Document:

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the "Agreement") is made and entered into as of October 31, 2014, between Load Guard Logistics, Inc., a Nevada corporation (the "Parent"), and LGT, Inc., a Florida corporation wholly owned by the Parent (the "Sub").

RECITALS

WHEREAS, Parent is the sole owner of the Sub;

WHEREAS, Parent is the owner of certain assets and liabilities related to Parent's transportation and delivery business; and

WHEREAS, as a condition to  the Agreement and Plan of Merger dated October 17, 2014 (the "Merger Agreement") between Parent, Nemus Acquisition Corp., Nemus and Nemus Bioscience, Inc. and immediately prior to Parent's repurchase and cancellation of 5,431,460 shares of Parent's common stock owned by Yosbani Mendez and Francisco Mendez, pursuant to the Stock Repurchase and Cancellation Agreement dated  October 31, 2014 (the "Cancellation Agreement") between Parent, Yosbani Mendez and Francisco Mendez, Parent wishes to assign to Sub, and Sub wishes to assume from Parent, all of the assets and liabilities of the Parent, on the terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the above premises and the mutual representations, warranties, covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.            Assignment of Assets.   Parent hereby assigns to Sub all of its rights, title and interest in, to and under all of its assets held as of immediately prior to the effective time of the Merger Agreement, (collectively, the "Assigned Assets").

 

2.            Assumption of Assets and Liabilities. Sub hereby expressly assumes and agrees to perform all duties and obligations of Parent arising under all of Parent's liabilities (the "Liabilities") held as of immediately prior to the effective time of the Merger Agreement.

 

3.            Representations of the Parent.

 

Parent hereby represent and warrant to Sub the following:

(a)            Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada, with full power and authority to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

(b)            Parent has the absolute and unrestricted right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement, when executed and delivered by Sub, will be a valid and binding obligation of Parent, enforceable against it in accordance with its terms.

 

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(c)            Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with, or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which Parent is a party or by it is bound, or (ii) any law, ordinance, judgment, decree, order, statute, or regulation, or that of any other governmental body or authority, applicable to Parent or its assets or properties.

 

(d)            The Assigned Assets constitute all of the assets of Parent.  Parent is the sole owner of the Assigned Assets and has good and marketable title to the Assigned Assets, free and clear of any liens, pledges, hypothecations, charges, adverse claims, options, preferential arrangements or restrictions of any kind, including, without limitation, any restriction of the use, voting, transfer, receipt of income or other exercise of any attributes of ownership. Upon the consummation of the transactions contemplated hereby, the Parent will have no assets.

 

(e)            The Liabilities constitute all liabilities of Parent.  Upon the consummation of the transactions contemplated hereby, the Parent will have no liabilities.

 

4.            Representations of the Sub.

 

The Sub hereby represents and warrants to the Parent the following:

(a)            Sub is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida, with full power and authority to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

(b)            The Sub has the absolute and unrestricted right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement, when executed and delivered by Parent, will be a valid and binding obligation of Sub, enforceable against it in accordance with its terms.

 

(c)            Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with, or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which either Sub is a party or by which it is bound, or (ii) any law, ordinance, judgment, decree, order, statute, or regulation, or that of any other governmental body or authority, applicable to Sub or its assets or properties.

 

5.            Power of Attorney.  Parent hereby constitutes and appoints Sub its true, lawful and irrevocable attorney to demand, receive and enforce the performance of the terms of the Assigned Assets, or to otherwise deal in respect of the Assigned Assets, and to give receipts, releases and satisfactions for the same, and this may be done either in the name of Parent or in the name of Sub with the same force and effect as Parent could do if this Agreement had not been made.

 

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6.            Payment of Expenses.   Sub shall be liable for any and all costs and expenses arising out of or in connection with the transactions contemplated by this Agreement.  In the event that Parent receives any invoices for costs and/or expenses associated herewith after the date hereof, Parent shall forward such invoices to Sub for payment.

 

7.            Indemnification. Sub shall indemnify and hold the Parent and each of the Parent's officers and directors (the "Representatives") harmless from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (collectively, "Losses") arising out of, based upon, attributable to or resulting from any and all Losses incurred or suffered by the Parent or any of the Representatives resulting from or arising out of (i) any breach of a representation, warranty or covenant made by Sub as set forth herein; (ii) any claims from any third parties related to the business operations of Sub before and after the effective time of the Merger Agreement and Sub's Liabilities, including but not limited to all of Sub's notes payable and loan payable to Wells Fargo Bank, (iii) any claims from shareholders of the Parent that purchased shares of the Parent's common stock in the Parent's offerings in 2011, 2012 and 2013 and (iv) any claims by any shareholder of the Parent who owns or owned common stock of the Parent prior to the effective time under the Merger Agreement with respect to this Agreement and the Cancellation Agreement.

 

8.            Miscellaneous.

 

(a)            This Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada.

 

(b)            If any covenant or agreement contained herein, or any part hereof, is held to be invalid, illegal or unenforceable for any reason, such provision will be deemed modified to the extent necessary to be valid, legal and enforceable and to give effect of the intent of the parties hereto.

 

(c)            This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof.  This Agreement supersedes all prior agreements between the parties with respect to the subject matter hereof or thereof.  There are no representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein or in the other agreements referenced herein.

 

(d)            This Agreement may not be amended or modified except by the express written consent of the parties hereto.  Any waiver by the parties of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach thereof or of any other provision.

 

(e)            This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors and permitted assignees and heirs and legal representatives.

 

(f)            The parties hereto intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person other than the parties hereto.

 

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(g)            The parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore shall not be construed against a party or parties on the ground that such party or parties drafted or was more responsible for the drafting of any such provision(s). The parties further agree that they have each carefully read the terms and conditions of this Agreement, that they know and understand the contents and effect of this Agreement and that the legal effect of this Agreement has been fully explained to its satisfaction by counsel of its own choosing.

 

(h)            The parties hereto agree to execute and deliver such further documents and instruments and to do such other acts and things any of them, as the case may be, may reasonably request in order to effectuate the transactions contemplated by this Agreement.

 

(i)            This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.  Facsimile and electronic copies in portable document format ("PDF") containing original signatures shall be deemed original signed copies of the executed documents provided by facsimile or PDF.

[Signature Page to Follow]

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered, effective as of the date first above written.

	
 

	
PARENT:

 

LOAD GUARD LOGISTICS, INC.

 

 

 

By:  /s/ Yosbani Mendez____________________________

Name:  Yosbani Mendez

Title:    President

 

 

SUB:

 

LGT, INC.

 

 

 

By:  /s/ Francisco Mendez___________________________

Name:  Francisco Mendez

Title:    Secretary

 

	
 

	
 

5STOCK REPURCHASE AND CANCELLATION AGREEMENT

THIS STOCK REPURCHASE AND CANCELLATION AGREEMENT ("Agreement"), dated as of October 31, 2014, is made by and among Load Guard Logistics, Inc., a Nevada corporation ("Company") and Yosbani Mendez and Francisco Mendez (collectively, the "Seller").

RECITALS

WHEREAS, the Company owns one hundred percent (100%) of the issued and outstanding shares of capital stock (the "Purchase Price Shares") of LGT, Inc., a Florida corporation ("LGT");

WHEREAS, Seller holds an aggregate of five million four hundred thirty one thousand four hundred sixty (5,431,460) shares of common stock, $0.001 par value per share, of the Company (the "Shares") which the Seller has agreed to transfer to the Company for cancellation (the "Repurchase");

WHEREAS, the Company has entered into an Agreement and Plan of Merger, dated as of October 17, 2014 (the "Merger Agreement"), by and among the Company, Nemus, a California corporation ("Nemus"), the Company's wholly-owned subsidiary, Nemus Acquisition Corp., a California corporation ("Merger Sub") and Nemus Bioscience, Inc., a Nevada corporation, pursuant to which Merger Sub shall merge with and into Nemus (the "Merger"), and thereafter Nemus shall continue as the surviving corporation as a wholly-owned subsidiary of the Company; and

WHEREAS, in connection with the transactions contemplated by the Merger Agreement and in exchange for the Repurchase, the Company shall transfer to Seller the Purchase Price Shares on the terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the above premises and the mutual representations, warranties, covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.            Repurchase and Sale of the Shares. Upon the terms and subject to the conditions set forth in this Agreement, the Company hereby agrees to repurchase from the Seller, and the Seller hereby agrees to sell to the Company, at the Closing (as defined below), all of the Seller's right, title and interest in and to the Shares. At the Closing, (i) Seller shall deliver to Company the certificate or certificates representing the Shares, duly executed and endorsed for transfer to Company and (ii) the Shares shall be cancelled and retired by the Company and shall be of no further force or effect.

2.            Purchase Price.  The purchase price for the Shares shall be the transfer and delivery by the Company to Seller of a certificate or certificates representing the Purchase Price Shares duly endorsed to Seller, which delivery shall vest Seller with good and marketable title to the Purchase Price Shares, free and clear of all liens and encumbrances.

 

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3.            Closing. The closing of the transactions contemplated in this Agreement (the "Closing") shall take place at the offices of the Company, or at such other place as the parties may mutually agree, immediately after the closing of the Merger.

4.            Representations and Warranties of Seller. Seller represents and warrants to Company as of the date hereof as follows:

(a)            Authority and Enforceability. The Seller has all requisite power, legal capacity and authority to execute, deliver and perform the Seller's obligations under this Agreement, including the transfer and sale of the Shares to the Company. This Agreement has been duly executed and delivered by Seller and constitutes the valid and binding agreement of Seller, enforceable against Seller in accordance with its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally and by general equitable principles.

(b)            Approvals. No action, approval, consent, authorization, notice or filing on the part of the Seller, including any action, approval, consent or authorization by or notice to or filing with any governmental or quasi-governmental agency, self-regulatory organization, commission, board, bureau or instrumentality, is necessary or required as to the Seller in order to permit the sale and transfer of the Shares in accordance with this Agreement.

(c)            No Breach of Law. The execution, delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby do not violate any domestic or foreign, federal, state or local statute, law, ordinance, rule, administrative interpretation, regulation, order, writ, injunction, decree or other restriction of any governmental authority to which the Seller is subject or which otherwise is applicable to the Seller or the Shares.

(d)            Ownership of Shares. The Seller is the sole holder of record, of the Shares, free and clear of any and all liens, and upon transfer of the Shares to the Company pursuant to Section 1 hereof, the Company will acquire good, valid and marketable title to the Shares, free and clear of any and all liens.  The Shareholders have the sole and absolute right and power to sell, assign and transfer the Shares as provided in this Agreement, and there exist no restrictions on the transfer of the Shares to the Company.

5.            Representations and Warranties of Company. Company represents and warrants to Seller as of the date hereof as follows:

(a)            Authority and Enforceability.  The Company has all requisite power, legal capacity and authority to enter into this Agreement and to assume and perform its obligations hereunder. The Company's board of directors has determined that it is fair and in the best interests of the Company and each of the Company's shareholders (including Company's shareholders holding shares of common stock that are not subject to repurchase in the Repurchase), and declared it advisable, to enter into this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance or other similar laws affecting creditors' rights generally and general principles of equity.

 

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(b)            Approvals.  No action, approval, consent, authorization, notice or filing, including, any action, approval, consent or authorization by or notice to or filing with any governmental or quasi-governmental agency, self-regulatory organization, commission, board, bureau or instrumentality, is necessary or required as to the Company in order to permit the sale and transfer of the Purchase Price Shares, in accordance with this Agreement.

(c)            Title to Purchase Price Shares.  Company is the sole record and beneficial owner of the Purchase Price Shares. At Closing, Company will have good and marketable title to the Purchase Price Shares, which Purchase Price Shares are, and at the Closing will be, free and clear of all options, warrants, pledges, claims, liens and encumbrances, and any restrictions or limitations prohibiting or restricting transfer to Seller, except for restrictions on transfer as contemplated by applicable securities laws.

6.            Indemnification. The Seller shall indemnify and hold the Company and each of the Company's officers and directors (the "Representatives") harmless from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (collectively, "Losses") arising out of, based upon, attributable to or resulting from any and all Losses incurred or suffered by the Company or any of the Representatives resulting from or arising out of (i) any breach of a representation, warranty or covenant made by Seller as set forth herein; (ii) any claims from any third parties related to the business operations of LGT before and after the effective time of the Merger Agreement and LGT's liabilities, including but not limited to all of LGT's notes payable and LGT's loan payable to Wells Fargo Bank, (iii) any claims from shareholders of the Company that purchased shares of the Company's common stock in the Company's offerings in 2011, 2012 and 2013 and (iv) any claims by any shareholder of the Company with respect to this Agreement and the Assignment and Assumption Agreement between the Company and LGT.

7.            Miscellaneous.

(a)            Notices.  Any notice, request or other communication hereunder shall be given in writing and shall be served either personally, by overnight delivery or delivered by mail, certified return receipt and addressed to the following addresses:

If to Company:

Load Guard Logistics, Inc.

6317 SW 16th Street

Miami, FL 33155

Attn: Yosbani Mendez

If to Seller:

Yosbani Mendez

Francisco Mendez

6317 SW 16th Street

Miami, FL 33155

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(b)            Counterparts. This Agreement may be signed in any number of counterparts, each of which will be deemed an original but all of which together shall constitute one and the same instrument. Facsimile and electronic copies in portable document format ("PDF") containing original signatures shall be deemed original signed copies of the executed documents provided by facsimile or PDF.

(c)            Waivers. No failure or delay by any party in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

(d)            Successors and Assigns. The provisions of this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer  any of its rights or obligations under this Agreement without the consent of each other party hereto.

(e)            No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted successors and assigns and nothing herein expressed or implied will give or be construed to give to any person, other than the parties hereto, and such permitted successors and assigns, any legal or equitable rights hereunder.

(f)            Governing Law. This Agreement will be governed by, and construed in accordance with, the internal substantive law of the State of Nevada.

(g)            Headings. The headings in this Agreement are for convenience of reference only and will not control or affect the meaning or construction of any provisions hereof.

(h)            Entire Agreement; Amendments. This Agreement constitutes the entire agreement among the parties with respect to the subject matter of this Agreement. This Agreement supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof of this Agreement. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

(i)            Severability. If any provision of this Agreement or the application of any such provision to any person or circumstance is held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated, and to the extent permitted by applicable law, any such provision will be restricted in applicability or reformed to the minimum extent required for such provision to be enforceable. This provision will be interpreted and enforced to give effect to the original written intent of the parties prior to the determination of such invalidity or unenforceability.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered, effective as of the date first above written.

 

	
 

	
LOAD GUARD LOGISTICS, INC.

	
 

	
 

	
 

	
 

	
 

	
/s/ Yosbani Mendez

	
 

	
By:

	
Name:  Yosbani Mendez

 Title: President

	
 

	
 

	
 

	 		
	
 

	
YOSBANI MENDEZ

	 	
	
 

	
/s/ Yosbani Mendez

	
 

	
Yosbani Mendez

	
 

	
 

	
 

	
FRANCISCO MENDEZ

	 	
	
 

	
/s/ Francisco Mendez

	
 

	
Francisco Mendez

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