Document:

Exhibit

Exhibit 10.1
Execution Version

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT 
This SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of October 15, 2018 (the “Amendment Effective Date”), is entered into by and among Tricida, Inc. (the “Borrower”), Hercules Capital, Inc. (“Hercules Capital”), a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, together with its successors and assigns in such capacity, the “Agent”), and Hercules Technology III, L.P. (“Hercules Technology”), a Delaware limited partnership.  
WHEREAS, the Borrower, the Lender and Agent are parties to that certain Loan and Security Agreement dated as of February 28, 2018 (as amended, modified or supplemented from time to time, including but not limited to that certain First Amendment to Loan and Security Agreement and First Amendment to Warrants dated as of April 10, 2018, the “Loan Agreement”); 
WHEREAS, the Borrower has requested certain modifications to the Loan Agreement; and 
WHEREAS, the Required Lenders, as defined in the Loan Agreement, and Agent are willing to amend the Loan Agreement in accordance with and subject to the terms and conditions set forth herein. 
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
SECTION 1Definitions; Interpretation.
(a)All capitalized terms used in this Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.
(b)The rules of interpretation set forth in Section 1.1 of the Loan Agreement shall be applicable to this Amendment and are incorporated herein by this reference.
SECTION 2Amendments to the Loan Agreement.    For the avoidance of doubt, each of the following amendments to the Loan Agreement is subject to the satisfaction of the conditions precedent set forth in Section 3 of this Amendment. 
(a)Amendments to the Loan Agreement 
(i)Section 2.2(a) (Tranches). Section 2.2(a) of the Loan Agreement is hereby amended and restated in its entirety as follows: 
“(a)    Tranches. 
(i)     Tranche 1.  Subject to the terms and conditions of this Agreement, Lender will severally (and not jointly) make in an amount not to exceed its respective Term Commitment, and Borrower 

agrees to draw, a Term Loan Advance of Twenty-Five Million Dollars ($25,000,000) on the Closing Date (“Tranche 1”). 
(ii)    Tranche 2.  Subject to the terms and conditions of this Agreement, on or before December 31, 2018, Borrower may request one additional Term Loan Advance in a principal amount of Fifteen Million Dollars ($15,000,000) (“Tranche 2”). 
(iii)    Tranche 3.  Subject to the terms and conditions of this Agreement and conditioned on Borrower’s achievement of the NDA Milestone in accordance with the definition thereof, on or before December 31, 2019, Borrower may request one additional Term Loan Advance in a principal amount of Thirty-Five Million Dollars ($35,000,000) (“Tranche 3”). 
(iv)    Tranche 4.  Subject to the terms and conditions of this Agreement and conditioned on Borrower’s achievement of the Approval Milestone on or before December 15, 2020 in accordance with the definition thereof, on or before December 31, 2020, Borrower may request one additional Term Loan Advance in a principal amount of Ten Million Dollars ($10,000,000) (“Tranche 4”). 
(v)     Tranche 5.  Subject to the terms and conditions of this Agreement and conditioned on approval by Lender’s investment committee in its sole and unfettered discretion, on or before December 31, 2020, Borrower may request one or additional Term Loan Advance in a principal amount of Fifteen Million Dollars ($15,000,000) (“Tranche 5”).”
(ii)Section 4.2(g) (All Advances). Section 4.2(g) of the Loan Agreement is hereby amended and restated in its entirety as follows: 
“(g) Borrower and the party identified on the signature pages to each form of Warrant, as set forth in Exhibit I or Exhibit J, shall have executed a Warrant in connection with each applicable Term Loan Advance; provided that, the aggregate amount of Warrant Coverage (to be specified in the applicable Warrants) with respect to Term Loan Advance under Tranche 2 shall be Five Hundred Thousand Dollars ($500,000.00); the aggregate amount of Warrant Coverage (to be specified in the applicable Warrants) with respect to Term Loan Advance under Tranche 3 shall be Five Hundred Thousand Dollars ($500,000.00); the  aggregate amount of Warrant Coverage (to be specified in the applicable Warrants) with respect to Term Loan Advance under Tranche 4 shall be Two Hundred Thousand Dollars ($200,000.00); and the  aggregate amount of Warrant Coverage (to be specified in the applicable Warrants) with respect to Term Loan Advance under Tranche 5 shall be One Hundred and Thirty Thousand Dollars ($130,000).”
(iii)Schedule 1.1 Commitments: Schedule 1.1 is hereby amended and restated in its entirety as follows: 

SCHEDULE 1.1
COMMITMENTS

	
			
	LENDER
	TRANCHE
	TERM COMMITMENT

	Hercules Capital, Inc.
	1
	$15,000,000

	Hercules Technology III, L.P.
	1
	$10,000,000

	Hercules Capital, Inc.
	2
	$15,000,000

	Hercules Capital, Inc.
	3
	$35,000,000

	Hercules Capital, Inc.
	4
	$10,000,000

	Hercules Capital, Inc.
	5
	$15,000,000*

	TOTAL COMMITMENTS
	 
	$100,000,000*

(iv)Section 7.1(b) (Financial Reports).  Section 7.1(b) of the Loan Agreement is hereby amended and restated in its entirety as follows: 
“(b) as soon as practicable (and in any event within 45 days) after the end of each calendar quarter, unaudited interim and year-to-date financial statements as of the end of such calendar quarter (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that could reasonably be expected to have a Material Adverse Effect, certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are subject to normal year end adjustments; as well as the most recent capitalization table for Borrower, including the weighted average exercise price of employee stock options;”
(b)References within the Loan Agreement.  Each reference in the Loan Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Loan Agreement as further amended by this Amendment.
SECTION 3Conditions of Effectiveness.  The effectiveness of Section 2 of this Amendment shall be subject to the satisfaction of each of the following conditions precedent: 
(a)Fees and Expenses.  The Borrower shall have paid (i) all attorney fees and other costs and expenses then due in accordance with Section 5(e), and (ii) all other fees, costs and expenses, if any, due and payable as of the Advance Date of Tranche 2 under the Loan Agreement.
(b)This Amendment.  Agent shall have received this Amendment, executed by Agent, the Lender and the Borrower.
(c)Officer’s Certificates.  Agent shall have received certified copy of resolutions of Borrower’s board of directors evidencing approval of this Amendment and other transactions contemplated herein.
(d)Tranche 2 Warrant.  Agent shall have received one or more Warrants with total Warrant Coverage (as defined in such Warrants) in the amount of Five Hundred Thousand Dollars ($500,000.00) executed by Borrower in favor of the Lenders in connection with the Term Loan Advance made under Tranche 2 in form and substance satisfactory to Agent.  
(e)Advance Request.    Agent shall have received an Advance Request executed and delivered by Borrower to draw Term Loan Advance of Fifteen Million Dollars ($15,000,000) under Tranche 2 on or prior to December 31, 2018.    

(f)Facility Charge.     Borrower shall have paid Eighty Thousand Dollars ($80,000) to Agent on the Advance Date of Tranche 2.
(g)Representations and Warranties; No Default.  On the Amendment Effective Date, after giving effect to the amendment of the Loan Agreement contemplated hereby:
(i)The representations and warranties contained in Section 4 shall be true and correct on and as of the Amendment Effective Date as though made on and as of such date; and
(ii)There exist no Events of Default or events that with the passage of time would result in an Event of Default.
SECTION 4Representations and Warranties.  To induce Agent and Lender to enter into this Amendment, Borrower hereby confirms, as of the date hereof, (a) that the representations and warranties made by it in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; (b) that there has not been and there does not exist a Material Adverse Change; and (c) that the information included in the Perfection Certificate delivered to Agent on the Effective Date remains true and correct.  For the purposes of this Section 4, (i) each reference in Section 5 of the Loan Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,” or words of like import in such section, shall mean and be a reference to the Loan Agreement as amended by this Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct and complete as of such earlier date).  
SECTION 5Miscellaneous.
(a)Loan Documents Otherwise Not Affected; Reaffirmation.  Except as expressly amended pursuant hereto or referenced herein, the Loan Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.  The Lender’s and Agent’s execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future.  Borrower hereby reaffirms the grant of security under Section 3.1 of the Loan Agreement and hereby reaffirms that such grant of security in the Collateral secures all Secured Obligations under the Loan Agreement and the other Loan Documents.
(b)Conditions.  For purposes of determining compliance with the conditions specified in Section 3, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Agent shall have received notice from such Lender prior to the Amendment Effective Date specifying its objection thereto.
(c)Release.  In consideration of the agreements of Agent and each Lender contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby fully, absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Lenders and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, 

agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Borrower, or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment for or on account of, or in relation to, or in any way in connection with the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.  Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.  Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall, to the fullest extent of the law, affect in any manner the final, absolute and unconditional nature of the release set forth above.
(d)No Reliance.  Borrower hereby acknowledges and confirms to Agent and the Lender that Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.
(e)Costs and Expenses.  Borrower agrees to pay to Agent on the Amendment Effective Date the out-of-pocket costs and expenses of Agent and the Lenders party hereto, and the fees and disbursements of counsel to Agent and the Lenders party hereto (including allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the Amendment Effective Date or after such date, not to exceed five thousand dollars ($5,000) in the aggregate.
(f)Binding Effect.  This Amendment binds and is for the benefit of the successors and permitted assigns of each party.  
(g)Governing Law.  This Amendment and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.
(h)Complete Agreement; Amendments.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.  
(i)Severability of Provisions.  Each provision of this Amendment is severable from every other provision in determining the enforceability of any provision.
(j)Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment. Delivery of an executed counterpart of a signature page of this Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.
(k)Loan Documents. This Amendment shall constitute a Loan Document.

[Balance of Page Intentionally Left Blank; Signature Pages Follow] 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

BORROWER:
TRICIDA, INC.
Signature:  /s/ Geoffrey Parker
Print Name: Geoffrey Parker
Title: Chief Financial Officer

AGENT and LENDER:
HERCULES CAPITAL, INC.
Signature: /s/ Zhuo Huang
Print Name: Zhuo Huang
Title: Associate General Counsel

LENDER:
HERCULES TECHNOLOGY III, L.P.,
a Delaware limited partnership
By:  Hercules Technology SBIC Management, LLC,
its General Partner
By:  Hercules Capital, Inc.,
its Manager
By:         /s/ Zhuo Huang
Name:        Zhuo Huang
Its:         Associate General Counsel

[Signature Page to Second Amendment to Loan and Security Agreement]SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of October
1, 2018, by and between HEMP NATURALS,
INC., a Delaware corporation, with its address
at 16950 North Bay Road, Suite 1803,
Sunny Isles Beach, Florida 33160 (the “Company”),
and POWER UP LENDING GROUP LTD., a Virginia corporation, with its address
at 111 Great Neck Road, Suite 216, Great Neck,
NY 11021 (the “Buyer”).

 

WHEREAS:

 

A.                 
The Company and the Buyer are executing
and delivering this Agreement in reliance
upon the exemption from securities registration
afforded by the rules and regulations as promulgated
by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended
(the “1933 Act”); and

 

B.                 
Buyer desires to purchase and the Company desires to issue and sell, upon the
terms and conditions set forth in this
Agreement a convertible note of the Company,
in the form attached hereto as Exhibit
A, in the aggregate principal amount of $65,000.00
(together with any note(s) issued in replacement thereof or as a dividend
thereon or otherwise with respect thereto in accordance with the
terms thereof, the “Note”), convertible into shares of common stock, $0.0001
par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set
forth in such Note.

 

NOW THEREFORE,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.                  
Purchase and Sale of Note.

 

a.                  
Purchase of Note.
On the Closing Date (as defined below), the Company shall issue and sell
to the Buyer and the Buyer agrees to
purchase from the Company such principal amount of Note as is set
forth immediately below the Buyer’s name
on the signature pages hereto.

 

b.                  
Form of Payment.
On the Closing Date (as defined below),
(i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below)
(the “Purchase Price”) by wire transfer of immediately
available funds to the Company, in accordance with the Company’s
written wiring instructions, against delivery of the Note
in the principal amount equal to the Purchase
Price as is set forth immediately below
the Buyer’s name on the signature pages
hereto, and

(ii) 
the Company shall deliver such duly executed Note on behalf
of the Company, to the Buyer, against delivery
of such Purchase Price.

 

c.                  
Closing Date. Subject to the satisfaction (or written waiver) of the
conditions thereto set forth in Section 6 and
Section 7 below, the date and time of the
issuance and sale of the Note pursuant to this Agreement
(the “Closing Date”) shall be 12:00 noon, Eastern Standard Time
on or about October 2, 2018, or such other mutually
agreed upon time. The closing of the transactions

 

 

contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date
at such location as may be agreed to by
the parties.

 

2.                  
Buyer’s Representations and Warranties.
The Buyer represents and warrants to the
Company that:

 

a.                  
Investment Purpose. As of the
date hereof, the Buyer is purchasing the Note and the shares of Common
Stock issuable upon conversion of or otherwise pursuant to the
Note (such shares of Common Stock being collectively referred to herein as
the “Conversion Shares” and, collectively with the Note, the “Securities”)
for its own account and not
with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration
under the 1933 Act.

 

b.                  
Accredited Investor Status.
The Buyer is an “accredited investor”
as that term is defined in Rule 501(a)
of Regulation D (an “Accredited Investor”).

 

c.                  
Reliance on Exemptions.
The Buyer understands that the Securities are being
offered and sold to it in reliance upon specific exemptions from the
registration requirements of United States federal and state
securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s
compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order
to determine the availability of such
exemptions and the eligibility of the
Buyer to acquire the Securities.

 

d.                  
Information. The Company has not disclosed to the Buyer
any material nonpublic information and will not disclose such information unless
such information is disclosed to the public
prior to or promptly following such disclosure
to the Buyer.

 

e.                  
Legends. The Buyer understands
that the Note and, until such time
as the Conversion Shares have been registered
under the 1933 Act; or may be
sold pursuant to an applicable exemption
from registration, the Conversion Shares may bear a restrictive
legend in substantially the following form:

 

"THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"),
OR UNDER ANY STATE SECURITIES LAWS, AND
MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED
OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR (2) THE ISSUER OF SUCH
SECURITIES RECEIVES AN OPINION OF COUNSEL TO
THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL
AND OPINION ARE REASONABLY ACCEPTABLE TO THE ISSUER’S
TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED,
SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE

 

 

TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS."

 

The
legend set forth above shall be removed and
the Company shall issue a certificate without such
legend to the holder of any Security upon which it is stamped,
if, unless otherwise required by applicable
state securities laws, (a) such Security is registered for sale
under an effective registration statement filed under
the 1933 Act or otherwise may be
sold pursuant to an exemption from registration
without any restriction as to the number of securities
as of a particular date that can then be immediately
sold, or (b) such holder provides the Company with an opinion
of counsel, in form, substance and scope customary
for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer
of such Security may be made without registration
under the 1933 Act, which opinion shall
be accepted by the Company so that the sale or transfer
is effected. The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which
the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In
the event that the Company does not accept
the opinion of counsel provided by the Buyer with respect
to the transfer of Securities pursuant
to an exemption from registration, such
as Rule 144, at the Deadline, it will
be considered an Event of Default pursuant
to Section 3.2 of the Note; provided such opinion
complies with the Irrevocable Transfer Agent Instructions (as defined
herein).

 

f.                   
Authorization; Enforcement. This Agreement has been duly and validly
authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement
constitutes a valid and binding agreement of the
Buyer enforceable in accordance with its terms.

 

3.                  
Representations and Warranties of the
Company. The Company represents and
warrants to the Buyer that:

 

a.                  
Organization and Qualification. The Company and each of its Subsidiaries
(as defined below), if any, is a corporation
duly organized, validly existing and in good
standing under the laws of the jurisdiction in which
it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to
carry on its business as and where now owned,
leased, used, operated and conducted. “Subsidiaries” means any corporation
or other organization, whether incorporated or unincorporated,
in which the Company owns, directly or indirectly,
any equity or other ownership interest.

 

b.                  
Authorization; Enforcement. (i) The
Company has all requisite corporate power and authority to enter into and perform
this Agreement, the Note and to consummate the transactions contemplated hereby and
thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution
and delivery of this Agreement, the Note by
the Company and the consummation by it of the transactions contemplated hereby and
thereby (including without limitation, the issuance of the
Note and the issuance and reservation for issuance
of the Conversion Shares issuable upon conversion or exercise
thereof) have been duly authorized by the Company’s Board of Directors
and

 

 

no
further consent or authorization of the
Company, its Board of Directors, or its
shareholders is required,

(iii)    
this Agreement has been duly executed and delivered by the Company by its authorized
representative, and such authorized representative is the true and official
representative with authority to sign this Agreement and the other documents executed
in connection herewith and bind the Company
accordingly, and (iv) this Agreement constitutes,
and upon execution and delivery by the Company
of the Note, each of such instruments
will constitute, a legal, valid and binding
obligation of the Company enforceable against the Company in accordance
with its terms.

 

c.                  
Capitalization. As of the
date hereof, the authorized common stock of the
Company consists of 324,125,983 authorized shares of Common
Stock, $0.0001 par value per share, of which
500,000,000 shares are issued and outstanding;
and 6,589,819 shares are reserved for
issuance upon conversion of the Note.
All of such outstanding shares of capital stock
are, or upon issuance will be, duly authorized,
validly issued, fully paid and non-assessable.

 

d.                  
Issuance of Shares.
The Conversion Shares are duly authorized and reserved for issuance
and, upon conversion of the Note in accordance
with its terms, will be validly issued, fully
paid and non-assessable, and free from all taxes,
liens, claims and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the
Company and will not impose personal
liability upon the holder thereof.

 

e.                  
No Conflicts. The execution, delivery and performance
of this Agreement and the Note by the Company and
the consummation by the Company of the transactions
contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will
not (i) conflict with or result in a
violation of any provision of the
Certificate of Incorporation or By-laws,
or (ii) violate or conflict with, or
result in a breach of any
provision of, or constitute a default
(or an event which with notice
or lapse of time or both
could become a default) under, or give
to others any rights of termination,
amendment, acceleration or cancellation of, any
agreement, indenture, patent, patent license or instrument to which the
Company or any of its Subsidiaries
is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations
and regulations of any self-regulatory organizations
to which the Company or its securities are subject)
applicable to the Company or any
of its Subsidiaries or by which any property
or asset of the Company or any
of its Subsidiaries is bound or affected
(except for such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not, individually
or in the aggregate, have a Material Adverse
Effect). The businesses of the Company and its Subsidiaries,
if any, are not being conducted, and
shall not be conducted so long as the
Buyer owns any of the Securities,
in violation of any law, ordinance
or regulation of any governmental entity. “Material
Adverse Effect” means any material adverse effect on the business, operations,
assets, financial condition or prospects of the
Company or its Subsidiaries, if any,
taken as a whole, or on the transactions contemplated hereby or by
the agreements or instruments to be entered
into in connection herewith.

 

f.                   
SEC Documents; Financial Statements. The Company
has filed all reports, schedules, forms, statements and other documents required to
be filed by it with the SEC pursuant to the reporting requirements of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)
(all of the

 

 

foregoing
filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents (other than
exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC
Documents”). Upon written request the Company will deliver
to the Buyer true and complete copies of the
SEC Documents, except for such exhibits and incorporated
documents. As of their respective dates or if amended,
as of the dates of the amendments, the
SEC Documents complied in all material respects with the requirements of the
1934 Act and the rules and regulations of the
SEC promulgated thereunder applicable to the SEC Documents, and none
of the SEC Documents, at the
time they were filed with the SEC, contained
any untrue statement of a material fact
or omitted to state a material fact required
to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading. None of the statements
made in any such SEC Documents
is, or has been, required to be amended or updated
under applicable law (except for such
statements as have been amended or updated
in subsequent filings prior the date hereof).
As of their respective dates or if amended,
as of the dates of the amendments, the financial
statements of the Company included in the
SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto. Such financial
statements have been prepared in accordance
with United States generally accepted accounting principles, consistently applied, during the periods involved and fairly present
in all material respects the consolidated financial position of the Company and its
consolidated Subsidiaries as of the dates thereof and the consolidated results of
their operations and cash flows for the periods
then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). The Company is subject
to the reporting requirements of the
1934 Act.

 

g.                  
Absence of Certain Changes.
Since May 31, 2018, except as set
forth in the SEC Documents, there has been no
material adverse change and no material
adverse development in the assets, liabilities, business, properties, operations,
financial condition, results of operations, prospects or 1934 Act
reporting status of the Company or any
of its Subsidiaries.

 

h.                  
Absence of Litigation.
Except as set forth in the SEC
Documents, there is no action, suit, claim, proceeding, inquiry or investigation
before or by any court, public board,
government agency, self-regulatory organization or body
pending or, to the knowledge of
the Company or any of its
Subsidiaries, threatened against or affecting the Company or any
of its Subsidiaries, or their officers
or directors in their capacity as such,
that could have a Material Adverse Effect.
The Company and its Subsidiaries
are unaware of any facts or circumstances which
might give rise to any of the foregoing.

 

i.                    
No Integrated Offering. Neither the Company, nor any
of its affiliates, nor any person acting on its
or their behalf, has directly or indirectly
made any offers or sales in any security or solicited
any offers to buy any security under circumstances that would require registration
under the 1933 Act of the issuance
of the Securities to the Buyer. The issuance
of the Securities to the Buyer will not
be integrated with any other issuance of the
Company’s securities (past, current or future) for purposes of any
shareholder approval provisions applicable to the Company or its securities.

 

 

j.                    
No Brokers. The Company has taken no action
which would give rise to any claim by any person
for brokerage commissions, transaction fees or similar
payments relating to this Agreement or the transactions contemplated hereby.

 

k.                  
No Investment Company. The Company is not,
and upon the issuance and sale of the Securities
as contemplated by this Agreement will not
be an “investment company” required to be registered
under the Investment Company Act of 1940 (an “Investment Company”).
The Company is not controlled by an Investment
Company.

 

l.                    
Breach of Representations and
Warranties by the Company. If the
Company breaches any of the representations or warranties
set forth in this Section 3, and
in addition to any other remedies available to the Buyer pursuant
to this Agreement, it will be considered an Event
of default under Section 3.4 of the Note.

 

		4.	COVENANTS.

 

a.                  
Best Efforts. The Company shall use its best
efforts to satisfy timely each of the
conditions described in Section 7 of this
Agreement.

 

b.                  
Form D; Blue Sky Laws.
The Company agrees to timely make any filings required by federal and state
laws as a result of the closing of the
transactions contemplated by this Agreement.

 

c.                  
Use of Proceeds.
The Company shall use the proceeds for general
working capital purposes.

 

d.                  
Expenses. At the Closing, the
Company’s obligation with respect to the transactions contemplated by this Agreement is to reimburse Buyer’ expenses
shall be $3,000.00 for Buyer’s legal fees and due diligence fee.

 

e.                  
Corporate Existence. So long as the
Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially
all of the Company’s assets, except with the prior written
consent of the Buyer.

 

f.                   
Breach of Covenants.
If the Company breaches any of the covenants
set forth in this Section 4, and in addition to any other remedies available to
the Buyer pursuant to this Agreement, it will be
considered an event of default under
Section 3.4 of the Note.

 

g.                  
Failure to Comply with the 1934 Act.
So long as the Buyer beneficially owns the Note, the Company shall comply with
the reporting requirements of the 1934
Act; and the Company shall continue to be subject
to the reporting requirements of the 1934 Act.

 

 

h.                  
Trading Activities. Neither the Buyer nor its
affiliates has an open short position in the common
stock of the Company and the Buyer agrees that it shall not,
and that it will cause its affiliates
not to, engage in any short sales of
or hedging transactions with respect to the common stock of the
Company.

 

 

i.                    
Right of First Refusal.
Unless it shall have first delivered to the Buyer, at least
forty eight (48) hours prior to the closing of such
Future Offering (as defined herein), written notice describing the proposed Future
Offering (“ROFR Notice”), including the terms and conditions thereof, identity of the
proposed purchaser and proposed definitive documentation to be entered into in connection therewith, and providing
the Buyer an option during the forty eight (48) hour
period following delivery of such notice to purchase the securities being offered
in the Future Offering on the same terms
as contemplated by such Future Offering (the limitations referred to in this
sentence and the preceding sentence are collectively
referred to as the “Right of First
Refusal”), the Company will not conduct any equity (or debt with an equity component)
financing in an amount less than $150,000 (“Future
Offering(s)”) during the period beginning on the
Closing Date and ending nine (9) months
following the Closing Date. In the event
the terms and conditions of a proposed
Future Offering are amended in any respect
after delivery of the notice to the Buyer
concerning the proposed Future Offering, the Company
shall deliver a new notice to the Buyer
describing the amended terms and conditions of the proposed Future Offering
and the Buyer thereafter shall have an option
during the forty eight (48) hour period following
delivery of such new notice to purchase the securities being offered on the
same terms as contemplated by such proposed
Future Offering, as amended.

 

5.                  
Transfer Agent Instructions. The Company shall
issue irrevocable instructions to its transfer
agent to issue certificates, registered in the name of the Buyer or its
nominee, for the Conversion Shares in such
amounts as specified from time to time
by the Buyer to the Company upon conversion
of the Note in accordance with the
terms thereof (the “Irrevocable Transfer Agent Instructions”). In
the event that the Company proposes to replace its
transfer agent, the Company shall provide, prior to the effective date of such
replacement, a fully executed Irrevocable Transfer Agent Instructions in a
form as initially delivered pursuant to this Agreement (including but not
limited to the provision to irrevocably reserve shares of Common
Stock in the Reserved Amount as such term is defined
in the Note) signed by the successor transfer
agent to Company and the Company.
Prior to registration of the Conversion Shares
under the 1933 Act or the date on which
the Conversion Shares may be sold pursuant
to an exemption from registration,
all such certificates shall bear the restrictive
legend specified in Section 2(e) of this Agreement. The Company
warrants that: (i) no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 5, will be
given by the Company to its transfer agent and that the Securities
shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided
in this Agreement and the Note;
(ii) it will not direct its transfer agent not
to transfer or delay, impair, and/or
hinder its transfer agent in transferring
(or issuing)(electronically or in certificated
form) any certificate for Conversion Shares to be issued
to the Buyer upon conversion of or otherwise pursuant to the Note as and when
required by the Note and this Agreement; and (iii) it will not fail to remove (or
directs its transfer agent not to remove or impairs,
delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer

 

 

instructions
in respect thereof) on any certificate
for any Conversion Shares issued to the Buyer
upon conversion of or otherwise pursuant to the Note as and when required
by the Note and/or this Agreement. If the Buyer provides the Company and the
Company’s transfer agent, at the cost of the
Buyer, with an opinion of counsel
in form, substance and scope customary
for opinions in comparable transactions, to
the effect that a public sale or transfer
of such Securities may be made without registration
under the 1933 Act, the Company shall permit the transfer, and, in the case
of the Conversion Shares, promptly instruct its transfer
agent to issue one or more certificates, free from restrictive
legend, in such name and in such denominations
as specified by the Buyer. The Company acknowledges
that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyer, by
vitiating the intent and purpose of the
transactions contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its
obligations under this Section 5 may be inadequate and agrees,
in the event of a breach
or threatened breach by the Company of the provisions
of this Section, that the Buyer shall be entitled,
in addition to all other available remedies, to an injunction restraining any
breach and requiring immediate transfer, without
the necessity of showing economic loss and
without any bond or other security being required.

 

6.                  
Conditions to the Company’s
Obligation to Sell. The obligation of the
Company hereunder to issue and sell the Note to the Buyer at the Closing is subject
to the satisfaction, at or before the
Closing Date of each of the following
conditions thereto, provided that these conditions are for the Company’s
sole benefit and may be waived by
the Company at any time in its sole discretion:

 

 

a.                  
The Buyer shall have executed this Agreement
and delivered the same to the Company

 

 

Section
1(b) above.

		b.	The Buyer shall have delivered the Purchase
Price in accordance with

 

c.                  
The representations and warranties
of the Buyer shall be true and correct
in all material respects as of the date
when made and as of the Closing Date
as though made at that time (except for
representations and warranties that speak as of a specific
date), and the Buyer shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied
with by the Buyer at or prior to the
Closing Date.

 

d.                  
No litigation, statute, rule, regulation, executive order, decree,
ruling or injunction shall have been
enacted, entered, promulgated or endorsed by or in any court
or governmental authority of competent jurisdiction
or any self-regulatory organization having authority over the matters contemplated hereby
which prohibits the consummation of any
of the transactions contemplated by this Agreement.

 

7.                  
Conditions to The Buyer’s Obligation to Purchase. The obligation
of the Buyer hereunder to purchase the Note at the
Closing is subject to the satisfaction, at or before
the Closing Date

 

 

of each
of the following conditions, provided that these conditions are for the Buyer’s
sole benefit and may be waived by the
Buyer at any time in its sole discretion:

 

 

a.                  
The Company shall have executed this Agreement
and delivered the same to Buyer.

 

b.                  
The Company shall have delivered to the Buyer the duly executed Note (in such
denominations as the Buyer shall request)
in accordance with Section 1(b) above.

 

c.                  
The Irrevocable Transfer Agent Instructions, in form and
substance satisfactory to the Buyer, shall have been delivered to and acknowledged in writing
by the Company’s Transfer Agent.

 

d.                  
The representations and warranties of the
Company shall be true and correct in all material
respects as of the date when made and
as of the Closing Date as though made
at such time (except for representations
and warranties that speak as of a specific
date) and the Company shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the
Closing Date. The Buyer shall have received a certificate
or certificates, executed by the chief executive
officer of the Company, dated as of the
Closing Date, to the foregoing effect
and as to such other matters as may be reasonably
requested by the Buyer including, but not
limited to certificates with respect to the Board of Directors’ resolutions
relating to the transactions contemplated hereby.

 

e.                  
No litigation, statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted,
entered, promulgated or endorsed by or in any court
or governmental authority of competent jurisdiction
or any self-regulatory organization having authority over the matters contemplated hereby
which prohibits the consummation of any
of the transactions contemplated by this Agreement.

 

f.                   
No event shall have occurred which could
reasonably be expected to have a Material
Adverse Effect on the Company including but
not limited to a change in the
1934 Act reporting status of the Company
or the failure of the Company to be timely
in its 1934 Act reporting obligations.

 

g.                  
The Conversion Shares shall have been
authorized for quotation on an exchange
or electronic quotation system and trading
in the Common Stock on such exchange
or electronic quotation system shall not have
been suspended by the SEC or an exchange
or electronic quotation system.

 

h.                  
The Buyer shall have received
an officer’s certificate described in Section 3(d) above, dated as of the
Closing Date.

 

i.                    
The Company shall have executed an ACH Authorization
Form (with respect to Section 1.8 of the Note)
and delivered the same to the Buyer.

 

 

		8.	Governing Law; Miscellaneous.

 

a.                  
Governing Law. This Agreement
shall be governed by and construed in accordance
with the laws of the State of Virginia
without regard to principles of conflicts of laws. Any action
brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the
state courts of New York or in the federal
courts located in New York and the county of Nassau.
The parties to this Agreement hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder
and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens.
The Company and Buyer waive trial by
jury. The prevailing party shall be entitled to recover from the
other party its reasonable attorney's fees and costs. In the event
that any provision of this Agreement
or any other agreement delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule
of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule
of law. Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability
of any other provision of any agreement. Each
party hereby irrevocably waives personal service of process and consents to process
being served in any suit, action or proceeding
in connection with this Agreement, the Note
or any related document or agreement
by mailing a copy thereof via registered
or certified mail or overnight delivery (with
evidence of delivery) to such party at
the address in effect for notices
to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any
right to serve process in any
other manner permitted by law.

 

b.                  
Counterparts. This Agreement may
be executed in one or more counterparts,
each of which shall be deemed an original but
all of which shall constitute one and the same
agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party.

 

c.                  
Headings. The headings
of this Agreement are for convenience
of reference only and shall not form
part of, or affect the interpretation
of, this Agreement.

 

d.                  
Severability. In the event that any provision of this
Agreement is invalid or unenforceable under any applicable statute or rule
of law, then such provision shall be deemed
inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute
or rule of law. Any provision hereof which may
prove invalid or unenforceable under any law shall
not affect the validity or enforceability
of any other provision hereof.

 

e.                  
Entire Agreement; Amendments. This Agreement
and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither
the Company nor the Buyer makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this
Agreement may be waived or amended other than by an instrument
in writing signed by the majority in interest
of the Buyer.

 

 

 

f.                   
Notices. All notices, demands,
requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery,
telegram, or facsimile, addressed as
set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or
other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand
delivery or delivery by facsimile, with accurate confirmation generated by
the transmitting facsimile machine,
at the address or number designated below (if
delivered on a business day during normal business hours
where such notice is to be received), or the
first business day following such delivery
(if delivered other than on a business day during normal business
hours where such notice is to be received)
or (b) on the second business day following
the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual receipt
of such mailing, whichever shall first occur.
The addresses for such communications shall be as set
forth in the heading of this Agreement
with a copy by fax only to (which copy
shall not constitute notice) to Naidich Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison
Naidich, facsimile: 516-466-3555, e-mail:allison@nwlaw.com. Each party shall provide notice to the other party of any change in
address.

 

g.                  
Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the
parties and their successors and assigns. Neither the Company nor the Buyer shall
assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other.
Notwithstanding the foregoing, the Buyer may assign its rights
hereunder to any person that purchases Securities in a private transaction
from the Buyer or to any of its
“affiliates,” as that term is defined
under the 1934 Act, without the consent
of the Company.

 

h.                  
Survival. The representations
and warranties of the Company and the
agreements and covenants set forth in this Agreement shall survive the closing hereunder
notwithstanding any due diligence investigation conducted by or on behalf
of the Buyer. The Company agrees to indemnify
and hold harmless the Buyer and all of
its officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach
or alleged breach by the Company of any of its
representations, warranties and covenants set forth in this
Agreement or any of its covenants and
obligations under this Agreement, including advancement of expenses as they
are incurred.

 

i.                    
Further Assurances. Each party shall
do and perform, or cause to be
done and performed, all such further acts
and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this
Agreement and the consummation of the
transactions contemplated hereby.

 

j.                    
No Strict Construction. The language used in this
Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

 

 

 

k.                  
Remedies. The Company acknowledges
that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the
transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach
of its obligations under this Agreement will be inadequate
and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this
Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition
to the penalties assessable herein, to an injunction
or injunctions restraining, preventing or curing
any breach of this Agreement and to enforce specifically the terms and provisions
hereof, without the necessity of showing economic loss and
without any bond or other security being required.

 

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

 

IN
WITNESS WHEREOF, the undersigned Buyer and the
Company have caused this Agreement to be duly executed
as of the date first above written.

 

 

HEMP
NATURALS, INC.

By:

 

Name:

Chief Executive Officer

 

POWER
UP LENDING GROUP LTD.

 

By: Name:
Curt Kramer

Title:
Chief Executive Officer 111 Great Neck Road, Suite 216 Great
Neck, NY 11021

 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	 
	Aggregate Principal Amount of Note:	$65,000.00
	Aggregate Purchase Price:	$65,000.00

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