Document:

cgnd_ex101.htm

EXHIBITS 10.1 
  
 LINE OF CREDIT AGREEMENT
  
 This LINE OF CREDIT AGREEMENT is made as of this 8th day of November 2018 (this “Agreement” or the “Line of Credit Agreement”), by and among Jacksam Corporation, a Nevada corporation (the “Borrower”); and Bass Point Capital LLC, a Massachusetts limited liability company (the “Lender”). A line of credit is hereby established in the amount of TWO HUNDRED FIFTY THOUSAND and 00/100 DOLLARS ($250,000.00) for the benefit of the Borrower; provided, however, that the Lender unilaterally may terminate the Borrower’s privilege to request advances hereunder or lower said amount. This line of credit will be subject to the following terms and conditions:
  
 1. The Lender hereby establishes a revolving lhine of credit in Borrower’s favor in the amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) (the “Revolving Amount”); provided however that no provision of this Agreement shall be deemed to require the Lender to advance any sum of money at any time. At any time that the Borrower desires the Lender to advance any sum of money hereunder, the Borrower may request the same, including a description of the amount of the request, the proposed repayment date, and the planned use of proceeds therefrom, and the Lender for any or no reason may deny such request. 
  
 2. Each request honored by Lender for an advance of funds against the line of credit will bear interest at a rate of 12.0% per annum, as set forth on that certain form of promissory note (the “Note”), a copy of which is attached hereto and made a part hereof as Exhibit A, or as the parties shall otherwise agree in writing prior to an advance, which interest shall be due and paid upon maturity of each Note.
  
 3. Facility Fee. Borrowers hereby agree to pay Lender a facility fee in an amount equal to .125% ($312) of the Revolving Amount each 30 day period from the date of this Agreement. 
  
 4. Threshold Amount: If the Borrower completes a financing of more than One Million Dollars ($1,000,000) in a debt or equity financing, all outstanding Notes shall be repaid in full within two business days of the close of such financing. 
  
 5. Field Examination Fee. Upon Lender’s performance of any collateral monitoring and/or verification including any field examination, collateral analysis or other business analysis, the need for which is to be determined by Lender and which monitoring is undertaken by Lender or for Lender’s benefit, Lender’s reasonable, out of pocket travel costs shall be promptly reimbursed to the Lender. 
  
 6. Wire/Check Fee. For each wire transfer or check issued by Lender, on behalf of a Borrower, Borrowers shall pay Lender Lender’s standard fee for such service which fee is $45 as of the Closing Date.
  
 7. Unless sooner due by reason of a Default or Event of Default, each Note shall be due in full, together with then accrued and unpaid interest, upon the first to occur of: (i) if funds advanced pursuant to such Note were advanced for a specific purpose then, upon the Borrower realizing the benefit of such purpose; (ii) 365 days from the date of first issuance of such Note; (iii) thirty (30) days following written demand therefor by Lender; or (iv) as the parties shall otherwise agree in writing prior to an advance. By way of example and not limitation, should Borrower obtain an advance to purchase additional inventory for sale then, upon the sale of such inventory by the Borrower and receipt of payment therefor, the Note that corresponds to such advance would become due and payable.
   
  	 
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 8. The occurrence of one or more of the following (herein called a “Default” or an “Event of Default”) shall constitute a default by the Borrower hereunder, and under the Note, in addition to but not in limitation of any events which would cause a default under the terms and conditions of the Note:
  
 a) Default in the payment or performance of any liability or obligation of Borrower to the Lender or of any covenant or liability contained or referred to herein, in the Note or in any other note instrument, document or agreement evidencing any obligation.
  
 b) The failure of Borrower to perform or to observe any of the provisions of any real estate mortgage security agreement or other agreement or document now or hereafter evidencing or creating any security for the payment of the Note.
  
 c) Any representation or warranty of the Borrower in connection with this Line of Credit Agreement or any document executed in accordance herewith, or in pursuance hereof, shall be false on the date on which made.
  
 d) The failure by Borrower to pay, when due, any amount due under the Note or the failure by the Borrower to pay, when due, any obligation of Borrower to Lender.
  
 e) Borrower’s insolvency, appointment of a receiver for all or a part of Borrower’s property, the making of any assignment by Borrower for the benefit of creditors or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or upon the issuing of any writ of attachment by trustee process or otherwise or a restraining order or injunction affecting any of the Borrower’s property; provided, however, if any such proceeding is commenced against the Borrower, the Borrower shall have thirty (30) days in which to cause such proceeding to be dismissed.
  
 f) The insolvency of any guarantor of this Line of Credit Agreement and/or the Note or of any obligation of any Borrower to the Lender.
  
 g) The death, dissolution, termination of existence, declared insolvency; or failure in business of the Borrower or any guarantor of this Line of Credit Agreement of the Note.
  
 h) The admission in writing of a Borrower’s insolvency or inability to pay debts generally as they become due or upon any deterioration of the financial condition of the Borrower, any endorser or guarantor of this Line of Credit Agreement or the Note, which results in the Lender deeming itself, in good faith, insecure.
  
 Any such event caused by, or occurring with regard to, any one or more persons constituting the “Borrower” shall be deemed to be so caused by (or occurring with regard to) the “Borrower”.
  
 If any Event of Default occurs, all obligations outstanding from the Borrower to the Lender, including obligations pursuant to this Line of Credit Agreement and/or the Note, shall immediately become due and payable without demand, presentment, protest or other notice of any kind, all of which are hereby expressly waived, and shall thereafter bear interest at a rate of 18.0% per annum until paid in full. In the event of such Event of Default, the Lender may proceed to enforce the payment of all obligations of Borrower to Lender and to exercise any and all of the rights and remedies afforded to Lender by law or under the terms of this Line of Credit Agreement or otherwise. 
   
  	 
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 In the event an action is instituted to enforce or interpret any of the terms of this Agreement or collect any amounts due hereunder, the prevailing party shall be entitled to recover all expenses reasonably incurred at, before and after trial, appeal or review whether or not taxable as costs, including, without limitation, attorney fees, witness fees (expert and otherwise), deposition costs, copying charges and other expenses.
  
 9. Should Borrower become delinquent in its quarterly or annual filings with the US Securities and Exchange Commission on Form 10-Q or 10-K, Borrower thereafter agrees to furnish to Lender, upon demand, but not more than semi-annually, so long as indebtedness under the Line of Credit Agreement and the Note remains unpaid, certified financial statements prepared by an independent accountant setting forth in reasonable detail the assets, liabilities, and net worth of the Borrower and certified to under oath by an officer of the Borrower. Such financial statements shall be sent to the Lender at its address listed above and shall be at the sole cost and expense of the Borrower.
  
 10. This Line of Credit Agreement is supplementary to each and every other agreement between Borrower and Lender and shall not be so construed as to limit or otherwise derogate from any of the rights or remedies of Lender or any of the liabilities, obligations or undertakings of Borrower under any such agreement, nor shall any contemporaneous or subsequent agreement between the Borrower and Lender be construed to limit or otherwise derogate from any of the rights r remedies of Lender or any of the liabilities, obligations or undertakings of Borrower hereunder unless such other agreement specifically refers to this Line of Credit Agreement and expressly so provides.
  
 11. This Line of Credit Agreement and the covenants and agreements herein contained shall continue I full force and effect until all such obligations, liabilities and undertakings have been paid or otherwise satisfied in full. No delay or omission on the part of Lender in exercising any right hereunder shall operate as a waiver of such rights or any other right and waiver on any one or more occasions shall not be construed as a bar to or waiver of any right or remedy of Lender on any future occasion. This Line of Credit Agreement is intended to take effect as a sealed instrument, shall be governed by and construed in accordance with the laws of Nevada, shall be binding upon Borrower’s legal representatives, successors and assigns, and shall inure to the benefit of Lender’s successors and assigns.
  
 12. The Borrower does hereby certify that any and all necessary resolutions that may be required to effectuate and validate the terms of the Line of Credit Agreement and the Note have been duly made and adopted by the Borrower.
  
  	 
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 IN WITNESS WHEREOF, the parties have caused these presents to be executed as a contract under seal as of the date first written above.
  
   
  	 BORROWER:
	 	 LENDER:
	 
	 JACKSAM CORPORATION, a Nevada corporation
	  
	 Bass Point Capital LLC 
	  

	  
	  
	  
	  
	  
	  

	 By:
	/s/ Mark Adams	 	 By: 
	 /s /Doug Leighton 
	 
	 Its:
	Chief Executive Officer	 	 Its:
	  
	 
	  
		 	  
	11/8/18	 
	   
	  
	  
	  
	  

	 Address for Notice:
	  
	  
	  
	  

      	 
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 Exhibit A
  
 Form of Promissory Note
  
 PROMISSORY NOTE
 LAS VEGAS, NEVADA 
  
  	 $___,000.00
	 ________ ___, 20__

  
 Jacksam Corporation, a Nevada corporation ("Maker") promises to pay to the order of Brass Point Capital, LLC, a Massachusetts limited liability company or its assigns ("Holder") at _________________, or such other place as may be designated in writing by Holder or it assigns, the principal sum of _____ Thousand Dollars ($___,000.00), with simple interest thereon from this date, until fully paid, at the rate of _______ percent (__.0%) per annum. All unpaid interest and the principal balance of this Note shall be due and payable in full upon the sooner to occur of (i) _______ from the date of this Note, (ii) ____________________________________________________or (iii) thirty (30) days following written demand therefor by Holder. If not so paid by Maker, then then unpaid interest and the principal balance of this Note shall thereafter bear interest at the rate eighteen percent (18.0%) until paid in full.
  
 Interest shall be computed on the basis of a 365-day year or 366-day year as applicable, and actual days lapsed. Maker shall have the privilege of prepaying the principal under this Note in whole or in part, without penalty or premium at any time. All payments hereunder shall be applied first to costs of collection, then to interest, then to principal.
  
 In the event an action is instituted to enforce or interpret any of the terms of this Note including but not limited to any action or participation by Maker in, or in connection with, a case or proceeding under the Bankruptcy Code or any successor statute, the prevailing party shall be entitled to recover all expenses reasonably incurred at, before and after trial, appeal or review whether or not taxable as costs, including, without limitation, attorney fees, witness fees (expert and otherwise), deposition costs, copying charges and other expenses.
  
 All parties to this Note hereby waive presentment, dishonor, notice of dishonor, and protest. All parties hereto consent to, and Holder is hereby expressly authorized to make, without notice, any and all renewals, extensions, modifications or waivers of the time for or the terms of payment of any sum or sums due hereunder, or under any documents or instruments relating to or securing this Note, or of the performance of any covenants, conditions or agreements hereof or thereof or the taking or release of collateral securing this Note. Any such action taken by Holder shall not discharge the liability of any party to this Note. This Note may not be modified or amended in any respect except in a writing executed by the party to be charged.
  
 This Note has been executed and delivered in the state of Nevada and shall be governed and construed in accordance with the laws of such state. Any action to enforce this Note or arising out of or related to this Note shall be heard in the state or federal courts sited in Clark County, Nevada to the exclusion of all other venues and Maker hereby irrevocably consents to personal jurisdiction in the state of Nevada in connection with any such proceedings.
  
   
  	 MAKER
	
	 	 
		
	Jacksam Corporation	 
	Address of Maker for Notice: 	 

  
  	 
	5EX-10.1

 Exhibit 10.1 

Nonstatutory Stock Option 

Executive Officer Inducement Award 
 1.
Grant of Option. 
 This certificate evidences a nonstatutory stock option (this “Stock Option”) granted by EyePoint
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), on May 14, 2018 (the “Date of Grant”) to Leonard Blum (the “Participant”). This Stock Option is granted to the
Participant in connection with his entering into employment with the Company and is regarded by the parties as an inducement material to the Participant’s entering into employment within the meaning of Nasdaq Listing Rule 5635(c). Under this
Stock Option, the Participant may purchase, in whole or in part, on the terms herein provided, a total of 375,000 shares of common stock of the Company (the “Shares”) at $1.95 per Share, which is not less than the fair market
value of a Share on the Date of Grant. The latest date on which this Stock Option, or any part thereof, may be exercised is 5:00 P.M. Eastern Time on May 14, 2028 (the “Final Exercise Date”). The Stock Option evidenced by this
certificate is intended to be, and is hereby designated, a nonstatutory option, meaning an option that does not qualify as an incentive stock option as defined in section 422 of the Internal Revenue Code of 1986, as amended from time to time
(the “Code”). This Stock Option shall be subject to and governed by, and shall be construed and administered in accordance with, the terms and conditions of the Company’s 2016 Long-Term Incentive Plan (as from time to time in effect,
the “Plan”), which terms and conditions are incorporated herein by reference. A copy of the Plan has been made available to the Participant. Notwithstanding the foregoing, this Stock Option is not awarded under the Plan and the grant of
this Stock Option shall not reduce the number of shares of Stock available for issuance under awards issued pursuant to the Plan. 
 2. Vesting. 

(a) During Employment. This Stock Option will vest and become exercisable with respect to one third (1/3) of the Shares on each of the
first, second and third anniversaries of the Grant Date; provided that, and subject to Section 2(c) below, upon a cessation of the Participant’s Employment by reason of an involuntary termination without Cause (as defined in the
Employment Agreement between the Company and the Participant dated May 14, 2018 (“Employment Agreement”) (“Cause”)) or a voluntary termination for Good Cause (as defined in the Employment Agreement (“Good Cause”))
any unvested portion of this Stock Option that would have vested as of the first anniversary of the cessation of the Participant’s Employment had the Participant continued in Employment through such first anniversary will vest immediately prior
to such cessation of Employment. 

  
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 (b) Termination of Employment. Notwithstanding the foregoing, and subject to
Section 2(c) below, the following rules will apply if a Participant’s Employment ceases regardless of the circumstances: automatically and immediately upon the cessation of Employment, this Stock Option will cease to be exercisable and
will terminate, except that: 
 (I) such portion, if any, of this Stock Option as is held by the Participant immediately prior to the
cessation of the Participant’s Employment for any reason other than for Cause or as a result of Participant’s death and as is then exercisable (after giving effect to any accelerated vesting owing to a cessation of Employment by reason of
an involuntary termination without Cause or a voluntary termination for Good Cause pursuant to Section 2(a) above), will remain exercisable until (i) 5:00 P.M. Eastern Time on the last day of the three-month period commencing on the date of
such cessation of Employment or (ii) the Final Exercise Date, if earlier, and will thereupon terminate; 
 (II) such portion, if any, of
this Stock Option as is held by the Participant immediately prior to the Participant’s death and as is then exercisable, will remain exercisable until (i) 5:00 P.M. Eastern Time on the first anniversary of the Participant’s death or
(ii) the Final Exercise Date, if earlier, and will thereupon terminate; and 
 (III) such portion, if any, of this Stock Option as is
held by the Participant immediately prior to the cessation of the Participant’s Employment for Cause will immediately terminate. 
 (c)
Change of Control. Notwithstanding any other provision of this Section 2 to the contrary, if a Change of Control occurs, whether or not the Change of Control also constitutes a Covered Transaction, and within the 24 months thereafter
there is a cessation of the Participant’s Employment by reason of an involuntary termination without Cause or a voluntary termination for Good Cause, the provisions of this Section 2(c) shall apply: 

(I) This Stock Option, if it survives the Change of Control, including any stock option granted in substitution for this Stock Option in
connection with the Change of Control, shall automatically vest and become exercisable immediately prior to such cessation of Employment and will remain exercisable until (i) 5:00 P.M. Eastern Time on the first anniversary of the date of such
cessation of Employment or (ii) the Final Exercise Date, if earlier, and will thereupon terminate; provided that, in the event of the Participant’s death during such extended exercise period following a Change of Control, any
portion of this Stock Option as is held by the Participant immediately prior to the Participant’s death will remain exercisable until (i) 5:00 P.M. Eastern Time on the first anniversary of the Participant’s death or (ii) the Final
Exercise Date, if earlier, and will thereupon terminate. 
 (II) Any and all performance or other vesting conditions imposed pursuant to
Section 7(a)(5) of the Plan with respect to any stock, cash or other property delivered in exchange for this Stock Option in connection with the Change of Control shall automatically be deemed to have been satisfied immediately prior to such
cessation of Employment. 

  
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 (III) For purposes of this Section 2(c), “Employment” shall be deemed to
include employment with any successor to the Company’s business or assets in connection with a Change of Control. 
 (IV) For purposes
of this Stock Option, “Change of Control” shall mean: 
 (A) the acquisition by any Person (defined as any individual, entity or
group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (“Exchange Act”))) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 35% or more of the common stock of the Company; provided, however, that for purposes of this subsection (a), an acquisition shall not constitute a Change of Control
if it is: (i) either by or directly from the Company, or by an entity controlled by the Company, (ii) by any employee benefit plan, including any related trust, sponsored or maintained by the Company or an entity controlled by the Company
(“Benefit Plan”), or (iii) by an entity pursuant to a transaction that complies with the clauses (i), (ii) and (iii) of subsection (C) below; or 

(B) individuals who, as of the Date of Grant, constitute the Board (together with the individuals identified in the proviso to this
Section 2(c)(IV)(B), the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Date of Grant whose election, or
nomination for election by the Company’s stockholders, was approved by at least a majority of the directors then comprising the Incumbent Board shall be treated as a member of the Incumbent
Board unless he or she assumed office as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board; or 
 (C) consummation of a reorganization, merger or consolidation involving the Company, or a sale or other disposition of
all or substantially all of the assets of the Company, (a “transaction”) in each case unless, following such transaction, (i) all or substantially all of the Persons who were the beneficial owners of the common stock of the Company
outstanding immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the entity resulting from such transaction (including, without
limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such transaction, of the outstanding common stock of the Company, (ii) no Person (excluding any entity or wholly owned subsidiary of any entity resulting from such transaction or any Benefit Plan of the Company or such
entity or wholly owned subsidiary of such entity resulting from such transaction) beneficially owns, directly or indirectly, 35% or more of the combined voting power of the then outstanding voting securities of such entity except to the extent that
such ownership existed prior to the transaction and (iii) at least a majority of the members of the board of directors or similar board of the entity resulting from such transaction were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such transaction; or 

  
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 (D) approval by the stockholders of the Company of a liquidation or dissolution of the
Company. 
 (d) Notwithstanding the foregoing provisions of this Section 2, this Stock Option shall not vest or become eligible to vest
on any date specified above unless the Participant has continuously been, since the Grant Date until the date immediately prior to such termination of Employment, Employed by the Company, its Affiliates, its subsidiaries, or, following a Change of
Control, any successor to the Company’s business or assets in connection with the Change of Control. 
 3. Exercise of Stock Option. 

Each election to exercise this Stock Option shall be in writing, signed by the Participant or the Participant’s executor, administrator,
or legally appointed representative (in the event of the Participant’s incapacity) or the person or persons to whom this Stock Option is transferred by will or the applicable laws of descent and distribution (collectively, the “Option
Holder”), and received by the Company at its principal office, accompanied by this certificate and payment in full as provided in the Plan. Subject to the further terms and conditions provided in the Plan, the purchase price may be paid as
follows: (i) by delivery of cash or check acceptable to the Administrator; or (ii) through a broker-assisted exercise program acceptable to the Administrator; or (iii) by any other means acceptable to the Administrator, or
(iv) by any combination of the foregoing means of exercise. In the event that this Stock Option is exercised by an Option Holder other than the Participant, the Company will be under no obligation to deliver Shares hereunder unless and until it
is satisfied as to the authority of the Option Holder to exercise this Stock Option. 
 4. Withholding. 

Except as otherwise determined by the Administrator, this Stock Option may not be exercised unless the person exercising this Stock Option
timely remits to the Company, in cash, all amounts required to be withheld upon exercise (all as determined by the Administrator) or makes other arrangements satisfactory to the Administrator for the payment of such taxes. 

5. Nontransferability of Stock Option. 

This Stock Option is not transferable by the Participant otherwise than by will or the laws of descent and distribution, and is exercisable
during the Participant’s lifetime only by the Participant (or in the event of the Participant’s incapacity, the person or persons legally appointed to act on the Participant’s behalf). 

  
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 6. Provisions of the Plan. 

This Stock Option is subject to the provisions of the Plan, which are incorporated herein by reference. A copy of the Plan as in effect on the
date of the grant of this Stock Option has been furnished to the Participant. By accepting this Stock Option, the Participant agrees to be bound by the terms of the Plan and this certificate. All initially capitalized terms used herein will have the
meaning specified in the Plan, unless another meaning is specified herein. 
 7. Other Agreements. 

The Company and Participant agree, in consideration of the grant of this Stock Option, and other good and valuable consideration, the receipt
of which is mutually acknowledged, that the provisions of Section 2 shall supersede the provisions of any other agreement between the Company and Participant regarding the vesting and exercise of this Stock Option following a cessation of the
Participant’s Employment by reason of an involuntary termination without Cause or a voluntary termination for Good Cause. 
 IN WITNESS
WHEREOF, the Company has caused this instrument to be executed by its duly authorized officer. 
  

			
	EyePoint Pharmaceuticals, Inc.
		
	By	 	/s/ Nancy Lurker
		 	Nancy Lurker, President & CEO

 Dated: May 14, 2018 
  

			
	Acknowledged and agreed:
		
	    	 	/s/ Leonard M. Blum
		 	Leonard M. Blum

 Dated: May 14, 2018 

  
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