Document:

EXHIBIT 10.13

 

EXECUTION VERSION

 

 

SERIES 2018-1 ACCOUNT CONTROL AGREEMENT

 

among

 

FORD CREDIT FLOORPLAN MASTER OWNER TRUST A,
 as Grantor

 

THE BANK OF NEW YORK MELLON,
  as Secured Party

 

and

 

THE BANK OF NEW YORK MELLON,
  as Financial Institution

 

Dated as of March 1, 2018

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE   AND DEFINITIONS
    	
2
    
	
 
    	
Section 1.1.
    	
Usage and Definitions
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II   ESTABLISHMENT OF COLLATERAL ACCOUNTS
    	
2
    
	
 
    	
Section 2.1.
    	
Description of Accounts
    	
2
    
	
 
    	
Section 2.2.
    	
Account Changes
    	
3
    
	
 
    	
Section 2.3.
    	
Account Types
    	
3
    
	
 
    	
Section 2.4.
    	
Securities Accounts
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III   SECURED PARTY CONTROL
    	
3
    
	
 
    	
Section 3.1.
    	
Control of Collateral   Accounts
    	
3
    
	
 
    	
Section 3.2.
    	
Investment Instructions
    	
3
    
	
 
    	
Section 3.3.
    	
Conflicting Orders or Instructions
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV   SUBORDINATION OF LIEN; WAIVER OF SET-OFF
    	
4
    
	
 
    	
Section 4.1.
    	
Subordination
    	
4
    
	
 
    	
Section 4.2.
    	
Set-off and Recoupment
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V   REPRESENTATIONS, WARRANTIES AND COVENANTS
    	
4
    
	
 
    	
Section 5.1.
    	
Financial Institution’s   Representations and Warranties
    	
4
    
	
 
    	
Section 5.2.
    	
Financial Institution’s   Covenants
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI OTHER   AGREEMENTS
    	
5
    
	
 
    	
Section 6.1.
    	
Location of Financial   Institution
    	
5
    
	
 
    	
Section 6.2.
    	
Reliance by Financial   Institution
    	
5
    
	
 
    	
Section 6.3.
    	
Termination and Replacement   of Financial Institution
    	
5
    
	
 
    	
Section 6.4.
    	
No Petition
    	
6
    
	
 
    	
Section 6.5.
    	
Limitation of Liability
    	
6
    
	
 
    	
Section 6.6.
    	
Conflict With Other   Agreement
    	
6
    
	
 
    	
Section 6.7.
    	
Termination
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII   MISCELLANEOUS
    	
6
    
	
 
    	
Section 7.1.
    	
Amendment
    	
6
    
	
 
    	
Section 7.2.
    	
Benefit of Agreement
    	
7
    
	
 
    	
Section 7.3.
    	
Notices
    	
7
    
	
 
    	
Section 7.4.
    	
GOVERNING LAW
    	
8
    
	
 
    	
Section 7.5.
    	
Submission to   Jurisdiction
    	
8
    
	
 
    	
Section 7.6.
    	
WAIVER OF JURY TRIAL
    	
8
    
	
 
    	
Section 7.7.
    	
No Waiver; Remedies
    	
8
    
	
 
    	
Section 7.8.
    	
Severability
    	
8
    
	
 
    	
Section 7.9.
    	
Headings
    	
8
    
	
 
    	
Section 7.10.
    	
Counterparts
    	
8
    

 

i

 

SERIES 2018-1 ACCOUNT CONTROL AGREEMENT, dated as of March 1, 2018 (this “Agreement”), among FORD CREDIT FLOORPLAN MASTER OWNER TRUST A, a Delaware statutory trust, as grantor (the “Grantor”), THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee for the benefit of the Series 2018-1 Noteholders (in this capacity, the “Secured Party”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, in its capacity as both a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC (in these capacities, the “Financial Institution”).

 

BACKGROUND

 

The Grantor is engaging in a securitization transaction in which it will issue the Series 2018-1 Notes under an Indenture Supplement to an Indenture and the Secured Party will hold funds in bank accounts for the benefit of the Series 2018-1 Noteholders.

 

The parties are entering into this Agreement to perfect the security interest in the bank accounts.

 

The parties agree as follows:

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.                                 Usage and Definitions.  Capitalized terms used but not defined in this Agreement are defined in (a) Appendix A to the Series 2018-1 Indenture Supplement, dated as of March 1, 2018 (the “Indenture Supplement”), between the Grantor, as Issuer, and The Bank of New York Mellon, as Indenture Trustee, or (b) Appendix A to (i) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan Corporation, as Depositor, the Grantor, as Issuer, and Ford Motor Credit Company LLC, as Servicer, and (ii) the Fifth Amended and Restated Sale and Servicing Agreement, dated as of August 1, 2001, as amended and restated as of December 1, 2010, among Ford Credit Floorplan LLC, as Depositor, the Issuer and the Servicer.  Each Appendix A also contains usage rules that apply to this Agreement.  Each Appendix A is incorporated by reference into this Agreement.  References to the “UCC” mean the Uniform Commercial Code as in effect in the State of New York.

 

ARTICLE II
 ESTABLISHMENT OF COLLATERAL ACCOUNTS

 

Section 2.1.                                 Description of Accounts.  The Financial Institution has established the following accounts (each, a “Collateral Account”):

 

“Series 2018-1 Principal Funding Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2018-1” with account number 2610638400;

 

2

 

“Series 2018-1 Reserve Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2018-1” with account number 2610628400; and

 

“Series 2018-1 Accumulation Period Reserve Account — The Bank of New York Mellon as Indenture Trustee, as secured party for Ford Credit Floorplan Master Owner Trust A for Series 2018-1” with account number 2610648400.

 

Section 2.2.                                 Account Changes.  Neither the Financial Institution nor the Grantor will change the name or account number of a Collateral Account without the consent of the Secured Party.  The Financial Institution will promptly notify the Servicer of any changes.  This Agreement will apply to each successor account to a Collateral Account, which will also be a Collateral Account.

 

Section 2.3.                                 Account Types.  The Financial Institution agrees that each Collateral Account is, and will be maintained as, either a “securities account” (as defined in Section 8-501 of the UCC) or a “deposit account” (as defined in Section 9-102(a)(29) of the UCC).

 

Section 2.4.                                 Securities Accounts.  If a Collateral Account is a securities account, the Financial Institution agrees that:

 

(a)                                 Financial Assets.  It will promptly credit each item of property (whether cash, investment property, security, instrument or other financial asset) delivered to the Financial Institution under the Indenture Supplement to the Collateral Account and treat each item of property as a “financial asset” (within the meaning of Section 8-102(a)(9) of the UCC); and

 

(b)                                 Registration and Indorsement.  It will ensure that all financial assets (other than cash) credited to the Collateral Account are registered in the name of the Financial Institution, indorsed to the Financial Institution or in blank or credited to another securities account maintained in the name of the Financial Institution and that no financial asset credited to the Collateral Account is registered in the name of the Grantor, payable to the order of the Grantor or specially indorsed to the Grantor unless it has been indorsed to the Financial Institution or in blank.

 

ARTICLE III
 SECURED PARTY CONTROL

 

Section 3.1.                                 Control of Collateral Accounts.  To establish “control” of the Collateral Accounts by the Secured Party under Sections 9-104 and 9-106 of the UCC, the Financial Institution agrees to comply with any order or instruction from the Secured Party directing the deposit, withdrawal, transfer or redemption of the cash or other financial assets credited to a Collateral Account (a “Secured Party Order”) without the need for consent by the Grantor or any other Person.

 

Section 3.2.                                 Investment Instructions.  If (a) the Financial Institution has not received a Secured Party Order for the investment of funds in a Collateral Account by 11:00 a.m. New York time (or another time agreed to by the Financial Institution) on the Business Day before a Payment Date or (b) the Financial Institution receives notice from the Indenture Trustee that a

 

3

 

Default or Event of Default has occurred and is continuing for the Series 2018-1 Notes, the Financial Institution will invest and reinvest funds in the Collateral Account according to the last investment instruction received, if any.  If no prior investment instructions have been received or if the instructed investments are no longer available or permitted, the Indenture Trustee will notify the Servicer and request new investment instructions, and the funds will remain uninvested until new investment instructions are received.

 

Section 3.3.                                 Conflicting Orders or Instructions.  If the Financial Institution receives conflicting orders or instructions from the Secured Party and the Grantor or any other Person, the Financial Institution will follow the orders or instructions of the Secured Party and not the Grantor or such other Person.

 

ARTICLE IV
 SUBORDINATION OF LIEN; WAIVER OF SET-OFF

 

Section 4.1.                                 Subordination.  If the Financial Institution has, or later obtains, a security interest in a Collateral Account (or any portion of a Collateral Account), the Financial Institution agrees that the security interest will be subordinate to the security interest of the Secured Party.

 

Section 4.2.                                 Set-off and Recoupment.  The cash, investment property, security, instrument or other financial assets credited to a Collateral Account will not be subject to deduction, set-off, recoupment, banker’s lien, or other right in favor of a Person other than the Secured Party.  However, the Financial Institution may set off (a) the customary fees and expenses for the routine maintenance and operation of the Collateral Account due to the Financial Institution, (b) the face amount of checks credited to the Collateral Account but subsequently returned unpaid due to uncollected or insufficient funds and (c) advances made to settle an investment of funds in the Collateral Account.

 

ARTICLE V
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Section 5.1.                                 Financial Institution’s Representations and Warranties.  The Financial Institution represents and warrants to the Grantor and the Secured Party as follows:

 

(a)                                 Enforceability.  This Agreement is the legal, valid and binding obligation of the Financial Institution.

 

(b)                                 No Agreements with Grantor.  There are no agreements between the Financial Institution and the Grantor relating to a Collateral Account other than this Agreement, the Indenture Supplement and the other Series 2018-1 Transaction Documents.

 

(c)                                  No Other Agreements.  The Financial Institution has not entered into an agreement relating to a Collateral Account in which it has agreed to comply with “entitlement orders” (as defined in Section 8-102(a)(8) of the UCC) or “instructions” (within the meaning of Section 9-104 of the UCC) of any Person other than the Secured Party.

 

4

 

(d)                                 No Limitations.  The Financial Institution has not entered into an agreement limiting or conditioning the Financial Institution’s obligation to comply with any Secured Party Order.

 

(e)                                  No Liens.  Except for the claims and interests of the Secured Party and the Grantor, the Financial Institution does not know of a lien on, or claim to, or interest in, a Collateral Account or in the cash or other financial assets credited to a Collateral Account.

 

Section 5.2.                                 Financial Institution’s Covenants.

 

(a)                                 Statements, Confirmations and Other Correspondence.  The Financial Institution will promptly deliver copies of statements, confirmations and correspondence about the Collateral Accounts and the cash or other financial assets credited to a Collateral Account to the Grantor and the Secured Party.

 

(b)                                 Notice of Claim.  If a Person asserts a lien, encumbrance or claim against a Collateral Account (or in the cash or other financial assets credited to a Collateral Account), the Financial Institution will promptly notify the Secured Party.

 

(c)                                  Negative Covenants.  Until the termination of this Agreement, the Financial Institution will not enter into (i) an agreement relating to a Collateral Account in which it agrees to comply with entitlement orders or instructions of any Person other than the Secured Party or (ii) an agreement limiting or conditioning the Financial Institution’s obligation to comply with Secured Party Orders.

 

ARTICLE VI
 OTHER AGREEMENTS

 

Section 6.1.                                 Location of Financial Institution.  For purposes of the UCC, New York will be the location of (i) the bank for purposes of Sections 9-301, 9-304 and 9-305 of the UCC and (ii) the securities intermediary for purposes of Sections 9-301 and 9-305 and Section 8-110 of the UCC.

 

Section 6.2.                                 Reliance by Financial Institution.  The Financial Institution is not obligated to investigate or inquire whether the Secured Party may deliver a Secured Party Order.  The Financial Institution may rely on communications (including Secured Party Orders) believed by it in good faith to be genuine and given by the proper party.

 

Section 6.3.                                 Termination and Replacement of Financial Institution.  The Financial Institution may terminate its rights and obligations under this Agreement if the Secured Party resigns or is removed as Indenture Trustee under the Indenture Supplement and the Indenture.  The Grantor may terminate the rights and obligations of the Financial Institution if the Financial Institution ceases to be a Qualified Institution.  No termination of the Financial Institution will be effective until new Collateral Accounts are established with, and the cash and other financial assets credited to the Collateral Accounts are transferred to, another securities intermediary who has agreed to accept the obligations of the Financial Institution under this Agreement or a similar agreement.

 

5

 

Section 6.4.                                 No Petition.  Each party agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by either Depositor or by a trust for which either Depositor was a depositor or (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) either Depositor or (ii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 6.4 will survive the termination of this Agreement.

 

Section 6.5.                                 Limitation of Liability.

 

(a)                                 Financial Institution.  The Financial Institution will not be liable under this Agreement, except for (i) its own willful misconduct, bad faith or negligence or (ii) breach of its representations and warranties in this Agreement.  The Financial Institution will not be liable for special, indirect or consequential losses or damages (including lost profit), even if the Financial Institution has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

(b)                                 Secured Party.  In performing its obligations under this Agreement, the Secured Party is subject to, and entitled to the benefits of, the terms of the Indenture Supplement and the Indenture that apply to the Indenture Trustee.

 

(c)                                  Owner Trustee.  This Agreement has been signed on behalf of the Grantor by U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as Owner Trustee of the Grantor.  In no event will U.S. Bank Trust National Association in its individual capacity or a beneficial owner of the Grantor be liable for the Grantor’s obligations under this Agreement.  For all purposes under this Agreement, the Owner Trustee is subject to, and entitled to the benefits of, the Trust Agreement.

 

Section 6.6.                                 Conflict With Other Agreement.  If there is a conflict between this Agreement and any other agreement relating to a Collateral Account, this Agreement will govern.

 

Section 6.7.                                 Termination.  This Agreement will terminate on the date the security interests of the Secured Party in each Collateral Account are terminated under the Indenture Supplement and the Indenture and the Secured Party has notified the Financial Institution of the termination of the security interest.  The termination of this Agreement will not terminate a Collateral Account or change the obligations of the Financial Institution to the Grantor relating to a Collateral Account.

 

ARTICLE VII
 MISCELLANEOUS

 

Section 7.1.                                 Amendment.

 

(a)                                 Amendments.  The parties may amend this Agreement:

 

(i)             to clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this

 

6

 

Agreement, in each case without the consent of the Series 2018-1 Noteholders or any other Person;

 

(ii)          to add, change or eliminate terms of this Agreement, in each case without the consent of the Series 2018-1 Noteholders or any other Person, if the Administrator delivers an Officer’s Certificate to the Grantor, the Owner Trustee and the Indenture Trustee stating that the amendment will not have a material adverse effect on the Series 2018-1 Noteholders; or

 

(iii)       to add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 7.1(a)(ii), with the consent of the Series 2018-1 Noteholders of a majority of the Note Balance of each Class of Series 2018-1 Notes Outstanding (with each affected Class voting separately, except that all Series 2018-1 Noteholders of Class A Notes will vote together as a single class).

 

(b)                                 Notice of Amendments.  The Administrator will notify the Rating Agencies in advance of any amendment.  Promptly after the execution of an amendment, the Administrator will deliver a copy of the amendment to the Rating Agencies.

 

Section 7.2.                                 Benefit of Agreement.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  No other Person will have any right or obligation under this Agreement.

 

Section 7.3.                                 Notices.

 

(a)                                 Notices to Parties.  Notices, requests, directions, consents, waivers or other communications to or from the parties must be in writing and will be considered received by the recipient:

 

(i)             for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the recipient;

 

(ii)          for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)       for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)      for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

 

(b)                                 Notice Addresses.  A notice, request, direction, consent, waiver or other communication must be addressed to the recipient at its address stated in Schedule B to the Sale and Servicing Agreements, which address the party may change by notifying the other parties.

 

7

 

Section 7.4.                                 GOVERNING LAW.  THIS AGREEMENT AND EACH COLLATERAL ACCOUNT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.5.                                 Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Agreement.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

 

Section 7.6.                                 WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDINGS RELATING TO THIS AGREEMENT.

 

Section 7.7.                                 No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law.

 

Section 7.8.                                 Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 7.9.                                 Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.10.                          Counterparts.  This Agreement may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

8

 

EXECUTED BY:

 

	
 
    	
FORD CREDIT FLOORPLAN MASTER OWNER TRUST A, as   Grantor
    
	
 
    	
 
    
	
 
    	
By:
    	
U.S.   Bank Trust National Association, not in its individual capacity but solely as Owner Trustee of   Ford Credit Floorplan Master Owner Trust A
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Melissa A. Rosal
    
	
 
    	
 
    	
Name:
    	
Melissa   A. Rosal
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
as   Secured Party
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Commisso
    
	
 
    	
 
    	
Name:
    	
Michael   Commisso
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
THE   BANK OF NEW YORK MELLON,
    
	
 
    	
as   Financial Institution
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Commisso
    
	
 
    	
 
    	
Name:
    	
Michael   Commisso
    
	
 
    	
 
    	
Title:
    	
Vice President
    
					

 

[Signature Page to Series 2018-1 Account Control Agreement]EXHIBIT 10.01

 

 EXHIBIT 10.01

 

 No Borders, Inc.
 

 CONSULTING AGREEMENT
 

 This Consulting Agreement, dated effective March 9, 2018(this “Agreement”), is made and entered into by and between No Borders, Inc., a Nevada corporation (the “Company”) and MJ Holdings, Inc. (the “Consultant”).
 

 Article 1 – Scope of Work
 

 1.1
 Services – The Company has engaged Consultant to provide assistance with compliance matters, marketing matters, such as public relations, and to consult with management concerning various Company activities and to provide additional services in connection with the Company’s business activities as the Company desires.  Consultant will provide and counsel, the Company on the aforementioned matters (collectively, the “consulting services”).
 

 1.2
 Time and Availability – Consultant will devote all time necessary per month in performing the services for the Company as stated herein.  Consultant shall have discretion in selecting the dates and times it performs such consulting services throughout the month giving due regard to the needs of the Company’s business.  This agreement is in effect for a period not to exceed one year from the effective date.
 

 1.3
 Confidentiality – In order for Consultant to perform the consulting services, it may be necessary for the Company to provide Consultant with Confidential Information regarding the Company’s business and products.  The Company will rely heavily upon Consultant’s integrity and prudent judgment to use this information only in the best interests of the Company. 
 

 1.4
 Standard of Conduct – In rendering consulting services under this Agreement, Consultant shall conform to high professional standards of work and business ethics. Consultant shall not use time, materials, or equipment of the Company without the prior written consent of the Company.
 

 1.5
 Outside Services – Consultant shall have the right to use the service of any other person, entity or organization in the performance of Consultant’s duties.  Those persons, entities or organizations are expected to observe all manners of conduct and confidentiality as the Consultant as explained by the consulting contract executed by the Company and the Consultant. 
 

 1.6
 Reports – Consultant shall periodically provide the Company with updates of his observations and conclusions regarding the consulting services.  Upon the termination of this Agreement, Consultant shall, upon the request of the Company, prepare a final update of Consultant’s activities. 
 

 Article 2 – Independent Contractor
 

 2.1
 Independent Contractor – Consultant is an independent contractor and is not an employee, partner, or co-venturer of, or in any other service relationship with, the Company. The manner in which Consultant’s services are rendered shall be within the Consultant’s sole control and discretion.  Consultant is not authorized to speak for, represent, or obligate the Company in any manner without the prior express written authorization from an officer of the Company.
 

 2.2
 Taxes – Consultant shall be responsible for all taxes arising from compensation and other amounts paid under this Agreement, and shall be responsible for all payroll taxes and fringe benefits of Consultant’s employees.  Neither federal, state, nor local income tax, nor payroll tax of any kind, shall be withheld or paid by the Company on behalf of Consultant or its employees.  Consultant understands that it is responsible to pay, according to law, Consultant’s taxes and Consultant shall, when requested by the Company, properly document to the Company that any and all federal and state taxes have been paid. 
 

 

 No Borders, Inc. – Consulting Agreement
 

 
 
 2.3
 Benefits – Consultant and Consultant’s employees will not be eligible for, and shall not participate in, any employee pension, health, welfare, or other fringe benefit plan, or the Company.  No workers’ compensation insurance shall be obtained by Company covering Consultant or Consultant’s employees.
 

 Article 3 – Compensation for Consulting Services
 

 3.1
 Compensation – $53,000 total compensation. $35,000 of which is to be fully earned on signing of this Agreement and evidenced by a 8% convertible promissory note issued on the date of this Agreement, as a signing incentive to enter into this Agreement. Then $3,000 a month for Six (6) months of services. To be paid in cash or via a convertible promissory note on the sixth month anniversary of closing of the NBDR Stock Purchase Agreement. If the Company choose to not issue cash, the convertible promissory note will be in the total amount of $18,000 and accrue 8% interest rate per annum, with a 45% discount to market price based on a twenty day look back period on all conversions into common stock of the Company.
  
 3.2
 Reimbursement – The Company has not agreed to or discussed any reimbursement of out-of-pocket expenses.
 

 Article 4 – Term and Termination
 

 4.1 
 Term – This Agreement shall be effective as of March 9, 2018, and shall continue in full force and effect until September 9, 2018. The Company and Consultant may negotiate to extend the term of this Agreement and the terms and conditions under which the relationship shall continue.
 

 4.2
 Termination – the Company may terminate this Agreement for “Cause,” after giving Consultant written notice of the reason.  Cause means: (1) Consultant has breached the provisions of Article 5 or 7 of this Agreement in any respect, or materially breached any other provision of this Agreement and the breach continues for 30 days following receipt of a notice from the Company; (2) Consultant has committed fraud, misappropriation or embezzlement in connection with the Company’s business; (3) Consultant has been convicted of a felony.
 

 4.3
 Responsibility upon Termination – Any equipment provided by the Company to the Consultant in connection with or furtherance of Consultant’s services under this Agreement, including, but not limited to, computers, laptops, and personal management tools, shall immediately upon the termination of this Agreement, be returned to the Company. 
 

 4.4
 Survival – The provisions of Articles 5, 6, 7 and 8 of this Agreement shall survive the termination of this Agreement and remain in full force and effect thereafter. 
 

 Article 5 – Confidential Information 
 

 5.1
 Obligation of Confidentiality – In performing consulting services under this Agreement, Consultant may be exposed to and will be required to use certain “Confidential Information” (as hereinafter defined) of the Company.  Consultant agrees that Consultant will not and Consultant’s employees, agents or representatives will not, use, directly or indirectly, such Confidential Information for the benefit of any person, entity or organization other than the Company, or disclose such Confidential Information without the written authorization of the President of the Company, either during or after the term of this Agreement, for as long as such information retains the characteristics of Confidential Information.
 

 5.2
 Definition – “Confidential Information” means information, not generally known, and proprietary to the Company or to a third party for whom the Company is performing work, including, without limitation, information concerning any patents or trade secrets, confidential or secret designs, processes, formulae, source codes, plans, devices or material, research and development, proprietary software, analysis, techniques, materials or designs (whether or not patented or patentable), directly or indirectly useful in any aspect of the business of the Company, any vendor names, customer and supplier lists, databases, management systems, geographic or research reports, and sales and marketing plans of the Company, any confidential secret development or research work of the Company, or any other confidential information or 
 

 No Borders, Inc. – Consulting Agreement
 

 
 proprietary aspects of the business of the Company.  All information which Consultant acquires or becomes acquainted with during the period of this Agreement, whether developed by Consultant or by others, which Consultant has reasonable basis to believe to be Confidential Information, or which is treated by the Company as being Confidential Information, shall be presumed to be Confidential Information. 
 

 5.3
 Products of the Company – Consultant agrees that all plans, manuals and specific materials developed by the Consultant on behalf of the Company in connection with services rendered under this Agreement, are and shall remain the exclusive property of the Company.  Promptly upon the expiration or termination of this Agreement, or upon the request of the Company, Consultant shall return to the Company all documents and tangible items, including samples, provided to Consultant or created by Consultant for use in connection with services to be rendered hereunder, including without limitation all Confidential Information, together with all copies and abstracts thereof. 
 

 Article 6 – Rights and Data
 

 6.1
 Data – All drawings, models, designs, formulas, methods, documents and tangible items prepared for and submitted to the Company by Consultant in connection with the services rendered under this Agreement shall belong exclusively to the Company and shall be deemed to be works made for hire (the “Deliverable Items”).  To the extent that any of the Deliverable Items may not, by operation of law, be works made for hire, Consultant hereby assigns to the Company the ownership of copyright or mask work in the Deliverable Items, and the Company shall have the right to obtain and hold in its own name any trademark, copyright, or mask work registration, and any other registrations and similar protection which may be available in the Deliverable Items.  Consultant agrees to give the Company or its designees all assistance reasonably required to perfect such rights. 
 

 Article 7 – Conflict of Interest and Non-Solicitation 
 

 6.1
 Conflict of Interest – Consultant covenants and agrees to provide the Company with all the necessary time and effort to be reasonably successful. 
 

 6.2
 Non-Solicitation – Consultant covenants and agrees that during the term of this Agreement, Consultant will not, directly or indirectly, through an existing corporation, unincorporated business, affiliated party, successor employer, or otherwise, solicit, hire for employment or work with, on a part-time, consulting, advising or any other basis, other than on behalf of the Company any employee or independent contractor employed by the Company while Consultant is performing services for the Company, unless a relationship previously existed between the Consultant and that employee or independent contract of the Company. 
 

 Article 8 – Right to Injunctive Relief
 

 Consultant acknowledges that the terms of Articles 5, 6, and 7 of this Agreement are reasonably necessary to protect the legitimate interests of the Company, are reasonable in scope and duration, and are not unduly restrictive.  Consultant further acknowledges that a breach of any of the terms of Articles 5, 6, or 7 of this Agreement will render irreparable harm to the Company, and that a remedy at law for breach of the Agreement is inadequate, and that the Company shall therefore be entitled to seek any and all equitable relief, including, but not limited to, injunctive relief, and to any other remedy that may be available under any applicable law or agreement between the parties.  Consultant acknowledges that an award of damages to the Company does not preclude a court from ordering injunctive relief.  Both damages and injunctive relief shall be proper modes of relief and are not to be considered as alternative remedies.
 

 Article 9 – General Provisions
 

 6.3
 Construction of Terms – If any provision of this Agreement is held unenforceable by a court of competent jurisdiction, that provision shall be severed and shall not affect the validity or enforceability of the remaining provisions.
 

 

 No Borders, Inc. – Consulting Agreement
 

 
 
 6.4
 Governing Law – This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. 
 

 6.5
 Complete Agreement – This Agreement constitutes the complete agreement and sets forth the entire understanding and agreement of the parties as to the subject matter of this Agreement and supersedes all prior discussions and understandings in respect to the subject of this Agreement, whether written or oral.
 

 6.6
 Dispute Resolution – If there is any dispute or controversy between the parties arising out of or relating to this Agreement, the parties agree that such dispute or controversy will be arbitrated in accordance with proceedings under American Arbitration Association rules, and the Arbitration Laws of the State of Nevada.  Such arbitration will be the exclusive dispute resolution method under this Agreement.  The decision and award determined by such arbitration will be final and binding upon both parties.  All costs and expenses, including reasonable attorney’s fees and expert’s fees, of all parties incurred in any dispute which is determined and/or settled by arbitration pursuant to this Agreement will be borne by the party determined to be liable in respect of such dispute; provided, however, that if complete liability is not assessed against only one party, the parties will share the total costs in proportion to their respective amounts of liability so determined.  Except where clearly prevented by the area in dispute, both parties agree to continue performing their respective obligations under this Agreement until the dispute is resolved.
  
 6.7
 Modification – No modification, termination or attempted waiver of this Agreement, or any provision thereof, shall be valid unless in writing signed by the party against whom the same is sought to be enforced. 
 

 6.8
 Waiver of Breach – The waiver by a party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other or subsequent breach by the party in breach. 
 

 6.9
 Successors and Assigns – This Agreement may not be assigned by either party without the prior written consent of the other party; provided, however, that the Agreement shall be assignable by the Company without Consultant’s consent in the event the Company is acquired by or merged into another corporation or business entity.   The benefits and obligations of this Agreement shall be binding upon and inure to the parties hereto, their successors and assigns. 
 

 6.10
 No Conflict – Consultant warrants that Consultant has not previously assumed any obligations inconsistent with those undertaken by Consultant under this Agreement. 
 

 

 IN WITNESS WHEREOF, this Agreement is executed as of the date set forth above. 
 

 

 No Borders, Inc. 
 Consultant
 

 By: /s/ Joseph Snyder______
 By: /s/ Jessica Miller_______
        Joseph Snyder
        Jessica Miller
        MJ Holdings, Inc.
 Its: President and CEO       
 
 Its: President and CEO
 

 

 No Borders, Inc. – Consulting Agreement

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