Document:

JOINT VENTURE AGREEMENT

COLLATERAL AGREEMENT

        

     THIS AGREEMENT, entered into this 21st day of March, 2017, by and between Sylios Corp, a Florida corporation, whose address is 244 2nd Ave N, Suite 309, St. Petersburg, FL 33701 hereinafter referred to as “BORROWER”, The Greater Cannabis Company, Inc., a Florida corporation, whose address is 244 2nd Ave N., Suite 9, St. Petersburg, FL 33701 hereinafter referred to as “GCC” and SLMI Energy Holdings, LLC, a Georgia limited liability company, whose address is 1377 Old Riverside Road, Roswell GA 30076, hereinafter referred to as “LENDER”. As used herein, the term “PARTIES” shall be used to refer to the LENDER, GCC and the BORROWER jointly.

This AGREEMENT is being made in an effort to facilitate the spin-off of GCC from BORROWER in a stock dividend transaction; and

WHEREAS, the Parties desire to enter into this AGREEMENT so that upon an effect spin-off of GCC from BORROWER, LENDER will release GCC from any existing GCC guaranty for LENDER’S debt and any existing UCC lien on GCC for LENDER’S debt; and 

WHEREAS, BORROWER and GCC have entered into an Anti-Dilution Agreement dated February 28, 2017.

IT IS, THEREFORE, agreed as follows:

1. Term of Agreement:

This AGREEMENT shall be enforce so long as LENDER is indebted to BORROWER or both parties mutually agree in writing to terminate this AGREEMENT.

2. BORROWER’S duties:

BORROWER agrees to the following:

1.

Present and future GCC shares held by a) BORROWER and b) Wayne Anderson and affiliates controlled by him, will be turned over to LENDER to physically possess as collateral for outstanding debt owed to LENDER; LENDER is granted a security interest in these shares for debts owed to LENDER by BORROWER;  and

2.

BORROWER will use its best efforts to arrange sales of those shares in share amounts it deems appropriate.  One half of the sale proceeds will be applied to the outstanding debt to LENDER; and

3.

BORROWER will make a collateral assignment of its Anti-Dilution Agreement to LENDER, for each exercise opportunity, it will promptly notify SLMI of same and promptly exercise its rights to acquire more GCC shares thereunder -- unless LENDER consents in writing to decline a particular opportunity.  GCC consents to this assignment.

3.  LENDER’S Duties:

LENDER agrees to the following:

1.

LENDER will release GCC from any existing GCC guaranty for debt owed to LENDER by BORROWER and will release any existing UCC lien on GCC said debt.

2.

The parties agree that in the event the debt owed by BORROWER to LENDER, or any part thereof, is declared in default, LENDER may exercise any and all rights attributable to the shares held as collateral and exercise all rights of BORROWER in said Anti-Dilutive Agreement dated Feb. 28, 2017 (including but not limited to rights to vote shares and to sell or otherwise transfer shares).  BORROWER further agrees to supply such stock powers and such proxies as LENDER may reasonably request to fortify its rights in its collateral.

4. Encumbrances and Assignments:

Neither party shall sell, assign, transfer or encumber his interest in this AGREEMENT without the prior written consent of the other.

5. Notices:

Any and all notices and other communications required or permitted by this Agreement shall be served on or given to either party by the other party in writing and shall be deemed duly served and given when personally delivered to any of the parties to whom it is directed, or in lieu of such person service, when deposited in the United States Mail, First class, postage prepaid, addressed to following (with a duplicate sent via email, as indicated below)

BORROWER at:

    Sylios Corp

wa@sylios.com

    Attn: Wayne Anderson

    P.O. Box 521

    St. Petersburg, FL 33731

GCC at:

    The Greater Cannabis Company, Inc.   

info@greatercannabiscompany.com

    Attn: Wayne Anderson

    P.O. Box 521

    St. Petersburg, FL 33731

LENDER at:

     SLMI Energy Holdings, LLC

natalie177@hotmail.com; 

     Attn: N. Solano

groves1870@gmail.com

     1377 Old Riverside Road

     Roswell GA 30076

6.  Arbitration:

In the case of any controversy between the LENDER and BORROWER concerning, but not limited to, the validity, construction, or interpretation of this Agreement, or the validity of the appraisal, the parties shall refer such dispute in writing to an Arbitrator to be jointly agreed upon.  Or failing an agreement, to the American Arbitration Association for referral to a single Arbitrator.  Said Arbitrator shall promptly determine such dispute and deliver a written decision to each party by personal delivery or certified mail.  The decision of the arbitrator shall be final and binding on both parties and shall by enforceable as any Arbitrator award.

     The Arbitrator may hold meetings, hearings, and take testimony of witnesses and receive evidence, but shall not be empowered to compel the attendance of any person or the production of any evidence. Arbitration shall be held in Atlanta, GA.

7.  Binding:

This agreement shall be binding upon the parties, their respective heirs, personal representatives or assigns as the case may be.

8.  Attorneys' Fees:

In the event it becomes necessary for either party to institute a lawsuit or arbitration proceedings to enforce any terms and conditions hereof, each party shall bear its own attorneys' fees and costs.

9.  Severability:

Each covenant, condition and provision of this agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any covenant, condition or provision shall be held to be void or invalid, the same shall not affect the remainder hereof, which shall be effective as though the void or invalid covenant, condition or provision had not been contained herein.

This Agreement shall be construed in accordance with the laws of the State of Florida.

Dated March 21, 2017.

 

SYLIOS CORP:

        /s/ Wayne Anderson

By: ____________________________

Name: Wayne Anderson

Title: President

THE GREATER CANNABIS COMPANY, INC.:

         /s/ Wayne Anderson

By: ____________________________

Name: Wayne Anderson

Title: President

SLMI ENERGY HOLDINGS, LLC:

         /s/ A.R. Slack

By: ____________________________

Name: A. R. Slack

Title: LLC Manager                              

1Converted by EDGARwiz

PROMISSORY NOTE

$100,000.00

as of August 12, 2014

FOR VALUE RECEIVED, the undersigned, THE GREATER CANNABIS COMPANY, LLC (the “Company”) (“Borrower”), a Florida limited liability company, does hereby promise to pay SYLIOS CORP (“Lender”), a Florida corporation, or its successor, the principal sum of One Hundred Thousand and no/100 Dollars ($100,000.00). The Note shall accrue interest at Three percent (3%) annually.

WHEREAS, on August 12, 2014, Lender issued a Convertible Note to Tangiers Investment Group, LLC in the amount of One Hundred Twelve Thousand Five Hundred and no/100 Dollars ($112,500.00). The funds received by Lender were utilized for the benefit of Borrower in funding the licensing Agreement between Borrower and Artemis Technologies; and

WHEREAS, at the date of this Note, Borrower is a wholly owned subsidiary of Lender; and

WHEREAS, in the event that Borrower shall become a standalone entity, Lender shall have the right to convert any outstanding principal and interest into shares of common stock of Borrower. 

In the event that Lender is afforded the opportunity to convert any outstanding principal and interest into shares of common stock of Borrower, then Lender shall have the right thereafter, exercisable in whole or in part, to convert the outstanding principal and interest payment hereunder into a number of fully paid nonassessable whole shares of the Company’s $.001 par value common stock (“Common Stock”) determined by the number of whole shares of Common Stock into which this Note may be voluntarily converted (“Conversion Shares”) at a price mutually agreed upon by the Company and the Lender (the “Note Conversion Price”); provided; however, that, in no event shall Lender be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note of the unexercised or unconverted portion of any other security of Maker subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of this portion of the Note with respect to which the determination of the proviso is being made, would result in beneficial ownership by Lender and its affiliates of more than 9.9% of the outstanding shares of Common Stock of the Company. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities exchange Act of 1934 and Regulation 13D-G thereunder, except as otherwise provided in in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as 

defined below) by the Note Conversion Price. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus, (2) at the Company’s option, accrued and unpaid interest, if any, on such principal amount at the interest rate provided in this Note to the conversion date, provided, however, that the Company shall have the right to pay any or all interest in cash.

This Note shall in all respects be construed, governed, applied and enforced in accordance with the laws of the State of Florida applicable to contracts made and performed therein, without giving effect to the principles of conflicts of law.

The maker of this Note hereby waves presentment, protest and nonpayment.

IN WITNESS, WHEREOF, this Promissory Note has been executed on the day and year first above written.

THE GREATER CANNABIS COMPANY, LLC

/s/ Wayne Anderson

By: _______________________

      Wayne Anderson, as President

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