Document:

Blueprint

 

 

Exhibit 10.2

 

PREFERRED STOCK CANCELLATION AGREEMENT

 

 

THIS PREFERRED STOCK
CANCELLATION AGREEMENT (this “Agreement”) is made and
entered into effective as of March 27 , 2017, by and between HotApp
International Inc., a Delaware corporation (the
“Company” or “HotApp”), and Singapore
eDevelopment Ltd. (the
“Stockholder”).

 

WITNESSETH:

 

WHEREAS, the Company created a series of preferred
stock called the Perpetual Preferred Stock (the “Preferred
Stock”); and

 

WHEREAS, the Stockholder is the record and beneficial
owner of a total of 13,800,000 shares of the Preferred stock,
$0.00001 par value per share;

 

WHEREAS, the
Stockholder has requested that the Preferred Stock be cancelled;
and

 

WHEREAS, the Company and the Stockholder have entered
into negotiations regarding common stock of the Company and the
conversion of debt between the two companies;
and

 

WHEREAS, following the approval of the stockholders
of the Corporation, the Corporation is proposing to amend its
Articles of Incorporation to increase the number of its authorized
shares of Common Stock to 1,000,000,000 shares, to the
Company’s Articles of Incorporation to effect such increase
in the authorized shares of the Company, and that the Articles of
Amendment will be effective upon filing with the Secretary of State
for the State of Delaware; and

 

 

NOW,
THEREFORE, in
consideration of the foregoing recitals and the mutual agreements
set forth herein, and other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto agree
as follows:

 

1.  Cancellation
of Shares.  Upon the terms and subject to the
conditions set forth in this Agreement, upon execution hereof, the
Stockholder shall deliver to the Company certificates representing
the Preferred Stock, duly executed for cancellation, or accompanied
by stock powers duly executed in blank (with a medallion guarantee
or such other evidence of signature as the Company’s transfer
agent may require) whereupon the officers of the Company shall
cancel such Preferred Stock by delivering the Preferred Stock to
the Company’s Secretary for cancellation.

 

2. Representations
of Stockholder.  The
Stockholder represents and warrants to the Company, as of the date
hereof, that:

 

a.

Stockholder
has the legal capacity to execute, deliver and perform the
obligations under this Agreement.  This Agreement has
been duly executed and delivered by Stockholder and is a valid and
legally binding agreement of Stockholder enforceable against it in
accordance with its terms.

 

b.

Stockholder
is the sole holder of record of the Preferred Stock, and is the
beneficial owner of the Preferred Stock, free and clear of all
liens, and there exists no restriction on the transfer of the
Preferred Stock to the Company.  Upon execution hereof,
Stockholder shall deliver to the Company at good and marketable
title to the Preferred Stock free and clear of all
liens.

 

c.

No
action has been taken by Stockholder that would give rise to a
claim against the Company for a brokerage commission,
finder’s fee or other like payment with respect to the
transactions contemplated by this Agreement.

 

 

 

 

d.

Stockholder
agrees that it is the sole holder of the Preferred Stock and
Stockholder’s obligation to cancel the Preferred Stock in
this Agreement satisfies Sections 222, 242, and 228 of the State of
Delaware General Corporation Code regarding stockholder consent and
waiver of stockholder notice.

 

4. Governing
Law.
This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware
without regard to conflict-of-laws rules.

 

5. Undertakings.
Each of Stockholder and the Company hereby agrees
to take whatever additional action and execute whatever additional
documents may be reasonably necessary or advisable in order to
carry out or effect one or more of the provisions of this
Agreement.

 

6. Counterparts.
This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute one and the same
instrument.

 

7. Entire
Agreement. This Agreement and the instruments to be delivered
by the parties pursuant hereto represent the entire understanding
and agreement between the parties and supersede all prior oral and
written and all contemporaneous oral negotiations, commitments and
understandings.

 

 

APPROVED:

 

	

HotApp International Inc.

	

Singapore eDevelopment, Ltd.

	

 

 

 

 

 

By: /s/ Conn
Flanigan                                  

 

	

 

 

 

 

 

By: /s/
Fai H. ChanBlueprint

 

 Exhibit 10.27

 

BRIDGE LOAN AGREEMENT

 

 

THIS BRIDGE LOAN AGREEMENT (this “Agreement”) is entered into on
this 12th
day of January, 2017 (the “Effective Date”) by and between
Gilla Inc. (“Gilla” or the “Company”), and Gravitas Financial
Inc. (“Gravitas”) to enter into a bridge
loan of a total of two hundred thousand Canadian dollars (CAD
$200,000) in two equal tranches of one hundred thousand Canadian
dollars (CAD $100,000) on or before January 12, 2017 and January
16, 2017 respectively.

 

RECITALS:

 

A. On February 13,
2014, Gilla granted Gravitas a general security interest over all
the assets of the Company (the “GSA”), apart from the
specific inventory and receivables pledged to Sarasvati Investments
Inc.

 

B. Gilla has engaged M
Partners Inc. to act on behalf of Gilla to complete a non-brokered
private placement (the “Financial Raise”).

 

C. Congruent with the
Financial Raise, Gilla is pursuing a listing on the Canadian
Securities Exchange.

 

NOW, THEREFORE, for and in consideration of the mutual
promises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, Gilla and Gravitas, intending to be legally bound
hereby, agree as follows:

 

1. Recitals, Secured Promissory Notes and
GSA. The foregoing recitals are true and correct and,
together with Note A and Note B as described below and the GSA, are
incorporated herein by this reference.

 

2. Secured Promissory Note A. On or before
January 12, 2017, Gravitas shall loan to Gilla and Gilla covenants
and promises to pay Gravitas the principal sum of one hundred
thousand Canadian dollars (CAD $100,000) (the “Note
A”), such Note A attached hereto as Exhibit “A”.
Such Note A shall be due and payable on or before March 12, 2017
and shall be non-interest bearing. Gravitas shall also receive a
five (5%) upfront fee upon closing of Note A. Gilla shall have the
right and privilege of repaying the whole or any portion of the
Note A at any time; interest first, then principal second. Gilla
shall also issue a direction to its bankers to repay Note A upon
closing of the current financing.

 

3. Secured Promissory Note B. On or before
January 16, 2017, Gravitas shall loan to Gilla and Gilla covenants
and promises to pay Gravitas the principal sum of one hundred
thousand Canadian dollars (CAD $100,000) (the “Note
B”), such Note B attached hereto as Exhibit “B”.
Such Note B shall be due and payable on or before March 12, 2017
and shall be non-interest bearing. Gravitas shall also receive a
five (5%) upfront fee upon closing of Note B. Gilla shall have the
right and privilege of repaying the whole or any portion of the
Note A at any time; interest first, then principal second. Gilla
shall also issue a direction to its bankers to repay Note B upon
closing of the current financing.

 

4. Covenants.
Upon the closing of Note A, other than intercompany loans between
Gilla and its subsidiaries, Gilla hereby agrees that until Note A
and Note B are repaid in full, all of Gilla’s operating
subsidiaries shall not incur any additional indebtedness, that is
not in the ordinary course of business, without the prior consent
of Gravitas.

 

5. Warrants. Upon execution of this
Agreement and closing, Gravitas shall receive fifty thousand
(50,000) purchase warrants (each a “Warrant” and collectively the
“Warrants”),
each Warrant entitling Gravitas to purchase one (1) common share of
Gilla, a publicly listed company trading on the OTCQB under the
symbol “GLLA”. The Warrants shall have an exercise
price of twenty United States cents (US $0.20) per share and shall
expire one (1) year from the date of issuance. Twenty-five thousand
(25,000) of the Warrants shall vest upon closing of Note A and the
remaining twenty-five thousand (25,000) Warrants shall vest upon
closing of Note B. If either of Note A or Note B is not closed, the
respective warrants shall be cancelled and deemed null and void.
The securities, if exercised and issued, will be subject to the
standard restrictions as required by the regulators, the stock
exchange and the U.S. Securities and Exchange
Commission.

 

6. Entire Agreement. The provisions of this
Agreement, Note A, Note B and the GSA, incorporated herein by
reference, collectively constitutes the entire agreement (the
“Entire
Agreement”) between the parties with respect to its
subject matter. All prior or contemporaneous oral and written
agreements, memoranda and representations relating to Secured
Promissory Note are superseded by this Entire
Agreement.

 

7. Amendments. The Entire Agreement may be
amended only by a subsequent writing signed by authorized
representatives of both parties hereto, indicating an intent to
amend the Entire Agreement.

 

8. Counterparts. This Agreement may be
executed by each party upon a separate counterpart, each of which
shall be deemed an original and all of which together shall
constitute one agreement. Facsimile signature pages shall be
acceptable as originals.

 

[signature page follows]

 

 

1

 

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement
to be signed by their duly authorized representatives as of the day
and year first written above.

 

 

	

 

	
GILLA
INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
Per:  

	
/s/ 
Graham
Simmonds

	

 

	

 

	

 

	
Name: Graham
Simmonds	

 

	

 

	

 

	Title:
CEO	

 

 

	
 

	
GRAVITAS
FINANCIAL INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
Per:  

	
/s/ 
David
Carbonaro

	
 

	
 

	
 

	
Name: David
Carbonaro

	
 

	
 

	
 

	
Title:
Authorized Signatory

	
 

 

 

 

 

2

 

 

Exhibit “A”

 

SECURED PROMISSORY NOTE A

 

CAD $100,000  Toronto, Ontario

  January 12,
2017

 

FOR
VALUE RECEIVED, Gilla, Inc.
(“Gilla” or the “Borrower”), a Nevada
Corporation hereby covenants and promises to pay to Gravitas Financial Inc. (“Gravitas” or the
“Lender”), in
the manner hereinafter provided, the principal sum of one hundred
thousand Canadian dollars(CAD $100,000) (the “Note”).

 

The
Note shall be due and payable on or before March 12, 2017 and shall
be non-interest bearing. The Lender shall also receive a five (5%)
upfront fee upon closing of this Note. The Borrower shall have the
right and privilege of repaying the whole or any portion of this
Note at any time. The Borrower shall also issue a direction to its
bankers to take out this Note upon closing of the current
financing.

 

The
Note is secured under the General Security Agreement entered into
as of February 13, 2014 whereby Gilla granted Gravitas Financial
Inc. a general security interest over all of the assets of the
Borrower, apart from the specific inventory and receivables pledged
to Sarasvati Investments Inc.

 

Events of Default: In the event of default (missed payment)
the Borrowers will have 15 days to liquidate sufficient assets to
cover the Note plus interest. Interest will continue to accrue
during the default period.

 

Except
as otherwise expressly provided herein, any notice, report or other
communication which may be or is required to be given or made
pursuant to this Agreement shall be in writing and shall be deemed
to have been validly served, given or hand delivered or sent by
facsimile, or other electronic communication, or three (3) days
after deposit in the mail with Canada Post, with proper first class
postage prepaid and addressed to the party to be notified or to
such other address as any party hereto may designate for itself by
like notice, as follows:

 

if
to the Borrowers, at:

 

Gilla
Inc.

475
Fentress Blvd., Ste L

Daytona
Beach, FL 32114

Attention: Graham
Simmonds

Email:
graham.simmonds@gilla.com

 

if
to the Lender, at:

 

Gravitas Financial
Inc.

333 Bay
Street,

Suite
1700

Toronto,
ON

M5H
2R2

Attention: David
Carbonaro

 

This
Note is intended as a contract under and shall be construed and
enforceable in accordance with the laws of the Province of Ontario,
and the laws of Canada applicable therein.

 

 

3

 

 

IN WITNESS WHEREOF, the Borrower has
caused this Note to be executed and delivered by its duly
authorized officer as of the date and at the place first above
written.

 

 

 

	
 

	
GILLA
INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:  

	
/s/ 
Graham
Simmonds

	
 

	
 

	
 

	
Name: Graham
Simmonds

	
 

	
 

	
 

	
Title:
Chief
Executive Officer

	
 

 

	
 

	
GRAVITAS
FINANCIAL INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
Per:  

	
/s/ 
David
Carbonaro

	
 

	
 

	
 

	
Name: David
Carbonaro

	
 

	
 

	
 

	
Title: Authorized
Signatory

	
 

 

 

 

4

 

 

Exhibit “B”

 

 

SECURED PROMISSORY NOTE B

 

CAD $100,000  Toronto, Ontario

  January 18,
2017

 

FOR
VALUE RECEIVED, Gilla, Inc.
(“Gilla” or the “Borrower”), a Nevada
Corporation hereby covenants and promises to pay to Gravitas Financial Inc. (“Gravitas” or the
“Lender”), in
the manner hereinafter provided, the principal sum of one hundred
thousand Canadian dollars (CAD $100,000) (the “Note”).

 

The
Note shall be due and payable on or before March 12, 2017 and shall
be non-interest bearing. The Lender shall also receive a five (5%)
upfront fee upon closing of this Note. The Borrower shall have the
right and privilege of repaying the whole or any portion of this
Note at any time. The Borrower shall also issue a direction to its
bankers to take out this Note upon closing of the current
financing.

 

The
Note is secured under the General Security Agreement entered into
as of February 13, 2014 whereby Gilla granted Gravitas Financial
Inc. a general security interest over all of the assets of the
Borrower, apart from the specific inventory and receivables pledged
to Sarasvati Investments Inc.

 

Events of Default: In the event of default (missed payment)
the Borrowers will have 15 days to liquidate sufficient assets to
cover the Note plus interest. Interest will continue to accrue
during the default period.

 

Except
as otherwise expressly provided herein, any notice, report or other
communication which may be or is required to be given or made
pursuant to this Agreement shall be in writing and shall be deemed
to have been validly served, given or hand delivered or sent by
facsimile, or other electronic communication, or three (3) days
after deposit in the mail with Canada Post, with proper first class
postage prepaid and addressed to the party to be notified or to
such other address as any party hereto may designate for itself by
like notice, as follows:

 

if
to the Borrowers, at:

 

Gilla
Inc.

475
Fentress Blvd., Ste L

Daytona
Beach, FL 32114

Attention: Graham
Simmonds

Email:
graham.simmonds@gilla.com

 

if
to the Lender, at:

 

Gravitas Financial
Inc.

333 Bay
Street,

Suite
1700

Toronto,
ON

M5H
2R2

Attention: David
Carbonaro

 

This
Note is intended as a contract under and shall be construed and
enforceable in accordance with the laws of the Province of Ontario,
and the laws of Canada applicable therein.

 

 

5

 

 

IN WITNESS WHEREOF, the Borrower has
caused this Note to be executed and delivered by its duly
authorized officer as of the date and at the place first above
written.

 

 

	
 

	
GILLA
INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:  

	
/s/ 
Graham
Simmonds

	
 

	
 

	
 

	
Name: Graham
Simmonds

	
 

	
 

	
 

	
Title:
Chief
Executive Officer

	
 

 

	
 

	
GRAVITAS
FINANCIAL INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
Per:  

	
/s/ 
David
Carbonaro

	
 

	
 

	
 

	
Name: David
Carbonaro

	
 

	
 

	
 

	
Title: Authorized
Signatory

	
 

 

 

  

 

6

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