Document:

Exhibit 10.2

 

 

STOCK EXCHANGE AGREEMENT

This STOCK EXCHANGE AGREEMENT ("Agreement") is made and entered into as of May 3, 2016 ("Effective Date") by and among:

● JOLEN, Inc. ("JOLEN"), a Florida corporation, located at 550M Ritchie Highway #104, Severna Park, MD 21146;

● Michael Heilman, a natural person, residing at 433 Maureen Lane, Severna Park, MD 21146;

 

● World of Weed, Inc. ("WOWI"), a Colorado corporation, located at 6770 South Yosemite Street, Colorado 80112, for the purposes of representations and warranties; and

● All of the Stockholder of WOWI (the "Sellers"),

PREAMBLE

WHEREAS, JOLEN is a publicly traded company with a trading symbol of JOLE that operates as a holding company and currently having no subsidiary companies; and

WHEREAS, JOLEN has incurred debt in the form of convertible promissory notes ("Promissory Notes") (Attachment "B") that are owned by Mr. Heilman; and 

WHEREAS, WOWI is engaged in cultivation, production and distribution of recreational and medical cannabis in Colorado; and

WHEREAS, JOLEN desires to acquire WOWI as a wholly owned subsidiary and to issue JOLEN Securities for such purpose; and

WHEREAS, the Sellers own all of the issued and outstanding equity securities of WOWI ("WOWI Securities") (Attachment "A"); and

WHEREAS, the Sellers desire WOWI to be acquired by JOLEN, and

WHEREAS, Mr. Heilman is willing to cancel 5,750,000 shares of JOLEN which he owns; and

WHEREAS, Mr. Heilman is willing to satisfy $290,511.00 which includes principal and interest of the Promissory Notes (Attachment "B") for 150,000 shares of JOLEN common stock and $84,000.00 in cash paid in twelve equal consecutive monthly installments of $7,000.00 each with the first payment due at Closing; and

NOW, THEREFORE, in consideration of the premises herein before set forth, in reliance hereon and the mutual promises and respective representations and warranties of the parties, one to another made herein, and the reliance of each party upon the other(s) based hereon and other good and valuable consideration, the receipt and sufficiency of which the parties respectively acknowledge, the parties agree, for purposes of consummating the transaction(s) contemplated herein, as follows:

 

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ARTICLE I

PRELIMINARY MATTERS

Section 1.01. Recitals. The parties acknowledge the recitals herein above set forth in the Preamble are correct, and are, by this reference, incorporated herein and are made a part of this Agreement.

Section 1.02. Exhibits and Schedules. Exhibits (which are documents to be executed and delivered at the Closing by the party identified therein or in the provision requiring such delivery) and Schedules (which are attachments setting forth information about a party identified therein or in the provision requiring such attachment) referred to herein and annexed hereto are, by this reference, incorporated herein and made a part of this Agreement, as if set forth fully herein.

Section 1.03. Use of words and phrases. Natural persons may be identified by last name, with such additional descriptors as may be desirable. The words "herein," "hereby," "hereunder," "hereof," "herein before," "hereinafter" and any other equivalent words refer to this Agreement as a whole and not to any particular Article, Section or other subdivision hereof. The words, terms and phrases defined herein and any pronoun used herein shall include the singular, plural and all genders. The word "and" shall be construed as a coordinating conjunction unless the context clearly indicates that it should be construed as a copulative conjunction.

Section 1.04. Accounting terms. All accounting terms not otherwise defined herein shall have the meanings assigned to them under the "Tax Basis" method of accounting unless specifically referenced to regulatory accounting principles.

Section 1.05, Calculation of time lapse or passage; Action required on holidays. When a provision of this Agreement requires or provides for the calculation of the lapse or passage of a time period, such period shall be calculated by treating the day on which the event which starts the lapse or passage occurs as zero; provided, that this provision shall not apply to any provision which specifies a certain day for action or payment, e.g. the first day of each calendar month. Unless otherwise provided, the term "month" shall mean a period of thirty days and the term "year" shall mean a period of 365 days, except that the terms "calendar month" and "calendar year" shall mean the actual calendar period indicated. If any day on which action is required to be taken or payment is required to be made under this Agreement is not a Business Day (Business Day being a day on which national banks are open for business where the actor or payer is located), then such action or payment shall be taken or made on the next succeeding Business Day.

 

Section 1.06. Use of titles, headings and captions. The titles, headings and captions of articles, sections, paragraphs and other subdivisions contained herein are for the purpose of convenience only and are not intended to define or limit the contents of said articles, sections, paragraphs and other subdivisions.

 

Section 1.07. Definition of "Material Adverse Effect". The term "Material Adverse Effect", as used in this Agreement, shall mean any material adverse change in operating or financial condition, prospects (financial or otherwise), business, properties or assets, all of which are considered individually and in the aggregate.

 

 

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ARTICLE Il

TERMS OF THE EXCHANGE

Section 2.01. Exchange of JOLEN Securities for WOWI Securities. JOLEN will deliver JOLEN Securities to the Sellers and Sellers will deliver WOWI Securities to JOLEN, as provided in Section 2.02.

Section 2.02. Number of shares to be exchanged.

(a) In total 25,750,000 JOLEN shares will be exchanged for all the WOWI Securities; and

(b) The Sellers shall deliver to JOLEN all the WOWI Securities that are issued and outstanding (Attachment "A").

Section 2.03. Federal income tax treatment. JOLEN and the Sellers intend the exchange described in Section 2.01 , above, to be treated as a tax free exchange for purposes of the Internal Revenue Code of 1986, as amended.

Section 2.04. Transaction costs. Each party shall pay all costs and expenses which it or he/she incurs in connection with this Agreement and the transactions contemplated hereby. The cost of canceling existing JOLEN certificates and/or issuing JOLEN certificates to the Sellers will be borne by the Sellers.

Section 2.05. Press releases. Any press release announcing or other public announcement of this transaction contemplated by this Agreement shall be issued by JOLEN subject to the prior written approval of the Sellers.

ARTICLE Ill

CLOSING OF THE TRANSACTION

Section 3.01. Location, date and time of the Closing. The Closing of the transaction contemplated by this Agreement shall be on or before May 11, 2016, at 2:00 p.m. ("Closing Date"). The acts and deliveries which occur on the Closing Date for the purpose of consummating the transactions contemplated by this Agreement and the event itself are referred to herein as the "Closing".

 

Section 3.02. Sellers' deliveries at the Closing. At the Closing, Sellers will deliver: JOLEN, all the WOWI Securities (into escrow);

 

 

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Section 3.03. WOWI's deliveries at the Closing. At the Closing, WOWI will deliver:

 

(a) to JOLEN, Officers' and Secretary's Certificates of WOWI in the form set forth in Exhibits "A" and "B", respectively; and

(b) to Mr. Heilman, the New Convertible Promissory Note for the $84,000 (Exhibit "F").

(c) to Mr. Heilman, $7,000.00 at Closing in compliance with the Promissory Note which includes the balance of $77,000.00 payable in eleven equal consecutive monthly installments of $7,000.00 each.

(d) to Jackson Morris $6,250 pursuant to Section 7.01 or delivery after Closing at a date decided by WOWI based upon the fact that he is selected to prepare the S-1.

Section 3.04. JOLEN's deliveries at the Closing. At the Closing, JOLEN will deliver:

		(a)	
to the Sellers, the JOLEN Securities registered in the names of the respective

Sellers as set forth in Attachment "A" in the amount of 25,750,000 shares; and

		(b)	
to the Sellers, an action of written consent of Mr. Heilman as the sole director of JOLEN electing the following persons as directors of JOLEN:

		i.	
Anthony Russo

		ii.	
TBD

		ii.	
TBD

	
 

	ii.	
TBD

		(c)	
Officers' and Secretary's Certificates of JOLEN in the form set forth in Exhibits "C" and "D", respectively.

		(d)	
to Mr. Heilman 150,000 shares of JOLEN common stock

Section 3.05. Mr. Heilman's deliveries at Closing. At the Closing, Mr. Heilman will deliver:

(a) proof of cancellation of 5,750,000 shares of JOLEN common stock;

 

 

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(b)  WOWI, the convertible Promissory Notes marked as "Fully Satisfied" under the conditions stated in Section 3.09(f); and

 

Section 3.06. Closing Memorandum and Receipts. As evidence that all parties deem the Closing to have been completed and the transactions contemplated by this Agreement to have been consummated, the parties jointly will execute and deliver a Closing Memorandum, in the form of Exhibit "E", acknowledging such completion and consummation.

Section 3.07. Waiver of conditions. Notwithstanding Section 10.03, any condition to the Closing which is to the benefit of any party and which is not satisfied prior to or at the Closing, excluding nevertheless any provision of this Agreement which by its terms is to be performed in the future, will be deemed to be waived by the benefited party or otherwise satisfied and waived by virtue of that party executing the Closing Memorandum, except to the extent any such unsatisfied or unperformed condition is expressly preserved by listing it in the Closing Memorandum for satisfaction or performance after the Closing.

 

Section 3.08. Further assurances. At any time and from time to time after the Closing, at the reasonable request of any party and without further consideration, any other party(ies) shall execute and deliver such other instruments and documents reæ sonably desirable or necessary to complete and confirm the transactions contemplated by this Agreement.

Section 3.09. Conditions precedent to Mr. Heilman's and JOLEN's obliaations to Close. All obligations of Mr. Heilman and of JOLEN hereunder are subject, at the option of JOLEN, to the fulfillment of each of the following conditions at or prior to the Closing, and WOWI and Sellers shall exert commercially reasonable efforts to cause each such condition to be so fulfilled:

(a) All representations and warranties of the Sellers and of WOWI contained herein and in any document delivered pursuant hereto shall be true and correct in all material respects to the best of Sellers' and the knowledge of WOWI's managing member when made and shall be deemed to have been made again and given at and as of the date of the Closing of the transaction contemplated by this Agreement, and shall then be true and correct in all material respects, except for changes in the ordinary course of business after the date hereof in conformity with the representations, covenants and agreements contained herein.

(b) All covenants, agreements and obligations required by the terms of this Agreement to be performed by WOWI and the Sellers at or before the Closing shall have been duly and properly performed in all material respects to JOLEN's reasonable satisfaction.

 

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(b)  WOWI, the convertible Promissory Notes marked as "Fully Satisfied" under the conditions stated in Section 3.09(f); and

 

Section 3.06. Closing Memorandum and Receipts. As evidence that all parties deem the Closing to have been completed and the transactions contemplated by this Agreement to have been consummated, the parties jointly will execute and deliver a Closing Memorandum, in the form of "Exhibit E" acknowledging such completion and consummation.

Section 3.07. Waiver of conditions. Notwithstanding Section 10.03, any condition to the Closing which is to the benefit of any party and which is not satisfied prior to or at the Closing, excluding nevertheless any provision of this Agreement which by its terms is to be performed in the future, will be deemed to be waived by the benefited party or otherwise satisfied and waived by virtue of that party executing the Closing Memorandum, except to the extent any such unsatisfied or unperformed condition is expressly preserved by listing it in the Closing Memorandum for satisfaction or performance after the Closing.

 

Section 3.08. Further assurances. At any time and from time to time after the Closing, at the reasonable request of any party and without further consideration, any other party(ies) shall execute and deliver such other instruments and documents reæ sonably desirable or necessary to complete and confirm the transactions contemplated by this Agreement.

Section 3.09. Conditions precedent to Mr. Heitman's and JOLEN's obliqations to Close. All obligations of Mr. Heilman and of JOLEN hereunder are subject, at the option of JOLEN, to the fulfillment of each of the following conditions at or prior to the Closing, and WOWI and Sellers shall exert commercially reasonable efforts to cause each such condition to be so fulfilled:

 

(a) All representations and warranties of the Sellers and of WOWI contained herein and in any document delivered pursuant hereto shall be true and correct in all material respects to the best of Sellers' and the knowledge of WOWI's managing member when made and shall be deemed to have been made again and given at and as of the date of the Closing of the transaction contemplated by this Agreement, and shall then be true and correct in all material respects, except for changes in the ordinary course of business after the date hereof in conformity with the representations, covenants and agreements contained herein.

(b) All covenants, agreements and obligations required by the terms of this Agreement to be performed by WOWI and the Sellers at or before the Closing shall have been duly and properly performed in all material respects to JOLEN's reasonable satisfaction.

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(c) All documents required to be delivered to JOLEN at or prior to the Closing shall have been so delivered.

(d) Except as disclosed in Section 4.01 (e), WOWI shall not have suffered or incurred material damage, destruction or loss not fully covered by insurance and which has a Material Adverse Effect on its business, operations and prospects.

(e) WOWI was incorporated in Colorado as of July 31, 2015, and accordingly is still in its first year of operation. JOLEN shall have received: (i) unaudited consolidated financial statements of WOWI as of April 30, 2016 which shall not show any materially adverse results of operation, and (ii) copies of all licenses applied for and granted and/or applied for and in process by the various regulatory agencies needed by WOWI to conduct its business. No tax returns have been filed. All this financial information is collec-

 

tively referred to as "Financial Statements" and presented in Attachment "M".

(f) New Convertible Promissory Note. The only outstanding Promissory Notes including principal and interest accrued ("Promissory Notes") (Attachment "B") executed by Jolen are in favour of Michael Heilman. These Promissory Notes shall be terminated upon (i) the issuance of 150,000 shares of JOLEN common stock at Closing and (ii) the issuance of a New Convertible Promissory Note ("New Convertible Promissory Note") (Exhibit "F") of USD$84,000.OO, paid over 12 consecutive months at USD$7,000.00 per month with the first payment due on the Closing Date. This New Convertible Promissory Note will permit conversion at any time upon a default in the payment into five million shares (5,000,000) of JOLEN common stock. Each payment will be wired to Michael Heilman's bank account according to the bank instructions in Attachment "E". The Promissory Notes will be marked as "Fully Satisfied" and delivered to WOWI.

(g) Business Plan. WOWI has delivered a Business Plan (Attachment "L") satisfactory to Jolen with respect to the proposed business activities to be carried on through JOLEN after this planned transaction. The Business Plan shall include a Financial Plan satisfactory to JOLEN detailing the WOWI's estimated capital requirements for the next 12 months and the strategy for securing such capital. Such plan will show the needed cash to support its operation as defined in the Business Plan.

This space intentionally left blank

 

 

 

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(h) Operating Expenses. Upon Closing, WOWI will be responsible for all operating expense of Jolene.

 

Section 3.10. Conditions precedent to the Sellers' obligation to Close. All obligations of the Sellers at the Closing are subject, at the option of the Sellers, to the fulfillment of each of the following conditions at or prior to the Closing, and JOLEN shall exert commercially reasonable efforts to cause each such conditions to be so fulfilled:

 

(a) All representations and warranties of JOLEN contained herein or in any document delivered pursuant hereto shall be true and correct in all material respects when made and as of the Closing.

(b) All covenants, agreements and obligations required by the terms of this Agreement to be performed by JOLEN at or before the Closing shall have been duly and properly performed in all material respects to Sellers' reasonable satisfaction.

(c) All documents required to be delivered by JOLEN to the Sellers at or prior to the Closing shall have been delivered.

(d) The transactions prior to closing contemplated by this Agreement with respect to shall have been approved in writing by JOLEN's board of directors.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PARTIES

Section 4.01. Representations and warranties of WOWI and each of the Sellers. WOWI and each of the Sellers represent and warrant, jointly and severally, to Mr. Heilman and to JOLEN, as follows:

(a) WOWI is a duly organized and an existing entity in good standing under the laws of Colorado and has full legal power to execute, deliver and perform this Agreement.

(b) WOWI is qualified to do business and in good standing in each state and jurisdiction in which the nature of its activities and ownership of property require it to be qualified as a foreign corporation, except where the failure to qualify would not have a Material Adverse Effect,

(c) All licenses required for the conduct of WOWI's business in intra and interstate commerce are in full force and effect, all such licenses being transferable in the event the transactions contemplated pursuant to this Agreement are deemed to be a transfer under applicable statutes and regulations; and, there is no proceeding of any nature pending or, to the best knowledge of WOWI and the Sellers, threatened which if determined adversely to WOWI would result in a revocation, cancellation of or material limitation or restriction on WOWI to conduct its business as it is presently conducted.

(d) Each of the Sellers holds title to and has full power and authority to sell, assign and transfer his shares in WOWI without the approval or consent of any other person or party, and his share interest is not the subject of any security interest, hypothecation, lien or adverse interest.

 

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(e) Except as disclosed on Attachment "F", to the best knowledge of WOWI and the Sellers, the execution of this Agreement and consummation of the transactions contemplated hereby does not conflict with and will not result in any material adverse consequences to or material breach of any agreement (financing or otherwise), mortgage, instrument, judgment, decree, law or governmental regulation, license, permit or authorization by WOWI or in the loss, forfeiture or waiver of any material rights, license, authorization or franchise owned by WOWI from which WOWI benefits or which is desirable in the conduct of WOWI's business.

 

(f) To the best knowledge of WOWI and the Sellers, except for such actions as may have been taken, no further action by or before any governmental body or authority of the United States of America or any state, territory or subdivision thereof or any self-regulatory body to which WOWI is subject is required in connection with the execution and delivery of this Agreement by WOWI and the consummation of the transactions contemplated hereby.

(g) The information WOWI has delivered to Mr. Heilman and to JOLEN relating to WOWI was, to the best knowledge of WOWI and the Sellers, on the date reflected in each such item of information accurate in all material respects and, to the best knowledge of WOWI and the Sellers, such information at the date hereof taken as a whole provides full disclosure of all material information relating to WOWI and does not, to the best knowledge of WOWI and the Sellers, omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(h) Except as disclosed in Attachment "G", WOWI has conducted its business in the ordinary course for the last three years or since inception, whichever is less.

(i) Neither WOWI nor any employee thereof, to WOWI's and the Sellers' best knowledge, has since inception given or agreed to give any gift or similar benefit valued at more than $25.00 annually to any customer, supplier, governmental employee or other person who is or may be or have been in a position to help or hinder WOWI's business, or a gift or similar benefit in any amount or value which might subject WOWI to damage or penalty in civil, criminal or governmental litigation or proceedings.

(j) WOWI's financial statements delivered to Mr. Heilman and to JOLEN have been prepared in accordance with the Tax Basis method of accounting in accordance with WOWI's past practices and maintained throughout the periods indicated, fairly present the financial condition of WOWI in all material respects at the dates and the results of operations for the periods indicated, contain all normally recurring adjustments and do not omit to disclose any contingent, undisclosed or hidden liabilities. WOWI's financial records are maintained in accordance with good business practice.

 

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(k) Except as set forth in Attachment "H", WOWI has good and marketable and insurable title to all of its properties and assets, including intangible assets, if any, which it owns or uses in its business or purports to own, including, without limitation, those reflected in its books and records and in the balance sheet, both tangible and intangible, as presented in the "Financial Statements" (Attachment "M") Except as set forth on Schedule 4.01 (k), none of the properties and assets are subject to any mortgage, pledge, lien, charge, security interest, encumbrance, restriction, lease, license, easement, liability or adverse claim of any nature whatsoever, direct or indirect, whether accrued, absolute, contingent or otherwise, except as expressly set forth in the notes to WOWI's financial statements as securing specific liabilities or subject to specific capital leases and have arisen only in the ordinary course of business. All of the properties and assets owned, leased or used by WOWI are in good operating condition and repair, are suitable for the purposes used, are adequate and sufficient for WOWI's current operations and are directly related to WOWI's business.

(l) All of the material contracts, agreements, leases, licenses and commitments of WOWI (other than those which have been fully performed), copies of all of which have been delivered or made available to Mr. Heilman and to JOLEN, are valid and binding, enforceable in accordance with their respective terms, in full force and effect and there is not there under with respect to any party thereto any existing default or event, which after the giving of notice or lapse of time or both, would constitute a default or result in a right to accelerate or loss of rights and none of such contracts, agreements, leases, licenses and commitments is, either when considered singly or in the aggregate with others, unduly burdensome, onerous or materially adverse to WOWI's business, properties, assets, earnings or prospects, either before or after the Closing, or which would result in any material loss to or liability of WOWI.

 

(m) Except as set forth on Attachment "l", there is no claim, legal action, suit, arbitration, governmental investigation, or other legal or administrative proceeding, nor any order, decree, judgment or judgment in progress, pending or in effect or to WOWI's or the Sellers' knowledge threatened, against or relating to WOWI, its properties, assets or business or the transaction contemplated by this Agreement and WOWI and the Sellers do not know or have any reason to be aware of any basis for the same, including any basis for a claim of sexual harassment or racial or age discrimination.

(n) If WOWI has elected to be treated as a partnership for federal income tax purposes; has distributed all Forms K-1 to the persons entitled to receive them; and all taxes, including without limitation, income, property, motor vehicle tag, operating licenses, special assessments, sales, use, franchise, intangibles, employees' income withholding and social security taxes, including employer's contribution, other than those for which a return or deposit is not yet due and have been disclosed to Mr. Heilman and to JOLEN, imposed by the United States or any state, municipality, subdivision, authority, which are due and payable, and all interest and penalties thereon, unless disputed in good faith in proper proceedings and reserved for or set aside, have been paid in full and all tax returns required to be filed in connection therewith have been accurately prepared and timely filed and all deposits required by law to be made by WOWI with respect to employees' withholding and social security taxes have been made. WOWI is not and has no reason to believe that it will be the subject of an audit by any taxing authority. Except as set forth in Schedule 4.01 (n) here is not now in force any extension of time with respect to the date when tax return was or is due to be filed, or any waiver or agreement by WOWI for the extension of time for the assessment of any tax and WOWI is not a "consenting corporation" within the meaning of Section 341 (f)(l) of the Tax Code.

 

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(o) Except as set forth on Attachment "J", WOWI does not have any employee benefit, pension or profit sharing plans subject to ERISA and no such plans to which WOWI is obligated or required to make contributions.

(p) None of WOWI's employees are represented by a collective bargaining agent or subject to a collective bargaining agreement and WOWI considers its relations with its employees as a whole to be good. WOWI has disclosed to Mr. Heilman and to JOLEN all of its employee salary, compensation and benefit agreements and no employee has a written employment agreement.

(q) No person has guaranteed any obligation of WOWI and WOWI has not guaranteed the obligation of any other person.

(r) WOWI and its management have no reason to believe or expect and do not believe or expect that any event or events will occur which will result in WOWI producing results of operations which are materially different from WOWI's recent operations.

Section 4.02. Mr. Heilman's and JOLEN's representations and warranties. Mr. Heilman's and JOLEN represent and warrant to the Sellers that:

(a) JOLEN is a duly incorporated and existing corporation in good standing under the laws of Florida, its state of incorporation, and has full corporate power to execute and deliver this Agreement.

(b) This Agreement has been duly and validly authorized, executed and delivered by JOLEN and constitutes the legal, valid and binding obligation of JOLEN in accordance with its terms subject, as to enforceability, to bankruptcy, insolvency, reorganization and other laws of, relating to or affecting shareholders and creditors rights generally and to general equitable principles.

(c) Except for such actions as may have been taken, no further action by or before any governmental body or authority of the United States of America or any state thereof is required in connection with the execution and delivery of this Agreement by JOLEN and the consummation of the transactions contemplated hereby.

(d) The information JOLEN has published at OTCMarkets.com is accurate in all material respects and such information at the date hereof as a whole did not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

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(e) The JOLEN common stock and preferred stock is duly authorized and is not subject to preemptive rights or similar rights of stockholders.

(f) There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of JOLEN, threatened against or affecting JOLEN, or any of its respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "Action") which (i) adversely affects or challenges the legality, validity or enforceability of this Agreement or JOLEN's Securities or (ii) could, if there were an unfavorable decision, individually or in the aggregate, have or result in a Material Adverse Effect. Neither JOLEN, nor any subsidiary, nor any director or officer thereof, is or has been the subject of any action involving a claim of violation of or liability under federal or state securities laws within the past ten years or a claim of breach of fiduciary duty. There has not been, and to the knowledge of JOLEN, there is not pending or contemplated, any investigation by the Commission involving JOLEN or any current or former director or officer of JOLEN.

Section 4.03. Nature and survival of representation and warranties: Remedies. This Agreement and any certificate delivered pursuant to this Agreement delivered by or on behalf of WOWI and the Sellers or of Mr. Heilman and JOLEN and their respective officers, pursuant to the terms of this Agreement shall be deemed representations and warranties made by WOWI and the Sellers or by JOLEN, respectively, as the case may be, to each other under this Agreement. For purposes of this Section 4.03 only, any party or other person seeking to enforce, or claiming the benefit of, any representation and warranty under this Agreement is called a Claimant, and any party or other person against whom a right is claimed is called a Defendant. All representations and warranties of the parties shall survive the Closing; provided, however, that all representations and warranties shall terminate and expire, and be without further force and effect whatever from and after 365 days from the date hereof, and neither WOWI, the Sellers nor JOLEN shall have any liability whatsoever on account of any inaccurate representation or warranty or for any breach of warranty, unless a Claimant shall, on or prior to the expiration of such one year period, serve written notice on a Defendant, with a copy to the Defendant's counsel, setting forth in reasonable detail the breach and any direct, incidental or consequential damages (including amounts) the Claimant may have suffered as a result of such breach.

ARTICLE V

PRECLOSING COVENANTS OF THE PARTIES

Section 5.01. Conduct of Business prior to Closing.

(a) From the Effective Date to the Closing, WOWI conducts its business and affairs only in the ordinary course and consistent with its prior practice and shall maintain, keep and preserve its assets and properties in good condition and repair (subject to ordinary wear and tear) and maintain its current insurance thereon in accordance with present practices, it will use its commercially reasonable efforts (i) to preserve its business and organization intact, (ii) to keep available to JOLEN the services of WOWI's present employees, agents and independent contractors, (iii) to preserve for the benefit of JOLEN the goodwill of suppliers, customers, distributors, landlords and others having business relations with it, and (iv) to cooperate and use reasonable efforts to obtain the consent of any landlord or other party to any lease or contract with WOWI where the consent of such landlord or other party may be required by reason of the transactions contemplated hereby.

 

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(b) From the Effective Date hereof to the Closing, WOWI shall not outside the ordinary course of business (i) dispose of any material assets, (ii) engage in any extraordinary transactions without JOLEN's prior approval, including but not limited to, directly or indirectly, soliciting, entertaining, encouraging inquiries or proposals or entering into negotiation or agreement with any third party for sale of assets by WOWI, sale of its equity securities or merger, consolidation or combination with any company, (iii) grant any salary or compensation increase to any employee, or (iv) make any commitment for capital expenditures, other than as disclosed to JOLEN and approved by it.

Section 5.02. Notice of changes in information. Each party shall give the other party prompt written notice of any change in any of the information contained in their respective representations and warranties made in Article IV, or elsewhere in this Agreement, or the exhibits and attachments referred to herein or any written statements made or given in connection herewith which occurs prior to the Closing.

Section 5.03. Notice of extraordinary chances. WOWI and the Sellers shall advise JOLEN with respect to any of the following events outside of ordinary course of business and which are materially adverse: (i) the entering into and cancellation or breach of contracts, agreements, licenses, commitments or other understandings or arrangements to which WOWI is a party, (ii) any changes in purchasing, pricing or selling policy, or, any changes in its sales, business or employee relations in general, and (iii) the filing or commencement of any litigation or governmental or agency proceedings against WOWI.

Section 5.04. Action to preserve WOWI's businesses and assets. Notwithstanding anything contained in this Agreement to the contrary, WOWI will not take or fail to take any action that in JOLEN's reasonable business judgment, is likely to give rise to a substantial penalty or a claim for damages by any third party against WOWI, or is likely to result in losses, or is otherwise likely to prejudice in any material respect or unduly interfere with the conduct of its business and operations in the ordinary course consistent with prior practice, or is likely to result in a breach by WOWI or the Sellers of any of the representations, warranties or covenants contained in this Agreement (unless any such breach is first waived in writing by JOLEN).

Section 5.05. Access to information and documents. Upon not less than forty-eight hours prior written notice and during regular business hours, WOWI will give to JOLEN, its attorneys, accountants and other representatives full access to its personnel (subject to reasonable approval as to the time thereof) and all properties, documents, contracts, books and records and will furnish copies of such documents (certified by officers, if so requested) and with such information with respect to its business, operations, affairs and prospects (financial and otherwise) as JOLEN may from time to time request, and the party to whom the information is provided will not improperly disclose the same prior to the Closing. WOWI will afford JOLEN an opportunity to ask questions and receive answers thereto in furtherance of its duly diligent examination of WOWI. Any such furnishing of such information or any investigation shall not affect that party's right to rely on the other party's representations and warranties made in this Agreement or in connection herewith or pursuant hereto, except to the extent that written disclosure of information at a variance or in conflict with any such representation or warranty is made and provides specific notice of such variance or conflict.

 

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Section 5.06. Confidential treatment of information. The provisions of Attachment "N" shall be binding upon the parties.

Section 5.07. Cooperation bv the parties. Each party hereto shall cooperate and shall take such further action as may be reasonably requested by any other party in order to carry out the provisions and purposes of this Agreement. WOWI and the Sellers shall cooperate with JOLEN, and its independent public accountant, the cost of which shall be the responsibility of JOLEN, with respect to an audit of WOWI's consolidated financial statements and review of interim, stub period financial statements required to enable

JOLEN to file reports pursuant to the 1934 Act. This covenant shall survive the Closing.

ARTICLE VI

POSTCLOSING COVENANTS OF THE PARTIES

Section 6.01. Audit of WOWI's financial statements. As soon as practicable following the Closing, WOWI will engage a PCAOB (Public Company Accounting Oversight Board) qualified auditor to audit the financial statements of WOWI for the most recent two fiscal years and review the quarterly financial statements subsequent to the most recent fiscal year end.

Section 6.02. Mr. Heilman's Continuation in Management. Mr. Heilman will remain a director of JOLEN until the total cash payment for his New Convertible Promissory Notes has been completed as specified in Section 3.09(f) thereafter he is willing to remain a director of JOLEN at the request of JOLEN shareholders. Immediately upon the election of the new directors of JOLEN, they will appoint the new management team of JOLEN (the resulting parent company of WOW]), at which time Mr. Heilman will submit his resignation of all his management positions. Mr. Heilman is willing to consider and accept a management role/position at the election of the Board of Directors of Jolen.

ARTICLE VII

SECRITIES LAW MATTERS

Section 7.01. Restricted stock. The Sellers acknowledge that the JOLEN Securities they receive as contemplated by this Agreement is a restricted security as defined in Rule 144 pursuant to the Securities Act and is subject to that rule with respect to public resale which will not be available until Rule 144(i)(2) with respect to a previous shell company is satisfied. The certificates representing the JOLEN Securities will carry an appropriate legend to this effect. The Sellers acknowledge that Rule 144 is unavailable for the sale of the JOLEN Securities and any securities JOLEN may otherwise issue into the public securities markets until JOLEN satisfies Rule 144(i)(2).

14

Accordingly, the parties acknowledge that in order for any existing or future Jolen common shares (not includin

g shares presently in CEDE) to be sold in the public market an S-1 registration statement must be filed with the Securities and Exchange Commission ("SEC") of the United States government.

The parties desire to complete an S-1 registration statement following the Closing. Mr. Heilman will coordinate the process based upon the information requested of and supplied by WOWI. All revenue streams, business, assets, etc. of WOWI to be placed in Jolen under this Agreement must be subject to such audit procedures, processes and standards as are required by securities laws and/or regulations applicable in the United States of America. Mr. Heilman will supervise the audit of Jolen (the corporate entity) and provide needed JOLEN corporate documentation, however full cost of the audit is to be borne by JOLEN.

The parties will act under a time frame appropriate to financial capability of WOWI to select an SEC attorney to prepare the S-1 and a SEC approved auditor to prepare the financial statement for the S-1 . Jackson Morris, Esq who is currently JOLEN's corporate attorney will be considered for the preparation of the S-1 and other SEC matters.

ARTICLE Vill

NOTICES

Section 8.01. Procedure for giving notices. Any and all notices or other communications required or permitted to be given under any of the provisions of this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered (excluding telephone facsimile and including receipted express courier and overnight delivery service) or mailed by first class certified U.S. mail, return receipt requested showing name of recipient, addressed to the proper party.

Section 8.02. Addresses for notices. For purposes of sending notices under this Agreement, the addresses of the parties are as follows:

 

	
As to WOWI and the Sellers before Closing:

	
Anthony Russo, Chief Executive Officer

World of Weed, Inc.

6770 South Yosemite Street, Unit D

Centennial, CO 80112

	
Copy to:

 

 

 

	
 

NONE

______________________

______________________

______________________

 

 

 

 

15

 

 

	
As to JOLEN before Closing:

	

Michael Heilman, President Jolen, Inc.

550 M Ritchie Highway 

Severna Park, MD 21146

	
 

Copy to:

 

 

 

	
Jackson L. Morris, Esq.

3116 West North A Street

Tampa, Florida 33609-1544

 

 

Section 8.03. Change of address. A party may change its address for notices by sending a notice of such change to all other parties by the means provided in Section 10.01.

 

ARTICLE IX

LEGAL AND OTHER COSTS

Section 9.01. Party entitled to recover. In the event that any party (the "Defaulting Party") defaults in his or its obligation under this Agreement and, as a result thereof, the other party (the "Non-Defaulting Party") seeks to legally enforce his or its rights hereunder against the Defaulting Party (whether in an action at law, in equity or in arbitration), then, in addition to all direct damages and other remedies to which the Non-Defaulting Party is entitled by reason of such default, the Defaulting Party shall promptly pay to the Non-Defaulting Party an amount equal to all costs and expenses (including reasonable attorneys' fees and expert witness fees) paid or incurred by the Non-Defaulting Party in connection with such enforcement. Notwithstanding the foregoing, the Parties agree that for purposes of this Agreement damages shall be calculated net of insurance proceeds and shall exclude loss profits, indirect, consequential, multiple, incidental and punitive damages. The aggregate damages payable by Sellers pursuant to this Section 9.01 shall not exceed an amount equal to the value of the total consideration provide in Article Il of this Agreement.

Section 9.02. Interest. In the event the Non-Defaulting Party is entitled to receive an amount of money by reason of the Defaulting Party's default hereunder, then, in addition to such amount of money, the Defaulting Party shall promptly pay to the Non-Defaulting Party a sum equal to interest on such amount of money accruing at the rate of 1 .0% per month during the period between the date such payment should have been made hereunder and the date of the actual payments thereof.

 

 

 

16

 

ARTICLE X

MISCELLANEOUS

Section 10.01. Effective Date. The Effective Date of this Agreement shall for all purposes be the date set forth in first paragraph hereof notwithstanding a later actual date of execution by any individual party.

Section 10.02. Entire agreement. This writing constitutes the entire agreement of the parties with respect to the subject matter hereof, superseding all prior agreements, understandings, representations and warranties.

Section 10.03. Waivers. No waiver of any provision, requirement, obligation, condition, breach or default hereunder, or consent to any departure from the provisions hereof, shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

Section 10.04. Amendments. This Agreement may not be modified, amended or terminated except by a written agreement specifically referring to this Agreement signed by all of the parties hereto and amendment, modification or alteration of, addition to or termination of this Agreement or any provision of this Agreement shall not be effective unless it is made in writing and signed by the parties.

Section 10.05. Construction. This Agreement has been negotiated by the parties, section by section, and no provision hereof shall be construed more strictly against one party than against the other party by reason of such party having drafted such provision. The order in which the provisions of this Agreement appear are solely for convenience of organization; and later appearing provisions shall not be construed to control earlier appearing provisions.

Section 10.06. Invalidity. It is the intent of the parties that each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision hereof shall be prohibited, invalid, illegal or unenforceable, in any respect, under applicable law, such provision shall be ineffective to the extent of such prohibition, invalidity or non-enforceability only, without invalidating the remainder of such provision or the remaining provisions of this Agreement; and, there shall be substituted in place of such prohibited, invalid, illegal or unenforceable provision a provision which nearly as practicable carries out the intent of the parties with respect thereto and which is not prohibited and js valid, legal and enforceable.

Section 10.07. Multiple counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and, taken together, shall be deemed one and the same instrument.

Section 10.08. Assignment, parties and binding effect. This Agreement, and the duties and obligations of any party shall not be assigned without the prior written consent of the other party(ies). This Agreement shall benefit solely the named parties and no other person shall claim, directly or indirectly, benefit hereunder, express or implied, as a third-party beneficiary, or otherwise. Wherever in this Agreement a party is named or referred to, the successors (including heirs and personal representative of individual parties) and permitted assigns of such paarty shall be  deemed to be included, and all agreernents promises, covenants and stipulations in this Agreerment shall be binding upon and insure to the benefit of their respective successors and permitted assigns.

Section 10.09. Survival of representations and warranties.  The representations and warranties made herein shall survive the execution and delivery of this Agreement and full performance hereunder of the obtigations of the representing and warranting party, subject to the provisions of Section 4.03.

   Section 10.10. Jurisdiction and venue. Any action or proceeding for enfosrcenaent of this Agreement and the instruments and documents executed and delivered in connection herewtth which is determined by a court of competent jurisdiction not, as a rnatter of which seeks  injunctive relief shall be brought and enforced in the courts of the State of Florida and the parties irrevocably submit to the jurisdiction of each such court in respect of any such action or proceeding. 

 

    Section 10.11. Applicable law. This Agreeement and amendments thereof shell be governed by and construed in accordance with the law of the State of Florida appliceble to contracts made and to be petiorrned therein (not including the choice of law thereat).

 

   Section 10.12. Time. Time shall be of the essence with this Agreernent.

 

   Section 10.13. Public Announcements. Neither party will make pubic announcement concerning this Agreement unless agreed to in writing by the other party(ies).

 

IN WITNESS WHEREOF, the parties hereto have caueed this Agreement to be signed by their respective officers thereunto duly euthoffzeci and their respective gorpry rate seais to be hereunto affixed, as of the Effective Date.

 

	
Attest: 

 

	 	 	JOLEN, Inc.	 
	
/s/ Jackson L. Morris

	 	 	
/s/ Michael Heilman

	 
	
Jackson L. Morris

	 	 	
Michael Heilman, CEO

	 
	
 

	 	 	
 

	 

 

 

	
Attest: 

 

	 	 	World of Weed, Inc.	 
	
/s/ Donna Dec

	 	 	
/s/ Anthony Russo

	 
	
 

	 	 	
Anthony Russo, CEO

	 
	
 

	 	 	
 

	 

 

 

 

17

 

	
 

 

	 	 	Sellers:	 
	
/s/ Donna Dec

	 	 	
/s/ Anthony Russo

	 
	
 

	 	 	
Anthony Russo

	 
	
 

	 	 	
 

	 
	/s/ Sindy Chavez	 	 	/s/ Anthony Pugliese	 
	Witness: 	 	 	Anthony Pugliese	 
	 	 	 	 	 
	 	 	 	 	 
	/s/ Kelly O'Hara	 	 	/s/ Charles H. Sallah	 
	Witness 	 	 	Charles H. Sallah	 
	 	 	 	 	 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment "E"

Wire Instructions for Michael Heilman

 

Bank Infoormation

 

Bank:

ABA:

SWIFT#:

 

Michael D. Hilman's Information

 

Account Number:

Routing Number:

 

Account Name:

Address:

 

Contact:

Phone:

Email:

 

 

BB&T (Branch Banking and Trust Company)  Contact Information

 

 

 

 

 

 

Exception Section 4.01 (e)

"None"

 

 

Attachment "G"

Exception Section 4.01 (h)

"None"

 

 

Attachment "H"

Exception Section 4.01 (k)

"None"

 

 

Attachment I

Exception Section 4.01 (m)

"None"

 

 

Attachment "J"

Exception Section 4.01 (o) 

"None"

 

 

 

 

 

 

 

Attachment  "K"

Wire Instructions for Jackson Morris, Esq.

 

 

Wire instructions - 

 

 

ROUTING NUMBERS:

 

 

TRUST ACCOUNT:

 

 

ACCOUNT HOLDERS ADDRESS:

 

 

 

 

Please notify me when the deposit or wire transfer is made -  by scan and e-mail of confirmation or deposit to jackson.morris@rule144solution.com or fax to 800-310-1695. This is important so that your payment properly credited against your fees or deposits. 

 

 

 

 

Attachment   "L"

WOWI Business Plan

 

The WOWI Business Plan has been distributed to all parties.

 

 

 

 

Attachment    "M"

Financial Statements

Financial Statements include:

	
(i)

	
unaudited consolidated financial statements of WOWI as of April 30, 2016 which shall not show any materially adverse results of operation, and

 

		(ii)	
copies of all licenses applied for and granted and/or applied for and in process by the various regulatory agencies needed by WOWI to conduct its business. Note A

		(iii)	
No tax returns have been filed.

Note A:

WOWI Inc. provides management, licensing, leasing and intellectual property services to dispensaries and grow operations. License(s) controlled by WOWI LLC will be disclosed to WOWI, Inc., Jolen, Inc. and Heilman.

 

 

Attachment "N"

Treatment of Confidential Information

The mutual objective of the parties under the Stock Exchange Agreement to which this Exhibit "G" is attached and incorporated by reference is to provide appropriate protection for Confidential Information while exchanging Confidential Information (defined below) for the parties' mutual benefit and maintaining their ability to conduct their respective business activities. Each party agrees the following terms apply when a party (the "Disclose er") discloses information to the other (the "Recipient") under this Agreement. The consideration for this Agreement is the disclosures which a party makes to the other in reliance on this Agreement.

1.   Each party agrees and acknowledges that many of the other's Confidential Information (as described below) is considered to be trade secrets, confidential, proprietary and not readily accessible to the public. Each party believes that its own Confidential Information represents a legitimate, valuable and protectable interest and gives it a competitive advantage, which otherwise would be lost if its Confidential Information was improperly disclosed or revealed.

2.   The Recipient shall not, at any time without the express written permission of the Discloser, disclose the Discloser's Confidential Information directly or indirectly to any person or entity, except the Recipient may disclose the Confidential Information to the Recipient's Employees, Contractors and Agents (as defined below) during the term of this Agreement if such Employees, Contractors and Agents have a need to know the Confidential Information in order to complete any purpose for which the Confidential Information is disclosed. The Recipient shall have entered into non-disclosure agreements with such Employees, Contractors, and Agents having obligations of confidentiality as strict as those herein prior to disclosure to such employees, contracts, and agents to assure against unauthorized use or disclosure. The Recipient shall not use or threaten to use Confidential Information in any way that is inconsistent with the provisions of this Agreement or contrary to the instructions or interests of the Discloser, The Recipient shall not, directly or indirectly, intentionally or negligently allow or assist others in using the Discloser's Confidential Information in any way inconsistent with the provisions of this Agreement or contrary to the instructions or interests of the Discloser. The Recipient agrees not to use Confidential Information for its own benefit, unless specifically authorized so to do in writing by the Disclose.

3.   Each party recognizes and acknowledges that the improper disclosure or use of the Discloser's Confidential Information would cause irreparable injury to the Discloser by jeopardizing, compromising, and perhaps eliminating the competitive advance the Discloser holds or may hold because of the existence and secrecy of the Confidential lnformation or would provide an unjustly obtained advantage to the Recipient. Thus, each party acknowledges and agrees that monetary damages shall not be a sufficient remedy for the Discloser in the event of any breach or threatened breach of this Agreement. Therefore, each party stipulates and warrants that in the event a Recipient breaches, or reasonably threatens to breach, this Agreement, the Discloser party shall be entitled, without waiving any other rights or remedies in law or in equity, to such injunctive and/or other equitable relief, without (a) having to show or prove irreparable harm as may be deemed proper by a court of competent jurisdiction and (b) the requirement imposed by the Court for posting bond which requirement is hereby specifically and knowingly waived.

 

 

4.   The Recipient agrees to use the same care and discretion to avoid improper disclosure, publication or dissemination of the Disclosure's Confidential Information as it uses with its own similar information that it does not wish to disclose, publish or disseminate, but in no event less than reasonable and prudent care.

5.   As used in this Agreement the "Confidential Information" means all tangible and intangible information that is disclosed by the Discloser to the Recipient (either orally, or by visual inspection, and/or in writing), including but not limited to (a) currently available and planned products and services; (b) information regarding distributors, suppliers, developers, contractors and funding sources; (c) financial and management information; (d) product information; (e) research and/or development information; (f) information pertaining to actual and/or potential customers, suppliers, and/or strategic alliances; (g) information of a confidential or private nature relating to Employees and Agents (as defined below); (h) financial data and information; (i) business plans; (j) marketing materials and/or strategies; (k) legal matters, including current and/or potential contracts and/or litigation; (l) in-house e-mail, Internet, security, and/or other systems; (m) information received by the Discloser from third parties that the Discloser is obligated to treat as confidential; and/or (n) any and all information regarding the foregoing that the Discloser discloses to the Recipient. Failure to include a confidentiality notice on any materials disclosed to the Recipient shall not give rise to inference that the information disclosed is not confidential. Confidential Information disclosed to the Recipient by any parent corporation, subsidiary, agent and/or affiliated entities of the Discloser or by persons that owe the obligation of confidentiality to the Discloser, whether by contract or otherwise, is also covered by this Agreement.

"Employees and Agents" shall mean the employees, agents, representatives, consultants and independent contractors affiliated with each of us separately.

6.   Confidential Information shall not include any information which the Recipient can, by clear and convincing evidence, establish:

(a) Is or subsequently becomes publicly available without the Recipient's breach of any obligation owed to the Discloser under this Agreement;

(b) Was rightfully in the possession of or known to the Recipient prior to the Discloser's disclosure of such information to the Recipient, as evidenced by documentation on record at the time of disclosure;

(c) Became known to the Recipient from a source independent from the Discloser and such independent source did not breach an obligation of confidentiality owed to the Discloser;

(d) Was independently developed by the Recipient without any breach of this Agreement; or

(e) Was originally disclosed as Confidential Information hereunder but which the Discloser thereafter authorizes the Recipient to use and/or disclose, and such authorization is in writing which is signed by authorized representatives of the parties;

(f) Becomes available to the Receiving Party by wholly lawful inspection or analysis of products offered for sale; or

(g) Is transmitted by a party after receiving written notification from the other party that it does not desire to receive any further Confidential Information.

The Receiving Party may disclose Confidential Information nevertheless pursuant to a valid order issued by a court or government agency, provided that the Receiving Party provides the Disclosing Party (i) prior written notice of such obligation; and (ii) the opportunity to oppose such disclosure or obtain a protective order.

7.   The Recipient shall notify the Discloser immediately upon discovery of any unauthorized disclosure of the Confidential Information, or any other breach of this Agreement by the Recipient and/or the Recipient's Employees and/or Agents, and will cooperate with the Discloser in every reasonable way at the Recipient's sole cost and expense to prevent its further unauthorized disclosure and/or further breach of this Agreement.

8.   Neither this Agreement nor any disclosure of Confidential Information hereunder grants the Recipient any rights or license under any trademark, copyright or patent now or hereafter owned or controlled by the Discloser.

9.   The Recipient acknowledges and agrees that its limited right to evaluate the Discloser's Confidential Information shall immediately expire at the completion of the purpose for which the Confidential Information is delivered, if this Agreement is not terminated earlier and then, in that event, the Recipient's right to evaluate such Confidential Information shall immediately terminate. The Recipient therefore agrees to return any and all Confidential Information of the Discloser that is in a tangible form, including all originals, copies reproductions, and summaries thereof, to the Discloser within five business days of the date this Agreement expires or is terminated, whichever occurs first, or upon the Discloser's request, and to also completely erase and destroy any and all copies of all portions of any and all software comprising the Confidential Information in its possession and/or under its responsibility or control which may have been loaded onto the computers of the Recipient and/or its Employees and Agents.

10.   This Agreement shall continue from the date last written below until terminated by either party by giving thirty days' written notice to the other party of its intent to terminate this Agreement. Information disclosed pursuant to this Agreement will be subject to the terms of this Agreement for five years following the termination of this Agreement.

 

 

11.   The terms of confidentiality under this Agreement shall not be construed to limit either party's right to independently develop or acquire products without use of the other party's Confidential Information. The Disclosing Party acknowledges that the Receiving Party may currently or in the future be developing information internally, or receiving information from other parties, that is similar to the Confidential Information. Accordingly, nothing in this Agreement prohibit the Receiving Party from developing or having developed for it products, concepts, systems or techniques that are similar to or compete with the products, concepts, systems or techniques contemplated by or embodied in the Confidential Information provided that the Receiving Party does not violate any of its obligations under this Agreement in connection with such development. Further, either party shall be free to use for any purpose the "residuals," provided that such party shall not use in any manner information that is considered Confidential Information under this Agreement and shall maintain the confidentiality of the Confidential Information as provided herein. The term "residuals" means ideas, concepts, know-how or techniques that may be generated, developed or conceived by the Receiving Party in connection with reviewing the Confidential Information and in no circumstance shall "residuals" be deemed to include Confidential Information. Neither party shall have any obligation to limit or restrict the assignment of such persons or to pay royalties for any work resulting from the use of residuals.

12.   The Receiving Party shall not remove, overprint or deface any notice of confidentiality, copyright, trademark, logo, legend, or other notices of ownership or confidentiality from any originals or copies of Confidential Information it obtains from the Disclosing Party.

13.   CONFIDENTIAL INFORMATION IS PROVIDED "AS IS" WITH ALL FAULTS.

IN NO EVENT SHALL THE DISCLOSING PARTY BE LIABLE FOR THE ACCURACY OR COMPLETENESS OF THE CONFIDENTIAL INFORMATION. None of the Confidential Information disclosed by the parties constitutes any representation, warranty, assurance, guarantee or inducement by either party to the other with respect to the infringement of trademarks, patents, copyrights; any right of privacy; or any rights of third persons.

14.   The parties acknowledge that the Confidential Information disclosed by each of them under this Agreement may be subject to export controls under the laws of the United States. Each party shall comply with such laws and agrees not to knowingly export, re-export or transfer Confidential Information of the other party without first obtaining all required United States or other governmental authorizations or licenses.

15.   The parties hereto are independent contractors. Neither this Agreement nor any right granted hereunder shall be assignable or transferable by operation of law or otherwise. Any such purposed assignment shall be void.

 

EXHIBIT "A"

WOWI OFFICER's CERTIFICATE

Pursuant to Section 3.03(a) of the Securities Exchange Agreement idetified within

The undersigned, Anthony C. Russo, CEO of World of Weed, Inc., a Colorado corporation (the "Corporation"), hereby each certifies that he is familiar with the Stock Exchange Agreement, dated May 3, 2016, (the 'Agreement"), between the Corporation and Mr. Heilman, Jolen, Inc. and the Stockholders of WOWI and, to the best of his knowledge. based on reasonable investigation:

(a) Al representations and warranties of the World of Weed, Inc. (as defined in the Agreement) contained in the Agreement and in ail Exhibits and Attachments attached thereto containing information delivered by World of Weed, inco were true and correct in ali material respects when made and when deemed to have been made and are true and correct at the date hereof, except for changes in the ordinary course of business between the date ofthe Agreementv in conformity with the covenants and agreements contained in the Agreement.

(b) All covenants, agreements and obligations required by the terms of the Agreement to be performed by World of Weed, Inc. at or before the Closing have been duly and properly performed in all material respects.

(c) Since the date of the Agreement there have not occurred eny material adverse change in the condition or prospects (financial or othetwise), business, properties or assets of the VVorid of Weed. Inc.

IN WITNESS WHEREOF, the undersigned has executed this certificate thig May 11. 2016.

 

/s/ Anthony Russo

Anthony Russo

 

 

 

 

 

EXHIBIT "B"

WOWI SECRETARY'S CERTIFICATE

 

Pursuant to Section 3.03(a) of the Securities Exchange Agreement identified within.

l, Anthony Russo, the duly elected, qualified and acting CEO of World of Weed, Inc., a corporation duly organized, existing and in good standing under the laws of COP orado, (the "Corporation") do hereby certify that:

(i) The following j$ a true and complete copy of Resolution of the Board of Directors of the Corporation taken and adopted on May 6, 2016, approving the Stock Exchange Agreement dated May 3, 2016, by and among the Corporation and Jolen, Inc., and that said Resolution has not been rescinded, revoked or modified and is in full force and effect at the date hereof:

(ii) The persons whose names, titles and signatures appear below are each the duly elected, qualified and acting offices of the Corporation, hold on the date hereof the offices set forth opposite their respective names and the signatures appearing opposite said names are the genuine signatures of said persons:

	
Name

	
Title

	
Signature

	 	 	 
	
Anthony Russo  

	
CEO/Secretary

	
/s/ Anthony Russo  

	
 

	
 

	
 

 

 

(iii) I am authorized by the Corporation to make the with certifications.

 

IN WITNESS WHEREOF, I have executed this Certificate on May 1 , 2016.

 

 

/s/ Anthony Russo

Anthony Russo, CEO

 

 

 

 

 

EXHIBIT "C"

JOLEN OFFICER's CERTIFICATE

 

Pursuant to Section 3.04(c) of the Stock Exchange Agreement identified within.

The undersigned, Michael Heilman, CEO of Jolen, Inc., a Florida corporation (the "Corporation"), hereby certifies that he is familiar with the Stock Exchange Agreement, (the "Agreement"), dated May 3, 2016 ("Effective Date"), among the Corporation, Mr. Heilman, World of Weed, Inc. and all the Stockholders of WOWI and, to the best of his knowledge, based on reasonable investigation:

(a) All representations and warranties of JOLEN (as defined in the Agreement) contained in the Agreement, and in all Exhibits and Attachments attached thereto containing information delivered by JOLEN, were true and correct in all material respects when made and when deemed to have been made and are true and correct at the Effective Date hereof, except for changes in the ordinary course of business between the Effective Date of the Agreement, in conformity with the covenants and agreements contained in the Agreement.

(b) All covenants, agreements and obligations required by the terms of the Agreement to be performed by JOLEN at or before the Closing have been duly and properly performed in all material respects.

(c) Since the Effective Date of the Agreement there have not occurred any material adverse change in the condition or prospects (financial or otherwise), business, properties or assets of the JOLEN.

IN WITNESS WHEREOF, the undersigned has executed this certificate this May 1 1 , 2016.

/s/ Michael Heilman

Michael Heilman, CEO

 

 

 

 

 

 

EXHIBIT "D"

JOLEN SECRETARY'S CERTIFICATE

 

Pursuant to Section 3.04(c) of the Stock Exchange Agreement identified within.

l, Michael Heilman, the duly elected, qualified and acting CEO of Jolen, Inc., a corporation duly organized, existing and in good standing under the laws of Florida, (the "Corporation") do hereby certify that:

(i) The following is a true and complete copy of Resolution of the Board of Directors of the Corporation taken and adopted on May 6, 2016, approving the Stock Exchange Agreement dated May 3, 2016, by and among the Corporation and World of Weed, Inc., and that said Resolution has not been rescinded, revoked or modified and is in full force and effect at the date hereof:

(ii) The persons whose names, titles and signatures appear below are each the duly elected, qualified and acting officers of the Corporation, hold on the date hereof the offices set forth opposite their respective names and the signatures appearing opposite said names are the genuine signatures of said persons:

	
Name

	
Title

	
Signature

	 	 	 
	
Anthony Russo  

	
CEO/Secretary

	
/s/ Michael Heilman 

	
 

	
 

	
 

 

(iii) I am authorized by the Corporation to make the within certifications.

 

IN WITNESS WHEREOF, I have executed this Certificate on May 1 1 , 2016.

/s/ Michael Heilman

Michael Heilman, CEO

 

 

Exhibit "E"

CLOSING MEMORANDUM

The undersigned parties to that certain Stock Exchange Agreement dated May 3, 2016, ("Agreement") do hereby certify one to the other that;

1.    The Closing of the Agreement was completed, as contemplated by the Agreement, on May 11, 2016, at 2 PM MT.

2.   All conditions to each of the parties Closing the Agreement have been satisfied and, to the extent not specifically satisfied, have been waived by the party entitled to waive the conditions; except, the following conditions, if any, are waived only for the purpose of Closing of the transaction contemplated by the Agreement, and are required to be satisfied after the Closing by the party required to satisfy such condition:

o Section 3.09 (e ): (i) unaudited consolidated financial statements of WOWI as of April 30, 2016 which shall not show any materially adverse results of operation.

        3.   Capitalized terms herein have the meaning assigned to them in the Stock Purchase Agreement.

For the purposes herein set forth, the parties have executed this Memorandum at the date and time written above.

	 	JOLEN, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael Heilman	 
	 	 	Michael Heilman, Director	 
	 	 		 

 

	 	
World of Weed, Inc. 

 

	 
	
 

	
By: 

	/s/ Anthony Russo	 
	 	 	Anthony Russo, Chief Executive Officer	 
	 	 		 

 

 

 

	 	
Sellers:

 

	 
	
 

	/s/ Anthony Russo	 
	 	 Anthony Russo	 
	 	 		 

	 	
 

 

	 
	
 

	/s/ Anthony Pugliese	 
	 	 Anthony Pugliese	 
	 	 		 

	 	
 

 

	 
	
 

	/s/ Charles H. Sallah	 
	 	Charles H. Sallah	 
	 	 		 

	 	
Michael Heilman

 

	 
	
 

	/s/ Michael Heilman	 
	 	Michael Heilman	 
	 	 		 

 

 

 

 

 

 

Exhibit "F"

New Convertible Promissory Note

 

 

 

 

 

 

WORLD OF WEED, INC.

 

CONVERTIBLE PROMISSORY NOTE

Number WOWI-MH-I 

U.S. $84,000.00 

May 3, 2016

 

FOR VALUE RECEIVED, World of Weed, Inc. ("Maker"), a company acquired by Jolen, Inc. under the Share Exchange Agreement dated May 3, 2016, promises to pay to Michael Heilman ("Holder") the sum of Eighty-Four Thousand Dollars and No Cents ($84,000.00) ("Note"), without interest in the installments paid monthly in the amount of $7,000.00 each installment for twelve months on the eleventh day of each month beginning May 11, 2016 with the entire unpaid balance due and payable in full on April 1 1, 2017 ("Maturity Date"). All payments will be paid directly to the Holder via wire transfer using Mr. Heilman's wire instructions in Attachment "A" and incorporated herein by reference. This Note is in partial satisfaction of Convertible Promissory Notes due to Michael Heilman by Jolen, Inc. for monies lent to Jolen Inc, for operational expenses over a period of time.

Maker hereby reserves the right to prepay this Note in whole or in part at any time and from time to time prior to the Maturity Date without premium or penalty.

Conversion of Note into Common Stock. The Holder of this Note is entitled, upon default of any portion of the installment payments, to convert all of the remaining Note into five million shares (5,000,000) (the "Conversion Shares") of common stock (the "Common Stock") in the Jolen, Inc. (or any new name of Jolen, Inc.) which is a publically traded company. Should Jolen, Inc. experience a stock split (forward or reverse), then the Conversion Shares will be so adjusted.

Any conversion of this Note shall be achieved by submitting to the Company the fully completed form of conversion notice attached hereto as Exhibit I (a "Notice of Conversion"), executed by the Holder of this Note evidencing such Holder's intention to convert this Note. A Notice of Conversion may be submitted via facsimile to the Company and if so submitted the original Notice of Conversion shall be delivered to the Company within two (2) business days thereafter. The date on which a notice of conversion is given (a "Conversion Date") shall be deemed to be either the date on which the Company receives from the Holder an original Notice of Conversion duly executed, or, if earlier, the date set forth in such Notice of Conversion if the original Notice of Conversion is received by the Company within two (2) business days thereafter. In all cases, the Company shall deliver the Conversion Shares to the Holder within five (5) business days after the Conversion Date with respect to such Conversion Shares being delivered, and at the address specified in the Notice of Conversion.

Reservation of Shares. Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of this Note, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion.

 

Attorney's Fees:  The Company agrees to pay all costs and expenses, including without limitation reasonable attomeys fees, which may be incurred by the Holder in collecting any amount due under this Note or in enforcing any of Holder's conversion rights as described herein, if the Holder is required to pursue legal action to so collect or enforce its rights described herein, and is successful in such legal action,

This Note shall be governed by and construed in accordance with the laws of the state of Colorado without giving effect to applicable principles of conflict of law.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized, all as of the date first hereinabove written.

	 	World of Weed, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Anthony Russo	 
	 	 	Anthony Russo, CEOExhibit 4.1

 

(FACE OF SECURITY)

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES. EVERY SECURITY DELIVERED UPON REGISTRATION OF TRANSFER OF, IN EXCHANGE FOR, OR IN LIEU OF, THIS GLOBAL SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED ABOVE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS TO BE MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

EXCEPT AS OTHERWISE PROVIDED HEREIN,
 THIS GLOBAL SECURITY MAY BE TRANSFERRED, IN WHOLE BUT
 NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE DEPOSITORY
 OR TO A SUCCESSOR DEPOSITORY OR TO A NOMINEE
 OF SUCH SUCCESSOR DEPOSITORY

 

	
No. 1
    	
CUSIP: 883203 BZ3
    	
$350,000,000
    

 

TEXTRON INC.
 FLOATING RATE NOTE DUE NOVEMBER 10, 2020

 

TEXTRON INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called “Textron,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay Cede & Co., as nominee for the Depository, or registered assigns,

 

 

the principal sum of three hundred fifty million dollars ($350,000,000) on November 10, 2020 and to pay interest thereon, accruing from November 10, 2017 (the “Issue Date”) or the most recent date in respect of which interest has been paid or duly provided for at a rate per annum equal to the greater of (a) three-month LIBOR (as defined herein) for the applicable Interest Reset Period (as defined herein) or the Initial Interest Period (as defined herein) plus 55 basis points and (b) 0.00%, as determined by the Calculation Agent (as defined herein) as of the applicable Interest Determination Date (as defined herein) and in accordance with the provisions on the reverse of this Security, payable quarterly in arrears on February 10, May 10, August 10 and November 10 of each year (each an “Interest Payment Date”), commencing February 10, 2018 until the principal of the Securities is paid or made available for payment; provided, however, that if an Interest Payment Date should fall on a day that is not a Business Day, such Interest Payment Date shall be the following day that is a Business Day. The interest so payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Global Security (or one or more Predecessor Securities (as defined in the Indenture)) is registered at the close of business on February 1, May 1, August 1 or November 1 (whether or not a Business Day) next preceding such Interest Payment Date (a “Regular Record Date”) and interest payable at maturity will be payable to the Person to whom principal shall be payable. Any such interest which is payable, but is not punctually paid or duly provided for on any Interest Payment Date shall forthwith cease to be payable to the Holder hereof on the relevant Regular Record Date or the Person in whose name this Global Security was originally registered, as the case may be, and may be paid to the Person in whose name this Global Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by Textron or may be paid at any time in any other lawful manner. The interest rate on the Securities shall be reset on each interest payment date (each such date, an “Interest Reset Date”), provided, that if notice of redemption has been mailed for the Securities, the interest rate thereon in effect on the date of such notice shall be the interest rate thereon through the Redemption Date (as defined herein). Interest on the Securities shall be computed on the basis of the actual number of days elapsed over a 360-day year. The amount of interest to be paid on the Securities for each Interest Reset Period or the Initial Interest Period shall be calculated by adding the Daily Interest Amounts (as defined herein) for each day in such Interest Reset Period or Initial Interest Period, as applicable

 

As used herein, the term “Depository” shall mean The Depository Trust Company, New York, New York, another clearing agency or any successor registered under the Exchange Act or other applicable statute or regulation, which in each case, shall be designated by Textron pursuant to the Indenture.

 

Payment of the principal and interest on this Global Security will be made at the corporate office or agency of the Trustee in the Borough of Manhattan, The City of New York, New York in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts; provided that, at the option of Textron, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

 

 

Unless the certificate of authentication hereon has been executed by the Trustee, directly or through an Authenticating Agent by manual signature of an authorized officer, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[Signature Page to Follow]

 

 

IN WITNESS WHEREOF, Textron Inc. has caused this instrument to be duly executed under its corporate seal.

 

 

	
Dated:   November 10, 2017
    	
 
    	
TEXTRON   INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Vice   President and Treasurer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Assistant   Secretary
    	
 
    	
 
    	
 
    

 

Signature Page to Global Security

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is a Global Security of the series designated herein referred to in the within-mentioned Indenture.

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

As Trustee

 

	
By:   
    	
 
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:    November 10, 2017
    	
 
    	
 
    

 

Signature Page to Global Security

 

 

(REVERSE OF SECURITY)

 

TEXTRON INC.
 FLOATING RATE NOTE DUE NOVEMBER 10, 2020

 

This Security is a Global Security evidencing a security of the duly authorized series of securities of Textron designated as its Floating Rate Notes due November 10, 2020 (the securities of such series are herein called the “Securities”), issued under an Indenture, dated as of September 10, 1999 (herein called the “Indenture”), between Textron and The Bank of New York Mellon Trust Company, N.A., as successor trustee to The Bank of New York (herein called the “Trustee”, which term includes any successor trustee under the Indenture). The terms of this Security include those stated in, or made pursuant to, the Indenture. The Securities are subject to all such terms, and reference is made to the Indenture, all indentures supplemental thereto and all written instruments of Textron establishing such terms for a statement of the respective rights, limitations of rights, duties and immunities thereunder of Textron, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.

 

Three-month LIBOR shall be determined by the Calculation Agent as of the applicable Interest Determination Date in accordance with the following provisions:

 

(a)           Three-month LIBOR is the rate for deposits in U.S. dollars for the three-month period that appears on the Designated LIBOR Page (as defined herein) at approximately 11:00 a.m., London time, on the applicable Interest Determination Date. If no rate appears on the Designated LIBOR Page, three-month LIBOR for such Interest Determination Date shall be determined in accordance with the provisions set forth in clause (b) below.

 

(b)           With respect to an Interest Determination Date on which no rate appears on the Designated LIBOR Page as of approximately 11:00 a.m., London time, on such Interest Determination Date, the Calculation Agent shall request the principal London offices of each of four major reference banks in the London interbank market selected by Textron to provide the Calculation Agent with a quotation of the rate at which deposits of U.S. dollars having a three-month maturity, commencing on the second London Business Day (as defined herein) immediately following such Interest Determination Date, are offered by it to prime banks in the London interbank market as of approximately 11:00 a.m., London time, on such Interest Determination Date in a principal amount equal to an amount of not less than $1,000,000 that is representative for a single transaction in such market at such time. If at least two such quotations are provided, three-month LIBOR for such Interest Determination Date shall be the arithmetic mean of such quotations as calculated by the Calculation Agent. If fewer than two quotations are provided, three-month LIBOR for such Interest Determination Date shall be the arithmetic mean of the rates quoted as of approximately 11:00 a.m., New York City time, on such Interest Determination Date by three major banks selected by Textron for loans in U.S. dollars to leading European banks having a three-month maturity commencing on the second London Business Day immediately following such

 

 

Interest Determination Date and in a principal amount equal to an amount of not less than $1,000,000 that is representative for a single transaction in such market at such time; provided, however, that if the banks selected as aforesaid by the Calculation Agent are not quoting such rates as mentioned in this sentence, three-month LIBOR for such Interest Determination Date shall be three-month LIBOR determined with respect to the immediately preceding Interest Determination Date.

 

Promptly upon calculation, the Calculation Agent shall inform Textron of the interest rate for the next Interest Reset Period. Upon request from any Holder of any of the Securities, the Calculation Agent shall provide the interest rate then in effect for such Securities for the current Interest Reset Period or Initial Interest Period, as applicable, and, if it has been determined, the interest rate to be in effect for the next Interest Reset Period.

 

All percentages resulting from any calculation of the interest rate on the Securities shall be rounded to the nearest one millionth of a percentage point with five ten millionths of a percentage point rounded upwards (e.g., 9.8765445% (or .098765445) would be rounded to 9.876545% (or .09876545)), and all dollar amounts used in or resulting from such calculation on the Securities shall be rounded to the nearest cent (with one-half cent being rounded upwards).

 

Notwithstanding the foregoing, (a) if any Interest Payment Date would otherwise be a day that is not a Business Day, then such Interest Payment Date shall be postponed to the following date that is a Business Day, except that interest payable on the Securities on any such Interest Payment Date (other than if such Interest Payment Date is the Maturity Date) shall accrue as a result of such postponement and (b) the interest rate on the Securities shall in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application.

 

For all purposes hereof:

 

“Calculation Agent” means The Bank of New York Mellon Trust Company, N.A., in its capacity as calculation agent for the Securities under a Calculation Agency Agreement dated as of the Issue Date between Textron and The Bank of New York Mellon Trust Company, N.A.; provided, that Textron may change the calculation agent without prior notice to or consent of the Holders of the Securities.

 

“Daily Interest Amount” means the amount of interest for each day that the Securities are outstanding, and is calculated by dividing the interest rate in effect for such day by 360 and multiplying the result by the principal amount of the Securities outstanding on such day.

 

“Designated LIBOR Page” means Bloomberg L.P. page “BBAM” on that service or any successor service for the purpose of displaying London interbank offered rates for U.S. dollar deposits of major banks.

 

“Initial Interest Period” means the period from and including the Issue Date to but excluding the first Interest Reset Date.

 

 

“Interest Reset Period” means the period from and including an Interest Reset Date to but excluding the immediately succeeding Interest Reset Date; provided that the final Interest Reset Period for the Securities shall be the period from and including the Interest Reset Date immediately preceding the Maturity Date of the Securities to but excluding the Maturity Date.

 

“Interest Determination Date” means the second London Business Day immediately preceding the Issue Date, in the case of the Initial Interest Period, or thereafter the second London Business Day immediately preceding the applicable Interest Reset Date.

 

“LIBOR” means the U.S. dollar London Interbank Offered Rate.

 

“London Business Day” means a day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

 

This Global Security is not subject to a mandatory or optional sinking fund requirement.

 

The Securities shall be redeemable, at the option of Textron, in whole or in part on November 12, 2018 or at any time or from time to time thereafter (the “Redemption Date”), at a price equal to 100% of the aggregate principal amount of the Securities being redeemed, plus accrued and unpaid interest on such Securities up to, but not including, the Redemption Date (the “Redemption Price”)

 

The notice of redemption of the Securities may summarize the method by which the Redemption Price will be determined rather than state the actual dollar amount.

 

Upon the occurrence of a Change of Control Triggering Event (as defined herein), unless Textron has exercised its right to redeem the Securities pursuant to provisions hereof, each Holder of Securities will have the right to require Textron to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s Securities as provided herein (the “Change of Control Offer”) at a purchase price equal to 101% of the aggregate principal amount of such Securities plus accrued and unpaid interest, if any, on such Securities to the date of purchase (the “Change of Control Payment”).

 

Within 30 days following any Change of Control Triggering Event, Textron shall send, by first class mail, a notice to each Holder of Securities, with a written copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state:

 

(i)          a description of the transaction or transactions that constitute such Change of Control Triggering Event;

 

(ii)         that the Change of Control Offer is being made pursuant to provisions hereof and that all Securities validly tendered will be accepted for payment;

 

 

(iii)        the Change of Control Payment and the date of the making thereof (the “Change of Control Payment Date”), which shall be a Business Day that is no earlier than 30 days nor later than 60 days from the date such notice is mailed, other than as may be required by law;

 

(iv)        that any Security not tendered will continue to accrue interest;

 

(v)         that any Security accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest on and after the Change of Control Payment Date unless Textron shall default in the Change of Control Payment and the only remaining right of the Holder thereof is to receive the Change of Control Payment upon surrender of such Security to the Paying Agent;

 

(vi)        that Holders of the Securities electing to have a portion of a Security purchased pursuant to a Change of Control Offer may only elect to have such Security purchased in a principal amount of $1,000 or integral multiples of $1,000 in excess thereof;

 

(vii)       that if a Holder of Securities elects to have such Securities purchased pursuant to the Change of Control Offer it will be required to surrender such Securities, with the form entitled “Option of Holder to Elect Purchase” on the reverse of such Securities completed, or transfer by book-entry transfer, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day prior to the Change of Control Payment Date;

 

(viii)      that a Holder of Securities will be entitled to withdraw its election if Textron receives, not later than the third Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Securities such Holder delivered for purchase, and a statement that such Holder is withdrawing its election to have such Securities purchased; and

 

(ix)        that if Securities are purchased only in part a new Security of the same type will be issued in a principal amount equal to the unpurchased portion of the Securities surrendered.

 

On the Change of Control Payment Date, Textron shall, to the extent lawful, (i) accept for payment all Securities or portions thereof properly tendered pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions thereof properly tendered and (iii) deliver or cause to be delivered to the Trustee for cancellation the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by Textron.

 

 

The Paying Agent shall promptly mail to each Holder of Securities properly tendered the Change of Control Payment for such Securities, and the Trustee, upon receipt of an order from Textron, shall promptly authenticate and mail (or cause to be transferred by book entry) to such Holder a new Security equal in principal amount to any unpurchased portion of the Securities surrendered by such Holder, if any, in denominations as set forth in the Indenture.

 

Textron shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Triggering Event provisions hereof, Textron will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this paragraph by virtue of such conflicts.

 

For all purposes hereof:

 

“Below Investment Grade Rating Event” means the ratings on the Securities are lowered by each of the Rating Agencies and the Securities are rated below an Investment Grade Rating by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Securities is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee or Textron in writing at the Trustee’s or Textron’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).

 

“Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participation or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock and limited liability or partnership interests (whether general or limited), but excluding any debt securities convertible into such equity.

 

“Change of Control” means the occurrence of any of the following:

 

 

(a)  the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of Textron’s properties or assets and of Textron’s subsidiaries’ properties or assets taken as a whole to any Person or group of related “persons” (as that term is used in Section 13(d)(3) of the Exchange Act (a “Group”) other than Textron or one of Textron’s subsidiaries;

 

(b)  the adoption of a plan relating to liquidation or dissolution of Textron;

 

(c)  the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person or Group becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of Textron’s Voting Stock; or

 

(d)  the first day on which a majority of the members of Textron’s Board of Directors are not Continuing Directors.

 

Notwithstanding the foregoing, a transaction will not be considered to be a Change of Control if (1) Textron becomes a direct or indirect wholly owned subsidiary of a holding company and (2) immediately following that transaction, (A) the direct or indirect holders of the Voting Stock of the holding company are substantially the same as the holders of Textron’s Voting Stock immediately prior to that transaction or (B) no Person or Group is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of the holding company.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 

“Continuing Director” means, as of any date of determination, any member of Textron’s Board of Directors who (1) was a member of Textron’s Board of Directors on the date of the issuance of the Securities or (2) was nominated for election, elected or appointed to Textron’s Board of Directors with the approval of a majority of the Continuing Directors who were members of Textron’s Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of Textron’s proxy statement in which such member was named as a nominee for election as a director).

 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

 

“Moody’s” means Moody’s Investors Service, Inc., and its successors.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization, limited liability company, government or any agency or political subdivision thereof or any other entity, and includes a “person” as used in Section 13(d)(3) of the Exchange Act.

 

 

“Rating Agencies” means (1) each of Moody’s and S&P and (2) if either of Moody’s or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of Textron’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by Textron (as certified by a resolution of Textron’s Board of Directors) as a replacement agency for Moody’s or S&P, or both of them, as the case may be.

 

“S&P” means Standard & Poor’s Ratings Services, LLC, a division of S&P Global Inc., and its successors.

 

“Voting Stock” of a Person means all classes of Capital Stock of such Person then outstanding and normally entitled to vote in the election of directors, managers or trustees, as applicable.

 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of Textron and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by Textron and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by Textron with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Global Security shall be conclusive and binding upon such Holder and upon all future Holders of this Global Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Global Security.

 

Without the consent of the Holder of any Securities, Textron and the Trustee may enter into one or more indentures supplemental to the Indenture to evidence the succession of another corporation to Textron and the assumption by such successor of the covenants of Textron in the Indenture or this Global Security, to add to the covenants of Textron for the benefit of the Holders of all or any series of Securities, to add additional Events of Default, to change or eliminate any of the provisions of the Indenture provided that any such change or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of such supplemental indenture which is adversely affected by such provision, to secure the Securities of any series, to establish the form or terms of Securities of any series, to evidence and provide for the acceptance of appointment under the Indenture by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of the Indenture as shall be necessary to provide for or 

 

 

facilitate the administration of the trusts under the Indenture by more than one Trustee, pursuant to the requirements of the Indenture, to cure any ambiguity, to correct any defect or inconsistency or to make any other provisions with respect to matters or questions arising under the Indenture which shall not adversely affect the interests of the Holders of Securities of any series in any material respect or for the other purposes set forth in the Indenture.

 

As provided in the Indenture and subject to certain limitations therein set forth and herein provided, the transfer of this Global Security is registrable in the Security Register, upon surrender of this Global Security for registration of transfer at the office or agency of Textron in any place where the principal of, premium, if any, and interest on this Global Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to Textron and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon a new Global Security evidencing the Securities evidenced hereby, or like tenor and for the same aggregate principal amount, will be issued to the designated transfer or transferees; provided, however, that for so long as any Securities are evidenced by this Global Security, this Global Security may be transferred in whole but not in part, only to another nominee of the Depository or to a successor Depository selected or approved by Textron or to a nominee of such successor Depository.

 

There is no limit on the aggregate principal amount of Securities of this series that may be issued by Textron. Without notice to or consent of any Holder of any Securities of this series, Textron may, from time to time and at any time, issue and sell additional Securities of this series with the same title and terms as this Security, except for the payment of interest accruing prior to the issue date of such additional Securities or except for the first payment of interest following the issue date of such additional Securities.

 

The Securities of this series are issuable only in denominations of $2,000 or any amount in excess thereof which is an integral multiple of $1,000 unless otherwise specified above. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange of Securities, but Textron may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Global Security for registration of transfer, Textron, the Trustee and any agent of Textron or the Trustee may treat the Person in whose name this Global Security is registered as the owner hereof for all purposes, whether or not this Global Security is overdue, and neither Textron, the Trustee nor any such agent shall be affected by notice to the contrary.

 

 

If at any time (a) the Depository notifies Textron that it is unwilling or unable to continue as Depository for the Securities evidenced hereby or if at any time the Depository shall no longer be registered or in good standing under the Exchange Act or other applicable statute or regulation and a successor Depository is not appointed by Textron within 90 days after Textron receives such notice or becomes aware of such condition, as the case may be, or (b) an Event of Default has occurred and is continuing and DTC requests the issuance of Securities in definitive registered form, Textron will execute, and the Trustee will authenticate and deliver, Securities in definitive registered form without coupons, in denomination of $2,000 or any amount in excess thereof which is an integral multiple of $1,000 (such denominations referred to herein as “authorized denominations”), of like tenor and in an aggregate principal amount equal to the principal amount of this Global Security in exchange for this Global Security. In addition, Textron may at any time determine that the Securities evidenced hereby shall no longer be represented by a Global Security. In such event Textron will execute, and the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by Textron, will authenticate and deliver Securities in definitive registered form without coupons, in authorized denominations, and of like tenor and in an aggregate principal amount equal to the principal amount of this Global Security in exchange for this Global Security. Upon the exchange of this Global Security for such Securities in definitive registered form, without coupons, in authorized denominations, this Global Security shall be cancelled by the Trustee. Securities in definitive registered form issued in exchange for this Global Security shall be registered in such names and in such authorized denominations as the Depository, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Persons in whose names such Securities are so registered.

 

All terms used in this Global Security that are defined in the Indenture and not herein otherwise defined shall have the meanings assigned to them in the Indenture.

 

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

	
 
    	
 
    
	
(Please   insert social security,
   tax identification number or other
   identifying number of assignee)
    	
 
    

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

(Please print or type name and address, including postal zip code of assignee)

 

the within Global Security and all rights thereunder, hereby irrevocably constituting and appointing                                                       attorney to transfer said Global Security on the books of Textron, with full power of substitution in the premises.

 

	
Dated:
    	
 
    
	
 
    
	
Signature:
    	
 
    
	
 
    
	
Signature   guarantee:
    	
 
    
				

 

NOTE:  The signature to this assignment must correspond exactly with the name as written upon the face of the within Global Security in every particular without alteration or enlargement or any change whatsoever and must be guaranteed by a commercial bank or trust company having its principal office or correspondent in The City of New York or by a member of the New York Stock Exchange.

 

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If the undersigned wants to elect to have this Security purchased by Textron pursuant to the provisions hereof, check the box below:

 

o

 

If the undersigned wants to elect to have only part of this Security purchased by Textron pursuant to the provisions hereof, state the amount the undersigned elects to have purchased:

 

$           

 

	
Dated:
    	
 
    
	
 
    
	
Signature:
    	
 
    
	
 
    
	
Tax   Identification Number:
    	
 
    
	
 
    
	
Signature   guarantee:
    	
 
    
					

 

NOTE: The signature to this assignment must correspond exactly with the name as written upon the face of the within Global Security in every particular without alteration or enlargement or any change whatsoever and must be guaranteed by a commercial bank or trust company having its principal office or correspondent in The City of New York or by a member of the New York Stock Exchange.

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