Document:

bmmj_ex105.htm

EXHIBIT 10.5
 
FIRST AMENDMENT TO THE EQUIPMENT LEASE AGREEMENT
 
This first amendment to the equipment lease agreement (this “First Amendment”) is made and entered into on November 30, 2019 (the “Effective Date”), by and between NMG Cathedral City, LLC, a California limited liability company (“Lessor”), and Satellites Dip, LLC (“Lessee”). Lessor and Lessee are hereinafter sometimes referred to together as the “Parties” and individually as a “Party.”
 
WHEREAS, Lessor and Lessee entered into an Equipment Lease Agreement dated June 6, 2019 (the “Equipment Lease Agreement”), which includes Exhibit A: Equipment (“Exhibit A”) (collectively, the Equipment Lease Agreement and this First Amendment shall be referred to as the “Agreement”);
 
WHEREAS, Lessor and Lessee desire to amend Exhibit A to the Equipment Lease Agreement through this First Amendment as set forth below;
 
WHEREAS, Lessor and Lessee desire to amend the term of the Equipment Lease Agreement to be coterminous with that certain brand director agreement, dated November 30, 2019, entered into between the Parties (the “Brand Director Agreement”); and
 
NOW, THEREFORE, in consideration of the covenants, agreements, representations, and warranties contained in this First Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:
 
1. Definitions. Except as expressly amended hereby, any capitalized terms used herein which are defined in the Equipment Lease Agreement shall have the same meanings herein as in the Equipment Lease Agreement, unless the context clearly indicates otherwise. 
 
2. Amendments. The Equipment Lease Agreement shall be and hereby is amended as follows:
 
(a) Global Intent and Interpretation. The overall intent of the Parties in entering into this First Amendment is to amend the Equipment Lease Agreement so that its terms and provisions apply as equally or comparably as possible, mutatis mutandis, to the intent of the parties in every respect within the original spirit and context of the Equipment Lease Agreement. 
 
(b) New Definitions. All capitalized terms used and defined in this First Amendment shall be incorporated by reference into the Equipment Lease Agreement as new definitions. The Brand Director Agreement definition in the recitals shall be incorporated by reference into the Equipment Lease Agreement as a new definition.
 
(c) Amendment of Section 1, subpart (o). Section 1(o) of the Equipment Lease Agreement shall be and hereby is amended and restated, which shall read in its entirety as follows:
 
	First Amendment to Equipment Lease Agreement
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	NMG Cathedral City, LLC -w- Satellites Dip, LLC

	 
	 

	
 
	 

  
“o. “Initial Term” means a period commencing on the Effective Date and running coterminous with the Brand Director Agreement, until such time as the Brand Director Agreement expires or terminates.”
 
(d) Amendment of Section 1, subpart (ee). Section 1(ee) of the Equipment Lease Agreement shall be and hereby is amended and restated, which shall read in its entirety as follows:
 
“ee. “Renewal Term” means a period commencing on the date of any renewal term of the Brand Director Agreement and running until such time as the Brand Director Agreement renewal term expires or terminates or is further renewed.”
 
(e) Amendment of Section 3, subpart (a). Section 3(a) of the Equipment Lease Agreement shall be and hereby is amended and restated, which shall read in its entirety as follows:
 
“a. Term. This Agreement and the provisions hereof, shall be in full force and effect for the duration of the Term. This Agreement shall automatically extend upon any renewal of the Brand Director Agreement’s term and shall run for the duration of that renewal term. The Term of this Agreement shall automatically terminate upon the termination of the Brand Director Agreement by Lessor, or by expiration of the term of the Brand Director Agreement.”
 
(f) Amendment of Exhibit A. Exhibit A to the Equipment Lease Agreement shall be and hereby is amended and restated which shall read in its entirety as set forth in Exhibit A to this First Amendment. 
 
3. No Further Amendments. Except as expressly provided herein, the Equipment Lease Agreement (including Exhibit A) shall be unaffected hereby and shall remain in full force and effect.
 
4. Miscellaneous. 
 
(a) Governing Law. This First Amendment will be governed and construed according to the choice of governing and constructive law set forth in the Equipment Lease Agreement.
 
(b) Assignment. Neither this First Amendment nor any of the rights or obligations of the parties hereunder may be assigned without the prior written consent of the other party.
 
(c) Entire Agreement. This First Amendment constitutes the sole and complete understanding of the Parties with respect to its subject matter addressed herein and supersedes all prior or contemporaneous communications between the parties concerning such subject matter.
 
(d) Counterparts. This First Amendment may be executed in counterparts, including facsimile counterparts, each of which will constitute an original, but which collectively will form one and the same instrument. 
 
	First Amendment to Equipment Lease Agreement
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	NMG Cathedral City, LLC -w- Satellites Dip, LLC

	 
	 

	
 
	 

 
LESSOR AND LESSEE ACKNOWLEDGE THAT EACH HAS READ, UNDERSTANDS, AND AGREES TO BE BOUND BY THE TERMS SET FORTH ABOVE, AND HAS EXECUTED THIS FIRST AMENDMENT ON THE DAY AND YEAR SPECIFIED BELOW EACH PARTY'S RESPECTIVE SIGNATURE:
 
	LESSOR:
	 

	 
NMG Cathedral City, LLC
 
Signature: /s/ Stephen ‘Trip’ Hoffman
 
Name: Stephen ‘Trip’ Hoffman 
 
Its: Authorized Signatory
 
Date: November 30, 2019
 
	 

	LESSEE:
	 

	 
	 

	Satellites Dip, LLC 
 
Signature: /s/ Azadeh Dastmalchi 
 
Name: Azadeh Dastmalchi
 
Its: Authorized Signatory 
 
Date: November 30, 2019
	

 
	First Amendment to Equipment Lease Agreement
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	NMG Cathedral City, LLC -w- Satellites Dip, LLC

	 
	 

	
 
	 

 
EXHIBIT A
 
EQUIPMENT
 
	Description
	Category
	Qty
	Monthly Rent

	 
Deluxe Stainless Steel Worktable - 72 x 36"
	 
Facility Equipment
	 
4
	 
$0.01

	Standard Stainless Steel Worktable - 72 x 36"
	Facility Equipment
	1
	$0.01

	Wide Span Storage Rack - Particle Board, 72 x 24 x 48"
	Facility Equipment
	4
	$0.01

			 
	
	Futurola Knockbox Machine
	Pre-Roll Equipment
	1
	$0.01

	Futurola Shredder
	Pre-Roll Equipment
	1
	$0.01

	Futurola Unload Station
	Pre-Roll Equipment
	1
	$0.01

			 
	
	Adjustable Height Desk - 60 x 24", Gray
	Office Furniture
	1
	$0.01

	Deluxe Mesh Work Stool
	Office Furniture
	6
	$0.01

	Deluxe Vinyl Padded Folding Chair - Black
	Office Furniture
	4
	$0.01

	Mesh Task Chair
	Office Furniture
	1
	$0.01

	Mobile Pedestal File - 3 Drawer, Black
	Office Furnitur
	1
	$0.01

			 
	
	Ohaus Scout® Balance Scale - 220 grams x .01 gram
	Scales
	6
	$0.01

			 
	
	Mr Atomizer Wiped Film System
	Distillation Equipment
	1
	$1,000.00

	Jacketed Heated Feed Tank & Pumps
	Distillation Equipment
	1
	$0.01

	Chillers attached to Mr Atomizer system
	Distillation Equipment
	5
	$0.01

 
 
	First Amendment to Equipment Lease Agreement
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	Exhibit A: Equipmentbmmj_ex106.htm

EXHIBIT 10.6
 
RELEASE & SATISFACTION OF LOAN 
 
This release & satisfaction of loan agreement (this “Release Agreement”), is made and entered into as of November 30, 2019 (the “Effective Date”), by and between NMG Cathedral City, LLC, a California limited liability company (the “Lender”), and Satellites Dip, LLC, a California limited liability company (the “Borrower”). As used herein, Lender and Borrower shall collectively be referred to as the “Parties” and individually as a “Party.”
 
WHEREAS, Lender and Borrower entered into a loan and security agreement, dated as of June 6, 2019 (the “Loan Agreement”), whereby Borrower secured a loan from Lender, evidenced by a promissory note (the “Note”) (collectively, the “Loan Documents”); 
 
WHEREAS, the Parties agree and acknowledge that there remains a certain amount of the loan outstanding, due and payable to Lender (the “Loan Amount”);
 
WHEREAS, as partial satisfaction for the Loan Amount, Borrower is entering contemporaneously into that certain equipment purchase agreement (the “Equipment Purchase Agreement”) whereby Borrower is selling certain enumerated equipment to Lender, the value of the sale to be applied to the outstanding Loan Amount (the “Equipment Value”); 
 
WHEREAS, contemporaneously with this Release Agreement, the Parties are entering into that certain brand director agreement (the “Brand Director Agreement”), and as additional satisfaction for the loan amount, Lender is receiving a waiver of five (5) months of the contribution fee (as defined therein) (the “Waiver”);
 
WHEREAS, the Parties expressly agree that the Equipment Value plus the Waiver shall constitute complete payment and satisfaction of the Loan Amount; and
 
NOW THEREFORE, in consideration of the following covenants and conditions, the Parties acknowledge and agree as follows:
 
1. Satisfaction and Discharge of Loan Agreement. Lender hereby acknowledges and agrees that all indebtedness and any other obligation from Borrower to Lender arising under the Loan Agreement and the Note in the original principal amount of Two Hundred Fifty Thousand Dollars ($250,000.00) is hereby satisfied and discharged in full, including without limitation, any accrued and unpaid interest, fees, charges, and expenses relating to the Loan Documents. The Borrower expressly acknowledges and agrees that the discharge, release, and satisfaction of the Loan Amount contained herein is granted based upon Borrower’s obligations and duties pursuant to the Equipment Purchase Agreement (including assigning all rights, title, and interest to the equipment therein to Lender) and its Waiver of certain consideration under the Brand Director Agreement. 
 
2. Release of Loan Agreement. Lender, for itself and its representatives, executors, successors, and assigns, hereby remise, release, and forever discharge the Borrower, its successors and assigns, from any and all manner of actions, cause and causes of action, suits, debts, sums of money, bills, bonds, damages, and demands whatsoever, in law or equity, arising out of the Loan Documents, and the execution and delivery thereof.
 
	 
	 
	
 
	 

 
3. Cancellation of Note. Pursuant to Section 2(d) of the Loan Agreement, Lender is providing this Release Agreement to Borrower, and is attaching the Note as canceled, attached hereto as Exhibit A.
 
4. Limited to Loan Documents. The Parties expressly agree and acknowledge that this Release Agreement only applies to and relates to the Loan Agreement and Note, and does not relate to or apply to any other contract, agreement, undertaking, understanding, or covenant.
 
The signature below signifies the binding intention of this Release Agreement to benefit both the Lender and any successors, dated as of November 30, 2019.
 
	NMG Cathedral City, LLC
(“Lender”) 
	
	 	 	 
	By:	/s/ Stephen ‘Trip’ Hoffman	
	 
	 
	 

	Name: 
	Stephen ‘Trip’ Hoffman
	 
	 
	 
	 

	Title: 	Authorized Signatory
	 

 
	 
	 
	
 
	 

 
EXHIBIT A
 
Promissory Note
 
[see attached]

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