets by class recorded under capital leases as of December 31, 2011 and 2010:
 
 
 
 
 
 
 
 
Classes of Property
 
December 31,
2011
 
December 31,
2010
 
Salon equipment
 
$
-
 
$
50,603
 
          During the year ended December 31, 2011, Green completed its capital lease through a bargain purchase option extended in the lease agreement. The bargain purchase amount was $4,916 which was the entire amount of the security deposit.
34

 

 
          
Note 7 - Related Party Transactions
          The following table summarizes the principal and accrued interest balance of the Convertible Debentures as of December 31, 2011and 2010:
 
 
 
 
 
 
 
 
 
 
December 31,
2011
 
December 31,
2010
 
Principal balance
 
$
2,859,800
 
$
2,875,000
 
Accrued interest
 
 
699,062
 
 
470,278
 
Total
 
$
3,558,862
 
$
3,330,078
 
          On June 24, 2010, the Board of Directors approved the purchase of 650,000 shares of Green's Supervoting Preferred stock from AmeriResource Technologies, Inc. in exchange for 52,000 shares of Green's Series B Preferred stock. The number of Series B Preferred shares issued in this transaction was determined based on one share of Green's Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred share is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.
          On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc. The shares were issued pursuant to The 2008 Benefit Plan of Green to a natural person, providing bona fide services and not in conjunction with a capital raising transaction, exempt from registration under Rule 701 of the Securities Act of 1933. These shares are subject to redemption based upon Mr. Cleggs resignation under the terms of his employment agreement.
          On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II, Inc. to serve as the location for a new Landis Lifestyle Salon. The shares are held by the landlord of the Marmalade facility to be converted and liquidated in the event of default on the part of Landis II. The shares will be returned to Landis II on the second anniversary of the lease commencement date provided that all obligations under the lease are current and the shares are reflected as an other non-current asset on Green's Consolidated Balance Sheet.
          On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms.
          On December 1, 2010, Green sold its ownership interest in Newby to Diversified Holdings X, Inc. whose president is also the president of Green Endeavors, Inc. See Note 9 for additional information on the sale of Newby.
          On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000. One of the employees who received such shares was Logan Fast, an officer and director of Green.
          On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.
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Note 8 - Notes Payable
          A summary of notes payable as of December 31, 2011 and 2010 is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Creditor
 
Interest
Rate
 
Due
Date
 
December 31,
2011
 
December 31,
2010
 
Xing Investment Corp (1)
 
 
10.00
%
 
05-12-2008
 
$
171,000
 
$
171,000
 
Salt Lake City Corporation (2)
 
 
3.25
%
 
06-18-2015
 
 
73,294
 
 
92,272
 
Asher Enterprises, Inc. (3)..
 
 
8.00
%
 
01-09-2012
 
 
60,500
 
 
-
 
Asher Enterprises, Inc. (4)..
 
 
8.00
%
 
03-16-2012
 
 
32,500
 
 
-
 
Asher Enterprises, Inc. (5)..
 
 
8.00
%
 
04-25-2012
 
 
25,000
 
 
-
 
Asher Enterprises, Inc. (6)..
 
 
8.00
%
 
09-12-2012
 
 
22,500
 
 
-
 
Chase Bank
 
 
7.24
%
 
02-13-2015
 
 
28,463
 
 
37,032
 
Nexia Holdings, Inc (related party).
 
 
-
 
 
09-11-2011
 
 
-
 
 
125,584
 
Wasatch Capital Corp. (related party)
 
 
5.00
%
 
11-10-2018
 
 
112,724
 
 
105,000
 
Total
 
 
 
 
 
 
 
 
525,981
 
 
530,888
 
Less: Current portion of notes payable
 
 
 
 
 
 
 
 
341,129
 
 
323,832
 
Long-term portion of notes payable
 
 
 
 
 
 
 
$
184,852
 
$
207,056
 
_______________
(1)
On May 12, 2006, Green borrowed $171,000 from Xing Investment Corp with a convertible promissory note. The note is interest bearing at 10% per annum with no interest due until the note maturity date of May 12, 2008. Both principal and accrued interest, at the option of the note holder, may be converted into Common stock of Green at $0.01 per share. The note was not liquidated at the maturity date and is currently in default. No payments have been made on the obligation because Green is unable to locate Xing Investment Corp. or its representatives. As of December 31, 2011 and December 31, 2010, accrued interest reported in accounts payable and accrued expenses was $34,200, respectively.
 
 
(2)
On June 18, 2010, Landis Salons, Inc. received a loan in the amount of $100,000 from the Division of Economic Development of Salt Lake City Corporation. The loan includes a 1% origination fee and bears interest at the rate of 3.25% per annum. Principal and interest payments are made monthly over a five year term commencing June 2010. The loan is secured by a $25,000 certificate deposit held in the name of Landis Salons, Inc. and personally guaranteed by Richard Surber, CEO of Green.
 
 
(3)
On April 5, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $75,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of January 9, 2012. The note provides for potential conversion into Green's common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $47,951. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $46,703 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $1,248 and the accrued interest balance on the note was $4,158. During 2011, $14,500 of the note had been converted to common stock as follows: a.) on October 12, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $10,000 of the convertible promissory note into 16,666,667 shares of common stock at a conversion rate of $0.0006 per share, and b.) on December 5, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $4,500 of the convertible promissory note into 19,656,217 shares of common stock at a conversion rate of $0.00023 per share.
 
 
(4)
On June 14, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $32,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of March 16, 2012. The note provides for potential conversion into Green's common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $20,779. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $15,057 of the debt discount had been amortized and recorded as interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $5,722 and the accrued interest balance on the note was $1,425.
36

 

 
 
 
(5)
On July 19, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $25,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of April 25, 2012. The note provides for potential conversion into Green's common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $18,103. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $10,630 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $7,473 and the accrued interest balance on the note was $871.
 
 
(6)
On December 7, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $22,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of September 12, 2012. The note provides for potential conversion into Green's common stock beginning in six months with the conversion price set at 56% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $17,679. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $1,515 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $16,164 and the accrued interest balance on the note was $118.
Note 9 - Stockholders' Deficit
Preferred Stock
          On August 4, 2010 by Written Consent of the majority of the voting rights of the shareholders of Green, consent was given to authorize the Board of Directors to amend the designations of the Preferred Stock. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share.
          Green is authorized to issue 15,000,000 shares of preferred stock. Green's preferred stock may be divided into such series as may be established by the Board of Directors. Each share of the Supervoting preferred stock is convertible into 100 shares of Green's Common stock and has the voting rights equal to 100 shares of Common stock.
          The Series B preferred stock is non-voting, convertible preferred. Each share of Green's Series B Preferred Stock is convertible into $5.00 worth of Common stock. The number of common shares received is based on the market value of the Common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash.
          On January 21, 2010, the Board of Directors approved the conversion of 6,400 shares of Series B Preferred shares into 32,000,000 shares of Common stock. The shares were converted at $0.001 per share based on the closing price of the stock prior to the date of conversion.
          On February 17, 2010, Green issued 10,000 Series B Preferred shares to a former employee for the remaining 1% noncontrolling interest in Landis.
          On February 26, 2010, Green issued 4,400 Series B Preferred shares to an investor for $11,000. The shares were valued at $2.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On March 12, 2010, the Board of Directors approved the conversion of 400 Series B Preferred shares into 1,000,000 shares of Common stock for an employee. The shares were converted at $0.002 per share based on the closing price of the stock prior to the date of issuance.
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          On April 13, 2010, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 10,000,000 shares of Common stock for an investor. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On April 16, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On June 24, 2010, the Board of Directors approved the exchange of 650,000 shares of Green's Supervoting Preferred stock from AmeriResource Technologies, Inc. for 52,000 shares of Green's Series B Preferred stock. The number of Series B Preferred shares issued in this transaction were determined based on one share of Green's Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred shared is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.
          On June 28, 2010, Green issued 33,334 Series B Preferred shares to two separate investors for $50,000 each. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc.
          On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000. This amount is recorded as an other asset on the Balance Sheet.
          On August 4, 2010, the Board of Directors approved for two different investors the conversions of 3,000 Series B Preferred shares into 15,000,000 shares of common stock for each of the investors. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.
          On August 5, 2010, the Board of Directors approved the conversion of 3,000 Series B Preferred shares into 15,000,000 shares of common stock. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.
          On August 19, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On August 26, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On September 21, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock. The shares were converted at $0.0055 per share, which was mutually agreed upon by the Board of Directors and the investor.
          On September 21, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On September 27, 2010, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 4,901,960 shares of Common stock. The shares were converted at $0.0051 per share, which was the closing price on the last trading day prior to the conversion.
          On September 28, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
38

 

 
          On October 12, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On October 26, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On October 28, 2010, the Board of Directors approved the conversion of 5,800 Series B Preferred shares into 3,411,765 shares of Common stock for an investor. The shares were converted at $0.0085 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.
          In November and December of 2010, Green issued 99,998 Series B Preferred shares to various investors for $150,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investors.
          On November 12, 2010, the Board of Directors approved the conversion of 16,600 Series B Preferred shares into 7,155,172 shares of Common stock for an investor. The shares were converted at $0.0116 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.
          On November 16, 2010, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 1,284,916 shares of Common stock for an investor. The shares were converted at $0.0179 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.
          On November 22, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock for an investor. The shares were converted at $0.0055 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.
          On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000.
          On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.
          On March 10, 2011, Green issued 14,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.74 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On March 16, 2011, Green issued 16,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On April 1, 2011, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 3,833,333 shares of Common stock for an investor. The shares were converted at $0.006 per share which was the quoted closing price on the date the conversion letter was received from the shareholder. As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.
          On April 26, 2011, Green issued 10,000 Series B Preferred shares to an investor for $15,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.
          On April 28, 2011, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 5,000,000 shares of Common stock for an investor. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.
          On June 13, 2011, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 2,500,000 shares of Common stock for an investor. The shares were converted at $0.004 per share which was the quoted closing price on the date the conversion letter was received from the shareholder. As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.
39

 

 
          On November 22, 2011 the Board of Directors approved the conversion of 2,400 Series B Preferred shares into 24,000,000 shares of Common Stock for an investor. The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.
          As of December 31, 2011 and 2010, Green had 5,850,000 and 5,850,000 shares of Supervoting Preferred stock issued and outstanding and 630,732 and 610,332 shares of convertible Series B Preferred stock issued and outstanding, respectively.
Common Stock
          Green is authorized to issue 2,500,000,000 shares of Common stock with a par value of $0.001 per share. As of December 31, 2011 and 2010, Green had 570,886,794 and 430,149,464 shares of Common stock outstanding, respectively.
          On August 4, 2010, by Written Consent of the majority of the voting rights of the shareholders of Green consent was given to authorize the Board of Directors to carry out a forward split of the issued and outstanding shares of the common stock on a 1 for five basis and by the same proportion, the number of authorized shares was increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split.
          On October 1, 2011, the Board of Directors approved the conversion of $10,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 16,666,667 shares of Common Stock. The shares were converted at $0.0006 per share which was the conversion price provided for by the terms of the note.
          On December 6 2011, the Board of Directors approved the conversion of 4,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 19,656,217 shares of Common Stock. The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.
          On December 16 2011, the Board of Directors approved the two issuances of 20,000,000 common shares each to two individuals who are employees of an affiliate of Green. The affiliate provides accounting and legal services to Green. The shares were issued pursuant to a stock option agreement and were valued at $19,510.
          On December 27 2011, the Board of Directors approved the issuances of 20,000,000 common shares to an individual who provides accounting and tax consulting services to Green. The shares were issued pursuant to a stock option agreement and were valued at $5,854.
Note 10 - Gain on Sale of Subsidiary
          On December 1, 2010, Green affected the sale of its ownership interest in Newby Salons, LLC to Diversified Holdings X, Inc., whose president is also the president of Green. Newby Salons, LLC operated the Bountiful salon location which was closed on August 15, 2010. Green transferred its stock ownership to DHX in exchange for $100. The Stock Purchase Agreement indemnifies and protects Green from any and all obligations, indebtedness and liabilities arising from the course of business.
          The following table summarizes the gain on sale of Newby Salons, LLC on December 1, 2010:
 
 
 
 
 
Cash consideration received
 
$
100
 
Net current and long-term liabilities sold
 
 
320,670
 
Gain on sale of subsidiary
 
$
320,770
 
40

 

 
Note 11 - Stock-Based Compensation
          On December 2, 2011, the Board of Directors approved a stock-based compensation program entitled The 2011 Benefit Plan of Green Endeavors, Inc. (the "Plan") wherein common stock options are granted to employees. A total of 300,000,000 shares of the Green's common stock (par $.001) are authorized to be issued or granted to employees ("Employees") under the Plan. Employees include actual employees or certain non-employee, consultants and advisors of Green, its subsidiaries, and parent company. The Plan is designed to attract and retain employees.
          Under the Plan and during the year ended December 31, 2011, the company granted 60,000,000 shares to two employees and one consultant (20,000,000 shares each) for services of which all were exercised by the year ended December 31, 2011. For the year ended December 31, 2011, stock-based compensation expense was $25,364 and was accounted for under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The weighted average components used for the calculation of the fair value for the options granted were: $.0003 - exercise price, 1 year term, 422% volatility, and a .12% risk free rate. The income tax benefit related to the 2011 stock-based compensation expense was $0. Also, the aggregate intrinsic value of all options outstanding and exercisable at December 31, 2011 was $0. As of December 31, 2011, grants unexercised and shares available for future stock-based compensation grants were -0- and 240,000,000 shares, respectively.
Note 12 - Subsequent Events
          On January 11, 2012, the Board of Directors approved the conversion of $4,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 21,052,632 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On January 13, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 26,315,789 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On January 24, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 27,272,727 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
          On February 2, 2012, Green issued an 8% Convertible Promissory Note in the principal face amount of $42,500 to Asher Enterprises Inc. in exchange for a cash payment of the same amount. The note has a due date of November 6, 2012. The note provides for potential conversion of Green's common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) trading day period prior to the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On February 17, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 29,666,667 shares of Common Stock. The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.
          On February 23, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 28,666,667 shares of Common Stock. The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.
          On February 27, 2012, Green and Landis Experience Center LLC issued an 11% Convertible Note in the principal face amount of $50,000 to William and Nina Wolfson in exchange for a cash payment of the same amount. The note has a due date of February 27, 2016. The note provides for monthly payments in the amount of $1,292.28 of principal and interest. The note provides for potential conversion of Green's common stock with the conversion price set at 50% of the bid price on the date of conversion. The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.
          On March 2, 2012, the Board of Directors approved the conversion of $6,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 31,578,947 shares of Common Stock. The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.
41

 

 
          On March 14, 2012, the Board of Directors approved the conversion of $7,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 30,434,783 shares of Common Stock. The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.
          On March 16, 2012, the Board of Directors approved the conversion of 3,888 Series B Preferred shares into 38,880,000 shares of Common Stock for an investor. The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.
          On March 29, 2012 the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares. This action was taken after notice to the shareholders and having consent from a majority of the voting rights.
Note 13 - Going Concern
          Generally accepted accounting principles in the United States of America contemplate the continuation of Green as a going concern. However, Green had a net loss $264,379 for the year ended December 31, 2011 and negative working capital of $4,229,734 at December 31, 2011, which raises substantial doubt about the Green's ability to continue as a going concern. Green's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to successfully fulfill its business plan. Management plans to attempt to raise additional funds to finance the operating and capital requirements of Green through a combination of equity and debt financings. While Green is making its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be sufficient for operations.
42

 

 
SIGNATURES
          Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Green Endeavors, Inc.
 
 
 
 
/s/ Richard D. Surber
 
 
Richard D. Surber
 
 
President, Chief Executive Officer, and Director
 
 
Dated: April 13, 2012
 
          Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
/s/ Richard D. Surber
 
April 13, 2012
Richard D. Surber
 
President, Chief Executive Officer, Chief Financial Officer, and Director
 
(Principal Executive Officer and Principal Accounting and Financial Officer)
 
     
43

 

 
EXHIBIT INDEX
 
 
 
 
 
 
 
 
 
 
 
Incorporated by Reference
 
 
Exhibit Number
 
Description
 
Form
 
File
Number
 
Exhibit Number
 
Filing
Date
 
Provided Herewith
3
(i)
 
Amended and Restated Certificate of Incorporation
 
10-12G/A
 
000-54018
 
3
(i)
08/23/10
 
 
3
(ii)
 
Bylaws
 
10-12G/A
 
000-54018
 
3
(ii)
08/23/10
 
 
3
(iii)
 
Plan of Merger
 
8-K
 
000-54018
 
3
(iii)
08/26/10
 
 
3
(iv)
 
Plan of Merger and Share Exchange
 
8-K
 
000-54018
 
3
(iv)
08/31/10
 
 
3
(v)
 
Utah Articles of Incorporation
 
8-K
 
000-54018
 
3
(v)
08/31/10
 
 
4
(i)
 
Certificate of Designation for Series B Preferred Stock.
 
10-12G/A
 
000-54018
 
4
(i)
08/23/10
 
 
4
(ii)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to DHI dated April 30, 2008.
 
10-12G/A
 
000-54018
 
4
(ii)
08/23/10
 
 
4
(iii)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to Akron Associates, Inc. dated January 15, 2010.
 
10-12G/A
 
000-54018
 
4
(iii)
08/23/10
 
 
4
(iv)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to Desert Vista Capital, LLC. dated January 15, 2010.
 
10-12G/A
 
000-54018
 
4
(iv)
08/23/10
 
 
4
(v)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to Akron Associates, Inc. dated March 16, 2010.
 
10-12G/A
 
000-54018
 
4
(v)
08/23/10
 
 
4
(vi)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to Akron Associates dated May 11, 2010.
 
10-12G/A
 
000-54018
 
4
(vi)
08/23/10
 
 
4
(vii)
 
8% Series A Senior Subordinated Convertible Redeemable Debenture issued to Desert Vista Capital, LLC dated May 11, 2010.
 
10-12G/A
 
000-54018
 
4
(vii)
08/23/10
 
 
4
(viii)
 
Amended Certificate of Designation for Series B Preferred Stock.
 
10-12G/A
 
000-54018
 
4
(viii)
09/22/10
 
 
10
(i)
 
Stock Purchase Agreement dated March 10, 2011, with Desert Vista Capital, LLC for the purchase of 16,666 shares of Series B Preferred Stock
 
10-Q
 
000-54018
 
10
(i)
05/13/11
 
 
10
(ii)
 
Stock Purchase Agreement dated March 16, 2011, with Fredric Lande for the purchase of 14,333 shares of Series B Preferred Stock
 
10-Q
 
000-54018
 
10
(ii)
05/13/11
 
 
10
(iii)
 
Stock Purchase Agreement dated April 6, 2011, with Desert Vista Capital, LLC for the purchase of 10,000 shares of Series B Preferred Stock
 
10-Q
 
000-54018
 
10
(iii)
08/11/11
 
 
10
(iv)
 
8% Convertible Promissory Note issued on June 14, 2011 to Asher Enterprises, Inc.
 
10-Q
 
000-54018
 
10
(iv)
08/11/11
 
 
10
(v)
 
8% Convertible Promissory Note issued on July 19, 2011 to Asher Enterprises, Inc.
 
10-Q
 
000-54018
 
10
(v)
08/11/11
 
 
10
(vi)
 
8% Convertible Promissory Note issued December 7, 2011 to Asher Enterprises, Inc.
 
 
 
 
 
 
 
 
 
X
 
 
 
SUBSEQUENT ENVENT
 
 
 
 
 
 
 
 
 
 
10
(i)
 
8% Convertible Promissory Note issued February 2, 2012, to Asher Enterprises, Inc.
 
 
 
 
 
 
 
 
 
X
10
(ii)
 
11% Convertible Promissory Note issued February 27, 2012 to William and Nina Wolfson
 
 
 
 
 
 
 
 
 
X
31.01
 
Certification of the Registrant's Chief Executive Officer, Richard D. Surber, pursuant to Rule 13a-14 of the Securities Exchange Act of 1934.
 
 
 
 
 
 
 
 
 
X
31.02
 
Certification of the Registrant's Chief Financial Officer, Richard D. Surber, pursuant to Rule 13a-14 of the Securities Exchange Act of 1934.
 
 
 
 
 
 
 
 
 
X
32.01
 
Certification of the Registrant's Chief Executive Officer, Richard D. Surber, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
 
 
 
 
 
 
X
32.02
 
Certification of the Registrant's Chief Financial Officer, Richard D. Surber, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
 
 
 
 
 
 
 
X
46

 

 
EX-31.1 2 ex31-1.htm EXHIBIT 31.1 UNITED STATES
Exhibit 31.01
CERTIFICATIONS
I, Richard D. Surber, certify that:
 
 
1.
I have reviewed this Annual Report on Form 10-K of Green Endeavors, Inc.;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
 
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
 
5.
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
 
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
 
 
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date:
April 13, 2012
 
 
 
 
By:
/s/ Richard D. Surber
 
 
Richard D. Surber
 
 
Chief Executive Officer and Director
 
 
(Principal Executive Officer)
 


 
EX-31.2 3 ex31-2.htm EXHIBIT 31.2 UNITED STATES
Exhibit 31.02
CERTIFICATIONS
I, Richard D. Surber, certify that:
 
 
1.
I have reviewed this Annual Report on Form 10-K of Green Endeavors, Inc.;
 
 
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
 
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
 
4.
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
 
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 
 
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
 
5.
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
 
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
 
 
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date:
April 13, 2012
 
 
 
 
By:
/s/ Richard D. Surber
 
 
Richard D. Surber
 
 
Chief Financial Officer and Director
 
 
(Principal Financial Officer)
 


 
EX-32.1 4 ex32-1.htm EXHIBIT 32.1 UNITED STATES
Exhibit 32.01
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
          In connection with the Annual Report on Form 10-K for the year ended December 31, 2011 of Green Endeavors, Inc. (the "Company") as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard D. Surber, President, Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
 
 
 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
 
 
 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
 
 
/s/ Richard D. Surber
 
Richard D. Surber
 
Chief Executive Officer and Director
 
(Principal Executive Officer)
 
Date: April 13, 2012
A signed original of this written statement required by Section 906 has been provided to Green Endeavors, Inc. and will be retained by Green and furnished to the Securities and Exchange Commission or its staff upon request.


 
EX-32.2 5 ex32-2.htm EXHIBIT 32.2 UNITED STATES
Exhibit 32.02
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
          In connection with the Annual Report on Form 10-K for the year ended December 31, 2011 of Green Endeavors, Inc. (the "Company") as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard D. Surber, Chief Financial Officer and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
 
 
 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
 
 
 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
 
 
/s/ Richard D. Surber
 
Richard D. Surber
 
Chief Financial Officer and Director
 
(Principal Financial Officer)
 
Date: April 13, 2012
A signed original of this written statement required by Section 906 has been provided to Green Endeavors, Inc. and will be retained by Green and furnished to the Securities and Exchange Commission or its staff upon request.


 
EX-10.1 6 ex_101.htm EXHIBIT 10.1 UNITED STATES
NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
 
 
Principal Amount: $42,500.00.00
Issue Date: February 2, 2012
Purchase Price: $42,500.00.00
 
CONVERTIBLE PROMISSORY NOTE
          FOR VALUE RECEIVED, GREEN ENDEAVORS, INC., a Utah corporation (hereinafter called the "Borrower"), hereby promises to pay to the order of ASHER ENTERPRISES, INC., a Delaware corporation, or registered assigns (the "Holder") the sum of $42,500.00.00 together with any interest as set forth herein, on November 6, 2012 (the "Maturity Date"), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the "Interest Rate") per annum from the date hereof (the "Issue Date") until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid ("Default Interest"). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the "Common Stock") in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the term "business day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the "Purchase Agreement").


 
          This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.
          The following terms shall apply to this Note:
ARTICLE I.CONVERSION RIGHTS
          1.1 Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the "Conversion Price") determined as provided herein (a "Conversion"); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days' prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the "Notice of Conversion"), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the "Conversion Date"). The term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Borrower's option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Borrower's option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.
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          1.2 Conversion Price.
                    (a) Calculation of Conversion Price. The conversion price (the "Conversion Price") shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower's securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The "Variable Conversion Price" shall mean 58% multiplied by the Market Price (as defined herein) (representing a discount rate of 42%). "Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. "Trading Price" means, for any security as of any date, the closing bid price on the Over-the-Counter Bulletin Board, or applicable trading market (the "OTCQB") as reported by a reliable reporting service ("Reporting Service") designated by the Holder (i.e. Bloomberg) or, if the OTCQB is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the "pink sheets" by the National Quotation Bureau, Inc. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. "Trading Day" shall mean any day on which the Common Stock is tradable for any period on the OTCQB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.
                    (b) Conversion Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower's Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the "Announcement Date"), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section 1.2(a). For purposes hereof, "Adjusted Conversion Price Termination Date" shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.
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          1.3 Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved five times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the "Reserved Amount"). The Reserved Amount shall be increased from time to time in accordance with the Borrower's obligations pursuant to Section 4(g) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii)agrees that its issuance of this Note sha ll constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.
          If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.
          1.4 Method of Conversion.
                    (a) Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B)subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.
                    (b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.
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                    (c) Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.
                    (d) Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (but in any event the fifth (5th) business day being hereinafter referred to as the "Deadline") (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.
                    (e) Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower's obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date.
                    (f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system.
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                    (g) Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder's right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuableright to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified. The liquidated damages shall not apply in the event of an act of god or in the event that the Borrower has done everything in its power that is requested of by either the Holder or the Borrower's transfer agent in order to effectuate the delivery of Common Stiock pursuant to a Notice of conversion it recevies.
          1.5 Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii)such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate" (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:
"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."
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          The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.
          1.6 Effect of Certain Events.
                    (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. "Person" shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.
                    (b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had
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this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.
                    (c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower's shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a "Distribution"), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.
                    (d) Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.
                    The Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock ("Convertible Securities") (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as "Options") and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon the exercise of such Options" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such
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Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.
                    Additionally, the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For the purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon such conversion or exchange" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.
                    (e) Purchase Rights. If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the "Purchase Rights") pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.
                    (f) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.
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          1.7 Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the "Maximum Share Amount"), which shall be 4.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or any of its securities on the Borrower's ability to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note.
          1.8 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder's allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder's rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower's failure to convert this Note.
          1.9 Prepayment. Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the Issue Date and ending on the date which is sixty (60) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any notice of prepayment hereunder (an "Optional Prepayment Notice") shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the "Optional Prepayment Date"), the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If
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the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Optional Prepayment Amount") equal to 125%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the date which is sixty-one (61) days following the issue date and ending on the date which is ninety (90) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Second Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Second Optional Prepayment Amount") equal to 130%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Second Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the date which is ninety-one (91) days following the issue date and ending on the date which is one hundred twenty (120) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Third Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Third Optional Prepayment Amount") equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
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principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Third Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding any to the contrary stated elsewhere herein, at any time during the period beginning on the date that is one hundred twenty-one (121) day from the issue date and ending one hundred fifty (150) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Fourth Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Fourth Optional Prepayment Amount") equal to 140%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Fourth Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding any to the contrary stated elsewhere herein, at any time during the period beginning on the date that is one hundred fifty-one (151) day from the issue date and ending one hundred eighty (180) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Fifth Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Fifth Optional Prepayment Amount") equal to 150%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Fifth Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9.
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          After the expiration of one hundred eighty (180) following the date of the Note, the Borrower shall have no right of prepayment.
ARTICLE II.CERTAIN COVENANTS
          2.1 Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders' rights plan which is approved by a majority of the Borrower's disinterested directors.
          2.2 Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.
          2.3 Borrowings. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to the date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business, (c) borrowings that do not render the Borrower a "Shell" company as defined in the Securities Act of 1933, or (d) borrowings, the proceeds of which shall be used to repay this Note.
          2.4 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.
          2.5 Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.
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ARTICLE III.EVENTS OF DEFAULT
          If any of the following events of default (each, an "Event of Default") shall occur:
          3.1 Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.
          3.2 Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, or the exercise of the Warrant in favor of the Holder, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant), the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant), or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant)(or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion (or Exercise Notice pursuant to the Warrant). It is an obligation of the Borrower to remain current in its obligations to itstransfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower's transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.
          3.3 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.
          3.4 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Noteor the Purchase Agreement.
          3.5 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.
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          3.6 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.
          3.7 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.
          3.8 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCQB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.
          3.9 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.
          3.10 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.
          3.11 Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower's ability to continue as a "going concern" shall not be an admission that the Borrower cannot pay its debts as they become due.
          3.12 Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).
          3.13 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
          3.14 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.
          3.15 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.
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          3.16 Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable noticeand cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. "Other Agreements" means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2)t he Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term "Other Agreements" shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.
          Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Borrower by such Holders (the "Default Notice"), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the "Mandatory Prepayment Date") plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the "Default Sum") or (ii) the "parity value" of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the "Conversion Date" for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common
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Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the "Default Amount") and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.
          If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.
ARTICLE IV.MISCELLANEOUS
          4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.
          4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:
          If to the Borrower, to:
GREEN ENDEAVORS, INC.
59 West 100 South -2nd Floor
Salt Lake City, UT 84101
Attn: RICHARD SURBER, President/Chief Executive Officer
facsimile: 801-575-8092
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          With a copy by fax only to (which copy shall not constitute notice):
[enter name of law firm]
Attn: [attorney name]
[enter address line 1]
[enter city, state, zip]
facsimile: [enter fax number]
          If to the Holder:
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY. 11021
Attn: Curt Kramer, President
facsimile: 516-498-9894
          With a copy by fax only to (which copy shall not constitute notice):
Naidich Wurman Birnbaum & Maday, LLP
80 Cuttermill Road, Suite 410
Great Neck, NY 11021
Attn: Bernard S. Feldman, Esq.
facsimile: 516-466-3555
          4.3 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.
          4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an "accredited investor" (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.
          4.5 Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys' fees.
          4.6 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its
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reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
          4.7 Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.
          4.8 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.
          4.9 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower's shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.
19


 
          4.10 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required.
          IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this February 2, 2012.
 
 
 
GREEN ENDEAVORS, INC.
 
 
 
By:
/s/Richard Surber
 
 
RICHARD SURBER
 
 
President/Chief Executive Officer
20


 
EXHIBIT A
NOTICE OF CONVERSION
          The undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note ("Common Stock") as set forth below, of GREEN ENDEAVORS, INC., a Utah corporation (the "Borrower") according to the conditions of the convertible note of the Borrower dated as of February 2, 2012 (the "Note"), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.
Box Checked as to applicable instructions:
 
 
 
 
o
The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system ("DWAC Transfer").
 
 
 
 
 
Name of DTC Prime Broker:
Account Number:
 
o
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder's calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:
 
 
 
 
 
 
 
 
ASHER ENTERPRISES, INC.
 
 
 
 
 
1 Linden Pl., Suite 207
 
 
 
 
 
Great Neck, NY. 11021
 
 
 
 
 
Attention: Certificate Delivery
 
 
 
 
 
(516) 498-9890
 
 
 
 
 
 
 
 
 
 
 
Date of Conversion:
 
 
 
 
 
Applicable Conversion Price:
 
$
 
 
 
Number of Shares of Common Stock to be Issued
 
 
 
 
 
Pursuant to Conversion of the Notes:
 
 
 
 
 
Amount of Principal Balance Due remaining
 
 
 
 
 
Under the Note after this conversion:
 
 
 
 
 
 
 
 
 
 
 
ASHER ENTERPRISES, INC.
 
 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
 
 
Name: Curt Kramer
 
 
 
 
 
Title: President
 
 
 
 
 
Date:
 
 
 
 
 
 
 
1 Linden Pl., Suite 207
 
 
 
 
 
Great Neck, NY. 11021
 
 
 
 
21


 
 
EX-10.2 7 ex_102.htm EXHIBIT 10.2 UNITED STATES
CONVERTIBLE NOTE
          This Note (the "Note") by and between Green Endeavors Inc. and Landis Experience Center LLC, (hereinafter jointly referred to as the "Company") Green Endeavors, Inc. is a company duly organized and existing under the laws of the State of Utah and Landis Experience Center LLC is a limited liability company duly organized and existing under the laws of the State of Utah, and William and Nina Wolfson, a married couple resident in Florida (hereinafter jointly referred to as the "Note Holder") and is entered into this 27th day of February, 2012:
WITNESSETH
          WHEREAS, Note Holder advanced funds to Company in the sum of Fifty Thousand Dollars ($50,000.00) (the "Amount Advanced") on or before February 27, 2012, which advance is evidenced by this Convertible Note; and
          NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Note, the parties agree, represent and warrant as follows:
          1. Issuance of the Convertible Note:
 
 
 
 
A.
By this Note and in exchange for funds advanced on or before February 27, 2012, the Company issues this Convertible Note, in the sum of Fifty Thousand Dollars ($50,000.00), dated February 27, 2012. Note Holder is entitled to interest at the rate of eleven percent (11%) per annum.
 
 
 
 
B.
As described and in accordance with paragraph 5 hereof, at the Note Holder's option on the date of conversion, all or any part of the Note may be converted into the common stock of Green Endeavors, Inc. ("Stock") at the conversion rate specified herein. Upon execution of this Note the Company agrees to authorize the issuance of and reserves for issuance the number of additional shares of common stock as may from time to time be the maximum number required for issuance upon conversion of the Note pursuant to the conversion option hereinafter granted.
 
 
 
 
C.
The Company shall be liable for equal monthly payments under the Note in the amount of $1,292.28 to include interest and principle, the first payment shall be due on April 2, 2012 and subsequent payments are due on the 2nd day of each month. The entire Note, including accrued and unpaid interest thereon, shall be due and payable, unless earlier converted into the Company's Stock as provided for herein, forty eight (48) months from the date of this Note.
          2. Representations and Warranties by the Company
 
 
 
 
A.
Green Endeavors Inc. is a corporation duly organized and existing and in good standing under the laws of the State of Utah and has the corporate power to won its own property and to carry on business as it is now being conducted.


 
 
 
 
 
B.
The Company has on its corporate records the lists of its shareholders, which set forth all the issued and outstanding capital stock of the Company as of the date hereof. The Company's Transfer Agent maintains such lists.
 
 
 
 
C.
There is no action or proceeding pending or threatened against the Company before any court or administrative agency, the determination of which might result in any material adverse change in the business of the Company, which has not been disclosed to the Note Holder.
 
 
 
 
D.
The Company has title to the respective properties and assets including the properties and assets reflected on all financial statements of the Company.
 
 
 
 
E.
Other than as previously disclosed to the Note Holder, the Company is not a party to any contract or agreement or subject to any restriction which materially and adversely affects its business, property, assets, or financial condition and neither the execution or delivery of this Note, nor the confirmation of the transaction contemplated herein, nor the fulfillment of the terms hereof, nor the compliance with the terms and provisions hereof and of the Note, will conflict with or result in the breach of the terms, conditions or provisions or constitute a default under the Articles of the Company or of any agreement or instrument to which the Company is now a party.
 
 
 
 
F.
The Company has not declared, set aside, paid or made any dividend or other distribution with respect to its capital stock and has not made or caused to be made directly or indirectly, any payment or other distribution of any nature whatsoever to the Note Holder of its capital stock.
 
 
 
 
G.
There are no outstanding options or rights to purchase Shares of the Company and no outstanding securities with the right of conversion into Shares of the Company, except as previously disclosed to Note Holder. The Company owns or possesses adequate licenses or other rights to use, all patents, trademarks, trade names, trade secrets, and copyrights used in its business. No one has asserted to the Company that its operations infringe on the patents, recovery claims, trademarks, trade secrets or other rights used in the operation of the Company business.
 
 
 
 
H.
Neither the Company nor any agent or employee acting in its behalf has offered the Note or the Stock or any portion thereof for sale to or solicited in any offer to buy the same from the Company and neither the Company nor any agent or employee acting in its behalf will sell or offer for sale the Note or Stock or any portions thereof to or solicit any offer to buy the Note or Stock from anyone so as to bring the issuance or sale thereof to within the provisions of Section 5 of the Securities Act of 1933 or to violate the provisions thereof.
          3. Representations and Warranties by the Note Holder
 
 
 
 
The Note Holder represents and warrants that:


 
 
 
 
 
A.
The Note Holder has tendered the Fifty Thousand dollars (%50,000.00) to the Company.
 
 
 
 
B.
The Note Holder is a married couple residing in the state of Florida, William and Nina Wolfson.
 
 
 
 
4.
Prepayment of the Convertible Note
 
 
 
 
 
Company shall have the right to make prepayments on principal of the Note at any time, prior to any conversion of the Note into Stock. Such prepayment shall be accompanied by a payment of all accrued interest as of the date of payment. There shall be no premium for the amount so prepaid.
          5. Conversion
 
 
 
 
a.
Note Holder may convert the Note in whole or in part into as many fully paid and nonassessable Shares of the common stock of Green Endeavors, Inc. ("Green") as the principal amount of the Note so converted allows by the terms hereof, so long as such conversion does not result in Note Holder then holding in excess of 5% of the issued and outstanding shares of Green's common stock and therefore the maximum number of shares that the Note Holder may receive in any conversion shall be equal to or less than 5% of the issued and outstanding shares of Green's common stock, when aggregated with any other common stock held by the Note Holder. The conversion price shall be fifty percent (50%) of the bid price on the date of conversion. In order to exercise the right of conversion, Note Holder shall provide a written notice of conversion specifying the amount of the Note to be converted. If any of the Note shall be converted in part, the Company may, at its option and without charge to the Note Holder, either (i) execute and deliver to the Note Holder a new note for the balance of the principal amount that remains unconverted, or (ii) make a notation on the Note of the amount converted.
 
 
 
 
b.
Upon conversion of any of the Note, all accrued and unpaid interest on the principal amount shall be paid to the Note Holder by the Company, either in cash or Stock, unless such interest is waived by the Note Holder.
 
 
 
 
c.
In the event that Green shall at any time divide its outstanding shares of common stock into a greater number of shares, the conversion price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in the case of outstanding shares of common stock of Green shall be combined into a smaller number of shares, the actual conversion price in effect immediately prior to such combination shall be proportionatey increased.
 
 
 
 
d.
No fractional share of Stock shall be issued upon conversion of any of the Note. If the Note Holder shall have converted all of the Note held by it other than a principal amount so small that less than a whole share of Stock would be available for issuance upon conversion thereof, the Company may elect to prepay such balance, with interest accrued thereon to the date fixed for payment, or leave the same outstanding until the maturity of the Note.


 
 
 
 
 
e.
In any reclassification or change of outstanding shares of common stock available for issue upon conversion of the Note (other than a change in stated value or from no par to a stated par value) or in the case of any consolidation or merger of Green with any other company, or in the case of the sale and conveyance to another corporation or person of the property of Green in its entirety or substantially as an entirety, Green shall, as a condition precedent to such transaction, cause effective provisions to be made that the Note Holder of the Note shall have the right thereafter to convert the Note into the kind and amount of shares of Stock and other securities and property receivable upon such reclassification, change, consolidation, merger, sale or conveyance by the Note Holder of the number of shares of common stock of Green into which the Note might have been converted immediately prior to such reclassification, change, consolidation, merger, sale or conveyance.
          6. Covenants
 
 
 
The Company covenants that, so long as the Note is outstanding, it will permit the Note Holder to visit and inspect, at the Note Holders expense, any of the property of the Company, including its books and records, and to discuss the affairs, finances and accounts of the Company with its officers.
          7. Event of Default
 
 
 
The breach of any of the events or conditions contained in this Note may constitute an event of default under this Note. Payments due under the terms hereof shall not be considered past due for a period of 10 days after the due date. The Note Holder may give written notice of such breach and if the Company shall within thirty (30) days after receipt of such written notice have failed to correct such occurrence of condition, then the Note Holder may call the Note due in its entirety and may otherwise avail itself of all legal remedies available.
          8. Miscellaneous
 
 
 
 
a.
Any and all notices, approvals or other communications to be sent to the parties shall be deemed validly and properly given if made in writing and delivered by hand or by registered or certified mail, return receipt requested, and addressed to the Company at its principal office or to the Note Holder of the Note at the addresses given to the Company by the Note Holder.
 
 
 
 
b.
This Note may not be modified, amended or terminated except by written agreement executed by the parties hereto.


 
 
 
 
 
c.
The waiver of any breach or default hereunder shall not be considered valid unless in writing and signed by the party giving such notice and no waiver shall be deemed a waiver of any subsequent breach or default of the Note.
 
 
 
 
d.
The paragraph headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of the Note.
 
 
 
 
e.
The validity, construction, interpretation and enforceability of this Note shall be determined and governed by the laws of the State of Utah.
 
 
 
 
f.
This Note and its provisions shall be binding upon and inure to the benefit of the parties and their successors and assigns.
 
 
 
 
g.
This Note may be executed in one or more counterparts, each which shall be deemed an original. Electronic and fax signatures shall be treated as originals.' h. This Note constitutes the entire agreement between the parties, and any prior agreements, written or oral, are hereby merged into this Note, and the only enforceable terms and agreement between the parties are the terms set forth in this Note.
IN WITNESS WHEREOF, the makers Green Endeavors Inc. and Landis Experience Center LLC have executed this Convertible Note as of the date first written above.
GREEN ENDEAVORS INC.
 
 
 
By:
 
 
Richard Surber, President and CEO
 
Landis Experience center LLC
 
 
 
By:
 
 
Richard Surber, Manager
 
          Payment of the note to Holders hereof is personally guaranteed by Richard Surber in his individual capacity.
 
 
 
 
 
Richard Surber, Personally and as a guarantor of the payment of the note.


 
EX-10.4 8 ex_104.htm EXHIBIT 10.4 UNITED STATES
NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
 
 
Principal Amount: S22,500.00
Issue Date: December 7, 2011
Purchase Price: $22,500.00
 
CONVERTIBLE PROMISSORY NOTE
          FOR VALUE RECEIVED, GREEN ENDEAVORS, INC., a Utah corporation (hereinafter called the "Borrower"), hereby promises to pay to the order of ASHER ENTERPRISES, INC., a Delaware corporation, or registered assigns (the "Holder") the sum of $22,500.00 together with any interest as set forth herein, on September 12, 2012 (the "Maturity Date"), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the "Interest Rate") per annum from the date hereof (the "Issue Date") until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid ("Default Interest"). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the "Common Stock") in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the term "business day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the "Purchase Agreement").


 
          This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.
          The following terms shall apply to this Note:
ARTICLE I.CONVERSION RIGHTS
          1.1 Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the "Conversion Price") determined as provided herein (a "Conversion"); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days' prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the "Notice of Conversion"), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the "Conversion Date"). The term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Borrower's option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Borrower's option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.
2


 
          1.2 Conversion Price.
                    (a) Calculation of Conversion Price. The conversion price (the "Conversion Price") shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower's securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The "Variable Conversion Price" shall mean 56% multiplied by the Market Price (as defined herein) (representing a discount rate of 44%). "Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. "Trading Price" means, for any security as of any date, the closing bid price on the Over-the-Counter Bulletin Board, or applicable trading market (the "OTCQB") as reported by a reliable reporting service ("Reporting Service") designated by the Holder (i.e. Bloomberg) or, if the OTCQB is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the "pink sheets" by the National Quotation Bureau, Inc. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. "Trading Day" shall mean any day on which the Common Stock is tradable for any period on the OTCQB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.
                    (b) Conversion Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower's Common Stock (or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the "Announcement Date"), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section 1.2(a). For purposes hereof, "Adjusted Conversion Price Termination Date" shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.
3


 
          1.3 Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved five times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the "Reserved Amount"). The Reserved Amount shall be increased from time to time in accordance with the Borrower's obligations pursuant to Section 4(g) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii)agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.
          If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.
          1.4 Method of Conversion.
                    (a) Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B)subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.
                    (b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.
4


 
                    (c) Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.
                    (d) Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (but in any event the fifth (5th) business day being hereinafter referred to as the "Deadline") (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.
                    (e) Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower's obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date.
                    (f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system.
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                    (g) Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder's right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified. The liquidated damages shall not apply in the event of an act of god or in the event that the Borrower has done everything in its power that is requested of by either the Holder or the Borrower's transfer agent in order to effectuate the delivery of Common Stiock pursuant to a Notice of conversion it recevies.
          1.5 Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii)such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate" (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:
"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."
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          The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.
          1.6 Effect of Certain Events.
                    (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. "Person" shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.
                    (b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had
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this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.
                    (c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower's shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a "Distribution"), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.
                    (d) Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.
                    The Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock ("Convertible Securities") (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as "Options") and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon the exercise of such Options" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such
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Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.
                    Additionally, the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For the purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon such conversion or exchange" is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.
                    (e) Purchase Rights. If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the "Purchase Rights") pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.
                    (f) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.
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          1.7 Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the "Maximum Share Amount"), which shall be 4.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or any of its securities on the Borrower's ability to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note.
          1.8 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder's allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder's rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower's failure to convert this Note.
          1.9 Prepayment. Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the Issue Date and ending on the date which is sixty (60) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any notice of prepayment hereunder (an "Optional Prepayment Notice") shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the "Optional Prepayment Date"), the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If
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the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Optional Prepayment Amount") equal to 125%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the date which is sixty-one (61) days following the issue date and ending on the date which is ninety (90) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Second Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Second Optional Prepayment Amount") equal to 130%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Second Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding anything to the contrary contained in this Note, so long as the Borrower has not received a Notice of Conversion from the Holder, then at any time during the period beginning on the date which is ninety-one (91) days following the issue date and ending on the date which is one hundred twenty (120) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Third Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Third Optional Prepayment Amount") equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
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principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Third Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding any to the contrary stated elsewhere herein, at any time during the period beginning on the date that is one hundred twenty-one (121) day from the issue date and ending one hundred fifty (150) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Fourth Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Fourth Optional Prepayment Amount") equal to 140%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Fourth Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepaythe Note pursuant to this Section 1.9.
          Notwithstanding any to the contrary stated elsewhere herein, at any time during the period beginning on the date that is one hundred fifty-one (151) day from the issue date and ending one hundred eighty (180) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the Optional Prepayment Date, the Borrower shall make payment of the Fifth Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the "Fifth Optional Prepayment Amount") equal to 150%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional Prepayment Notice and fails to pay the Fifth Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9.
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          After the expiration of one hundred eighty (180) following the date of the Note, the Borrower shall have no right of prepayment.
ARTICLE II.CERTAIN COVENANTS
          2.1 Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders' rights plan which is approved by a majority of the Borrower's disinterested directors.
          2.2 Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder's written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.
          2.3 Borrowings. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to the date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business, (c) borrowings that do not render the Borrower a "Shell" company as defined in the Securities Act of 1933, or (d) borrowings, the proceeds of which shall be used to repay this Note.
          2.4 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.
          2.5 Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.
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ARTICLE III.EVENTS OF DEFAULT
          If any of the following events of default (each, an "Event of Default") shall occur:
          3.1 Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.
          3.2 Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, or the exercise of the Warrant in favor of the Holder, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant), the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant), or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or the Warrant pursuant to the Warrant)(or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion (or Exercise Notice pursuant to the Warrant). It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower's transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.
          3.3 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.
          3.4 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
          3.5 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.
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          3.6 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.
          3.7 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.
          3.8 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCQB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.
          3.9 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.
          3.10 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.
          3.11 Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower's ability to continue as a "going concern" shall not be an admission that the Borrower cannot pay its debts as they become due.
          3.12 Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).
          3.13 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
          3.14 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.
          3.15 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.
15


 
          3.16 Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. "Other Agreements" means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2)the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term "Other Agreements" shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.
          Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Borrower by such Holders (the "Default Notice"), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the "Mandatory Prepayment Date") plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the "Default Sum") or (ii) the "parity value" of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the "Conversion Date" for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common
16


 
Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the "Default Amount") and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.
          If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.
ARTICLE IV.MISCELLANEOUS
          4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.
          4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:
          If to the Borrower, to:
GREEN ENDEAVORS, INC.
59 West 100 South -2nd Floor
Salt Lake City, UT 84101
Attn: RICHARD SURBER, President/Chief Executive Officer
facsimile:
17


 
          With a copy by fax only to (which copy shall not constitute notice):
[enter name of law firm]
Attn: [attorney name]
[enter address line 1]
[enter city, state, zip]
facsimile: [enter fax number]
          If to the Holder:
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY. 11021
Attn: Curt Kramer, President
facsimile: 516-498-9894
          With a copy by fax only to (which copy shall not constitute notice):
Naidich Wurman Birnbaum & Maday, LLP
80 Cuttermill Road, Suite 410
Great Neck, NY 11021
Attn: Bernard S. Feldman, Esq.
facsimile: 516-466-3555
          4.3 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.
          4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an "accredited investor" (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.
          4.5 Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys' fees.
          4.6 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its
18


 
reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
          4.7 Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.
          4.8 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.
          4.9 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower's shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.
19


 
          4.10 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required.
          IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this December 7, 2011.
 
 
 
GREEN ENDEAVORS, INC.
 
 
 
By:
 
 
RICHARD SURBER
 
 
President/Chief Executive Officer
20


 
EXHIBIT A
NOTICE OF CONVERSION
          The undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note ("Common Stock") as set forth below, of GREEN ENDEAVORS, INC., a Utah corporation (the "Borrower") according to the conditions of the convertible note of the Borrower dated as of December 7, 2011 (the "Note"), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.
Box Checked as to applicable instructions:
 
 
 
 
o
The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system ("DWAC Transfer").
 
 
 
 
 
Name of DTC Prime Broker:
Account Number:
 
o
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder's calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:
 
 
 
 
 
 
 
 
ASHER ENTERPRISES, INC.
 
 
 
 
 
1 Linden Pl., Suite 207
 
 
 
 
 
Great Neck, NY. 11021
 
 
 
 
 
Attention: Certificate Delivery
 
 
 
 
 
(516) 498-9890
 
 
 
 
 
 
 
 
 
 
 
Date of Conversion:
 
 
 
 
 
Applicable Conversion Price:
 
$
 
 
 
Number of Shares of Common Stock to be Issued
 
 
 
 
 
Pursuant to Conversion of the Notes:
 
 
 
 
 
Amount of Principal Balance Due remaining
 
 
 
 
 
Under the Note after this conversion:
 
 
 
 
 
 
 
 
 
 
 
ASHER ENTERPRISES, INC.
 
 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
 
 
Name: Curt Kramer
 
 
 
 
 
Title: President
 
 
 
 
 
Date:
 
 
 
 
 
 
 
1 Linden Pl., Suite 207
 
 
 
 
 
Great Neck, NY. 11021
 
 
 
 
21


 
 
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No No 60000000 -60000 60000 320770 <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Note 10 &#150; Gain on Sale of Subsidiary</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 1, 2010, Green affected the sale of its ownership interest in Newby Salons, LLC to Diversified Holdings X, Inc., whose president is also the president of Green. Newby Salons, LLC operated the Bountiful salon location which was closed on August 15, 2010. Green transferred its stock ownership to DHX in exchange for $100. The Stock Purchase Agreement indemnifies and protects Green from any and all obligations, indebtedness and liabilities arising from the course of business.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following table summarizes the gain on sale of Newby Salons, LLC on December 1, 2010:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="696" style="MARGIN:auto auto auto 4.65pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="588" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:441pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 436.35pt"><font style="LINE-HEIGHT:90%">&nbsp; Cash consideration received................................................................................................. </font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="588" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:441pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 436.35pt"><font style="LINE-HEIGHT:90%">&nbsp; Net current and long-term liabilities sold............................................................................... </font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in 8.8pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 320,670</u></font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="588" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:441pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:22.35pt right dotted 436.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of subsidiary.............................................................................................. </font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 320,770</u></font></p></td></tr></table> 959951 1050556 <!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>Note 13 &#150; Going Concern</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>&nbsp;</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Generally accepted accounting principles in the United States of America contemplate the continuation of Green as a going concern. However, Green had a net loss $264,379 for the year ended December 31, 2011 and negative working capital of $4,229,734 at December 31, 2011, which raises substantial doubt about the Green&#146;s ability to continue as a going concern. Green&#146;s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to successfully fulfill its business plan. Management plans to attempt to raise additional funds to finance the operating and capital requirements of Green through a combination of equity and debt financings. While Green is making its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be sufficient for operations.</p> -91400 54972 33937 30390 -253514 -321745 834 -14331 -2105 107365 109470 <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Note 3 &#150; Inventory</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">Green&#146;s inventory consists of items held for resale and product that is used in services by the Landis and Landis II Salons. Inventory is carried at the lower of cost or market. As of December 31, 2011 and 2010, inventory amounted to $109,470 and $107,365, respectively.</p> 25364 369000 5699 <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Note 6 &#150; Lease Commitments</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>&nbsp;</i></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>Operating Leases</i></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>&nbsp;</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Facilities are leased under operating leases expiring at various dates through 2020. Certain of these leases contain renewal options. For the years ended December 31, 2011 and 2010, rent expense was $154,615 and $115,214, respectively.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">As of December 31, 2011, future minimum lease payments under non-cancelable operating leases were as follows:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in"><b>&nbsp;</b></p> <table width="696" style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:0in center 33.6pt right 62.85pt"><font style="LINE-HEIGHT:90%; BACKGROUND:yellow">&nbsp;</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt center .5in decimal 62.7pt" align="center">Operating</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; For the fiscal years:</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:0in center 33.6pt right 62.85pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leases&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt .25in decimal .5in left dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2012.................................................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 141,528</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:4.5pt .25in 31.5pt dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2013.................................................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 145,066</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:4.5pt .25in 31.5pt dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2014.................................................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148,693</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:4.5pt .25in 31.5pt dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2015.................................................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 132,415</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:4.5pt .25in 31.5pt dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2016.................................................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 75,741</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt .25in decimal 62.7pt left dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thereafter............................................................................................................................ </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:right; LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt" align="right"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp; 301,087</u></font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="600" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:450.15pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:4.5pt .25in 31.5pt .75in decimal dotted 445.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments....................................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -0.3pt 0pt 0in; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 944,530</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in"><b>&nbsp;</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i>Capital Leases</i></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following is a summary of the gross amount of assets by class recorded under capital leases as of December 31, 2011 and 2010:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="690" style="MARGIN:auto auto auto 4.65pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="468" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:351pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt"><u><font style="LINE-HEIGHT:90%">Classes of Property</font></u></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2011&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010</font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="468" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:351pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Salon equipment..................................................................................... </font></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><u style="text-underline:double"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></u></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><u style="text-underline:double"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,603</font></u></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">During the year ended December 31, 2011, Green completed its capital lease through a bargain purchase option extended in the lease agreement. The bargain purchase amount was $4,916 which was the entire amount of the security deposit.</p> 659633 66869 -305170 -20871 -320526 -15608 13939 -264379 13939 13939 -264379 -264379 102056 72128 <!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>Note 8 &#150; Notes Payable</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">A summary of notes payable as of December 31, 2011 and 2010 is as follows:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="703" style="BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 30.6pt right 63.0pt 72.6pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-81.0pt center .5in right 3.25in"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Creditor&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center .3in right 63.0pt 72.6pt"><font style="LINE-HEIGHT:90%">&nbsp; Interest</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-81.0pt center .3in right .6in"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; Rate&nbsp; </font></u></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 26.5pt right 63.0pt 72.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-81.0pt center 27.2pt right 53.1pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2011&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 30.6pt right 69.85pt"><font style="LINE-HEIGHT:90%">&nbsp; December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 30.6pt right 64.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Xing Investment Corp (1)............................................................ </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp; 10.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 05-12-2008</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 171,000</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 171,000</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Salt Lake City Corporation (2)..................................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 3.25%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 06-18-2015</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73,294</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92,272</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Asher Enterprises, Inc. (3)........................................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 8.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">01-09-2012</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 60,500</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Asher Enterprises, Inc. (4)........................................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 8.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">03-16-2012</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32,500</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Asher Enterprises, Inc. (5)........................................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 8.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">04-25-2012</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25,000</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Asher Enterprises, Inc. (6)........................................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 8.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">09-12-2012</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22,500</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Chase Bank.................................................................................. </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 7.24%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 02-13-2015</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28,463</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,032</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp; Nexia Holdings, Inc (related party).............................................. </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 09-11-2011</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - - - -</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 125,584</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-27pt; MARGIN:0in 0in 0pt 0.25in; tab-stops:4.2pt right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Wasatch Capital Corp. (related party).......................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right .6in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 5.00%</font></p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in right 48.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; 11-10-2018</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 112,724</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105,000</u></font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:.25in right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total........................................................................................ </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 525,981</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:.05in decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 530,888</font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:.25in right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Current portion of notes payable.................................... </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp; 341,129</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp; 323,832</u></font></p></td></tr> <tr> <td width="331" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:3.45in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:.25in right dotted 350.85pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term portion of notes payable........................................ </font></p></td> <td width="72" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:0.75in; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="90" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:67.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:0in 49.5pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:76.5pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 184,852</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:5.4pt; WIDTH:81pt; PADDING-RIGHT:5.4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:9.0pt decimal 66.6pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 207,056</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(1) On May 12, 2006, Green borrowed $171,000 from Xing Investment Corp with a convertible promissory note. The note is interest bearing at 10% per annum with no interest due until the note maturity date of May 12, 2008. Both principal and accrued interest, at the option of the note holder, may be converted into Common stock of Green at $0.01 per share. The note was not liquidated at the maturity date and is currently in default. No payments have been made on the obligation because Green is unable to locate Xing Investment Corp. or its representatives. As of December 31, 2011 and December 31, 2010, accrued interest reported in accounts payable and accrued expenses was $34,200, respectively.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(2) On June 18, 2010, Landis Salons, Inc. received a loan in the amount of $100,000 from the Division of Economic Development of Salt Lake City Corporation. The loan includes a 1% origination fee and bears interest at the rate of 3.25% per annum. Principal and interest payments are made monthly over a five year term commencing June 2010. The loan is secured by a $25,000 certificate deposit held in the name of Landis Salons, Inc. and personally guaranteed by Richard Surber, CEO of Green.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(3) On April 5, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $75,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of January 9, 2012. The note provides for potential conversion into Green&#146;s common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $47,951. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $46,703 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $1,248 and the accrued interest balance on the note was $4,158. During 2011, $14,500 of the note had been converted to common stock as follows: a.) on October 12, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $10,000 of the convertible promissory note into 16,666,667 shares of common stock at a conversion rate of $0.0006 per share, and b.) on December 5, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $4,500 of the convertible promissory note into 19,656,217 shares of common stock at a conversion rate of $0.00023 per share. </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(4) On June 14, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $32,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of March 16, 2012. The note provides for potential conversion into Green&#146;s common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $20,779. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $15,057 of the debt discount had been amortized and recorded as interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $5,722 and the accrued interest balance on the note was $1,425.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(5) On July 19, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $25,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of April 25, 2012. The note provides for potential conversion into Green&#146;s common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $18,103. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $10,630 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $7,473 and the accrued interest balance on the note was $871.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 0.25in">(6) On December 7, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $22,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of September 12, 2012. The note provides for potential conversion into Green&#146;s common stock beginning in six months with the conversion price set at 56% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $17,679. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $1,515 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $16,164 and the accrued interest balance on the note was $118.</p> 105000 112723 <!--egx--><p style="MARGIN:0in 0in 0pt"><b>Note 1 &#150; Organization and Basis of Financial Statement Presentation</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Business Description</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green Endeavors, Inc., (&#147;Green&#148;) owns and operates two hair salons carrying the Aveda&#153; product line through its wholly-owned subsidiaries Landis Salons, Inc. (&#147;Landis&#148;) and Landis Salons II, Inc. (&#147;Landis II&#148;) in Salt Lake City Utah.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Organization</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="BACKGROUND:yellow">&nbsp;</font></p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:.5in 1.7in 2.2in 2.7in 3.2in 3.7in 4.2in 4.7in 5.2in 6.2in 6.5in 6.7in right 7.2in">Green Endeavors, Inc. was incorporated under the laws of the State of Delaware on April 25, 2002 as Jasper Holdings.com, Inc.. &nbsp;During the year ended December 2004, Green changed its name to Net2Auction, Inc. In July of 2007, Green changed its name to Green Endeavors, Ltd. On August 23, 2010, Green changed its name to Green Endeavors, Inc. and moved the corporate domicile from Delaware to Utah. On August 26, 2010, Green effected a forward split of the issued and outstanding shares of its common stock on a one for five basis and by the same proportion the number of authorized shares were increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares and amended the designations of its Preferred Stock. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share, and the amendment to the designation of the Series B Preferred Shares will modify the language in the designation regarding changes in the Common stock and the time period allowed to the corporation to respond to request for conversion up to 90 days. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. Green is quoted on the Pink Sheets as an OTCQB issuer under the symbol GRNE.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in 1.7in 2.2in 2.7in 3.2in 3.7in 4.2in 4.7in 5.2in 6.2in 6.5in 6.7in right 7.2in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green is a 90% controlled subsidiary of Nexia Holdings, Inc (&#147;Nexia&#148;). Nexia acquired Green from AmeriResource Technologies, Inc. in October 2007 in exchange for 150,000 shares of Nexia Series C Preferred Stock valued at $750,000. Nexia is not currently a reporting company and is quoted on the Pink Sheets under the symbol NXHD.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Landis Salons, Inc., a Utah corporation, was organized on May 4, 2005 for the purpose of operating an Aveda Lifestyle Salon. As of December 31, 2009, Landis was 99% owned by Green and a noncontrolling interest of 1% was held by a former employee. During the three months ended March 31, 2010, Green issued 10,000 Series B Preferred shares for the remaining 1% noncontrolling interest in Landis.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Landis Salons II, Inc., a Utah corporation was organized on March 17, 2010 as a wholly-owned subsidiary of Green for the purpose of opening a second Aveda Lifestyle Salon. On September 20, 2010, Landis II opened its doors for operations.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Basis of Financial Statement Presentation</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt"><font style="LETTER-SPACING:-0.1pt">The consolidated financial statements include the accounts of Green and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly-owned </font>by Green as of December 31, 2011 and 2010.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green consolidates entities under control and records a noncontrolling interest for the portions not owned by Green. Control is determined, where applicable, by the sufficiency of equity invested and the rights of the equity holders, and by the ownership of a majority of the voting interests, with consideration given to the existence of approval or veto rights granted to the minority shareholder. If the minority shareholder holds substantive participating rights, it overcomes the presumption of control by the majority voting interest holder. In contrast, if the minority shareholder simply holds protective rights (such as consent rights over certain actions), it does not overcome the presumption of control by the majority voting interest holder.</p> 408614 402629 -190175 5983 <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in"><b>Note 4 &#150; Other Assets</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following table shows other assets as of December 31, 2011 and 2010:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">&nbsp;</p> <table width="702" style="MARGIN:auto auto auto 4.65pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:.25in 31.5pt right dotted 315.0pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2011&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 9pt; tab-stops:.25in right dotted 5.25in"><font style="LINE-HEIGHT:90%">Green Series B Preferred shares pledged as collateral for the Landis II facility lease (1)........................................................................................... </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250,000</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250,000</font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 9pt; tab-stops:.25in right dotted 5.25in"><font style="LINE-HEIGHT:90%">Note receivable pledged as collateral for the Landis II facility lease (2)......... </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105,000</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105,000</font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 9pt; tab-stops:.25in right dotted 5.25in"><font style="LINE-HEIGHT:90%">Lease and utility deposits............................................................................... </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21,403</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23,684</font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 9pt; tab-stops:.25in 31.5pt right dotted 5.25in"><font style="LINE-HEIGHT:90%">Certificate of deposit...................................................................................... </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26,226</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25,462</font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 9pt; tab-stops:.25in right dotted 5.25in"><font style="LINE-HEIGHT:90%">Other.............................................................................................................. </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ----</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,468</u></font></p></td></tr> <tr style="HEIGHT:0.1in"> <td width="492" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:369pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; TEXT-INDENT:-9pt; MARGIN:0in 0in 0pt 0.25in; tab-stops:.25in 31.5pt right dotted 5.25in"><font style="LINE-HEIGHT:90%">Total other assets......................................................................................... </font></p></td> <td width="102" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:76.35pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 402,629</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; HEIGHT:0.1in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 408,614</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">(1) On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.75in -.5in 31.5pt 106.35pt 382.5pt right 454.5pt 459.0pt 6.5in">(2) On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms. As of December 31, 2011 and 2010, there was $7,724 and $2,474 of accrued interest on the note, respectively.</p> 38083 1560 90936 7723 -51367 -8569 -18978 -125584 0.001 0.001 3000000 3000000 0 0 0 0 3317 6244 -3317 -2927 100000 155000 611000 65000 582574 683842 493205 420093 -25085 -280085 -20871 <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Note 7 &#150; Related Party Transactions</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following table summarizes the principal and accrued interest balance of the Convertible Debentures as of December 31, 2011and 2010:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="702" style="MARGIN:auto auto auto 4.65pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="480" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt"><font style="LINE-HEIGHT:90%">&nbsp;</font></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2011</font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 69.85pt"><font style="LINE-HEIGHT:90%">December 31,</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 34.55pt right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010</font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="480" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 355.35pt"><font style="LINE-HEIGHT:90%">&nbsp; Principal balance........................................................................................ </font></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp; 2,859,800</font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp; 2,875,000</font></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="480" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:4.5pt right dotted 355.35pt"><font style="LINE-HEIGHT:90%">&nbsp; Accrued interest......................................................................................... </font></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 699,062</font></u></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in right 67.35pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 470,278</font></u></p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="480" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:22.35pt right dotted 355.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total.................................................................................................... </font></p></td> <td width="114" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:85.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp; 3,558,862</u></font></p></td> <td width="108" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:81pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in -5.4pt 0pt 0in; tab-stops:0in 9.0pt right 67.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp; 3,330,078</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>&nbsp;</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On June 24, 2010, the Board of Directors approved the purchase of 650,000 shares of Green&#146;s Supervoting Preferred stock from AmeriResource Technologies, Inc. in exchange for 52,000 shares of Green&#146;s Series B Preferred stock. The number of Series B Preferred shares issued in this transaction was determined based on one share of Green&#146;s Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred share is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc. The shares were issued pursuant to The 2008 Benefit Plan of Green to a natural person, providing bona fide services and not in conjunction with a capital raising transaction, exempt from registration under Rule 701 of the Securities Act of 1933.&nbsp; These shares are subject to redemption based upon Mr. Cleggs resignation under the terms of his employment agreement.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II, Inc. to serve as the location for a new Landis Lifestyle Salon. The shares are held by the landlord of the Marmalade facility to be converted and liquidated in the event of default on the part of Landis II. The shares will be returned to Landis II on the second anniversary of the lease commencement date provided that all obligations under the lease are current and the shares are reflected as an other non-current asset on Green&#146;s Consolidated Balance Sheet.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 1, 2010, Green sold its ownership interest in Newby to Diversified Holdings X, Inc. whose president is also the president of Green Endeavors, Inc. See Note 9 for additional information on the sale of Newby.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000.&nbsp; One of the employees who received such shares was Logan Fast, an officer and director of Green.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.</p> 50000 249950 50 250000 6000 29994 6 30000 10000 -6010 10 -6000 25000 124975 25 125000 -650000 52000 598 -650 52 337732 40666 510662 338 511000 64959 41 65000 1668424 2130184 321395650 6500000 183800 430149464 5850000 610332 570886764 5850000 630732 30000 25364 25364 25364 <!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>Note 11 &#150; </b><b>Stock-Based Compensation</b></p> <p style="TEXT-INDENT:0.5in; MARGIN:12pt 0in 0pt">On December 2, 2011, the Board of Directors approved a stock-based compensation program entitled <u>The 2011 Benefit Plan of Green Endeavors, Inc.</u> (the &#147;Plan&#148;) wherein common stock options are granted to employees. A total of 300,000,000 shares of the Green&#146;s common stock (par $.001) are authorized to be issued or granted to employees (&#147;Employees&#148;) under the Plan.&nbsp; Employees include actual employees or certain non-employee, consultants and advisors of Green, its subsidiaries, and parent company. The Plan is designed to attract and retain employees.</p> <p style="TEXT-INDENT:0.5in; MARGIN:12pt 0in 0pt">Under the Plan and during the year ended December 31, 2011, the company granted 60,000,000 shares to two employees and one consultant (20,000,000 shares each) for services of which all were exercised by the year ended December 31, 2011.&nbsp; For the year ended December 31, 2011, stock-based compensation expense was $25,364 and was accounted for under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant.&nbsp; The weighted average components used for the calculation of the fair value for the options granted were: &nbsp;$.0003 &#150; exercise price, 1 year term, 422% volatility, and a .12% risk free rate. The income tax benefit related to the 2011 stock-based compensation expense was $0. Also, the aggregate intrinsic value of all options outstanding and exercisable at December 31, 2011 was $0. As of December 31, 2011, grants unexercised and shares available for future stock-based compensation grants were -0- and 240,000,000 shares, respectively.</p> <!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>Note 9 &#150; Stockholders&#146; Deficit</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Preferred Stock</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 4, 2010 by Written Consent of the majority of the voting rights of the shareholders of Green, consent was given to authorize the Board of Directors to amend the designations of the Preferred Stock. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green is authorized to issue 15,000,000 shares of preferred stock. Green&#146;s preferred stock may be divided into such series as may be established by the Board of Directors. Each share of the Supervoting preferred stock is convertible into 100 shares of Green&#146;s Common stock and has the voting rights equal to 100 shares of Common stock.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The Series B preferred stock is non-voting, convertible preferred. Each share of Green&#146;s Series B Preferred Stock is convertible into $5.00 worth of Common stock. The number of common shares received is based on the market value of the Common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 21, 2010, the Board of Directors approved the conversion of 6,400 shares of Series B Preferred shares into 32,000,000 shares of Common stock. The shares were converted at $0.001 per share based on the closing price of the stock prior to the date of conversion.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 17, 2010, Green issued 10,000 Series B Preferred shares to a former employee for the remaining 1% noncontrolling interest in Landis.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 26, 2010, Green issued 4,400 Series B Preferred shares to an investor for $11,000. The shares were valued at $2.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 12, 2010, the Board of Directors approved the conversion of 400 Series B Preferred shares into 1,000,000 shares of Common stock for an employee. The shares were converted at $0.002 per share based on the closing price of the stock prior to the date of issuance.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On April 13, 2010, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 10,000,000 shares of Common stock for an investor. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On April 16, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On June 24, 2010, the Board of Directors approved the exchange of 650,000 shares of Green&#146;s Supervoting Preferred stock from AmeriResource Technologies, Inc. for 52,000 shares of Green&#146;s Series B Preferred stock. The number of Series B Preferred shares issued in this transaction were determined based on one share of Green&#146;s Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred shared is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On June 28, 2010, Green issued 33,334 Series B Preferred shares to two separate investors for $50,000 each. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000. This amount is recorded as an other asset on the Balance Sheet.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 4, 2010, the Board of Directors approved for two different investors the conversions of 3,000 Series B Preferred shares into 15,000,000 shares of common stock for each of the investors. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 5, 2010, the Board of Directors approved the conversion of 3,000 Series B Preferred shares into 15,000,000 shares of common stock. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 19, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 26, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On September 21, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock. The shares were converted at $0.0055 per share, which was mutually agreed upon by the Board of Directors and the investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On September 21, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On September 27, 2010, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 4,901,960 shares of Common stock. The shares were converted at $0.0051 per share, which was the closing price on the last trading day prior to the conversion.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On September 28, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">On October 12, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On October 26, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On October 28, 2010, the Board of Directors approved the conversion of 5,800 Series B Preferred shares into 3,411,765 shares of Common stock for an investor. The shares were converted at $0.0085 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In November and December of 2010, Green issued 99,998 Series B Preferred shares to various investors for $150,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investors.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On November 12, 2010, the Board of Directors approved the conversion of 16,600 Series B Preferred shares into 7,155,172 shares of Common stock for an investor. The shares were converted at $0.0116 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On November 16, 2010, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 1,284,916 shares of Common stock for an investor. The shares were converted at $0.0179 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On November 22, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock for an investor. The shares were converted at $0.0055 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 10, 2011, Green issued 14,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.74 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 16, 2011, Green issued 16,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On April 1, 2011, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 3,833,333 shares of Common stock for an investor. The shares were converted at $0.006 per share which was the quoted closing price on the date the conversion letter was received from the shareholder. As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On April 26, 2011, Green issued 10,000 Series B Preferred shares to an investor for $15,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On April 28, 2011, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 5,000,000 shares of Common stock for an investor. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On June 13, 2011, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 2,500,000 shares of Common stock for an investor. The shares were converted at $0.004 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.&nbsp; As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On November 22, 2011 the Board of Directors approved the conversion of 2,400 Series B Preferred shares into 24,000,000 shares of Common Stock for an investor.&nbsp; The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">As of December 31, 2011 and 2010, Green had 5,850,000 and 5,850,000 shares of Supervoting Preferred stock issued and outstanding and 630,732 and 610,332 shares of convertible Series B Preferred stock issued and outstanding, respectively.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Common Stock</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green is authorized to issue 2,500,000,000 shares of Common stock with a par value of $0.001 per share. As of December 31, 2011 and 2010, Green had 570,886,794 and 430,149,464 shares of Common stock outstanding, respectively.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On August 4, 2010, by Written Consent of the majority of the voting rights of the shareholders of Green consent was given to authorize the Board of Directors to carry out a forward split of the issued and outstanding shares of the common stock on a 1 for five basis and by the same proportion, the number of authorized shares was increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On October 1, 2011, the Board of Directors approved the conversion of $10,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 16,666,667 shares of Common Stock.&nbsp; The shares were converted at $0.0006 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 6 2011, the Board of Directors approved the conversion of 4,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 19,656,217 shares of Common Stock.&nbsp; The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 16 2011, the Board of Directors approved the two issuances of 20,000,000 common shares each to two individuals who are employees of an affiliate of Green.&nbsp; The affiliate provides accounting and legal services to Green.&nbsp; The shares were issued pursuant to a stock option agreement and were valued at $19,510.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On December 27 2011, the Board of Directors approved the issuances of 20,000,000 common shares to an individual who provides accounting and tax consulting services to Green. The shares were issued pursuant to a stock option agreement and were valued at $5,854.</p> -1778595 321396 2690 6500 -2100450 183 -3548276 -1694506 430150 5850 -2083821 610 -3341717 -4585663 570887 5850 -2348200 631 -6356495 <!--egx--><p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>Note 12 &#150; Subsequent Events</b></p> <p style="MARGIN:0in 0in 0pt; tab-stops:.5in 45.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in right 6.5in"><b>&nbsp;</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 11, 2012, the Board of Directors approved the conversion of $4,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 21,052,632 shares of Common Stock.&nbsp; The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 13, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 26,315,789 shares of Common Stock.&nbsp; The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On January 24, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 27,272,727 shares of Common Stock.&nbsp; The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 2, 2012, Green issued an 8% Convertible Promissory Note in the principal face amount of $42,500 to Asher Enterprises Inc. in exchange for a cash payment of the same amount.&nbsp; The note has a due date of November 6, 2012.&nbsp; The note provides for potential conversion of Green&#146;s common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) trading day period prior to the date of conversion.&nbsp; The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933. </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 17, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 29,666,667 shares of Common Stock.&nbsp; The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 23, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 28,666,667 shares of Common Stock.&nbsp; The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On February 27, 2012, Green and Landis Experience Center LLC issued an 11% Convertible Note in the principal face amount of $50,000 to William and Nina Wolfson in exchange for a cash payment of the same amount.&nbsp; The note has a due date of February 27, 2016.&nbsp; The note provides for monthly payments in the amount of $1,292.28 of principal and interest.&nbsp; The note provides for potential conversion of Green&#146;s common stock with the conversion price set at 50% of the bid price on the date of conversion.&nbsp; The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.&nbsp; </p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 2, 2012, the Board of Directors approved the conversion of $6,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 31,578,947 shares of Common Stock.&nbsp; The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 14, 2012, the Board of Directors approved the conversion of $7,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 30,434,783 shares of Common Stock.&nbsp; The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 16, 2012, the Board of Directors approved the conversion of 3,888 Series B Preferred shares into 38,880,000 shares of Common Stock for an investor.&nbsp; The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">On March 29, 2012 the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares.&nbsp; This action was taken after notice to the shareholders and having consent from a majority of the voting rights.</p> <!--egx--><p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Note 2 &#150; Summary of Significant Accounting Policies</font></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Use of Estimates</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt"></font>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt"><font style="LETTER-SPACING:-0.1pt">The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Fair Value of Financial Instruments</font></b><font style="LETTER-SPACING:-0.1pt"></font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The carrying values of all financial instruments are deemed to approximate fair value due to the short maturity of these instruments and interest rates that approximate current market rates.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Cash and Cash Equivalents</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of December 31, 2011 and 2010, Green had no cash equivalents.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Inventory</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.5in">Inventory consists of items held for resale and is carried at the lower of cost or market. Cost is determined using the first in, first out (&#147;FIFO&#148;) method.<b><font style="LETTER-SPACING:-0.1pt"></font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="LETTER-SPACING:-0.1pt"></font>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Property, Plant and Equipment</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt">Property, plant and equipment is stated at historical cost. Depreciation is generally provided over the estimated useful lives, using the straight-line method, as follows:</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:.5in"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <table width="696" style="MARGIN:auto auto auto 4.5pt; WIDTH:696px; BORDER-COLLAPSE:collapse; HEIGHT:67px" cellpadding="0" cellspacing="0"> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 382.5pt"><font style="LINE-HEIGHT:90%">Computer equipment and related software </font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 years</font></p></td></tr> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 383.4pt"><font style="LINE-HEIGHT:90%">Leasehold improvements</font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">Shorter of the lease term or the estimated useful life</font></p></td></tr> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 381.15pt"><font style="LINE-HEIGHT:90%">Furniture and fixtures </font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3-10 years</font></p></td></tr> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 5.3in"><font style="LINE-HEIGHT:90%">Equipment</font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3-10 years</font></p></td></tr> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 5.3in"><font style="LINE-HEIGHT:90%">Vehicle</font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 years</font></p></td></tr> <tr> <td width="372" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:279pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:13.5pt decimal dotted 5.3in"><font style="LINE-HEIGHT:90%">Signage</font></p></td> <td width="324" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.5pt; WIDTH:243pt; PADDING-RIGHT:4.5pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in; tab-stops:center 67.5pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10 years</font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; LINE-HEIGHT:90%; MARGIN:0in 2.15pt 0pt 0in"><font style="LINE-HEIGHT:90%; BACKGROUND:aqua"></font>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">During the years ending December 31, 2011 and 2010, Green recorded depreciation expense in the amount of $93,983 and $77,042, respectively.<font style="BACKGROUND:aqua"></font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style="BACKGROUND:aqua"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following is a summary of Green&#146;s Property, plant, and equipment by major category as of December 31, 2011:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="698" style="WIDTH:698px; BORDER-COLLAPSE:collapse; HEIGHT:101px" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:4pt"> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; TEXT-INDENT:-22.5pt; MARGIN:0in 8.1pt 0pt 22.5pt; tab-stops:13.5pt 27.0pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="LINE-HEIGHT:90%; TEXT-INDENT:-22.5pt; MARGIN:0in 8.1pt 0pt 22.5pt; tab-stops:13.5pt 27.0pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 31.35pt right 62.7pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%">Accumulated</font></p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 37.35pt right 73.35pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; Depreciation&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-.15pt center .5in right 62.85pt" align="center"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-.15pt center .45in right 62.85pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 58.35pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Computer equipment and related software............................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18,992</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,733</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,259</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements......................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 443,579</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 204,377</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 239,202</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Furniture and fixtures............................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21,504</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,652</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,852</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Equipment................................................................................ </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 205,593</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 107,431</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 98,162</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Vehicle..................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,193</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,590</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43,603</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Signage..................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25,154</u></font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,139</u></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22,015</u></font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:27.0pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total.................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 763,015</u></font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 342,992</u></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 420,093</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The following is a summary of Green&#146;s Property, plant, and equipment by major category as of December 31, 2010:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="698" style="WIDTH:698px; BORDER-COLLAPSE:collapse; HEIGHT:104px" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:4pt"> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; TEXT-INDENT:-22.5pt; MARGIN:0in 8.1pt 0pt 22.5pt; tab-stops:13.5pt 27.0pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="LINE-HEIGHT:90%; TEXT-INDENT:-22.5pt; MARGIN:0in 8.1pt 0pt 22.5pt; tab-stops:13.5pt 27.0pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 31.35pt right 62.7pt"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%">Accumulated</font></p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 37.35pt right 73.35pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; Depreciation&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-.15pt center .5in right 62.85pt" align="center"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-.15pt center .45in right 62.85pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 58.35pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Computer equipment and related software............................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15,859</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,249</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,610</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements......................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 438,678</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 155,993</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 282,685</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Furniture and fixtures............................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,473</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,239</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,234</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Equipment................................................................................ </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 194,838</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 76,463</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 118,375</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Vehicle..................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,193</font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,295</font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45,898</font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; Signage..................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24,103</u></font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 700</u></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23,403</u></font></p></td></tr> <tr> <td width="390" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:292.65pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:27.0pt right dotted 4.25in"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total.................................................................................... </font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 742,144</u></font></p></td> <td width="116" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:87pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 77.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 248,939</u></font></p></td> <td width="96" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp; 493,205</u></font></p></td></tr></table> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Investments in Equity Securities</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt"><i>Marketable Securities</i></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; TEXT-AUTOSPACE:ideograph-numeric; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt">Green considers all of its investments in marketable securities as available-for-sale. Available-for-sale securities are stated at fair value, with the unrealized gains and losses presented net of tax and reported as a separate component of Stockholders' deficit. Realized gains and losses are determined using the specific identification method. Gains are recognized when realized and are recorded in the Consolidated Statements of Operations as Other income. Losses are recognized as realized or when Green has determined that an other-than-temporary decline in fair value has occurred.</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt"><i>Non-Marketable Securities</i></p> <p style="TEXT-INDENT:0in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Green uses either the cost or equity method of accounting to account for its long-term, non-marketable investment securities. If Green determines that an other-than-temporary decline exists in a non-marketable equity security, Green writes down the investment to its fair value and records the related write-down as an impairment loss in the Consolidated Statements of Operations.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Series B Preferred Stock</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">The Series B preferred stock is voting, convertible preferred. Each share of Green&#146;s Series B Preferred Stock is convertible into $5.00 worth of common stock. The number of common shares received is based on the market value of the common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash or common stock upon conversion. The Preferred Stock is classified as equity as long as there are sufficient shares available to effect the conversion. In some instances certain contracts may pass the option to receive cash or Common Stock to the shareholder. In this case, it is assumed that a cash settlement will occur and balance sheet classification of the affected Preferred Stock and related preferred paid-in capital as a liability.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Deferred Revenue</b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">Deferred revenue arises when customers pay for products and/or services in advance of revenue recognition. Green&#146;s deferred revenue consists solely of unearned revenue associated with the purchase of gift certificates for which revenue is recognized only when the service is performed or the product is delivered.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Revenue Recognition</font></b><font style="LETTER-SPACING:-0.1pt"></font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt"></font>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt">Revenue is recognized at the time the service is performed or the product is delivered.</font></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:-.5in"><font style="LETTER-SPACING:-0.1pt"></font>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Stock-Based Compensation</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; BACKGROUND:white">Green recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the restricted stock award, option, or purchase right and is recognized as expense, less expected forfeitures, over the requisite service period, which typically equals the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of each restricted stock issuance is determined using the fair value of Green&#146;s common stock on the grant date.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; BACKGROUND:white">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; BACKGROUND:white">Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the following:</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; BACKGROUND:white">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 63.5pt; BACKGROUND:white; tab-stops:list 63.5pt"><font style="FONT-FAMILY:Symbol">&#183;<font style="FONT:7pt 'Times New Roman'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font>Expected volatility of Green&#146;s stock;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 63.5pt; BACKGROUND:white; tab-stops:list 63.5pt"><font style="FONT-FAMILY:Symbol">&#183;<font style="FONT:7pt 'Times New Roman'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font>Expected term of stock options;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 63.5pt; BACKGROUND:white; tab-stops:list 63.5pt"><font style="FONT-FAMILY:Symbol">&#183;<font style="FONT:7pt 'Times New Roman'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font>Risk-free interest rate for the period;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 63.5pt; BACKGROUND:white; tab-stops:list 63.5pt"><font style="FONT-FAMILY:Symbol">&#183;<font style="FONT:7pt 'Times New Roman'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font>Expected dividends (if any); and,</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:-0.25in; MARGIN:0in 0in 0pt 63.5pt; BACKGROUND:white; tab-stops:list 63.5pt"><font style="FONT-FAMILY:Symbol">&#183;<font style="FONT:7pt 'Times New Roman'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font>Expected forfeitures.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; BACKGROUND:white">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; BACKGROUND:white">The computation of the expected volatility assumption used in the Black-Scholes option pricing model for new grants is based on implied volatility when the remaining maturities of the underlying traded options are at least one year and, when the remaining maturities of the underlying traded options are less than one year, it is based on an equal weighting of historical and implied volatilities.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; BACKGROUND:white">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; BACKGROUND:white">When establishing the expected life assumption, Green reviews annual historical employee exercise behavior with respect to option grants having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes in effect at the time of grant. Green has not historically paid dividends, thus the expected dividends used in any calculations are zero. Judgment is required in estimating the amount of stock-based awards that Green expects to be forfeited. Green calculates an expected forfeiture rate for stock options issuances based on historical trends.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; BACKGROUND:white">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; BACKGROUND:white">The valuation of all options, including the expected life and forfeiture rates of stock options, are calculated based on one employee pool because there is no significant difference in exercise behavior between classes of employees.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt; tab-stops:117.0pt">During the year ended December 31, 2011, Green issued 60,000,000 shares of common stock to three individuals for services calculated at $25,364 using the Black-Scholes option pricing model. See footnotes to the financial statements for additional disclosures regarding the Company&#146;s stock-based compensation.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt"></font></b>&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt">Income Taxes</font></b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; tab-stops:-.5in"><b><font style="LETTER-SPACING:-0.1pt; BACKGROUND:aqua"></font></b>&nbsp;</p> <p style="MARGIN:0in 0in 0pt">Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Also, Green's practice is to recognize interest and/or penalties related to income tax matters in income tax expense.</p> <p style="TEXT-INDENT:0in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align="left">The following is a table of Green&#146;s net operating losses (NOL), related estimated deferred tax assets, and expiration dates of the NOLs:</p> <p style="TEXT-INDENT:0in; MARGIN:0in 0in 0pt">&nbsp;</p> <table width="682" style="MARGIN:auto auto auto 4.65pt; BORDER-COLLAPSE:collapse" cellpadding="0" cellspacing="0"> <tr style="HEIGHT:4pt"> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 8.1pt 0pt -4.65pt; tab-stops:13.5pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p> <p style="LINE-HEIGHT:90%; TEXT-INDENT:-22.5pt; MARGIN:0in 8.1pt 0pt 22.5pt; tab-stops:13.5pt 27.0pt 40.5pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%">Net Operating</font></p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:17.85pt right 94.45pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (Loss)&nbsp;&nbsp; </font></u></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center 55.35pt" align="center"><font style="LINE-HEIGHT:90%">Deferred</font></p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:0in center 43.35pt right 94.35pt" align="center"><u><font style="LINE-HEIGHT:90%">Tax Asset (Liability)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><font style="LINE-HEIGHT:90%"></font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; HEIGHT:4pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:center .5in" align="center"><font style="LINE-HEIGHT:90%">Expiration</font></p> <p style="TEXT-ALIGN:center; LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:-.15pt center 43.35pt right 85.35pt" align="center"><u><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp; Year of NOL&nbsp;&nbsp;&nbsp; </font></u></p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt 40.5pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 58.35pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; 2008............................................................. </font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,697,742)</font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 577,000</font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 85.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028</font></p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; 2009............................................................. </font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (385,160)</font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 131,000</font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 85.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029</font></p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; 2010............................................................. </font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13,939</font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4,800)</font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 85.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030</font></p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:13.5pt 27.0pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp; 2011............................................................. </font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (264,379)</u></font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90,000</u></font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 85.35pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2031</font></p> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 85.35pt"><font style="LINE-HEIGHT:90%"></font>&nbsp;</p></td></tr> <tr> <td width="258" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:193.5pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in -31.65pt 0pt 0in; tab-stops:27.0pt right dotted 261.0pt"><font style="LINE-HEIGHT:90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total........................................................ </font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2,333,342</u>)<u style="text-underline:double"></u></font></p></td> <td width="144" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:1.5in; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 91.35pt"><font style="LINE-HEIGHT:90%">$ <u style="text-underline:double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 793,200</u></font></p></td> <td width="136" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:4.65pt; WIDTH:102pt; PADDING-RIGHT:4.65pt; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="top"> <p style="LINE-HEIGHT:90%; MARGIN:0in 0in 0pt; tab-stops:9.0pt decimal 62.7pt"><u style="text-underline:double"><font style="LINE-HEIGHT:90%"><font style="TEXT-DECORATION:none"></font></font></u>&nbsp;</p></td></tr></table> <p style="TEXT-ALIGN:left; TEXT-INDENT:0in; MARGIN:0in 0in 0pt" align="left">&nbsp;</p> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align="left">The related deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.&nbsp; The deferred tax asset above has been fully offset by a valuation allowance because the Company expects that it will not realize the benefits of the deferred tax asset in the near future.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Net Loss Per Share</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the specified period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and potential common shares during the specified period. For the year ended December 31, 2011, potential common shares are not included in the diluted net loss per share calculation as their effect would be anti-dilutive.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>Recent Accounting Pronouncements</b></p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In January 2010, the FASB issued ASU No. 2010-06, &#147;Improving Disclosures about Fair Value Measurements&#148; (&#147;ASU 2010-06&#148;). ASU 2010-06 requires new disclosures for (i) transfers of assets and liabilities in and out of levels one and two fair value measurements, including a description of the reasons for such transfers and (ii) additional information in the reconciliation for fair value measurements using significant unobservable inputs (level three). This guidance also clarifies existing disclosure requirements including (i) the level of disaggregation used when providing fair value measurement disclosures for each class of assets and liabilities and (ii) the requirement to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for level two and three assets and liabilities. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about activity in the roll forward for level three fair value measurements, which is effective for fiscal years beginning after December 15, 2010. The adoption of this guidance has not had a material impact on Green&#146;s financial position and results of operations.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In February 2010, the FASB issued ASU No. 2010-09, &#147;Amendments to Certain Recognition and Disclosure Requirements&#148; (&#147;ASU 2010-09&#148;), which amends ASC Topic 855, &#147;Subsequent Events.&#148; The amendments to ASC Topic 855 do not change existing requirements to evaluate subsequent events, but: (i) defines a &#147;SEC Filer,&#148; which we are; (ii) removes the definition of a &#147;Public Entity&#148;; and (iii) for SEC Filers, reverses the requirement to disclose the date through which subsequent events have been evaluated. ASU 2010-09 was effective for us upon issuance. This guidance did not have a material impact on Green&#146;s financial position and results of operations.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In April 2010, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Accounting Standards Update (&#147;ASU&#148;) No. 2010-13, &#147;Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades&#148; (&#147;ASU 2010-13&#148;). ASU 2010-13 addresses the classification of a share-based payment award with an exercise price denominated in the currency of a market in which the underlying equity security trades. FASB Accounting Standards Codification (&#147;ASC&#148;) Topic 718 was amended to clarify that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity&#146;s equity securities trade shall not be considered to contain a market, performance or service condition. Therefore, such an award is not to be classified as a liability if it otherwise qualifies for equity classification. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010, with early application permitted. We do not anticipate that the adoption of this guidance will have a material impact on Green&#146;s financial position and results of operations.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In May 2011, the FASB issued amendments to existing standards for fair value measurement and disclosure, which are effective in the first quarter of 2012. The amendments clarify or change the application of existing fair value measurements, including: that the highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity&#146;s holding are not permitted in a fair value measurement. The impact of adopting these amendments is expected to be immaterial to the financial statements.</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">In June 2011, the FASB issued amendments to existing standards for reporting comprehensive income.&nbsp;&nbsp;Accounting Standards Update (ASU) 2011-05 rescinds the requirement to present a Consolidated Statement of Changes in Share Owners&#146; Equity and introduces a new statement, the Consolidated Statement of Comprehensive Income.&nbsp;&nbsp;The new statement begins with net income and adds or deducts other recognized changes in assets and liabilities that are not included in net earnings under GAAP.&nbsp;&nbsp;For example, unrealized changes in currency translation adjustments are included in the measure of comprehensive income but are excluded from net earnings. The amendments are effective for our first quarter 2012 financial statements.&nbsp;&nbsp;The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-JUSTIFY:inter-ideograph; TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 0pt">Management believes the impact of other recently issued standards and updates, which are not yet effective, will not have a material impact on Green&#146;s consolidated financial position, results of operations or cash flows upon adoption.</p> 1081035 1036562 2342398 2759054 179216 213840 1466089 4443574 1081035 1036562 2956663 2949483 105339 -319351 2250998 2814026 -3341717 -6356495 381748573 459868549 -40349 -1588 -702572 -702572 -1588 -1588 0001487997 2011-01-01 2011-12-31 0001487997 2012-04-05 0001487997 2011-06-30 0001487997 2011-12-31 0001487997 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Inventory
12 Months Ended
Dec. 31, 2011
Inventory [Abstract]  
Inventory

Note 3 – Inventory

 

Green’s inventory consists of items held for resale and product that is used in services by the Landis and Landis II Salons. Inventory is carried at the lower of cost or market. As of December 31, 2011 and 2010, inventory amounted to $109,470 and $107,365, respectively.

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Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2011
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

The carrying values of all financial instruments are deemed to approximate fair value due to the short maturity of these instruments and interest rates that approximate current market rates.

 

Cash and Cash Equivalents

 

Investments with original maturities of three months or less at the time of purchase are considered cash equivalents. As of December 31, 2011 and 2010, Green had no cash equivalents.

 

Inventory

 

Inventory consists of items held for resale and is carried at the lower of cost or market. Cost is determined using the first in, first out (“FIFO”) method.

 

Property, Plant and Equipment

 

Property, plant and equipment is stated at historical cost. Depreciation is generally provided over the estimated useful lives, using the straight-line method, as follows:

 

Computer equipment and related software

                 3 years

Leasehold improvements

Shorter of the lease term or the estimated useful life

Furniture and fixtures

              3-10 years

Equipment

              3-10 years

Vehicle

                 7 years

Signage

                10 years

 

During the years ending December 31, 2011 and 2010, Green recorded depreciation expense in the amount of $93,983 and $77,042, respectively.

 

The following is a summary of Green’s Property, plant, and equipment by major category as of December 31, 2011:

 

 

 

 

       Cost      

Accumulated

   Depreciation 

 

        Net      

 

 

 

 

     Computer equipment and related software...............................

$        18,992

$             11,733

$          7,259

     Leasehold improvements.........................................................

        443,579

             204,377

        239,202

     Furniture and fixtures...............................................................

          21,504

               11,652

            9,852

     Equipment................................................................................

        205,593

             107,431

          98,162

     Vehicle.....................................................................................

          48,193

                 4,590

          43,603

     Signage.....................................................................................

          25,154

                 3,139

          22,015

         Total....................................................................................

$      763,015

$           342,992

$      420,093

 

 

 

 

The following is a summary of Green’s Property, plant, and equipment by major category as of December 31, 2010:

 

 

 

 

       Cost      

Accumulated

   Depreciation 

 

        Net      

 

 

 

 

     Computer equipment and related software...............................

$        15,859

$               4,249

$        11,610

     Leasehold improvements.........................................................

        438,678

             155,993

        282,685

     Furniture and fixtures...............................................................

          20,473

                 9,239

          11,234

     Equipment................................................................................

        194,838

               76,463

        118,375

     Vehicle.....................................................................................

          48,193

                 2,295

          45,898

     Signage.....................................................................................

          24,103

                    700

          23,403

         Total....................................................................................

$      742,144

$           248,939

$      493,205

 

 

Investments in Equity Securities

 

Marketable Securities

 

Green considers all of its investments in marketable securities as available-for-sale. Available-for-sale securities are stated at fair value, with the unrealized gains and losses presented net of tax and reported as a separate component of Stockholders' deficit. Realized gains and losses are determined using the specific identification method. Gains are recognized when realized and are recorded in the Consolidated Statements of Operations as Other income. Losses are recognized as realized or when Green has determined that an other-than-temporary decline in fair value has occurred.

 

Non-Marketable Securities

 

Green uses either the cost or equity method of accounting to account for its long-term, non-marketable investment securities. If Green determines that an other-than-temporary decline exists in a non-marketable equity security, Green writes down the investment to its fair value and records the related write-down as an impairment loss in the Consolidated Statements of Operations.

 

Series B Preferred Stock

 

The Series B preferred stock is voting, convertible preferred. Each share of Green’s Series B Preferred Stock is convertible into $5.00 worth of common stock. The number of common shares received is based on the market value of the common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash or common stock upon conversion. The Preferred Stock is classified as equity as long as there are sufficient shares available to effect the conversion. In some instances certain contracts may pass the option to receive cash or Common Stock to the shareholder. In this case, it is assumed that a cash settlement will occur and balance sheet classification of the affected Preferred Stock and related preferred paid-in capital as a liability.

 

Deferred Revenue

 

Deferred revenue arises when customers pay for products and/or services in advance of revenue recognition. Green’s deferred revenue consists solely of unearned revenue associated with the purchase of gift certificates for which revenue is recognized only when the service is performed or the product is delivered.

 

Revenue Recognition

 

Revenue is recognized at the time the service is performed or the product is delivered.

 

Stock-Based Compensation

 

Green recognizes the cost of employee services received in exchange for awards of equity instruments as stock-based compensation expense. Stock-based compensation expense is measured at the grant date based on the value of the restricted stock award, option, or purchase right and is recognized as expense, less expected forfeitures, over the requisite service period, which typically equals the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The fair value of each restricted stock issuance is determined using the fair value of Green’s common stock on the grant date.

 

Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the following:

 

·         Expected volatility of Green’s stock;

·         Expected term of stock options;

·         Risk-free interest rate for the period;

·         Expected dividends (if any); and,

·         Expected forfeitures.

 

The computation of the expected volatility assumption used in the Black-Scholes option pricing model for new grants is based on implied volatility when the remaining maturities of the underlying traded options are at least one year and, when the remaining maturities of the underlying traded options are less than one year, it is based on an equal weighting of historical and implied volatilities.

 

When establishing the expected life assumption, Green reviews annual historical employee exercise behavior with respect to option grants having similar vesting periods. The risk-free interest rate for the period within the expected term of the option is based on the yield of United States Treasury notes in effect at the time of grant. Green has not historically paid dividends, thus the expected dividends used in any calculations are zero. Judgment is required in estimating the amount of stock-based awards that Green expects to be forfeited. Green calculates an expected forfeiture rate for stock options issuances based on historical trends.

 

The valuation of all options, including the expected life and forfeiture rates of stock options, are calculated based on one employee pool because there is no significant difference in exercise behavior between classes of employees.

 

During the year ended December 31, 2011, Green issued 60,000,000 shares of common stock to three individuals for services calculated at $25,364 using the Black-Scholes option pricing model. See footnotes to the financial statements for additional disclosures regarding the Company’s stock-based compensation.

 

Income Taxes

 

Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Also, Green's practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

 

The following is a table of Green’s net operating losses (NOL), related estimated deferred tax assets, and expiration dates of the NOLs:

 

 

 

Net Operating

      Income (Loss)  

Deferred

Tax Asset (Liability)              

Expiration

    Year of NOL   

 

 

 

 

     2008.............................................................

$           (1,697,742)

$                577,000

                     2028

     2009.............................................................

                (385,160)

                  131,000

                     2029

     2010.............................................................

                    13,939

                    (4,800)

                     2030

     2011.............................................................

                (264,379)

                    90,000

                     2031

 

         Total........................................................

$           (2,333,342)

$                793,200

 

 

The related deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The deferred tax asset above has been fully offset by a valuation allowance because the Company expects that it will not realize the benefits of the deferred tax asset in the near future.

 

Net Loss Per Share

 

Net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the specified period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares and potential common shares during the specified period. For the year ended December 31, 2011, potential common shares are not included in the diluted net loss per share calculation as their effect would be anti-dilutive.

 

Recent Accounting Pronouncements

 

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). ASU 2010-06 requires new disclosures for (i) transfers of assets and liabilities in and out of levels one and two fair value measurements, including a description of the reasons for such transfers and (ii) additional information in the reconciliation for fair value measurements using significant unobservable inputs (level three). This guidance also clarifies existing disclosure requirements including (i) the level of disaggregation used when providing fair value measurement disclosures for each class of assets and liabilities and (ii) the requirement to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for level two and three assets and liabilities. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about activity in the roll forward for level three fair value measurements, which is effective for fiscal years beginning after December 15, 2010. The adoption of this guidance has not had a material impact on Green’s financial position and results of operations.

 

In February 2010, the FASB issued ASU No. 2010-09, “Amendments to Certain Recognition and Disclosure Requirements” (“ASU 2010-09”), which amends ASC Topic 855, “Subsequent Events.” The amendments to ASC Topic 855 do not change existing requirements to evaluate subsequent events, but: (i) defines a “SEC Filer,” which we are; (ii) removes the definition of a “Public Entity”; and (iii) for SEC Filers, reverses the requirement to disclose the date through which subsequent events have been evaluated. ASU 2010-09 was effective for us upon issuance. This guidance did not have a material impact on Green’s financial position and results of operations.

 

In April 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-13, “Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades” (“ASU 2010-13”). ASU 2010-13 addresses the classification of a share-based payment award with an exercise price denominated in the currency of a market in which the underlying equity security trades. FASB Accounting Standards Codification (“ASC”) Topic 718 was amended to clarify that a share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity securities trade shall not be considered to contain a market, performance or service condition. Therefore, such an award is not to be classified as a liability if it otherwise qualifies for equity classification. The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010, with early application permitted. We do not anticipate that the adoption of this guidance will have a material impact on Green’s financial position and results of operations.

 

In May 2011, the FASB issued amendments to existing standards for fair value measurement and disclosure, which are effective in the first quarter of 2012. The amendments clarify or change the application of existing fair value measurements, including: that the highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity’s holding are not permitted in a fair value measurement. The impact of adopting these amendments is expected to be immaterial to the financial statements.

 

In June 2011, the FASB issued amendments to existing standards for reporting comprehensive income.  Accounting Standards Update (ASU) 2011-05 rescinds the requirement to present a Consolidated Statement of Changes in Share Owners’ Equity and introduces a new statement, the Consolidated Statement of Comprehensive Income.  The new statement begins with net income and adds or deducts other recognized changes in assets and liabilities that are not included in net earnings under GAAP.  For example, unrealized changes in currency translation adjustments are included in the measure of comprehensive income but are excluded from net earnings. The amendments are effective for our first quarter 2012 financial statements.  The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.

 

Management believes the impact of other recently issued standards and updates, which are not yet effective, will not have a material impact on Green’s consolidated financial position, results of operations or cash flows upon adoption.

XML 20 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (USD $)
Dec. 31, 2011
Dec. 31, 2010
Current Assets:    
Cash $ 97,983 $ 67,593
Accounts receivable 143 941
Inventory 109,470 107,365
Prepaid expenses 6,244 3,317
Total current assets 213,840 179,216
Property, plant and equipment, net of accumulated depreciation of $342,923 and $248,939 respectively 420,093 493,205
Other assets 402,629 408,614
Total Assets 1,036,562 1,081,035
Current Liabilities:    
Accounts payable and accrued expenses 293,794 200,327
Deferred revenue 57,823 48,525
Due to related parties 838,274 893,405
Derivative Liability 2,943,160  
Current portion of notes payable related party   125,584
Current portion of notes payable 200,629 198,248
Convertible notes payable, net of debt discount of $30,606 and $0, respectively 109,894  
Total current liabilities 4,443,574 1,466,089
Long-Term Liabilities:    
Notes payable related party 112,723 105,000
Notes payable 72,128 102,056
Convertible debentures, net of debt discount of $95,168 and $110,193, respectively 2,764,632 2,749,607
Total long-term liabilities 2,949,483 2,956,663
Stockholders' Deficit:    
Convertible Supervoting preferred stock, $0.001 par value, 10,000,000 shares authorized; 5,850,000 and 5,850,000 shares issued and outstanding at December 31, 2011 and 2010; respectively, no liquidation value 5,850 5,850
Convertible preferred series B stock - $0.001 par value 2,000,000 shares authorized, 630,732 and 610,332 shares issued and outstanding at December 31, 2011and 2010, respectively 631 610
Preferred stock - $0.001 par value 3,000,000 shares authorized, no shares issued and outstanding at December 31, 2011 and 2010, respectively      
Common stock, $0.001 par value, 2,500,000,000 shares authorized; 570,886,764 and 430,149,464 shares issued and outstanding at December 31, 2011 and 2010, respectively 570,887 430,150
Additional paid-in capital (4,585,663) (1,694,506)
Accumulated deficit (2,348,200) (2,083,821)
Total stockholders' deficit (6,356,495) (3,341,717)
Total Liabilities and Stockholders' Deficit $ 1,036,562 $ 1,081,035
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Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash Flows from Operating Activities:    
Net income (loss) $ (264,379) $ 13,939
Adjustments to reconcile net loss attributable to controlling interest to net cash provided by (used in) operating activities:    
Depreciation 93,983 77,042
Gain on sale of subsidiary   (320,770)
Accretion of convertible debt discounts 73,905  
Write-down of related party receivables (1,588) (40,349)
Stock based compensation 25,364 30,000
Changes in operating assets and liabilities:    
Accounts receivable 799  
Due from related parties (55,131) (643,962)
Inventories (2,105) (14,331)
Prepaid expenses (2,927) (3,317)
Other assets 5,983 (190,175)
Accounts payable and accrued expenses 93,467 661,431
Deferred revenue 9,298 19,030
Other long-term liabilities 7,723 90,936
Net cash provided by (used in) operating activities (15,608) (320,526)
Cash Flows from Investing Activities:    
Purchases of long-term investment   (25,085)
Purchases of property, plant, and equipment (20,871) (280,085)
Net cash provided by (used in) investing activities (20,871) (305,170)
Cash Flows from Financing Activities:    
Proceeds from bank loan   100,000
Payments made on bank loan (8,569) (51,367)
Payments made on notes payable (18,978)  
Payments made on related party notes payable (125,584)  
Proceeds from issuance of convertible notes payable 155,000  
Proceeds from issuance of preferred stock 65,000 611,000
Net cash provided by (used in) financing activities 66,869 659,633
Increase in cash 30,390 33,937
Cash at Beginning of Year 67,593 33,656
Cash at end of year 97,983 67,593
Supplemental cash flow information:    
Cash paid for interest 5,699 7,317
Non-cash investing and financing activities:    
Issuance of series B preferred shares 5,699 369,000
Issuance of common stock options 25,364  
Conversion of convertible note payable to common shares (14,500)  
Derivative Liability 2,943,160  
Conversion of B preferred shares $ 44,394 $ 108,700

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XML 24 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization and Basis of Financial Statement Presentation
12 Months Ended
Dec. 31, 2011
Organization and Basis of Financial Statement Presentation [Abstract]  
Organization and Basis of Financial Statement Presentation

Note 1 – Organization and Basis of Financial Statement Presentation

 

Business Description

 

Green Endeavors, Inc., (“Green”) owns and operates two hair salons carrying the Aveda™ product line through its wholly-owned subsidiaries Landis Salons, Inc. (“Landis”) and Landis Salons II, Inc. (“Landis II”) in Salt Lake City Utah.

 

Organization

 

Green Endeavors, Inc. was incorporated under the laws of the State of Delaware on April 25, 2002 as Jasper Holdings.com, Inc..  During the year ended December 2004, Green changed its name to Net2Auction, Inc. In July of 2007, Green changed its name to Green Endeavors, Ltd. On August 23, 2010, Green changed its name to Green Endeavors, Inc. and moved the corporate domicile from Delaware to Utah. On August 26, 2010, Green effected a forward split of the issued and outstanding shares of its common stock on a one for five basis and by the same proportion the number of authorized shares were increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares and amended the designations of its Preferred Stock. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share, and the amendment to the designation of the Series B Preferred Shares will modify the language in the designation regarding changes in the Common stock and the time period allowed to the corporation to respond to request for conversion up to 90 days. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split. Green is quoted on the Pink Sheets as an OTCQB issuer under the symbol GRNE.

 

Green is a 90% controlled subsidiary of Nexia Holdings, Inc (“Nexia”). Nexia acquired Green from AmeriResource Technologies, Inc. in October 2007 in exchange for 150,000 shares of Nexia Series C Preferred Stock valued at $750,000. Nexia is not currently a reporting company and is quoted on the Pink Sheets under the symbol NXHD.

 

Landis Salons, Inc., a Utah corporation, was organized on May 4, 2005 for the purpose of operating an Aveda Lifestyle Salon. As of December 31, 2009, Landis was 99% owned by Green and a noncontrolling interest of 1% was held by a former employee. During the three months ended March 31, 2010, Green issued 10,000 Series B Preferred shares for the remaining 1% noncontrolling interest in Landis.

 

Landis Salons II, Inc., a Utah corporation was organized on March 17, 2010 as a wholly-owned subsidiary of Green for the purpose of opening a second Aveda Lifestyle Salon. On September 20, 2010, Landis II opened its doors for operations.

 

Basis of Financial Statement Presentation

 

The consolidated financial statements include the accounts of Green and its subsidiaries after elimination of intercompany accounts and transactions. All consolidated subsidiaries are wholly-owned by Green as of December 31, 2011 and 2010.

 

Green consolidates entities under control and records a noncontrolling interest for the portions not owned by Green. Control is determined, where applicable, by the sufficiency of equity invested and the rights of the equity holders, and by the ownership of a majority of the voting interests, with consideration given to the existence of approval or veto rights granted to the minority shareholder. If the minority shareholder holds substantive participating rights, it overcomes the presumption of control by the majority voting interest holder. In contrast, if the minority shareholder simply holds protective rights (such as consent rights over certain actions), it does not overcome the presumption of control by the majority voting interest holder.

XML 25 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2011
Dec. 31, 2010
Accumulated depreciation on property, plant and equipment $ 342,923 $ 248,939
Debt discount, current 30,606 0
Debt discount, non current $ 95,168 $ 110,193
Convertible Supervoting preferred stock, par or stated value $ 0.001 $ 0.001
Convertible Supervoting preferred stock, shares authorized 10,000,000 10,000,000
Convertible Supervoting preferred stock, shares issued 5,850,000 5,850,000
Convertible Supervoting preferred stock, shares outstanding 5,850,000 5,850,000
Convertible preferred series B stock, par or stated value $ 0.001 $ 0.001
Convertible preferred series B stock, shares authorized 2,000,000 2,000,000
Convertible preferred series B stock, shares issued 630,732 610,332
Convertible preferred series B stock, shares outstanding 630,732 610,332
Preferred Stock, par or stated value $ 0.001 $ 0.001
Preferred Stock, shares authorized 3,000,000 3,000,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Common Stock, par or stated value $ 0.001 $ 0.001
Common Stock, shares authorized 2,500,000,000 2,500,000,000
Common Stock, shares issued 570,886,764 430,149,464
Common Stock, shares outstanding 570,886,764 430,149,464
XML 26 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock-based Compensation
12 Months Ended
Dec. 31, 2011
Stock-based Compensation [Abstract]  
Stock-based Compensation

Note 11 – Stock-Based Compensation

On December 2, 2011, the Board of Directors approved a stock-based compensation program entitled The 2011 Benefit Plan of Green Endeavors, Inc. (the “Plan”) wherein common stock options are granted to employees. A total of 300,000,000 shares of the Green’s common stock (par $.001) are authorized to be issued or granted to employees (“Employees”) under the Plan.  Employees include actual employees or certain non-employee, consultants and advisors of Green, its subsidiaries, and parent company. The Plan is designed to attract and retain employees.

Under the Plan and during the year ended December 31, 2011, the company granted 60,000,000 shares to two employees and one consultant (20,000,000 shares each) for services of which all were exercised by the year ended December 31, 2011.  For the year ended December 31, 2011, stock-based compensation expense was $25,364 and was accounted for under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant.  The weighted average components used for the calculation of the fair value for the options granted were:  $.0003 – exercise price, 1 year term, 422% volatility, and a .12% risk free rate. The income tax benefit related to the 2011 stock-based compensation expense was $0. Also, the aggregate intrinsic value of all options outstanding and exercisable at December 31, 2011 was $0. As of December 31, 2011, grants unexercised and shares available for future stock-based compensation grants were -0- and 240,000,000 shares, respectively.

XML 27 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Apr. 05, 2012
Jun. 30, 2011
Document and Entity Information      
Entity Registrant Name Green Endeavors, Inc.    
Document Type 10-K    
Document Period End Date Dec. 31, 2011    
Amendment Flag false    
Entity Central Index Key 0001487997    
Current Fiscal Year End Date --12-31    
Entity Common Stock, Shares Outstanding   862,355,708  
Entity Public Float     $ 543,048
Entity Filer Category Smaller Reporting Company    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Document Fiscal Year Focus 2011    
Document Fiscal Period Focus FY    
XML 28 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent Events
12 Months Ended
Dec. 31, 2011
Subsequent Events [Abstract] {1}  
Subsequent Events

Note 12 – Subsequent Events

 

On January 11, 2012, the Board of Directors approved the conversion of $4,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 21,052,632 shares of Common Stock.  The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.

 

On January 13, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 26,315,789 shares of Common Stock.  The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.

 

On January 24, 2012, the Board of Directors approved the conversion of $5,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 27,272,727 shares of Common Stock.  The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.

 

On February 2, 2012, Green issued an 8% Convertible Promissory Note in the principal face amount of $42,500 to Asher Enterprises Inc. in exchange for a cash payment of the same amount.  The note has a due date of November 6, 2012.  The note provides for potential conversion of Green’s common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) trading day period prior to the date of conversion.  The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933.

 

On February 17, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 29,666,667 shares of Common Stock.  The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.

 

On February 23, 2012, the Board of Directors approved the conversion of $3,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 28,666,667 shares of Common Stock.  The shares were converted at $0.00012 per share which was the conversion price provided for by the terms of the note.

 

On February 27, 2012, Green and Landis Experience Center LLC issued an 11% Convertible Note in the principal face amount of $50,000 to William and Nina Wolfson in exchange for a cash payment of the same amount.  The note has a due date of February 27, 2016.  The note provides for monthly payments in the amount of $1,292.28 of principal and interest.  The note provides for potential conversion of Green’s common stock with the conversion price set at 50% of the bid price on the date of conversion.  The transaction was handled as a private sale exempt from registration under Rule 506 of the Securities Act of 1933. 

 

On March 2, 2012, the Board of Directors approved the conversion of $6,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 31,578,947 shares of Common Stock.  The shares were converted at $0.00019 per share which was the conversion price provided for by the terms of the note.

 

On March 14, 2012, the Board of Directors approved the conversion of $7,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 30,434,783 shares of Common Stock.  The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.

 

On March 16, 2012, the Board of Directors approved the conversion of 3,888 Series B Preferred shares into 38,880,000 shares of Common Stock for an investor.  The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.

 

On March 29, 2012 the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares.  This action was taken after notice to the shareholders and having consent from a majority of the voting rights.

XML 29 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Revenue:    
Services, net of discounts $ 2,130,184 $ 1,668,424
Product, net of discounts 683,842 582,574
Total revenue 2,814,026 2,250,998
Costs and Expenses:    
Cost of services 1,186,726 994,765
Cost of product 427,789 310,640
Depreciation 93,983 77,042
General and administrative 1,050,556 959,951
Total costs and expenses 2,759,054 2,342,398
Income (loss) from operations 54,972 (91,400)
Other income (expenses), net:    
Interest expense (321,745) (253,514)
Interest income 834  
Gain on sale of subsidiary   320,770
Other income 1,560 38,083
Total other income (expenses), net (319,351) 105,339
Net income (loss) $ (264,379) $ 13,939
Basic and diluted net income (loss) per share $ 0.00 $ 0.00
Weighted average common shares outstanding - basic and diluted 459,868,549 381,748,573
XML 30 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Lease Commitments
12 Months Ended
Dec. 31, 2011
Lease Commitments [Abstract]  
Lease Commitments

Note 6 – Lease Commitments

 

Operating Leases

 

Facilities are leased under operating leases expiring at various dates through 2020. Certain of these leases contain renewal options. For the years ended December 31, 2011 and 2010, rent expense was $154,615 and $115,214, respectively.

 

As of December 31, 2011, future minimum lease payments under non-cancelable operating leases were as follows:

 

 

Operating

   For the fiscal years:

      Leases   

      2012....................................................................................................................................

        141,528

      2013....................................................................................................................................

        145,066

      2014....................................................................................................................................

        148,693

      2015....................................................................................................................................

        132,415

      2016....................................................................................................................................

          75,741

      Thereafter............................................................................................................................

        301,087

           Total lease payments.......................................................................................................

$      944,530

 

Capital Leases

 

The following is a summary of the gross amount of assets by class recorded under capital leases as of December 31, 2011 and 2010:

 

 

Classes of Property

December 31,

        2011      

December 31,

        2010

  Salon equipment.....................................................................................

$             - - - -

$          50,603

 

During the year ended December 31, 2011, Green completed its capital lease through a bargain purchase option extended in the lease agreement. The bargain purchase amount was $4,916 which was the entire amount of the security deposit.

XML 31 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivative Liability
12 Months Ended
Dec. 31, 2011
Derivative Liability [Abstract]  
Derivative Liability

Note 5 – Derivative Liability

 

Derivative Liability

 

            On December 31, 2011, it was determined that Green’s authorized number of common shares of stock (2,500,000,000) was insufficient to cover the potential conversion of the Company’s convertible debt instruments, Preferred Series B stock, and Preferred Supervoting stock into common stock.  Green has recorded a derivative liability to account for such potential conversion.  The shortage of authorized common stock was approximately 9,810,532,249 shares.  This number of needed authorized shares was multiplied by the quoted price of Green’s stock on December 31, 2011 ($.0003).  The result of the shortage is a current liability in the amount of $2,943,160.  This amount will be remeasured at each reporting period as long as the shortage in authorized common shares exists.

 

On March 29, 2012 the Company filed with the State of Utah an Amendment to its Articles of Incorporation that increased the number of authorized shares of common stock to ten billion shares.  This action was taken after notice to the shareholders and having consent from a majority of the voting rights.

XML 32 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Going Concern
12 Months Ended
Dec. 31, 2011
Going Concern [Abstract]  
Going Concern

Note 13 – Going Concern

 

Generally accepted accounting principles in the United States of America contemplate the continuation of Green as a going concern. However, Green had a net loss $264,379 for the year ended December 31, 2011 and negative working capital of $4,229,734 at December 31, 2011, which raises substantial doubt about the Green’s ability to continue as a going concern. Green’s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to successfully fulfill its business plan. Management plans to attempt to raise additional funds to finance the operating and capital requirements of Green through a combination of equity and debt financings. While Green is making its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be sufficient for operations.

XML 33 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stockholders' Deficit
12 Months Ended
Dec. 31, 2011
Stockholders' Deficit [Abstract]  
Stockholders' Deficit

Note 9 – Stockholders’ Deficit

 

Preferred Stock

 

On August 4, 2010 by Written Consent of the majority of the voting rights of the shareholders of Green, consent was given to authorize the Board of Directors to amend the designations of the Preferred Stock. The change in the designation of the Supervoting Preferred Stock increased its voting rights from 10 votes per share to 100 votes per share.

 

Green is authorized to issue 15,000,000 shares of preferred stock. Green’s preferred stock may be divided into such series as may be established by the Board of Directors. Each share of the Supervoting preferred stock is convertible into 100 shares of Green’s Common stock and has the voting rights equal to 100 shares of Common stock.

 

The Series B preferred stock is non-voting, convertible preferred. Each share of Green’s Series B Preferred Stock is convertible into $5.00 worth of Common stock. The number of common shares received is based on the market value of the Common stock on the date of conversion. Series B Preferred Stock shareholders, at the option of Green, can receive cash.

 

On January 21, 2010, the Board of Directors approved the conversion of 6,400 shares of Series B Preferred shares into 32,000,000 shares of Common stock. The shares were converted at $0.001 per share based on the closing price of the stock prior to the date of conversion.

 

On February 17, 2010, Green issued 10,000 Series B Preferred shares to a former employee for the remaining 1% noncontrolling interest in Landis.

 

On February 26, 2010, Green issued 4,400 Series B Preferred shares to an investor for $11,000. The shares were valued at $2.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On March 12, 2010, the Board of Directors approved the conversion of 400 Series B Preferred shares into 1,000,000 shares of Common stock for an employee. The shares were converted at $0.002 per share based on the closing price of the stock prior to the date of issuance.

 

On April 13, 2010, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 10,000,000 shares of Common stock for an investor. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On April 16, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On June 24, 2010, the Board of Directors approved the exchange of 650,000 shares of Green’s Supervoting Preferred stock from AmeriResource Technologies, Inc. for 52,000 shares of Green’s Series B Preferred stock. The number of Series B Preferred shares issued in this transaction were determined based on one share of Green’s Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred shared is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.

 

On June 28, 2010, Green issued 33,334 Series B Preferred shares to two separate investors for $50,000 each. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc.

 

On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000. This amount is recorded as an other asset on the Balance Sheet.

 

On August 4, 2010, the Board of Directors approved for two different investors the conversions of 3,000 Series B Preferred shares into 15,000,000 shares of common stock for each of the investors. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.

 

On August 5, 2010, the Board of Directors approved the conversion of 3,000 Series B Preferred shares into 15,000,000 shares of common stock. The shares were converted at $0.001 per share which was mutually agreed upon by the Board of Directors and each of the investors.

 

On August 19, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On August 26, 2010, Green issued 33,334 Series B Preferred shares to an investor for $50,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On September 21, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock. The shares were converted at $0.0055 per share, which was mutually agreed upon by the Board of Directors and the investor.

 

On September 21, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On September 27, 2010, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 4,901,960 shares of Common stock. The shares were converted at $0.0051 per share, which was the closing price on the last trading day prior to the conversion.

 

On September 28, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On October 12, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On October 26, 2010, Green issued 16,666 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On October 28, 2010, the Board of Directors approved the conversion of 5,800 Series B Preferred shares into 3,411,765 shares of Common stock for an investor. The shares were converted at $0.0085 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.

 

In November and December of 2010, Green issued 99,998 Series B Preferred shares to various investors for $150,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investors.

 

On November 12, 2010, the Board of Directors approved the conversion of 16,600 Series B Preferred shares into 7,155,172 shares of Common stock for an investor. The shares were converted at $0.0116 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.

 

On November 16, 2010, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 1,284,916 shares of Common stock for an investor. The shares were converted at $0.0179 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.

 

On November 22, 2010, the Board of Directors approved the conversion of 2,200 Series B Preferred shares into 2,000,000 shares of Common stock for an investor. The shares were converted at $0.0055 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.

 

On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000.

 

On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.

 

On March 10, 2011, Green issued 14,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.74 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On March 16, 2011, Green issued 16,333 Series B Preferred shares to an investor for $25,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On April 1, 2011, the Board of Directors approved the conversion of 4,600 Series B Preferred shares into 3,833,333 shares of Common stock for an investor. The shares were converted at $0.006 per share which was the quoted closing price on the date the conversion letter was received from the shareholder. As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.

 

On April 26, 2011, Green issued 10,000 Series B Preferred shares to an investor for $15,000. The shares were valued at $1.50 per share which was mutually agreed upon by the Board of Directors and the individual investor.

 

On April 28, 2011, the Board of Directors approved the conversion of 5,000 Series B Preferred shares into 5,000,000 shares of Common stock for an investor. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.

 

On June 13, 2011, the Board of Directors approved the conversion of 2,000 Series B Preferred shares into 2,500,000 shares of Common stock for an investor. The shares were converted at $0.004 per share which was the quoted closing price on the date the conversion letter was received from the shareholder.  As of December 31, 2011, the Board of Directors had rescinded the approval as no shared had been issued by that date.

 

On November 22, 2011 the Board of Directors approved the conversion of 2,400 Series B Preferred shares into 24,000,000 shares of Common Stock for an investor.  The shares were converted at $0.0005 per share which was the quoted closing price on the date the conversion request was received from the shareholder.

 

 

As of December 31, 2011 and 2010, Green had 5,850,000 and 5,850,000 shares of Supervoting Preferred stock issued and outstanding and 630,732 and 610,332 shares of convertible Series B Preferred stock issued and outstanding, respectively.

 

Common Stock

 

Green is authorized to issue 2,500,000,000 shares of Common stock with a par value of $0.001 per share. As of December 31, 2011 and 2010, Green had 570,886,794 and 430,149,464 shares of Common stock outstanding, respectively.

 

On August 4, 2010, by Written Consent of the majority of the voting rights of the shareholders of Green consent was given to authorize the Board of Directors to carry out a forward split of the issued and outstanding shares of the common stock on a 1 for five basis and by the same proportion, the number of authorized shares was increased to 2.5 billion to maintain the same ratios of authorized shares to issued shares. All share and per share information included in these financial statements has been adjusted to reflect this forward stock split.

 

On October 1, 2011, the Board of Directors approved the conversion of $10,000 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 16,666,667 shares of Common Stock.  The shares were converted at $0.0006 per share which was the conversion price provided for by the terms of the note.

 

On December 6 2011, the Board of Directors approved the conversion of 4,500 of the April 5, 2011 Convertible Note held by Asher Enterprises, Inc. into 19,656,217 shares of Common Stock.  The shares were converted at $0.00023 per share which was the conversion price provided for by the terms of the note.

 

On December 16 2011, the Board of Directors approved the two issuances of 20,000,000 common shares each to two individuals who are employees of an affiliate of Green.  The affiliate provides accounting and legal services to Green.  The shares were issued pursuant to a stock option agreement and were valued at $19,510.

 

On December 27 2011, the Board of Directors approved the issuances of 20,000,000 common shares to an individual who provides accounting and tax consulting services to Green. The shares were issued pursuant to a stock option agreement and were valued at $5,854.

XML 34 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
12 Months Ended
Dec. 31, 2011
Related Party Transactions [Abstract] {1}  
Related Party Transactions

Note 7 – Related Party Transactions

 

 

The following table summarizes the principal and accrued interest balance of the Convertible Debentures as of December 31, 2011and 2010:

 

 

December 31,

        2011

December 31,

        2010

  Principal balance........................................................................................

$     2,859,800

$     2,875,000

  Accrued interest.........................................................................................

          699,062

          470,278

        Total....................................................................................................

$     3,558,862

$     3,330,078

 

 

On June 24, 2010, the Board of Directors approved the purchase of 650,000 shares of Green’s Supervoting Preferred stock from AmeriResource Technologies, Inc. in exchange for 52,000 shares of Green’s Series B Preferred stock. The number of Series B Preferred shares issued in this transaction was determined based on one share of Green’s Supervoting Preferred stock being equivalent to 10 shares of Common stock and each Series B Preferred share is convertible into $5.00 of Common stock. The Series B Preferred shares were valued at $260,000.

 

On July 7, 2010, the Board of Directors authorized the issuance of 25,000 shares of restricted Series B Preferred shares to Richard G. Clegg, an officer and director of Green, pursuant to the terms of his employment agreement with a related party, Diversified Holdings I, Inc. The shares were issued pursuant to The 2008 Benefit Plan of Green to a natural person, providing bona fide services and not in conjunction with a capital raising transaction, exempt from registration under Rule 701 of the Securities Act of 1933.  These shares are subject to redemption based upon Mr. Cleggs resignation under the terms of his employment agreement.

 

On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II, Inc. to serve as the location for a new Landis Lifestyle Salon. The shares are held by the landlord of the Marmalade facility to be converted and liquidated in the event of default on the part of Landis II. The shares will be returned to Landis II on the second anniversary of the lease commencement date provided that all obligations under the lease are current and the shares are reflected as an other non-current asset on Green’s Consolidated Balance Sheet.

 

On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms.

 

On December 1, 2010, Green sold its ownership interest in Newby to Diversified Holdings X, Inc. whose president is also the president of Green Endeavors, Inc. See Note 9 for additional information on the sale of Newby.

 

On December 2, 2010, the Board of Directors approved the issuance of 2,000 Series B Preferred shares each to three employees of Landis Salons, Inc. for services rendered. The shares were valued at $5 per share or $30,000.  One of the employees who received such shares was Logan Fast, an officer and director of Green.

 

On January 6, 2011, the Board of Directors approved the conversion of 12,866 Series B Preferred shares into 12,866,000 shares of Common stock for Richard Surber, President, CEO and Director of Green. The shares were converted at $0.005 per share which was the quoted closing price on the date the conversion letter was received from Mr. Surber.

XML 35 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Notes Payable
12 Months Ended
Dec. 31, 2011
Notes Payable [Abstract] {1}  
Notes Payable

Note 8 – Notes Payable

 

A summary of notes payable as of December 31, 2011 and 2010 is as follows:

 

 

      Creditor                                                           

  Interest

    Rate 

      Due

      Date        

   December 31,

        2011   

  December 31,

      2010    

  Xing Investment Corp (1)............................................................

  10.00%

    05-12-2008

$      171,000

$      171,000

  Salt Lake City Corporation (2).....................................................

    3.25%

    06-18-2015

          73,294

          92,272

  Asher Enterprises, Inc. (3)...........................................................

    8.00%

01-09-2012

          60,500

             - - - -

  Asher Enterprises, Inc. (4)...........................................................

    8.00%

03-16-2012

          32,500

             - - - -

  Asher Enterprises, Inc. (5)...........................................................

    8.00%

04-25-2012

          25,000

             - - - -

  Asher Enterprises, Inc. (6)...........................................................

    8.00%

09-12-2012

          22,500

             - - - -

  Chase Bank..................................................................................

    7.24%

    02-13-2015

          28,463

          37,032

  Nexia Holdings, Inc (related party)..............................................

       - - - -

    09-11-2011

             - - - -

        125,584

     Wasatch Capital Corp. (related party)..........................................

    5.00%

    11-10-2018

       112,724

       105,000

      Total........................................................................................

 

 

        525,981

        530,888

      Less: Current portion of notes payable....................................

 

 

        341,129

        323,832

      Long-term portion of notes payable........................................

 

 

$      184,852

$      207,056

 

 

(1) On May 12, 2006, Green borrowed $171,000 from Xing Investment Corp with a convertible promissory note. The note is interest bearing at 10% per annum with no interest due until the note maturity date of May 12, 2008. Both principal and accrued interest, at the option of the note holder, may be converted into Common stock of Green at $0.01 per share. The note was not liquidated at the maturity date and is currently in default. No payments have been made on the obligation because Green is unable to locate Xing Investment Corp. or its representatives. As of December 31, 2011 and December 31, 2010, accrued interest reported in accounts payable and accrued expenses was $34,200, respectively.

 

(2) On June 18, 2010, Landis Salons, Inc. received a loan in the amount of $100,000 from the Division of Economic Development of Salt Lake City Corporation. The loan includes a 1% origination fee and bears interest at the rate of 3.25% per annum. Principal and interest payments are made monthly over a five year term commencing June 2010. The loan is secured by a $25,000 certificate deposit held in the name of Landis Salons, Inc. and personally guaranteed by Richard Surber, CEO of Green.

 

(3) On April 5, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $75,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of January 9, 2012. The note provides for potential conversion into Green’s common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $47,951. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $46,703 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $1,248 and the accrued interest balance on the note was $4,158. During 2011, $14,500 of the note had been converted to common stock as follows: a.) on October 12, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $10,000 of the convertible promissory note into 16,666,667 shares of common stock at a conversion rate of $0.0006 per share, and b.) on December 5, 2011, the Board of Directors approved the conversion request from Asher Enterprises, Inc. to convert $4,500 of the convertible promissory note into 19,656,217 shares of common stock at a conversion rate of $0.00023 per share.

 

(4) On June 14, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $32,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a maturity date of March 16, 2012. The note provides for potential conversion into Green’s common stock beginning in six months with the conversion price set at 61% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $20,779. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $15,057 of the debt discount had been amortized and recorded as interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $5,722 and the accrued interest balance on the note was $1,425.

 

(5) On July 19, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $25,000 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of April 25, 2012. The note provides for potential conversion into Green’s common stock beginning in six months with the conversion price set at 58% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $18,103. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $10,630 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $7,473 and the accrued interest balance on the note was $871.

 

(6) On December 7, 2011, the Green issued an 8% Convertible Promissory Note in the principal face amount of $22,500 to Asher Enterprises Inc., in exchange for a cash payment of the same amount. The note has a due date of September 12, 2012. The note provides for potential conversion into Green’s common stock beginning in six months with the conversion price set at 56% of the average of the lowest three (3) trading prices for the Common Stock during the ten (10) Trading Day period prior to the date of conversion. Based on the intrinsic value on the date of issuance, Green has a beneficial conversion feature, for which it has recorded a debt discount of $17,679. This discount is being amortized to the maturity date of the debenture, which is approximately nine months. For the year ended December 31, 2011, $1,515 of the debt discount had been amortized and recorded as an interest expense. At December 31, 2011, the remaining, unamortized debt discount balance was $16,164 and the accrued interest balance on the note was $118.

XML 36 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Gain On Sale of Subsidiary
12 Months Ended
Dec. 31, 2011
Gain On Sale of Subsidiary [Abstract]  
Gain On Sale of Subsidiary

Note 10 – Gain on Sale of Subsidiary

 

On December 1, 2010, Green affected the sale of its ownership interest in Newby Salons, LLC to Diversified Holdings X, Inc., whose president is also the president of Green. Newby Salons, LLC operated the Bountiful salon location which was closed on August 15, 2010. Green transferred its stock ownership to DHX in exchange for $100. The Stock Purchase Agreement indemnifies and protects Green from any and all obligations, indebtedness and liabilities arising from the course of business.

 

The following table summarizes the gain on sale of Newby Salons, LLC on December 1, 2010:

 

  Cash consideration received.................................................................................................

$               100

  Net current and long-term liabilities sold...............................................................................

          320,670

        Gain on sale of subsidiary..............................................................................................

$        320,770

XML 37 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Stockholders' Equity (USD $)
Supervoting Preferred Stock
Series B Preferred Stock
Common Stock
Additional Paid- in Capital
Retained Earnings (Deficit)
Non-controlling Interest
Total
Stockholders' Equity at Dec. 31, 2009 $ 6,500 $ 183 $ 321,396 $ (1,778,595) $ (2,100,450) $ 2,690 $ (3,548,276)
Shares, Outstanding at Dec. 31, 2009 6,500,000 183,800 321,395,650            
Series B preferred shares issued in settlement agreement, value    10    (6,010)       (6,000)
Series B preferred shares issued in settlement agreement, shares    10,000               
Series B preferred shares issued to repurchase Supervoting preferred stock, value (650) 52    598         
Series B preferred shares issued to repurchase Supervoting preferred stock, shares (650,000) 52,000               
Write-off of related party receivables          (702,572)       (702,572)
Acquisition of remaining 1% ownership of Landis Salons, Inc             2,690 (2,690)   
Conversion of series B preferred shares, value    (54) 108,754 (108,700)         
Conversion of series B preferred shares, shares    (54,200) 108,753,814            
Series B preferred shares sold for cash, value    338 [1]    510,662       511,000
Series B preferred shares sold for cash, shares    337,732               
Series B preferred shares issued pursuant to employment agreement with related party, value    25    124,975       125,000
Series B preferred shares issued pursuant to employment agreement with related party, shares    25,000               
Series B preferred shares issued as collateral pursuant to the facility lease agreement for Landis II, value    50    249,950       250,000
Series B preferred shares issued as collateral pursuant to the facility lease agreement for Landis II, shares    50,000               
Amortization of debt discount on convertible debenture          (14,808)       (14,808)
Series B preferred shares issued for key employees, value    6    29,994       30,000
Series B preferred shares issued for key employees, shares    6,000               
Net income             13,939    13,939
Stockholders' Equity at Dec. 31, 2010 5,850 610 430,150 (1,694,506) (2,083,821)    (3,341,717)
Shares, Outstanding at Dec. 31, 2010 5,850,000 610,332 430,149,464            
Write-off of related party receivables          (1,588)       (1,588)
Conversion of series B preferred shares, value    (20) 44,414 (44,394)         
Conversion of series B preferred shares, shares    (20,266) 44,414,417            
Series B preferred shares sold for cash, value    41 [2]    64,959       65,000
Series B preferred shares sold for cash, shares    40,666               
Amortization of debt discount on convertible debenture          (15,027)       (15,027)
Debt discount on 8% convertible notes payable          104,512       104,512
Stock options granted for services          25,364       25,364
Exercise of common stock options granted, value       60,000 (60,000)         
Exercise of common stock options granted, shares       60,000,000            
Conversion of convertible note payable to common shares, value       36,323 (21,823)       14,500
Conversion of convertible note payable to common shares, shares       36,322,883            
Derivative Liability          (2,943,160)       (2,943,160)
Net income             (264,379)    (264,379)
Stockholders' Equity at Dec. 31, 2011 $ 5,850 $ 631 $ 570,887 $ (4,585,663) $ (2,348,200)    $ (6,356,495)
Shares, Outstanding at Dec. 31, 2011 5,850,000 630,732 570,886,764            
[1] Sold between $1.50 and $2.50 per share
[2] Sold at $1.50 per share
XML 38 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Other Assets
12 Months Ended
Dec. 31, 2011
Other Assets [Abstract] {1}  
Other Assets

Note 4 – Other Assets

 

The following table shows other assets as of December 31, 2011 and 2010:

 

 

December 31,

        2011      

December 31,

        2010      

Green Series B Preferred shares pledged as collateral for the Landis II facility lease (1)...........................................................................................

 

$       250,000

 

$        250,000

Note receivable pledged as collateral for the Landis II facility lease (2).........

         105,000

          105,000

Lease and utility deposits...............................................................................

           21,403

            23,684

Certificate of deposit......................................................................................

           26,226

            25,462

Other..............................................................................................................

                 ----

              4,468

Total other assets.........................................................................................

$       402,629

$        408,614

 

(1) On July 9, 2010, the Board of Directors approved the issuance of 50,000 shares of restricted Series B Preferred shares to Landis Salons II, Inc., a subsidiary of Green, to be used as collateral for a lease entered into by Landis Salons II to serve as the location for a new Landis Lifestyle Salon. These shares were then assigned to the landlord of Landis II as a security deposit with a related value of $250,000.

 

(2) On July 12, 2010, Landis Salons II, Inc. issued a promissory note in the principal amount of $105,000 payable to Wasatch Capital Corporation, which is a subsidiary of Nexia Holdings, Inc. Principal and interest, accruing at the rate of 5% per year, will be due on or before November 10, 2018. This promissory note was issued in exchange for a note receivable assigned to Landis Salons II, for $105,000 with the same terms. As of December 31, 2011 and 2010, there was $7,724 and $2,474 of accrued interest on the note, respectively.

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