Document:

xlrm_ex43.htm

EXHIBIT 4.3
  
 NEITHER THIS CONVERTIBLE SECURED SUBORDINATED PROMISSORY NOTE NOR THE SECURITIES THAT ARE ISSUABLE UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN THE SUBJECT OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH TRANSACTIONS UNDER THE 1933 ACT OR APPLICABLE STATE SECURITIES LAWS; (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE MAKER, AS THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.
  
 CONVERTIBLE SECURED SUBORDINATED PROMISSORY NOTE
  
 	 October 26, 2022 
	 Principal Amount: $5,000,000.00

  
 FOR VALUE RECEIVED, BLOOMIOS, INC., a Nevada corporation having its principal office at 701 Anacapa Street, Suite C, Daytona Beach, FL 32114 (the “Maker”), hereby promises to pay to the order of UPEXI, INC., a Nevada corporation having its principal office at 17129 US Hwy 19 N., Clearwater, Florida 33760 (or any successor or assign of Upexi, Inc., the “Holder”), the principal amount of Five Million Dollars ($5,000,000) on or before October 26, 2024 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of eight and one-half percent (8.5%) per annum commencing on the date hereof (the “Issuance Date”), in accordance with and subject to the terms hereinafter set forth.
  
 This Convertible Secured Subordinated Promissory Note (as may be amended or supplemented from time to time, the “Note”) is being issued as part of the consideration to be paid to Upexi, Inc. pursuant to a certain Membership Interest Purchase Agreement, dated as of the date hereof (the “MIPA”) by and among the Maker, Infused Confections LLC, a Wyoming limited liability company and subsidiary of the Maker (the “Bloomios Buyer”), and Upexi, Inc. in its capacity as seller, providing for the sale by Upexi, Inc. to the Bloomios Buyer of all of the outstanding membership interests of Infusionz LLC, a Colorado limited liability company (“Infusionz”).
  
 1. Payments of Principal and Interest.
  
 (a) Payment of Principal. The principal amount of this Note shall be due and payable to the Holder on the Maturity Date; provided however, that the Maker shall remit in repayment of amounts outstanding hereunder from time to time an amount equal to forty percent (40%) of the net proceeds received by the Maker in connection with any offering by the Maker of Maker’s securities conducted in connection with the Uplisting (as defined in Section 3(c) below), or thereafter (through the Maturity Date), it being expressly understood that nothing set forth herein shall or shall be deemed to create any obligation on the part of the Maker to undertake or consummate any such offering.
  
 (b) Payment of Interest. Interest on the unpaid principal balance of this Note shall accrue at a rate of eight and one-half percent (8.5%) per annum commencing on the Issuance Date (the “Interest Rate”). Interest shall be computed on the basis of a 365-day year and paid in arrears on a monthly basis, for the actual number of days elapsed, on the first day of each calendar month hereafter. Any accrued but unpaid interest may, at the option of the Holder, be included, from time to time, in the Conversion Amount (as hereinafter defined in Section 2(b)).
  
 	 
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 (c) Payment of Default Interest. Upon any Event of Default (as hereinafter defined in Section 4(a) and including non-payment of any amount of principal or interest on the Note when due), that remains uncured for a period of more than five (5) business days (the “Cure Period”), the Interest Rate will immediately and automatically increase to the greater of: (i) eighteen percent (18%) per annum, or (ii) the highest permitted and non-usurious legal rate of interest in effect on the date of expiration of the applicable Cure Period following the corresponding Event of Default (the “Default Rate”) and shall remain in effect for the remainder of the term of this Note (the “Default Interest”). Any accrued but unpaid Default Interest may, at the option of the Holder, be included in the Conversion Amount (as hereinafter defined in Section 2(b)).
  
 (d) General Payment Provisions. All payments of principal and interest on this Note shall be made in lawful currency of the United States of America by certified bank check or wire transfer to such account as the Holder may designate by prior written notice to the Maker in accordance with the provisions of this Note. Whenever any amount due by the terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next succeeding Business Day. For purposes of this Note, “Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Nevada are authorized or required by law or executive order to remain closed.
  
 (e) Optional Prepayment. Notwithstanding anything else set forth herein, the Maker may, at any time, pre-pay amounts outstanding under this Note without penalty and, upon such prepayment in full, the Holder shall have no further rights under this Note, including no rights of conversion.
  
 2. Conversion of Note. This Note shall be convertible into shares of the Maker’s common stock, par value $0.00001 per share (the “CommonStock”), at the option of the Holder and in accordance with the terms and conditions set forth in this Section 2, at any time commencing on the Issuance Date and continuing thereafter and expiring on payment in full of all amounts outstanding and owing hereunder.
  
 (a) Voluntary Conversion. The Holder shall have the right beginning on Issuance Date, 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 Issuance Date, or any shares of capital stock or other securities of the Maker into which such Common Stock shall hereafter be changed or reclassified at the Conversion Price (as defined Section 2(c) below) as provided herein (each, a “Conversion”). The Holder shall effect Conversions, in each instance, by delivering to the Maker a notice of conversion, in the form attached hereto as Exhibit A (the “Conversion Notice”). Each Conversion Notice must be submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Maker before 11:59 p.m., New York, New York time on the date specified for conversion in the Conversion Notice (the “Conversion Date”). Conversions hereunder shall have the effect of lowering the outstanding principal and interest amount of this Note in an amount equal to the applicable conversion on and as of the Conversion Date.
  
 (b) Calculation of Number of Shares Issuable on Conversion. The number of shares of Common Stock to be issued upon each Conversion shall be determined by dividing the Conversion Amount (as defined immediately below) by the applicable Conversion Price (as defined in Section 2(c) below). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of: (i) the principal amount of this Note to be converted in such conversion, plus (ii) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the applicable rate of interest provided in this Note up to the Conversion Date, provided however, that the Maker shall have the right to pay (and not have converted) any or all interest in cash.
  
 	 
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 (c) Calculation of Conversion Price. Subject to the adjustments described herein, the conversion price (the “Conversion Price”) shall be equal to Five Dollars ($5.00) per share until such time as the Common Stock is listed for trading on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the foregoing) (an “Uplisting”). At such time as the Maker completes an Uplisting, the Conversion Price shall adjust and be equal to the price per share of Common Stock immediately after the Uplisting.
  
 In the event that Maker has not completed an Uplisting during twelve (12) month period following the Issuance Date (the “Target Period”) or an Event of Default (as hereinafter defined in Section 4(a)) occurs and is continuing, subject to application of the Cure Period, the Conversion Price shall adjust and be equal to the lower of: (i) the price per share equal to the average of the twenty (20) day VWAP (as defined below) for the for the twenty (20) trading days immediately prior to expiration of the Target Period, or (ii) Five Dollars ($5.00). The term “VWAP” means, for any date, the price determined by the first to occur of the following: (A) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (B) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (C) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (D) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
  
 (d) Mechanics of Conversion. The conversion of this Note shall be conducted in the following manner:
  
 (i) Holder's Delivery Requirements. To convert this Note into shares of Common Stock by the Holder on the Conversion Date, the Holder shall (A) transmit by facsimile or electronic mail (or otherwise deliver) a copy of the fully executed Conversion Notice to the Maker, and (B) upon receipt by the Holder of the Common Stock, surrender this Note to a nationally recognized overnight courier for delivery to the Maker.
  
 (ii) Maker's Response. Upon receipt by the Maker of a copy of a Conversion Notice, the Maker shall, as soon as practicable, but in no event later than five (5) Business Days after receipt of such Conversion Notice, send via facsimile or electronic mail (or otherwise deliver) a confirmation of receipt of such Conversion Notice (the “Conversion Confirmation”) to the Holder indicating that the Maker will process such Conversion Notice in accordance with the terms herein. The Maker’s transfer agent participates in the Depository Trust Maker (“DTC”) Fast Automated Securities Transfer (“FAST”) program. Accordingly, within five (5) Business Days after the date following delivery of the Conversion Confirmation, the Maker shall cause its transfer agent to electronically transmit the applicable Common Stock which the Holder shall be entitled by crediting the account of the Holder’s prime broker with DTC through its Deposit Withdrawal Agent Commission (DWAC) system, and provide proof satisfactory to the Holder of such delivery. Upon conversion in full or repayment in full of this Note, the Holder shall surrender this Note for cancellation. If less than the full principal and accrued but unpaid interest amount of this Note is submitted for conversion, the Holder shall not be required to physically surrender this Note. The Maker and the Holder shall maintain records showing the principal and interest amount(s) converted and the date of such conversion(s). The Holder hereby acknowledges and agrees that: (A) by reason of the Conversions provided for in this Note, following any such Conversions, the principal amount stated on the face of this Note will no longer accurately reflect the outstanding principal amount hereunder, and (B) the unpaid (and unconverted) principal amount of this Note will be less than the principal amount stated on the face hereof.
  
 	 
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 (e) Record Holder. The Person(s) entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder(s) of such shares of Common Stock as of the Conversion Date.
  
 (f) Adjustments to Conversion Price. If the Maker at any time subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the Maker at any time combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased.
  
 (g) Certain Limitations. Notwithstanding anything else set forth herein, 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: (i) 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 this Note or the unexercised or unconverted portion of any other security of the Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein); and (ii) 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 (i) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder (up to a maximum of 9.99%), at the election of the Holder, upon not less than 61 days’ prior notice to the Maker, 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).
  
 In addition to the foregoing and not withstanding anything else set forth herein, the Holder agrees that from the Issuance Date and until 4:00 p.m. (New York City time) twelve (12) months from the Issuance Date (the “Restricted Period”), the Holder shall not sell, dispose of or otherwise transfer, directly or indirectly (including, without limitation, any sales, short sales, swaps or any derivative transactions that would be equivalent to any sales or short positions) any of the shares of Common Stock issued to it upon conversion of this Note.
  
 3. Security. As security for the payment and performance of all the obligations of the Maker under this Note, now or hereafter existing, whether for principal, interest, fees, expenses or otherwise, the Holder is being granted, concurrent herewith, a subordinated security interest in all assets of Infusionz pursuant to a certain Pledge and Security Agreement, dated as of the date hereof, by and between Infusionz as pledgor and Upexi, Inc. as pledgee (the “Security Agreement”), which security interest shall rank junior to all liens and security interests granted by Maker and each of its subsidiaries (including without limitation Infusionz), to the holders of those certain 15.0% Original Issue Discount Senior Secured Convertible Debentures dated as of October 26, 2022 in the collective aggregate principal amount of $9,372,500 (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, collectively, the “Senior Secured Debentures”), issued by Maker to the purchasers party to that certain Securities Purchase Agreement dated as of October 26, 2022, by and among Maker and the purchasers party thereto (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “Financing SPA”), which Senior Secured Debentures are secured pursuant to that certain Security Agreement dated of October 26, 2022 securing the obligations of Bloomios under the Senior Secured Debentures (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, by and among the Maker, Infusionz and Bloomios Buyer as debtors, the other subsidiaries of Bloomios party thereto as debtors, the secured parties party thereto (“Senior Secured Parties”) and Walleye Opportunities Master Fund Ltd, as agent on behalf of the Senior Secured Parties ( “Senior Agent”).
  
 	 
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 4. Defaults and Remedies.
  
 (a) Events of Default. An “Event of Default” means: (i) failure by the Maker to make payment of principal or interest on this Note when due, subject to application of the Cure Period; (ii) failure by the Maker to comply with any material provision of this Note, as set forth in such notice, subject to application of the Cure Period; (iii) the Maker, pursuant to or within the meaning of any Bankruptcy Law (as defined herein): (A) commence a voluntary case; (B) consent to the entry of an order for relief against it in an involuntary case; (C) consent to the appointment of a Custodian (as defined herein) of it or for all or substantially all of its property; (D) make a general assignment for the benefit of its creditors; or (E) admit in writing that it is generally unable to pay its debts as the same become due; or (iv) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (1) is for relief against the Maker in an involuntary case; (2) appoints a Custodian of the Maker for all or substantially all of its property; or (3) orders the liquidation of the Maker, and the order or decree remains unstayed and in effect for sixty (60) days. “BankruptcyLaw” means Title 11, U.S. Code, or any similar Federal or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
  
 (b) Remedies. If an Event of Default occurs and is continuing, the Holder of this Note may declare all of this Note, including any interest and other amounts due to be due and payable immediately, and may, at the option of the Holder be immediately convertible as provided herein, subject to and provided such payment or conversion is permitted under the Subordination Agreement.
  
 5. Voting Rights. The Holder expressly understands and acknowledges that it is not a stockholder of the Maker and that the Holder shall have no voting rights unless and until the Holder exercises the conversion rights provided for herein and has become a stockholder thereby.
  
 6. Short Sales. Holder represents and agrees, as applicable, (a) Holder has not, prior to the date hereof, entered into or effected any Short Sales (as defined below) and (b) so long as the Note remains outstanding, Holder will not enter into or effect any Short Sales (as defined below). The Maker acknowledges and agrees that upon submission of Conversion Notice as set forth herein, Holder immediately owns the Common Stock described in the Conversion Notice and any sale of that Common Stock issuable under such conversion notice would not be considered Short Sales. For purposes herein, “Short Sales” shall mean entering into any short sale or other hedging transaction which establishes a net short position with respect to the Maker.
  
 7. Subordination. This Note and payment of all amounts due and owing hereunder are subordinate and junior in right of payment to the Senior Secured Debentures. Seller acknowledges that it has entered into that certain Intercreditor and Subordination agreement dated as of October 26, 2022 by and among the Seller as subordinated creditor and the Senior Agent (as amended, restated, amended and restated, supplemented, or otherwise modified from time to time, the “Subordination Agreement”) providing for, among other things, the subordination of (i) the obligations and rights of the Maker and the Holder respectively under this Note and (ii) Maker’s and Infusionz’ obligations and the Holder’s rights under the Security Agreement, including without limitation the subordination of any security interest granted to Holder under the Security Agreement, to the Senior Liabilities (as defined in the Subordination Agreement). In the event of any conflict between the terms and provisions the Subordination Agreement and this Note, the terms and provisions of the Subordination Agreement shall govern and control.
  
 	 
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 8. Cancellation. After all principal and accrued interest at any time owed on this Note has been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Maker for cancellation and shall not be re-issued.
  
 9. Waiver of Notice. To the extent permitted by law, the Maker hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.
  
 10. Governing Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the laws of the State of Nevada, without giving effect to provisions thereof regarding conflict of laws. Maker hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in Clark County in the State of Nevada for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Maker hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by sending by certified mail or overnight courier a copy thereof to such party at the address indicated in the preamble hereto 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 manner permitted by law. THE MAKER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
  
 11. Indemnity and Expenses. The Maker agrees:
  
 (a) To indemnify and hold harmless the Holder and each of its partners, employees, agents and affiliates from and against any and all claims, damages, demands, losses, obligations, judgments and liabilities (including, without limitation, attorneys’ fees and expenses) in any way arising out of or in connection with this Note; and
  
 (b) To pay and reimburse the Holder upon demand for all costs and expenses (including, without limitation, attorneys’ fees and expenses) that the Holder may incur in connection with (i) the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available to it (whether at law, in equity or otherwise), or (ii) the failure by the Maker to perform or observe any of the provisions hereof. The provisions of this Section 10 shall survive the execution and delivery of this Note, the repayment of any or all of the principal or interest owed pursuant hereto, and the termination of this Note.
  
 12. Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity.
  
 	 
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 13. Usury Savings Clause. Notwithstanding any provision in this Note, the total liability for payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of the jurisdiction governing this Note or any other applicable law. In the event the total liability of payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions or other sums which may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of interest, which for any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction governing this Note, all sums in excess of those lawfully collectible as interest for the period in question shall, without further agreement or notice by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance of this Note immediately upon receipt of such sums by the Holder hereof, with the same force and effect as though the Maker had specifically designated such excess sums to be so applied to the reduction of such outstanding principal balance and the Holder hereof had agreed to accept such sums as a penalty‐free payment of principal; provided, however, that the Holder of this Note may, at any time and from time to time, elect, by notice in writing to the Maker, to waive, reduce, or limit the collection of any sums in excess of those lawfully collectible as interest rather than accept such sums as a prepayment of the outstanding principal balance. It is the intention of the parties that the Maker does not intend or expect to pay nor does the Holder intend or expect to charge or collect any interest under this Note greater than the highest non-usurious rate of interest which may be charged under applicable law.
  
 14. Specific Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the Maker and the Holder and shall not be construed against any person as the drafter hereof.
  
 15. Failure or Indulgence Not Waiver. No failure or delay on the part of this Note 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 privilege.
  
 16. Notice. Any notice, request or other communication to be given or made under this Note to the parties shall be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, international courier (confirmed by facsimile), or facsimile (with a hard copy delivered within two (2) Business Days) to the party to which it is required or permitted to be given or made at such party’s address specified below or at such other address as such party shall have designated by notice to the party giving or making such notice, request or other communication, it being understood that the failure to deliver a copy of any notice, request or other communication to a party to whom copies are to be sent shall not affect the validity of any such notice, request or other communication or constitute a breach of this Note.
  
 	 If to the Maker:
	 Bloomios, Inc.

		 701 Anacapa Street, Suite C

	 
	 Santa Barbara, CA 93101

	 
	 Attention: Michael Hill, CEO

		 E-Mail: 

	 
	 

	 With a copy to:
	 Lucosky Brookman LLP

	 
	 101 Wood Avenue South

	 
	 Woodbridge, NJ 08830

	 
	 Attention: Seth A. Brookman

		 E-Mail: 

 	 
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  	 If to the Holder:
	 Upexi, Inc.

	 
	 17129 US Hwy 19 N.
 Clearwater, Florida 33760

	 
	 Attn: Allan Marshall, CEO

	 
	 Email: 

  
 	 With a copy to:
	 Dickinson Wright PLLC

	  
	 350 E. Las Olas Boulevard, Ste. 1750

	  
	 Fort Lauderdale, Florida 33301

	  
	 Attention: Clint J. Gage

		 E-Mail: 

  
 [Remainder of this Page Intentionally Blank – Signature Page Follows this Page]
  
 	 
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 IN WITNESS WHEREOF, the Maker has caused this Note to be executed on and as of the Issuance Date.
  
 	 	BLOOMIOS, INC.	
	 	 	 	 
	  
	By:		
	  
	 Name:
	Michael Hill	 
	 	Title: 	Chief Executive Officer	 

  
 [Signature Page to $5,000,000 Convertible Secured Subordinated Promissory Note – Bloomios, Inc. to Upexi, Inc.]
  
 	 
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 EXHIBIT A
  
 NOTICE OF CONVERSION
  
 The undersigned hereby elects to convert principal and/or interest under the Convertible Secured Subordinated Promissory Note (the “Note”) issued by Bloomios, Inc., a Nevada corporation (the “Maker”), into shares of common stock, par value $0.0001 per share, of the Maker (the “Common Stock”) in accordance with the conditions of the Note, as of the date written below.
  
 If the shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as requested by the Maker in accordance therewith. No fee will be charged to the Holder for any conversion, except for such transfer taxes, if any.
  
             By the delivery of this Notice of Conversion, the undersigned represents and warrants to the Maker, as the issuer of the shares of Common Stock, that its ownership of the Common Stock does not exceed the amounts determined in accordance with Section 13(d) of the Exchange Act of 1934, as amended, specified under the Note.
   	 Conversion Calculations
	  

	  
	  

	 Effective Date of Conversion:   
	 _______________________

	  
	  

	 Principal Amount and/or Interest to be Converted:  
	 _______________________

	  
	  

	 Number of shares of Common Stock to be Issued:     
	 _______________________

             	  
	 THE HOLDER 

	  
	  

	  
	 By: _____________________________

	  
	  

	  
	 Name: __________________________

	  
	  

	  
	 Title: ____________________________

	  
	  

	  
	 Address: _________________________

	  
	  

	  
	 __________________________

	  
	  

	  
	 __________________________

  
 	 
	10xlrm_ex101.htm

CERTAIN INFORMATION IDENTIFIED WITH THE FOLLOWING MARK: [***] HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL AND (ii) WOULD LIKELY BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED 
  
 EXHIBIT 10.1
  
 TRANSITION SERVICES AGREEMENT
  
 THIS TRANSITION SERVICES AGREEMENT (this “Agreement”), is entered into as of October 26, 2022, by and between Upexi, Inc., a Nevada corporation (“UPEXI”), and Bloomios, Inc., a Nevada corporation (“BLMS”).
  
 RECITALS
  
 WHEREAS, UPEXI, through its direct subsidiary Infusionz LLC, a Colorado limited liability company (“Company”), owns and operates a manufacturing business and a brand, Infusionz;
  
 WHEREAS, UPEXI, BLMS, and Infused Confections, Inc., a Wyoming corporation and wholly owned subsidiary of BLMS (“Buyer”) have entered into an Membership Interest Purchase Agreement, dated as of the date hereof (the “Membership Interest Purchase Agreement” or “MIPA”), pursuant to which UPEXI will sell 100% of the membership interests of the Company to Buyer; and
  
 WHEREAS, pursuant to the Membership Interest Purchase Agreement and in connection with the transactions contemplated thereby, UPEXI and BLMS have agreed to enter into this Agreement, pursuant to which UPEXI will provide, or cause its Affiliates to provide, BLMS with certain services, in each case on a transitional basis and subject to the terms and conditions set forth herein.
  
 NOW, THEREFORE, in consideration of the mutual agreements and covenants hereinafter set forth, UPEXI and BLMS hereby agree as follows:
  
 ARTICLE 1
 DEFINITIONS
  
 Section 1.1 Definitions. As used in this Agreement, the following terms have the following meanings:
  
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such other Person. For the purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. Notwithstanding any provision of this Agreement to the contrary (except where the relevant provision states explicitly to the contrary), no member of the UPEXI Group, on the one hand, and no member of the BLMS Group, on the other hand, shall be deemed to be an Affiliate of the other.
  
 “Agreement” has the meaning set forth in the preamble to this Agreement.
  
 “Applicable Law” means, with respect to any Person, any federal, state, local, or foreign law (statutory, common, or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling, directive, guidance, instruction, direction, permission, waiver, notice, condition, limitation, restriction or prohibition, or other similar requirement enacted, adopted, promulgated, imposed, issued, or applied by a Governmental Authority that is binding upon or applicable to such Person, its properties or assets, or its business or operations.
  
 “Membership Interest Purchase Agreement” or (“MIPA”), has the meaning set forth in the recitals to this Agreement.
  
 “BLMS” has the meaning set forth in the preamble to this Agreement.
  
 “BLMS Group” means BLMS and its subsidiaries as set forth in the Membership Interest Purchase Agreement, including all predecessors and successors to such Persons.
  
  	 
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 “Breaching Party” has the meaning set forth in Section 4.2.
  
 “Business Day” means any day, other than Saturday, Sunday, or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.
  
 “Buyer” has the meaning set forth in the preamble to this Agreement.
  
 “Company” has the meaning set forth in the preamble to this Agreement. 
  
 “Company Business” means the business, operations, products, services, and activities of the Company.
  
 “Confidential Information” has the meaning set forth in Section 5.1(a).
  
 “Disclosing Party” has the meaning set forth in Section 5.1(a).
  
 “Employee Expenses” has the meaning set forth in Section 3.1.
  
 “End Date” has the meaning set forth in Section 2.1(e).
  
 “Force Majeure Events” has the meaning set forth in Section 4.5.
  
 “Governmental Authority” means any multinational, foreign, federal, state, local, or other governmental, statutory, or administrative authority, regulatory body, or commission or any court, tribunal, or judicial or arbitral authority which has any jurisdiction or control over either party (or any of their Affiliates).
  
 “UPEXI” has the meaning set forth in the preamble to this Agreement.
  
 “UPEXI Group” means UPEXI and its subsidiaries as set forth in the Membership Interest Purchase Agreement, including all predecessors and successors to such Persons.
  
 “Liabilities” means any and all claims, debts, liabilities, damages, and/or obligations of any kind, character, or description, whether absolute or contingent, matured or not matured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising, including all costs and expenses (including attorneys’ fees and expenses and associated investigation costs) relating thereto, and including those claims, debts, liabilities, damages, and/or obligations arising under this Agreement, any Applicable Law, any action or threatened action, any order or consent decree of any Governmental Authority, or any award of any arbitrator of any kind, and those arising under any agreement, commitment, or undertaking, including in connection with the enforcement of rights hereunder or thereunder.
  
 “Non-Breaching Party” has the meaning set forth in Section 4.2.
  
 “Out-of-Pocket Costs” has the meaning set forth in Section 3.2(a).
  
 “Permitted Purpose” has the meaning set forth in Section 5.1(a).
  
 “Person” means an individual, corporation, partnership, limited liability company, association, trust, or other entity or organization, including a Governmental Authority.
  
 “Representatives” has the meaning set forth in Section 5.1(a).
  
 “Service Schedule” has the meaning set forth in Section 2.1(a).
  
 “Services” has the meaning set forth in Section 2.1(a).
  
  	 
	2
	

	 

 
  
 ARTICLE 2
 SERVICES
  
 Section 2.1 Provision of Services.
  
 (a) Commencing on the effective date of the MIPA, UPEXI agrees to provide the services (the “Services”) set forth in the schedules attached hereto (such schedules may be amended or supplemented pursuant to the terms of this Agreement from time to time, collectively the “Service Schedule”) to BLMS, for the respective periods and on the other terms and conditions set forth in this Agreement and the Service Schedules.
  
 (b) Notwithstanding the contents of the Service Schedules, UPEXI agrees to respond in good faith to any reasonable request by BLMS for access to any additional services that are necessary for the operation of the Company Business, as applicable, following the MIPA that are not currently contemplated in the Service Schedules, at a price to be agreed upon after good faith negotiations between the parties. Any such additional services so provided by UPEXI shall constitute Services under this Agreement and be subject in all respects to the provisions of this Agreement as if fully set forth on the Service Schedules as of the date hereof.
  
 (c) The parties hereto acknowledge the transitional nature of the Services. Accordingly, as promptly as practicable following the execution of this Agreement, BLMS agrees to use commercially reasonable efforts to make a transition of each Service to its own internal organization or to obtain alternate third-party sources to provide the Services.
  
 (d) In providing the Services, UPEXI shall not be obligated to (i) purchase, lease, or license any additional equipment or software unless any additional costs to UPEXI are reimbursed by BLMS, or (ii) enter into additional contracts with third parties or change the scope of current agreements with third parties unless any additional costs to UPEXI are reimbursed by BLMS.
  
 (e) Subject to Section 3.3, Section 3.4, and Section 4.5, the obligations of UPEXI under this Agreement to provide Services shall terminate with respect to each Service upon the earlier of (i) November 30, 2023, and (ii) the termination of the applicable service period specified in the Service Schedule (each, an “End Date”). Notwithstanding the foregoing, the parties acknowledge and agree that BLMS may determine from time to time that it does not require all the Services set forth on the Service Schedules or that it does not require such Services for the entire period up to the applicable End Date. Accordingly, BLMS may terminate any Service, in whole or in part, upon thirty (30) days’ advance written notice to UPEXI. In no event shall UPEXI be obligated to provide Services to BLMS after the End Date unless UPEXI otherwise agrees in writing to such an extension pursuant to Section 3.3.
  
 Section 2.2 Standard of Service.
  
 (a) UPEXI represents, warrants, and agrees that the Services shall be provided in good faith, in accordance with Applicable Law, and in a manner generally consistent with the historical provision of the Services and with the same standard of care as historically provided. Subject to Section 2.3, UPEXI agrees to assign sufficient resources and qualified personnel as are reasonably required to perform the Services in accordance with the standards set forth in the preceding sentence.
  
 (b) Except as expressly set forth in Section 2.2(a) or in any contract entered into hereunder, UPEXI makes no representations and warranties of any kind, implied or expressed, with respect to the Services, including, without limitation, no warranties of merchantability or fitness for a particular purpose, which are specifically disclaimed. BLMS acknowledges and agrees that this Agreement does not create a fiduciary relationship, partnership, joint venture, or relationships of trust or agency between the parties and that all Services are provided by UPEXI as an independent contractor.  Notwithstanding the foregoing, each of the parties agrees to use commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable under Applicable Law, in providing the Services contemplated by this Agreement.
  
 Section 2.3 Third-Party Service UPEXIs. UPEXI shall have the right to hire third-party subcontractors to provide all or part of any Service hereunder; provided, however, that in the event such subcontracting is inconsistent with past practices or such subcontractor is not already engaged with respect to such Service as of the date hereof, UPEXI shall obtain the prior written consent of BLMS to hire such subcontractor, which consent shall not be unreasonably withheld, conditioned or delayed. UPEXI shall in all cases retain responsibility for the provision to BLMS of Services to be performed by any third-party service UPEXI or subcontractor or by any of UPEXI’s Affiliates.
  
  	 
	3
	

	 

 
  
 ARTICLE 3
 COMPENSATION
  
 Section 3.1 Responsibility for Wages and Fees. For such time as any employees of UPEXI or any of its Affiliates are providing the Services to BLMS under this Agreement, (a) such employees will remain employees of UPEXI or such Affiliate, as applicable, and shall not be deemed to be employees of BLMS for any purpose, and (b) subject to Section 3.2, UPEXI or such Affiliate, as applicable, shall be solely responsible for the payment and provision of all wages, bonuses, and commissions, employee benefits, including severance and worker’s compensation, and the withholding and payment of applicable taxes relating to such employment (“Employee Expenses”).
  
 Section 3.2 Terms of Payment and Related Matters.
  
 (a) As consideration for provision of the Services, BLMS shall pay UPEXI the amount specified for each Service in accordance with the terms set forth in the Service Schedules. In addition to such amounts, unless covered in the amount specified for the Services in accordance with the terms set forth in the Service Schedules, BLMS shall reimburse UPEXI for reasonable documented expenses incurred by UPEXI in the provision of any Service, including, without limitation, Employee Expenses, license fees, and payments to third-party service UPEXIs or subcontractors (collectively, “Out-of-Pocket Costs”), in accordance with the procedure set forth in Section 3.2(c).
  
 (b) During the term of this Agreement, UPEXI shall invoice BLMS every two weeks any amounts payable by BLMS, as a provider of Services, pursuant to Section 3.2(a).
  
 (c) UPEXI shall provide BLMS with such supporting documentation as BLMS may reasonably request with respect to Out-of-Pocket Costs. Subject to Section 3.2(d), BLMS shall pay to UPEXI the amount payable pursuant to this Agreement as promptly as reasonably practicable after the date of receipt of such supporting documentation by BLMS from UPEXI, but in any event no later than 30 days after receipt of such supporting documentation. Notwithstanding any other provision of this Agreement (except Section 3.3), compensation for Services will be determined using an internal cost allocation methodology based on fully burdened cost such that the party providing the Services will have neither a profit nor loss from the provision of such Services as calculated under GAAP.
  
 (d) In the event of a dispute by BLMS of the amount due according to the supporting documentation, no later than ten (10) days following receipt by BLMS of such disputed supporting documentation, BLMS shall deliver a written statement to UPEXI listing all disputed items and providing a reasonably detailed description of each disputed item. Amounts not so disputed shall be deemed accepted and shall be paid, notwithstanding disputes on other items, within the period set forth in Section 3.2(c). The parties shall seek to resolve all such disputes expeditiously and in good faith but if such dispute cannot be resolved within thirty (30) days, UPEXI may initiate legal action to seek resolution of such dispute.
  
 Section 3.3 Extension of Services. The parties agree that UPEXI shall not be obligated to perform any Service after the applicable End Date; provided, however, that if BLMS desires and UPEXI agrees to continue to perform any of the Services after the applicable End Date, the parties shall negotiate in good faith to determine a market price that compensates UPEXI for its performance of such Services, including reimbursement of all Out-of-Pocket Costs and an ongoing procedure for such reimbursement. Except as amended through the mutually agreed upon extension, the Services so performed by UPEXI after the applicable End Date shall continue to constitute Services under this Agreement and be subject in all respects to the provisions of this Agreement for the duration of the agreed-upon extension period.
  
 Section 3.4 Terminated Services. Upon termination or expiration of any or all Services pursuant to this Agreement, or upon the termination of this Agreement in its entirety, UPEXI shall have no further obligation to provide the applicable terminated Services and BLMS will only have the obligation to pay UPEXI pursuant to Section 3.2 for or in respect of (a) Services already provided in accordance with the terms of this Agreement and received by BLMS prior to such termination, and (b) which UPEXI became legally bound on or before such termination or expiration to pay as a result of the provision of Services to BLMS.
  
  	 
	4
	

	 

 
  
 ARTICLE 4
 TERMINATION
  
 Section 4.1 Termination of Agreement. Subject to Section 4.4, this Agreement shall terminate in its entirety upon the earlier of (a) the End Date, and (b) the date upon which the parties shall have no continuing obligation to perform any Services as a result of each of their expiration or termination in accordance with Section 2.1(e) or Section 4.2, or (c) in accordance with Section 4.3.
  
 Section 4.2 Termination of Agreement in the Event of Breach. Any party (the “Non-Breaching Party”) may terminate this Agreement with respect to any Service, in whole or in part, at any time upon prior written notice to the other party (the “Breaching Party”) if the Breaching Party has failed (other than pursuant to Section 4.5) to perform any of its obligations under this Agreement relating to such Service, and such failure shall have continued without cure for a period of fifteen (15) days after receipt by the Breaching Party of a written notice of such failure from the Non-Breaching Party seeking to terminate such Service.
  
 Section 4.3 Insolvency. In the event that either party hereto shall (a) file a petition in bankruptcy, (b) become or be declared insolvent, or become the subject of any proceedings (not dismissed within ninety (90) days) related to its liquidation, insolvency, or the appointment of a receiver, (c) make an assignment on behalf of all or substantially all of its creditors, or (d) take any corporate action for its winding up or dissolution, then the other party shall have the right to terminate this Agreement by providing written notice in accordance with Section 7.1.
  
 Section 4.4 Effect of Termination. Upon termination of this Agreement in its entirety pursuant to Section 4.1, all obligations of the parties hereto shall terminate, except for the provisions of Section 3.2, Section 3.4, Article 4, Article 5 and Article 6, which shall survive any termination or expiration of this Agreement.
  
 Section 4.5 Force Majeure. The obligations of UPEXI under this Agreement with respect to any Service shall be suspended during the period and to the extent that UPEXI is prevented or materially hindered from providing such Service, or BLMS is prevented or materially hindered from receiving such Service, due to any of the following causes beyond such party’s reasonable control (such causes, “Force Majeure Events”): (a) acts of God; (b) flood, fire, or explosion, (c) war, invasion, riot, or other civil unrest; (d) Applicable Law or judicial or administrative order; (e) actions, embargoes, or blockades in effect on or after the date of this Agreement; (f) action by any Governmental Authority; (g) national or regional emergency; (h) strikes, labor stoppages, or slowdowns or other industrial disturbances; (i) shortage of adequate power or transportation facilities; (j) pandemics; or (k) any other event which is beyond the reasonable control of such party. The party suffering a Force Majeure Event shall give notice of suspension as soon as reasonably practicable to the other party stating the date and extent of such suspension and the cause thereof, and UPEXI shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. Neither UPEXI nor BLMS shall be liable for the nonperformance or delay in performance of its respective obligations under this Agreement when such failure is due to a Force Majeure Event. The applicable End Date for any Service so suspended shall be automatically extended for a period of time equal to the time lost by reason of the suspension.
  
  	 
	5
	

	 

 
  
 ARTICLE 5
 CONFIDENTIALITY
  
 Section 5.1 Confidentiality.
  
 (a) During the term of this Agreement and thereafter, the parties hereto shall, and shall instruct their respective employees, agents, accountants, legal counsel, and other representatives (“Representatives”) to, maintain in confidence and not disclose the other party’s financial, technical, sales, marketing, development, personnel, and other information, records, or data, including, without limitation, customer lists, supplier lists, trade secrets, designs, product formulations, product specifications, or any other proprietary or confidential information, however recorded or preserved, whether written or oral (any such information, “Confidential Information”). Each party hereto shall use the same degree of care, but no less than reasonable care, to protect the other party’s Confidential Information as it uses to protect its own Confidential Information of like nature. Unless otherwise authorized in any other agreement between the parties, any party receiving any Confidential Information of the other party (the “Receiving Party”) may use Confidential Information only for the purposes of fulfilling its obligations under this Agreement (the “Permitted Purpose”). Any Receiving Party may disclose such Confidential Information only to its Representatives who have a need to know such information for the Permitted Purpose and who have been advised of the terms of this Section 5.1 and the Receiving Party shall be liable for any breach of these confidentiality provisions by such Persons; provided, however, that any Receiving Party may disclose such Confidential Information to the extent such Confidential Information is required to be disclosed by Applicable Law or judicial or administrative order, in which case the Receiving Party shall promptly notify, to the extent possible, the disclosing party (the “Disclosing Party”), and take reasonable steps to assist in contesting such disclosure or in protecting the Disclosing Party’s rights prior to disclosure, and in which case the Receiving Party shall only disclose such Confidential Information that it is advised by its counsel in writing that it is legally bound to disclose under such Applicable Law or judicial or administrative order.
  
 (b) Notwithstanding the foregoing, “Confidential Information” shall not include any information that the Receiving Party can demonstrate (i) was publicly known at the time of disclosure to it, or has become publicly known through no act of the Receiving Party or its Representatives in breach of this Section 5.1, (ii) was rightfully received from a third party without a duty of confidentiality, or (iii) was developed by it independently without any reliance on the Confidential Information.
  
 (c) Upon demand by the Disclosing Party at any time, or upon expiration or termination of this Agreement with respect to any Service, the Receiving Party agrees promptly to return or destroy, at the Disclosing Party’s option, all Confidential Information. If such Confidential Information is destroyed, an authorized officer of the Receiving Party shall certify to such destruction in writing.
  
 ARTICLE 6
 LIMITATION ON LIABILITY
  
 Section 6.1 Limitation on Liability. In no event shall either party hereto have any liability under any provision of this Agreement for any punitive, special, or indirect damages relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, whether based on statute, contract, tort, or otherwise, and whether or not arising from the other party’s sole, joint, or concurrent negligence, strict liability, criminal liability, or other fault. BLMS acknowledges that the Services to be provided to it hereunder are subject to, and that its remedies under this Agreement are limited by, the applicable provisions of Section 2.2, including the limitations on representations and warranties with respect to the Services.
  
  	 
	6
	

	 

 
  
 ARTICLE 7
 MISCELLANEOUS
  
 Section 7.1 Notices. All supporting documentation, invoices, notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt), (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested), (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the BLMS, and on the next Business Day if sent after normal business hours of the BLMS, or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.1):
  
  		 (a)
	 if to UPEXI:

 
  
 Upexi, Inc.
 17129 US Hwy N., Clearwater, FL 33760
 Email: 
 Attn: Andrew Norstrud
  
 with a copy (which shall not constitute notice) to:
  
 Dickinson Wright PLLC
 350 E. Las Olas Blvd., Ste. 1750
 Fort Lauderdale, FL 33301
 Attn: Clint J. Gage
 Email: 
  
  		 (b)
	 if to BLMS:

 
  
 Bloomios, Inc.
 701 Anacapa Street – Suite C
 Santa Barbara, CA 93101
 Attn: Barrett Evans
 Email: 
  
 with a copy (which shall not constitute notice) to:
  
 Lucosky Brookman
 101 Wood Avenue South
 5th Floor
 Woodbridge, New Jersey 08830
 Attn: Seth Brookman
 Email: 
  
  	 
	7
	

	 

 
  
 Section 7.2 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
  
 Section 7.3 Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
  
 Section 7.4 Entire Agreement. This Agreement, including the Service Schedules, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event and to the extent that there is a conflict between the provisions of this Agreement and the provisions of the Membership Interest Purchase Agreement as it relates to the Services hereunder, the provisions of this Agreement shall control.
  
 Section 7.5 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Subject to the following sentence, neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing sentence, BLMS may, without the prior written consent of UPEXI, assign all or any portion of its right to receive Services to any of its Affiliates; provided, that such Affiliate shall receive such Services from UPEXI in the same place and manner as described in the Service Schedule as BLMS would have received such Service. No assignment shall relieve the assigning party of any of its obligations hereunder.
  
 Section 7.6 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever, under or by reason of this Agreement.
  
 Section 7.7 Amendment and Modification; Waiver. This Agreement, including the Service Schedules, may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right, remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.
  
 Section 7.8 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction).
  
 Section 7.9 Dispute Resolution; Submission to Jurisdiction; Waiver of Jury Trial. Section 8.9 of the Membership Interest Purchase Agreement is hereby incorporated into this Agreement by this reference.
  
 Section 7.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
  
 [Signature Page Follows]
  
  	 
	8
	

	 

 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.
  
  	 	 UPEXI, INC.
	
	 	 	 	 
		By:		
	  
	 Name:
	Allan Marshall	 
	 	Title:	Chief Financial Officer	 
	 	 	 	 

 
  
  	 	 BLOOMIOS, INC.
	
	 	 	 	 
		By:		
	  
	 Name:
	Michael Hill	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 

 
   
  	 
	9
	

	 

 
  
 SERVICE SCHEDULE
  
 Facilities and Equipment
  
  	 ID
	 Location
	 Description
	 Period
	 Cost

	  
	  
	  
	  
	  

	 1
	 Location 1 in
 Henderson, NV
	 ****
 ****
 ****
 ****
 ****
 ****
 ****
 ****
	 3 to 4 months commencing on the MIPA and ending on 30-day notice from BLMS or extended per mutual agreement.
	 Reimbursement of actual costs:
  
 (Estimated at $95,000 per month (rent and expenses) 

	  
	  
	  
	  
	  

	 2
	 Location 1 in
 Henderson, NV
	 ****
 ****
 ****
 ****
	 3 to 4 months commencing on the MIPA and ending on 30-day notice from BLMS or extended per mutual agreement.
	 Reimbursement of actual costs
  
 (Estimated at $2,000 of maintenance per month)

	  
	  
	  
	  
	  

	 3
	 Location 1 in
 Henderson, NV
	 ****
 ****
 ****
 ****
	 3 to 4 months commencing on the MIPA and ending on 30-day notice from BLMS or extended per mutual agreement.
	 Reimbursement of actual costs
  
 (Estimated at $3,000 for security, etc., per month)

	  
	  
	  
	 2 months commencing on the MIPA 
	  

	 4
	 Location 2 in
 Henderson, NV
	 ****
 ****
 ****
 ****
	  
	 No additional Charge

 
    
  	 
	10
	

	 

 
  
 Shared Services 
  
  	 ID
	 Network Drive
	 Description
	 Period
	 Cost

	  
	  
	  
	  
	  

	 1
	 SharePoint site and
 folders
	 ****
 ****
 ****
 ****
	 2 months commencing on the MIPA
	 No additional Charge

	  
	  
	  
	  
	  

	 2
	 Google Document
 Drive
	 ****
 ****
 ****
 ****
	 2 months commencing on the MIPA
	 No additional Charge

	  
	  
	  
	  
	  

	 3
	 Email and other
 communication
 methods with
 customers
	 ****
 ****
 ****
 ****
	 12 months commencing on the MIPA
	 Reimbursement of actual additional costs
  
 (Assumed that none will be required, but can be provided at actual cost upon request)

 
     
  	 
	11
	

	 

 
  
 Finance Services
  
  	 ID
	 Service
	 Description
	 Service Period
	 Cost

	  
	  
	  
	  
	 K

	 1
	 Financial
 Business
 Transactions
	 ****
 ****
 ****
 ****
	 Up to 12 months commencing on the MIPA.
	 Estimated at $7,500 per month for use of administrative staff for payroll and other services

	  
	  
	  
	  
	  

	 2
	 Treasury
	 ****
 ****
 ****
 ****
	 Up to 3 months commencing on the MIPA.
	 Assumed that none will be required, but can be provided at actual cost upon request

	  
	  
	  
	  
	  

	 3
	 Tax
	 ****
 ****
 ****
 ****
	 Up to 12 months commencing on the MIPA.
	 Assumed that none will be required, but can be provided at actual cost upon request

	  
	  
	  
	  
	  

	 4
	 Audit
	 ****
 ****
 ****
 ****
	 Up to 12 months commencing on the MIPA.
	 Estimated at $75,000 for initial 2 year audit

	  
	  
	  
	  
	  

 
   
  	 
	12
	

	 

 
  
 Human Resources Services
  
  	 ID
	 Service
	 Description
	 Service Period
	 Cost

	  
	  
	  
	  
	  

	 1
	 Human
 Resource
 Assistance
	 ****
 ****
 ****
 ****
	 Up to 4 months commencing on the MIPA.
	 Estimated at $5,000 per month

	  
	  
	  
	  
	  

	 2
	 Operational
 and other
 Employees
	 ****
 ****
 ****
 ****
	 Up to 4 months commencing on the MIPA.
	 Estimated per month at $130,000

	  
	  
	  
	  
	  

 
     
  	 
	13

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