Document:

ex_258912.htm

Exhibit 10.33

 

OMNIBUS AMENDMENT 

 

THIS OMNIBUS AMENDMENT (this “Amendment”), dated as of December 29, 2020, is made and entered into, by and between GB Sciences, Inc. a Nevada corporation (the “Seller”), GB Sciences Las Vegas, LLC, a Nevada limited liability company (“GBS LV”), GB Sciences Nevada LLC, a Nevada limited liability company (“GBS NV” and together with GBS LV and the Seller, the “GBS Parties”), AJE Management, LLC, a California limited liability company (the “Buyer”), and CSW Ventures, LP (“CSW” and, together with the Buyer, and the GBS Parties, each a “Party” and collectively, the “Parties”).

 

WHEREAS, Buyer and the GBS Parties have entered into a Membership Interest Purchase Agreement dated as of March 24, 2020, which was amended on May 11, 2020 and July 24, 2020 (as so amended, the “MIPA”);

 

WHEREAS, Buyer and the GBS Parties have entered into a Management Services Agreement dated as of December 6, 2019, which was amended on March 25, 2020 (as so amended, the “Management Agreement”);

 

WHEREAS, CSW is the holder of that certain Second Amended and Restated 8% Senior Secured Convertible Promissory Note issued by the Seller, in the principal amount of $1,501,863, dated November 27, 2019 (as amended from time to time, the “CSW Note” and together with the MIPA and the Management Agreement, the “Agreements”); and

 

WHEREAS, and desire to further amend the Agreements as set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing premises, the Parties agree as follows:

 

AGREEMENTS:

 

1.    Amendments.

 

(a)    Section 2.2(b) of the MIPA is hereby amended and restated in its entirety to read as follows:

 

“(b)     Seller and Buyer agree that the Purchase Price to be paid at the Closing shall be (A) reduced by any (i) Employee Liability Amounts, (ii) Teco Subsidiary Fines, (iii) Liabilities of the Teco Subsidiaries incurred prior to the Management Commencement Date and not included on the Balance Sheet, (iv) 50% of all costs and expenses incurred by the Buyer and its Affiliates in connection with obtaining the Nevada Approval, and (v) the amount by which the outstanding principal balance of the Revolving Note immediately prior to the Closing exceeds $325,000, and (B) increased by the amount of Closing Cash. Seller and Buyer further agree that except as expressly set forth in the preceding sentence, the Purchase Price to be paid at the Closing shall not be reduced by any Liabilities of the Teco Subsidiaries incurred in the ordinary course of business following the Management Commencement Date other than in respect of accrued management fees due to Buyer under the Management Agreement.

 

(b)    Section 2.3 of the MIPA is hereby amended and restated in its entirety to read as follows:

 

“Section 2.3         Seller Note. At the Closing, Buyer shall deliver to Seller a promissory note (the “Seller Note”), substantially in the form of Exhibit A hereto, in the principal amount of Three Million Twenty Five Thousand Dollars ($3,025,000.00). Immediately following the Closing and the delivery of the Seller Note to Buyer, all amounts outstanding under the Revolving Note immediately prior to the Closing shall automatically be deemed to have been repaid and satisfied in full.” 

 

(c)    Exhibit A to the MIPA is hereby amended and restated with the form of Seller Note attached to this Amendment.

 

(d)    The first sentence of Section 6(a) of the Management Agreement is hereby amended and restated in its entirety to read as follows:

 

“In consideration of the Services to be rendered hereunder, subject to Section 5 above, the GBS Parties will pay to Manager a monthly fee in the amount of seventy five thousand dollars ($75,000) (the “Management Fee”); provided, however, that no Management Fees shall be payable with respect to Services rendered after November 30, 2020.

 

2.    Interest Moratorium. Effective December 1, 2020, interest shall cease accruing on the Revolving Note and the CSW Note.

 

3.    Effect of Amendment. Except to the extent amended hereby, the Agreements and all terms, conditions and provisions thereof shall continue in full force and effect in all respects.

 

4.    Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one and the same instrument

 

5.    Miscellaneous. This Amendment shall be subject to the governing law and dispute resolution provisions set forth in Article X of the MIPA.

 

[Signature Page Follows]

 

1

Exhibit 10.33

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed and delivered as of the date first above written.

 

GB SCIENCES LAS VEGAS, LLC

GB SCIENCES NEVADA LLC

By: GB SCIENCES, INC., as sole member

 

 

By: /s/ John Poss                                                     

Name: John Poss

Title: Chief Executive Officer

 

 

GB SCIENCES, INC

 

 

By: /s/ John Poss                                           

Name: John Poss

Title: Chief Executive Officer

 

 

AJE MANAGEMENT, LLC

 

 

By: /s/ David Weiner                                                 

Name: David Weiner

Title: Manager

 

 

CSW VENTURES, LP

 

 

By: /s/ David Weiner                                                   

Name: David Weiner

Title: General Partner

 

2

Exhibit 10.33

 

EXHIBIT A

FORM OF SELLER NOTE

 

(See Attached) 

 

 

3ex_258913.htm

Exhibit 10.34

 

AMENDMENT TO MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

This Amendment to that certain Membership Interest Purchase Agreement (the "Amendment") with an effective date of January 1, 2020 by and among Wellcana Plus, LLC, a Louisiana limited liability company ("Purchaser"), GB Sciences, Inc. a Nevada corporation ("Seller"), GB Sciences Louisiana, LLC, a Louisiana limited liability company (the "Company"), and Wellcana Group, LLC, a Louisiana limited liability company ("WGC").

 

WHEREAS, the parties have entered into an Membership Interest Purchase Agreement, dated as of November 15, 2019 as amended by an Amendment to Membership Interest Purchase Agreement effective as of January 1, 2020 and a letter agreement dated October 15, 2020, whereby GB Sciences sold its membership interests in GB Louisiana to Wellcana Plus effective as of January 1, 2020 (collectively, the "Agreement"), by and among Purchaser, Seller, Company, and WGC, pursuant to which Seller greed to sell, transfer, convey and deliver to Purchaser all of Seller's right, title and interest in and to its Membership Interest in the Company and Purchaser agreed to purchase the Membership Interest of Seller in the Company;

 

WHEREAS, Section 7.01 of the Agreement provides that the Agreement may be amended by subsequent written instrument; and

 

WHEREAS, the parties desire to amend the Agreement as set forth below.

 

 

NOW, THEREFORE, in accordance with the terms of the Agreement and in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Agreement is hereby amended, and the parties hereby agree as follows:

 

1. Amendments

 

(a) Section 1.2 of the Agreement is deleted in its entirety and replaced with the following:

 

The aggregate purchase price of the Interest "the Purchase Price" shall be $4,900,000 to be paid as follows:   $50,000 on or before July 15, 2020, $500,000  paid  on  or  before  October  1,  2020  with  the  balance  of $4,350,000 due on or before December 15, 2020.

 

(b) Whereas $550,000 has been received by Seller pursuant to the amended terms and $250,00 released to Seller pursuant to an Escrow Agreement entered into by the parties.

 

(c) Whereas $50,000.00 of the Escrow Funds released shall not be applied to the Purchase Price.

 

(d) Whereas Purchaser shall pay to Seller $4,150,000.00.

 

1

Exhibit 10.34

 

(e) Section 1.3 Earnout Payment is deleted in its entirety

 

(f) Section 1.4 Sale and Transfer of Interest Right is deleted in its entirety.

 

(g) Section 1.5 of the Agreement is deleted in its entirety and replaced with the following:

 

The closing of the purchase and sale of the Interest (the "Closing") shall occur on December 15, 2020, by wire transfer, in each case to the extent acceptable to the parties hereto, on the date hereof (the "Closing Date").

 

(h) Section l.6(b)(i) of the Agreement is amended to read as follows:

 

(i) the Pledge Agreement executed by Purchaser.

 

2. Capitalization. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Agreement.

 

3. Conflicts; Ratification. To the extent that any provisions of this Amendment are inconsistent with the terms of the Agreement, this Amendment will constitute an amendment to the Agreement pursuant to Section 7.01 thereof. The balance of the terms of the Agreement shall remain in full force and effect.

 

4. Counterparts. This Amendment may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Amendment and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Amendment and of signature pages by facsimile transmission shall constitute effective execution and delivery of this Amendment as to the parties and may be used in lieu of the original Amendment for all purposes. Signatures of the parties transmitted by facsimile or Portable Document Format (PDF) shall be deemed to be their original signatures for any purposes whatsoever.

 

2

Exhibit 10.34

 

IN WITNESS WHEREOF, the undersigned have executed and acknowledged the approval of this Amendment as of the date first above written.

 

PURCHASER:

 

WELLCANA PLUS, LLC

By: K2 Logic, LLC, its Manager

 

By: /s/ Charles F. Hohorst, III

Title: Manager

 

SELLER:

 

GB SCIENCES, INC.

 

By: /s/ John Poss

Title: CEO and Chairman

 

COMPANY:

 

GB SCIENCES LOUISIANA, LLC

By: Wellcana Group, LLC, Member

By: K2 Logic, LLC, its Manager

 

By: /s/ Charles F. Hohorst, III

Title: Manager

By: /s/ Charles M Rush

Title: Manager

 

By: Wellcana Plus, LLC, Member

By: K2 Logic, LLC, its Manager

 

By: /s/ Charles F. Hohorst, III

Title: Manager

By: /s/ Charles M Rush

Title: Manager

 

 

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