Document:

DEMAND PROMISSORY NOTE

EXHIBIT 4.2

DEMAND PROMISSORY NOTE

		
	$200,000.00

	Lafayette, CO

	 
	February 8, 2013

FOR VALUE RECEIVED, Aquarius Holdings, LLC, a Colorado limited liability company, with an address for notification purposes at 2549 Cowley Drive, Lafayette, CO (the "Maker"), hereby promises to pay to Ernest Rudyak, an individual with an address for notification purposes at c/o Michael Ozen, RBZ, LLP, 11755 Wilshire Blvd., 9th Floor, Los Angeles, California 90025 ("Holder"), or order, ON DEMAND, the sum of Two Hundred Thousand Dollars ($200,000.00), together with interest thereon at a rate per annum which is the greater of (i) Two Percent (2%) or (ii) the Short Term Applicable Federal Rate (Annual Compounding) promulgated by the Internal Revenue Service, adjusted at the beginning of each calendar month; provided, however, that accrued interest shall be paid annually on the anniversary date hereof, and that such annual rate shall increase to the Wall Street Journal prime rate plus three percent (3%) during the occurrence and continuance of any Event of Default (as defined below).  Payment of amounts due hereunder shall be made by check in United States Dollars in immediately available funds to Holder at the address listed above or such other address provided by the Holder from time to time or, if requested by the Holder, by wire transfer to an account designated by the Holder.  Payments shall first be applied to accrued and unpaid interest and then to principal.

The following is a statement of the rights of the Holder and the conditions to which this Promissory Note (this "Note") is subject:

1.

Certain Definitions.  As used in this Note, "Maker" includes Aquarius Holdings, LLC and its successors or assigns, and "Holder," when the context refers to a holder of this Note, shall mean any person who shall at the time be the holder of this Note.

2.

Events of Default.  If any of the events specified in this Section 2 shall occur (herein individually referred to as an "Event of Default"), the Holder may, so long as such condition exists, declare the entire principal and unpaid accrued interest thereon immediately due and payable by notice in writing to the Maker:

(i)

The failure by Maker to make any payment due hereunder when due;

(ii)

The institution by the Maker of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of bankruptcy or insolvency proceedings against it  or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such petition or the appointment of a receiver, liquidator, assignee, or trustee, or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors; or

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(iii)

If, within sixty (60) calendar days after the commencement of an action against the Maker (and service of process in connection therewith on the Maker) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the Maker or all orders or proceedings thereunder stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if, within sixty (60) calendar days after the appointment without the consent or acquiescence of the Maker of any trustee, receiver or liquidator, such appointment shall not have been vacated.

3.

Prepayment.  This Note is given as consideration for a business loan, and may be prepaid by the Maker at any time, without penalty.

4.

Use of Proceeds.  The Maker must use the proceeds of the loan evidenced by this Note solely to pay Maker's operating expenses.

5.

Assignment.  The Maker may not transfer this Note without the prior written consent of the Holder.  Subject to the foregoing, the rights and obligations of the Maker and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.  

6.

Amendment and Waiver.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Maker and the Holder.  A waiver on any one occasion will not be construed as a bar to or waiver of any right or remedy on any future occasion.

7.

Notices.  All notices, requests, consents and other communications hereunder to any party pursuant to this Note will be deemed to be sufficient if contained in a written instrument delivered in person, including delivery by recognized express courier, fees prepaid, addressed as set forth in the first paragraph of this Note, or to such other address as may hereinafter be designated in writing by the recipient to the sender pursuant to this Section 8.  All such notices, requests, consents and other communications will be deemed to have been received in the case of personal delivery, including delivery by express courier, on the date of such delivery.

8.

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

9.

Heading; References.  All headings used herein are used for convenience only and shall not be used to construe or interpret this Note.  Except where otherwise indicated, all references herein to Sections refer to Sections hereof.

10.

Waiver.  The Maker hereby waives diligence, presentment, demand, protest and notice of dishonor.

11.

Delay.  No delay on the part of the Holder or the exercise of any power or right under this Note shall operate as a waiver of such power or right to preclude other or further exercise thereof or the exercise of any other power or right.  

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12.

Time.  Time is of the essence for each and every obligation under this Note.

13.

Attorneys' Fees.  In the event of any litigation or other action to collect or enforce this Note, Holder shall be entitled to, in addition to any other damages assessed, his reasonable attorneys' fees, and all other costs and expenses incurred in connection with such litigation or action.  The attorneys' fees which Holder is entitled to recover shall include fees for prosecuting or defending any appeal and shall be awarded for any supplemental proceedings until the final judgment is satisfied in full.  In addition to the foregoing award of attorneys' fees to Holder, Holder shall be entitled to its reasonable attorneys' fees, costs, and expenses incurred in any post judgment proceedings to collect or enforce the judgment.  This attorneys' fees provision is separate and several and shall survive the merger of this Note into any judgment.

14.

Usury Law.  Notwithstanding any other provision contained in this Note, the rate of interest payable under this Note shall not at any time exceed a rate which, when combined with any and all other charges provided for in this Note or any other document executed in connection with this Note (to the extent such other charges would constitute interest for the purpose of any applicable law limiting interest which may be charged hereunder), exceeds the maximum interest rate permitted by law with respect to the transactions contemplated hereby.

IN WITNESS WHEREOF, the Maker has caused this Note to be issued to Holder as of the date first written above.

			
	 
	AQUARIUS HOLDINGS, LLC

	 
	 
	 

	 
	 
	 

	 
	By:

	 

	 
	 
	Michael Davis Lawyer, Manager

3INDEPENDENT CONTRACTOR AGREEMENT

EXHIBIT 10.7

INDEPENDENT CONTRACTOR AGREEMENT

Amendment to Independent Contractor Agreement

1.

This amendment (the "Amendment") dated December 31, 2014, is made by Aquarius Holdings LLC and Don Grede parties to the agreement dated September 1, 2014 (the "Agreement").

2.

The agreement is amended as follows:

Section four has been replaced in its entirety by the following:

Compensation.  As compensation for the services rendered pursuant to this Agreement, the Company shall issue to Contractor shares of common stock in the Issuing Company (the “Shares”) as described below.  The Shares shall be issued within a reasonable time after earned, and the Shares may be subject to certain restrictions, some of which are contained herein, and some of which shall be set forth in the documents annexed thereto at the time of the issuance.

a.

Cash. As compensation for the services rendered pursuant to this Agreement, the Company shall pay the Contractor the sum of Eighty Thousand Five Hundred ($80,500.00) Dollars payable as follows:

i.

9/1/14 – 11/30/14: $9,000 per month, in arrears. 

ii.

12/1/14 – 3/31/15: $4,000 per month, in arrears

iii.

4/1/15 – 8/31/15: $7,500 per month, in arrears

iv.

In the event the Company cannot pay in arrears, contractor can settle out in shares or a note. Terms to be negotiated between Company and Contractor.

v.

Contractor shall submit a monthly invoice to accounting@aquariuscannabis.com within five business days of the end of the month, payable Net 10 days from date of invoice receipt.

b.

Shares. Company agrees to issue to Contractor Two Hundred and Eighty Seven Thousand Five Hundred (287,500) Shares, which Shares shall be issued within a reasonable time after conclusion of the Services performed hereunder, and which Shares may be subject to certain restrictions, some of which are contained herein, and some of which shall be set forth in the documents annexed thereto at the time of the issuance.

i.

It is currently anticipated that the Shares will be issued on a quarterly basis on the first day following the previous fiscal quarter end, beginning January 1, 2015 as follows:

1.

75,000 Shares will be issued on January 1, 2015 for Services rendered during the period September 1, 2014, through December 31, 2014.

2.

112,500 Shares will be issued on April 1, 2015 for Services rendered during the period January 1, 2015, through March 31, 2015.

3.

60,000 Shares will be issued on July 1, 2015 for Services rendered during the period April 1, 2015, through June 30, 2015.

4.

40,000 Shares will be issued on October 1, 2015 for Services rendered

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INDEPENDENT CONTRACTOR AGREEMENT

during the period July 1, 2015, through August 31, 2015.

ii.

Upon issuance to the Contractor, the Shares will have a per Share cost basis based on the previous trading day’s closing market price of the Shares (if listed on a nationally recognized stock exchange) otherwise, as reasonably determined by the Managers of the Company.

c.

Commissions - Cash.

i.

Perpetual 10% cash commission on “Residual Net Revenue” (to be defined later) applicable to all new revenue generating contracts whereby Contractor coordinates all parties (including operator and financier) necessary to close the Contract.

ii.

Perpetual 0% to 10% (amount to be agreed upon later) cash commission on “Residual Net Revenue” (to be defined later) applicable to all new revenue generating contracts whereby Contractor coordinates some parties necessary to close the Contract.

iii.

Perpetual or term-based cash commissions (amounts and terms to be defined later) if Contractor creates and/ or maintains accounts with dispensaries to carry or that carry Aquarius products.

1.

Commissions are to be paid within 30 days after the month in which the information becomes available to compute the commission.

2.

The parties can substitute a mutually agreed upon lump-sum amount in lieu of the perpetual commissions if agreed to in writing.

3.

Cash commissions owed can be settled in Company stock, if agreed upon in writing by the parties.

iv.

Perpetual, term-based, or one time cash commissions for any deals that generate new business contracts for Aquarius but are not covered by an explicit commission structure will be determined in writing by Company and Contractor.

d.

Commissions- Shares

i.

A one-time share commission of 5% of the shares issued to an investor for direct investment in the Company when the investor was found and closed by Contractor.

ii.

Perpetual, term-based, or one time share commissions for any deals that generate new business contracts for Aquarius but are not covered by an explicit commission structure will be determined in writing by Company and Contractor.

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INDEPENDENT CONTRACTOR AGREEMENT

e.

Commission Agreements. Company and Contractor agree to enter into one or more Commission Agreements specifying the commission amounts and terms of the commissions upon closing the Contracts and transactions in Section 4.c. and 4.d. above.

Section twelve has been replaced in its entirety by the following:

Termination. The Company may terminate this Agreement at any time by 30 working days’ written notice to the Contractor. In addition, if the Contractor is convicted of any crime or offense, fails or refuses to comply with the written policies or reasonable directive of the Company, is guilty of serious misconduct in connection with performance hereunder, or materially breaches provisions of this Agreement, the Company at any time may terminate the engagement of the Contractor immediately and without prior written notice to the Contractor.

Contractor acknowledges there is a reason for concern that Company may not have the cash to cover billed services. In the event of non payment, the Contractor may terminate this agreement immediately.

3.

Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force and effect in accordance with its terms. If there is conflict between this amendment and the Agreement or any earlier amendment, the terms of this amendment will prevail.

					
	Aquarius Holdings LLC

	 
	Contractor: Don Grede

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:

	 
	 
	By:

	 

	Davis Lawyer

	 
	 
	Don Grede

	Its: Manager

	 
	 
	 

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INDEPENDENT CONTRACTOR AGREEMENT

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