Document:

unrv_ex101.htm

EXHIBIT 10.1
  
   NOTE TERMINATION AND EXCHANGE AGREEMENT
  
 This Note Termination and Exchange Agreement (this "Agreement") is made as of July 27, 2021 ("Effective Date"), by and between Unrivaled Brands, Inc., a Nevada corporation (f/k/a Terra Tech Corp.) (the "Company"), and Arthur Chan (the "Holder"). 
  
 RECITALS 
  
 WHEREAS, the Holder currently holds a Secured Promissory Note issued by the Company to the Holder on January 10, 2020 with a Face Amount of $1,000,000, as amended by Amendment No. 1 thereto, dated as of January 8, 2021 (as amended, the "Note"); and
  
 WHEREAS, subject to the terms and conditions set forth herein, and in reliance upon the exemption from registration provided by Section 3(a)(9) of the Securities Act, as amended (the "Securities Act"), the Company desires to issue to the Holder 4,548,006 shares (the "Exchange Shares") of the Company's common stock, par value of $0.001 per share ("Common Stock"), at a price of $0.23 per share, as payment in full of the Face Amount, all accrued and unpaid interest thereon and all associated fees, penalties and other amounts payable under the Note, which collectively total $1,046,041.40 (the "Debt").
  
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Holder hereby agree as follows:
  
 SECTION 1. REPAYMENT OF DEBT; TERMINATION OF NOTE. 
  
 (a) Delivery. On the date hereof, pursuant to Section 3(a)(9) of the Securities Act without the payment of any additional consideration or use of a broker or payment of any commission or other remuneration, (i) the Company shall cause the Company's transfer agent to issue and deliver the Exchange Shares to the Holder as repayment of the Debt, (ii) the Holder shall surrender the Note to the Company for cancellation, which shall occur simultaneously with delivery of the Exchange Shares to the Holder, and (iii) upon delivery of the Exchange Shares to the Holder, the Debt shall be deemed paid in full, and all rights, privileges and obligations of the Company and the Holder under the Note shall be extinguished, without further action.
  
 (b) Release of Security. Holder shall cause the trustee under the Short Form Deed of Trust and Assignment of Rents executed by the Company as security for the Note to reconvey title to the property described therein pursuant to a form of reconveyance acceptable to the Company.
  
 (c) Other Documents. The Company and the Holder shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary to effectuate the Exchange and the other transactions contemplated hereby.
  
 SECTION 2. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. 
  
 The Company hereby represents and warrants as of the date hereof to, and covenants with, the Holder as follows:
  
 (a) Organization and Standing. The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of Nevada, has full corporate power and authority to own or lease its properties and conduct its business as presently conducted, and is duly qualified as a foreign corporation and in good standing in each jurisdiction in which the character of the property owned or leased or the nature of the business transacted by it makes qualification necessary, except where the failure to be so qualified would not have a material adverse effect on the business, properties, financial condition or results or operations of the Company.
  
 	 
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 (b) Authorization; Corporate Power. This Agreement has been duly authorized, validly executed and delivered on behalf of the Company and is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms (except as limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors' rights generally, and (ii) equitable principles generally, including any specific performance), and the Company has the requisite corporate power and authority to execute and deliver this Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder.
  
 (c) Issuance and Delivery of the Exchange Shares. The Exchange Shares have been duly authorized and, upon delivery pursuant to Section 1(a), will be validly issued, fully paid and nonassessable.
  
 (d) Governmental Consents. Other than any Form 8-K that the Company may file in connection with this Agreement, no consent, approval or authorization of or designation, declaration or filing with any governmental authority on the part of the Company is required in connection with the valid execution and delivery of this Agreement or the offer, sale or issuance of the Exchange Shares or the consummation of any other transaction contemplated by this Agreement.
  
 (e) No Default or Violation. The execution and delivery of the Agreement and the consummation of the transactions contemplated by this Agreement by the Company do not and will not result in a breach of or a default under any of the terms or provisions of the Company's certificate of incorporation or by-laws.
  
 SECTION 3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE HOLDER. 
  
 The Holder hereby represents and warrants as of the date hereof to, and covenants with, the Company as follows:
  
 (a) Capacity. The Holder has full right and capacity to enter into this Agreement and the other agreements and documents contemplated hereby and to perform its obligations hereunder and thereunder. Upon the execution and delivery of this Agreement by the Holder, this Agreement shall constitute a valid and binding obligation of the Holder, enforceable in accordance with its terms (except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors' rights generally, and (ii) as limited by equitable principles generally, including any specific performance).
  
 (b) No Encumbrances. The Holder has not assigned or transferred all or any portion of the Holder's interest in the Note. The Holder holds the Note free and clear of all Encumbrances (as defined below). The Holder has the unencumbered right to surrender the Note as contemplated herein. "Encumbrances" shall mean any security or other property interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim or retention agreement, interest or other right or claim of third parties, whether perfected or not perfected, voluntarily incurred or arising by operation of law, and including any agreement (other than this Agreement) to grant or submit to any of the foregoing in the future.
  
 	 
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 (c) Securities Act Exemption. Neither the Holder nor anyone acting on behalf of the Holder has received any commission or remuneration directly or indirectly in connection with or in order to solicit or facilitate the issuance of the Exchange Shares. The Holder understands that the issuance of the Exchange Shares contemplated hereby is intended to be exempt from registration by virtue of Section 3(a)(9) of the Securities Act. The Holder understands that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Holder set forth herein for purposes of qualifying for the exemption under Section 3(a)(9) of the Securities Act as well as qualifying for exemptions under applicable state securities laws. 
  
 (d) Information. The Holder has, in connection with its decision to acquire the Exchange Shares, relied with respect to the Company and its affairs solely upon the Company's filings with the Securities and Exchange Commission and the representations and warranties of the Company contained herein.
  
 (e) Advisors. The Holder understands that nothing in this Agreement or any other materials presented to the Holder in connection with the repayment of the Note and issuance and acquisition of the Exchange Shares constitutes legal, tax or investment advice. The Holder has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its acquisition of the Exchange Shares. With respect to such matters, the Holder relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.
  
 (f) Investor Status. At the time the Holder was offered the Exchange Shares hereunder it was, and as of the date hereof it is, an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act. The Holder is not required to be registered as a broker-dealer under Section 15 of the Securities Exchange Act of 1934, as amended.
  
 SECTION 4. NOTICES. 
  
 All notices, requests, consents and other communications hereunder shall be in writing, shall be sent by confirmed electronic mail, or mailed by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so sent in the case of electronic mail transmission, or when so received in the case of mail or courier, and addressed as follows:
  
 (a) if to the Company, to:
  
 Unrivaled Brands, Inc.
 3242 S. Halladay St., Suite 202
 Santa Ana, CA 92705
 Attention: CEO
 E-Mail: fknuettel@terratechcorp.com
  
 or to such other person at such other place as the Company shall designate to the Holder in writing; and
  
 (b) if to the Holder, at the address as set forth at the end of this Agreement, or at such other address as may have been furnished by the Holder to the Company in writing.
  
 	 
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 SECTION 5. MISCELLANEOUS. 
  
 (a) Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement.
  
 (b) Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
  
 (c) Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of California located in Orange County, CA for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or thereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
  
 (d) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic file signature page (as the case may be) were an original thereof.
  
 (f) Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the parties hereto.
  
 (g) Entire Agreement; Amendments. This Agreement and other documents delivered pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.
  
 (h) Survival. The representations, warranties, covenants and agreements made in this Agreement shall survive the closing of the transactions contemplated hereby and the exchange and delivery of the Exchange Shares.
 [signature pages follow]
  
 	 
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written.
  
 	  
	 Unrivaled Brands, Inc.
	  

	  
	  
	  

	  
	 By: 
	 /s/ Francis Knuettel II 
	  

	  
	 Name: 
	 Francis Knuettel II
	  

	  
	 Title: 
	 CEO
	  

  
 	  
	 Arthur Chan
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Arthur Chan 
	  

	  
	  
	  
	  

	  
	 Name:
	  
	  

	  
	  
	  
	  

	  
	 Address:
	  
	  

	  
	  
	  
	  

	  
	 Email:
	  
	  

  
 	 
	5unrv_ex102.htm

EXHIBIT 10.2
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THIS NOTE UNDER SUCH ACT UNLESS SUCH REGISTRATION IS NOT REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE ACT.
  
 Unrivaled Brands, Inc.
  
 Promissory Note
  
 	 Face Amount: $2,500,000
	 July 27, 2021

  
 FOR VALUE RECEIVED, the undersigned Unrivaled Brands, Inc., a Nevada corporation (the "Borrower"), promises to pay to the order of Arthur Chan, his successors or assigns (the "Lender"), TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) (the "Face Amount") by July 26, 2024 (the "Maturity Date"), in accordance with the terms hereof, together with interest, as provided herein.
  
 Interest at the simple rate of eight percent (8.00%) per annum, calculated on the basis of a 360-day year of twelve 30-day months, until the Maturity Date or repayment is made as provided herein, and any other amounts due hereunder are payable in lawful money of the United States of America to the Lender. Interest shall be paid in cash beginning on the three month anniversary of the date of this Note and every three months thereafter, or the next business day if such day is not a business day. Penalty interest of 5% per annum shall accrue daily from the fifth day after such interest is due hereunder through and including the date of actual payment in full.
  
 Section 1. Maturity. The Face Amount, along with the interest accrued thereon, shall be repaid in cash at the Maturity Date, unless repaid earlier at the option of Borrower. 
  
 Section 2. Prepayment. This Note may be prepaid in whole or in part at any time and from time-to-time upon three (3) prior business days' written notice, without penalty. Such repayment shall satisfy Borrower's obligations pursuant to this Note in full and this Note shall be of no further force and effect.
  
 Section 3. Transferability. This Note and any of the rights granted hereunder are freely transferable or assignable by Lender, in whole or in part, in its sole discretion; provided, that the Lender provides notice to the Borrower of its transfer or assignment. 
  
 	 
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 Section 4. Event of Default.
  
 (a) In the event that any one of the following events shall occur (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body), it shall be deemed an Event of Default:
  
 (i) Any default in the payment of the principal, interest on, or other charges in respect of this Note, or any other note issued by the Borrower, as and when the same shall become due and payable;
  
 (ii) Borrower shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise commit any breach or default of any provision of this Note or any other agreement between the Borrower and the Lender; 
  
 (iii) There shall be a breach of any of the representations and warranties set forth in this Note or any transaction document executed contemporaneously herewith; or
  
 (iv) Borrower shall commence, or there shall be commenced against Borrower, any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or Borrower commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to Borrower or there is commenced against Borrower any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of sixty (60) days; or Borrower is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or Borrower suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty (60) days; or Borrower makes a general assignment for the benefit of creditors; or Borrower shall fail to pay or shall state that it is unable to pay its debts as they become due or by any act or failure to act expressly indicates its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Borrower for the purpose of effecting any of the foregoing.
  
 (b) Upon the occurrence of an Event of Default, the Lender shall give the Borrower notice of such occurrence, at which time the Borrower shall have five (5) business days from receipt of such notice to pay the outstanding amount of the Note, with any unpaid interest thereof, in full. In the event that full payment is not made upon the expiry of the five (5) day period, (i) the Lender shall be entitled to a default penalty equal to two percent (2%) of the Face Amount per month until the Event of Default is cured (the "Default Penalty"), and (ii) Lender may, at its sole discretion, declare the entire then outstanding Face Amount of this Note together with any unpaid interest and the Default Penalty immediately due and payable (a "Default Declaration"), in which event the Lender may, at its sole discretion, take any action it deems necessary to recover amounts due under this Note.
  
 (c) Upon the occurrence of an Event of Default, the Lender shall be entitled to recover, in addition to the Face Amount of the Note, interest thereon and the Default Penalty, all of the Lender's costs, fees (including without limitation, reasonable attorney's fees and disbursements), and expenses relating to collection and enforcement of this Note, including all costs and expenses incurred by it in enforcing its rights under the Note and any transaction document entered into contemporaneously herewith. 
  
 	 
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 (d) The failure of Lender to exercise any of its rights hereunder in any particular instance shall not constitute a waiver of the same or of any other right in that or any subsequent instance with respect to Lender or any subsequent holder. Lender need not provide and Borrower hereby waives any presentment, demand, protest or other notice of any kind, and Lender may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. The remedies available to the Lender upon the occurrence of an Event of Default shall be cumulative. 
  
 Section 5. Notices. Any and all notices, service of process or other communications or deliveries required or permitted to be given or made pursuant to any of the provisions of this Note shall be deemed to have been duly given or made for all purposes when hand delivered or sent by certified or registered mail, return receipt requested and postage prepaid, overnight mail or courier, or via electronic mail (provided that the sender of such electronic mail does not receive a notice or message indicating that such email was unsuccessful) as follows:
  
 If to Lender, at:
  
 Arthur Chan
 __________
 __________
 Attn: 
  
 Or such other address as may be given to the Borrower from time to time
  
 If to Borrower, at: 
  
 Unrivaled Brands, Inc.
 3242 S. Halladay St., Suite 202
 Santa Ana, CA 92705
 Attn: CEO
  
 Or such other address as may be given to the Lender from time to time
  
 Section 6. Usury. This Note is hereby expressly limited so that in no event whatsoever, whether by reason of acceleration of maturity of the loan evidenced hereby or otherwise, shall the amount paid or agreed to be paid to the Lender hereunder for the loan, use, forbearance or detention of money exceed that permissible under applicable law. If at any time the performance of any provision of this Note or of any other agreement or instrument entered into in connection with this Note involves a payment exceeding the limit of the interest that may be validly charged for the loan, use, forbearance or detention of money under applicable law, then automatically and retroactively, ipso facto, the obligation to be performed shall be reduced to such limit, it being the specific intent of the Borrower and the Lender that all payments under this Note are to be credited first to interest as permitted by law, but not in excess of (i) the agreed rate of interest set forth herein or therein or (ii) that permitted by law, whichever is the lesser, and the balance toward the reduction of principal. The provision of this Section 6 shall never be superseded or waived and shall control every other provision of this Note and all other agreements and instruments between the Borrower and the Lender entered into in connection with this Note. To the extent permitted by applicable law, Borrower waives any right to assert the defense of usury. 
  
 	 
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 Section 7. Governing Law; Waiver of Jury Trial. This Note and the provisions hereof are to be construed according to and are governed by the laws of the State of California, without regard to principles of conflicts of laws thereof. Borrower agrees that the California State Court located in the County of Orange, State of California shall have exclusive jurisdiction in connection with any dispute concerning or arising out of this Note or otherwise relating to the parties' relationship. In any action, lawsuit or proceeding brought to enforce or interpret the provisions of this Note and/or arising out of or relating to any dispute between the parties, Lender shall be entitled to recover all of its costs and expenses relating collection and enforcement of this Note (including without limitation, reasonable attorney's fees and disbursements) in addition to any other relief to which Lender may be entitled and all costs of collection, including any legal fees associated with this Note will be paid by the Borrower. Each party agrees that any process or notice to be served or delivered in connection with any action, lawsuit or proceeding brought hereunder may be accomplished in accordance with the notice provisions set forth above or as otherwise provided by applicable law.
  
 BORROWER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO THIS NOTE. 
  
 Section 8. Successors and Assigns. Subject to applicable securities laws, this Note and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of Borrower and the successors and assigns of Lender. 
  
 Section 9. Amendment. This Note may be modified or amended or the provisions hereof waived only with the written consent of Lender and Borrower. 
  
 Section 10. Severability. Wherever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Note.
  
 [SIGNATURE PAGE TO FOLLOW]
  
 	 
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 IN WITNESS WHEREOF, Borrower has caused this Promissory Note to be duly authorized officer and/or such individual borrower as of the date first above indicated.
  
 	 	Unrivaled Brands, Inc.	
	 	 	 	 
		By:	/s/ Francis Knuettel II	
	  
	 Name: 
	Francis Knuettel II	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 

   
 	 
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