Document:

Binding Memorandum of Understanding

EXHIBIT 10.1

Binding Memorandum of Understanding

This Binding Memorandum of Understanding (hereinafter “Memorandum”) is entered into on March 24th, 2016 by and between:

Aquarius PR LLC, a wholly-owned, Puerto Rican subsidiary of Aquarius Cannabis, Inc., a Nevada corporation, (the “Company” or “Aquarius”); and the California medical-marijuana businesses known publicly as Space Brain LLC, Cosmic Mind a Cooperative Corporation, Fleet Feet LLC, and Compassionate Care and Therapy Inc., (‘collectively “SpeedWeed’) and the principals of the above entities, including Andrew Gentile, Jennifer Gentile, and Eugene Gentile (the “Principals”). Together, the above are collectively referred to herein as (the “Parties”).

WHEREAS, Aquarius consults to medical marijuana operating businesses in California on the production and distribution of Aquarius owned brands; and,

WHEREAS, SpeedWeed has operated as a medical marijuana delivery service is Los Angeles and the surrounding areas since 2011; and

WHEREAS, Aquarius seeks to acquire all rights, title and interest to all assets and intellectual property of the companies that comprise SpeedWeed, and all rights, title and interest to all assets and intellectual property rights individually owned by the Principals of “SpeedWeed” utilized in the “SpeedWeed” name, in exchange for the consideration as defined in Section II of this Memorandum (the “Acquisition”).

NOW THEREFORE, in order to proceed toward the accomplishment of the above stated objectives, the Parties enter into this Memorandum subject to the following terms and conditions:

I. Acquisition of SpeedWeed by Aquarius:

1) 

Aquarius will acquire all rights, title and interest in all business assets owned by SpeedWeed and its Principals, including but not limited to:

a) 

trade name “SpeedWeed”, including any claims to common law trademarks, denied trademark applications (federal), and current trademarks (state)

b) 

all future revenue from the trade name SpeedWeed

c) 

the proprietary software platform that SpeedWeed operates from 

d) 

all customer data held in that platform

e) 

all vendor/supplier relationships of SpeedWeed 

f) 

all operations documents and records

g) 

all know-how required to successfully operate a SpeedWeed delivery service 

h) 

all hard assets, including products and money

i) 

all cannabis industry web domains owned by SpeedWeed

j) 

all potential cannabis industry deals/projects in the pipeline with SpeedWeed and/or its principals

k) 

any related assets, that may not be held in any related corporate name (especially intellectual property) that has not yet been brought to market

2) 

Aquarius may, in its discretion, acquire any of the corporate operating entities which comprise SpeedWeed.

3) 

SpeedWeed and the Principals will retain any and all successor liabilities (including but not limited to tax, accounts payable, and other notes liabilities) generated during the operation of SpeedWeed prior to the closing of the Acquisition.

4)

The Principals of SpeedWeed retain the rights to:

a) 

all audio and video files related to the television series which are co-owned by Gigantic

Productions

b) 

all rights to the television show co-owned by Gigantic Productions should it be sold and produced

c) 

all non-cannabis technology projects and revenue derived from hardware, software, mobile application, and website development

d) 

all non-cannabis media projects and revenue derived from television, radio, film, documentary, voice-over, webcast and podcast production

e) 

all compensation personally and individually derived from speaking engagements, public appearances, performances or participation on a company's Board

II. Compensation to SpeedWeed Owners by Aquarius

1)

“SpeedWeed Owners” are:

•

Andrew Gentile, CEO (32%)

•

Jennifer Gentile, COO (32%)

• 

Eugene Gentile (32%)

• 

Thomas Ritchie (1%)

•

Robert Shapero (1%)

• 

Charcamar LLC (1%)

•

Diane Scott (1%)

Aquarius agrees to pay to SpeedWeed Owners at closing (proportionally to their ownership %):

• 

16M Shares of Common Stock (at closing)

•  

3M warrants to purchase common stock for $0.90; 5 year expiration (at closing)

•  

An additional 3M warrants (same terms), if and when Aquarius closes a deal(s) for data gathered by the SpeedWeed platform totaling $10M or more

III.  Conditions of Closing

The conditions of closing are subject to, but not limited to the following:

1) 

Receipt by Aquarius of a PCAOB audit of 2014 and 2015 Year end financials for Space Brain LLC, Cosmic Mind a Cooperative Corporation, Fleet Feet LLC, and Compassionate Care and Therapy Inc.

2) 

Execution of three (3) year employment agreements between Aquarius and the Principals by the following, subject to approval by the Board of Directors of the Aquarius:

a) 

Andrew Gentile: Vice-Chairman of the Board of Directors and Chief Technology Officer

b) 

Jennifer Gentile: Chief Creative Officer 

c) 

Eugene Gentile: TBD

Base compensation and contract terms for each person will match base compensation and contract terms for Chief Executive Officer of Aquarius (all three Principals and the Chief Executive Officers of Aquarius will sign contracts concurrently). Annual bonus compensation determined on the basis of individual performance by the Board of Directors.

IV.  Additional Terms

1) 

The Board of Directors the Company will be reconstituted upon closing to include five (5) individuals as follows:

Michael Davis Lawyer

Andrew Gentile

Michael Asch (subject to Company obtaining Directors and Officers liability insurance)

Two (2) Independent Directors (pending D+O insurance) elected by unanimous consent of Michael Davis Lawyer, Andrew Gentile and Michael Asch.

2.) 

The Class A and Class B Preferred stock issued and outstanding will be returned to the treasury. In the alternative, the Principals will each receive shares of the Class A Preferred shares equal to the amount held by Michael Davis Lawyer.

3) 

After the closing of the acquisition of SpeedWeed, the Principals will sign new employment contracts by Aquarius Cannabis Inc. or one of its subsidiaries.

4) 

Both Parties agree to begin operating as a restructured, collective organization prior to the closing. This may, at the mutual agreement of the Company and SpeedWeed, include structuring new entities, business loans, business consulting agreements, and any other legal business arrangements that further the mutual goals of the parties.

a)  

The Principals will informally assume their future roles with Aquarius

5) 

Both Parties agree to work together to raise capital for the parent company, Aquarius Cannabis Inc., in order to further the business objectives of the future, merged Company.

V Miscellaneous

Dispute Resolution

In the event of a dispute amongst the Parties in the negotiation of the final binding contract relating to this Acquisition, the Parties agree to cooperate and meet in order to resolve any disputes or controversies arising under this Agreement. Should they be unable to do so, then either may elect arbitration under the rules of the American Arbitration Association, and both Parties are obligated to proceed thereunder. Arbitration shall proceed in Los Angeles County, State of California and the Parties agree to be bound by the arbitrator’s award, which may be filed in any state or federal court sitting in the State of California. The prevailing Party shall be entitled to reimbursement for his attorney’s fees and all costs associated with arbitration. In any arbitration proceeding conducted pursuant to the provisions of this Section, both Parties shall have the right to conduct discovery, to call witnesses and to cross- examine the opposing Party’s witnesses, either through legal counsel, expert witnesses or both, and the provisions of the California Civil Practice Law and Rules (Right to Discovery; Procedure and Enforcement) are hereby incorporated into this Agreement by this reference and made a part hereof.

Term

The arrangements made by the Parties by this Memorandum shall remain in place from the date of this Memorandum until April 15, 2016.  The Parties agree to enter a final legal binding contract in respect of the Acquisition within the term.

Notice

Any notice of communication required or permitted under this Memorandum shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to address set forth in the below signatures or to such address as one party may have furnished to the other parties in writing.

Governing Law

This Memorandum shall be construed in accordance with the laws of the State of California.

Assignment

No party may assign or transfer the responsibilities or conditions made herein without the prior written consent or the non assigning party.

Amendment

This Memorandum may be amended or supplemented in writing, if the writing is signed by the party obligated under this Memorandum.

Severability

If any provision of this Memorandum is found to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable, but by limiting such provisions, it would become valid and enforceable, then such provisions will be deemed to be written, construed, and enforced as so limited.

Superseded

This Memorandum constitutes the entire Memorandum amongst the Parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and Memorandum, whether written or oral.

Understanding

It is mutually agreed upon and understood by and among the Parties of this Memorandum that each party will work together in a coordinated fashion for the fulfillment of the Acquisition.

Counterparts

For the convenience of the Parties hereto, this Memorandum of Understanding may be executed in multiple counterparts, each of which will be deemed an original, and all counterparts hereof so executed by the Parties hereto, whether or not such counterpart will bear the execution of each of the Parties hereto, will be deemed to be, and will be construed as, one and the same.

				
	Agreed to and accepted by:

	 
	Agreed to and accepted by:

	 

	 
	 
	 
	 

	SPEEDWEED

	 
	AQUARIUS PR LLC and

	 

	 
	 
	AQUARIUS CANNABIS, INC.

	 

	 
	 
	 
	 

	/s/ Andrew Gentile

	3/24/16

	/s/ Michael Davis Lawyer

	3/24/16

	AJ Gentile,

	 
	Michael Davis Lawyer, Chief 

	 

	a) an individual

	 
	Executive Officer

	 

	b) CEO and Managing Member, Space Brain LLC

	 
	 
	 

	c) President and Managing Member, Cosmic Mind a 

	 
	 
	 

	Cooperative Corporation

	 
	/s/ Jenna Schuck

	3/24/16

	d) President and Managing Member, Fleet Feet LLC

	 
	Jenna Schuck, Chief Operating Officer

	 

	e) President and Managing Member, Compassionate Care and Therapy Inc.

	 
	 
	 

	 
	 
	 
	 

	/s/ Jennifer Gentile

	3/24/16

	 
	 

	Jennifer Gentile, an individual

	 
	 
	 

	 
	 
	 
	 

	/s/ Eugene Gentile

	3/24/16

	 
	 

	Eugene Gentile, an individualcafd-ex101_6.htm

 

Exhibit 10.1

AMENDMENT NO. 4

TO

OMNIBUS AGREEMENT

This AMENDMENT NO. 4 TO OMNIBUS AGREEMENT (this “Amendment”), dated as of March 31, 2016 is made and entered into among 8point3 Operating Company, LLC, a Delaware limited liability company (the “Operating Company”), 8point3 General Partner, LLC, a Delaware limited liability company (the “YieldCo General Partner”), 8point3 Holding Company, LLC, a Delaware limited liability company (“Holdings”), 8point3 Energy Partners LP, a Delaware limited partnership (the “Partnership”), First Solar, Inc., a Delaware corporation (“First Solar”) and SunPower Corporation, a Delaware corporation (“SunPower” and, together with First Solar, each a “Sponsor” and collectively, the “Sponsors”).  The above-named entities are sometimes referred to in this Amendment as a “Party” and collectively as the “Parties.”

WITNESSETH 

WHEREAS, the Parties entered into that certain Omnibus Agreement on June 24, 2015, that certain Amendment No. 1 to Omnibus Agreement on August 11, 2015, that certain Amendment No. 2 to Omnibus Agreement on November 30, 2015 and that certain Amendment No. 3 to Omnibus Agreement on January 26, 2016 (collectively, the “Agreement”); and

WHEREAS, the Parties desire, subject to the terms and conditions set forth herein (including Section 1.05), to further amend the Agreement to reflect the Parties’ agreement as to certain matters set forth below. 

 

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

Section 1.01Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings ascribed to such terms in the Agreement. 

Section 1.02Amendments.  

(a)The following text shall be added as new rows to the table set forth on Schedule I of the Agreement:

 

 

	
No.
	
Sponsor
	
Project
	
Scheduled COD
	
Guaranteed
Project Capacity (MWAC)
	
Minimum

Project Capacity (MWAC)
	
Closing Project Value
	
Capacity Buy-Down Amount ($ per MW)

	
11.
	
First Solar
	
Kingbird Project A
	
April 29, 2016
	
19.40
	
18.43
	
$30,000,000
	
$1,500,000

	
12.
	
First Solar
	
Kingbird Project B
	
April 29, 2016
	
19.40
	
18.43
	
$30,000,000
	
$1,500,000

 

(b)The following text shall be added as a new item to the end of Part A of Schedule II:

Tax equity financing in respect of the Kingbird projects, entered into between FSAM Kingbird Solar Holdings, LLC, Kingbird Solar, LLC, State Street Bank and Trust Company and Antrim Corporation.

(c)The following text shall be added as a new item to the end of Part A of Schedule III:

KINGBIRD PROJECTS

 

	
 
	
1.
	
Letter of Credit No. L5LS-426344 issued by JPMorgan Chase Bank, N.A. to The City of Pasadena, dated October 24, 2013, as amended ($2,000,000) 

 

	
 
	
2.
	
Letter of Credit No. L5LS-426347 issued by JPMorgan Chase Bank, N.A. to Southern California Public Power Authority, dated October 24, 2013, as amended ($2,000,000)  

 

	
 
	
3.
	
Letter of Credit No. L5LS-427588 issued by JPMorgan Chase Bank, N.A. to Southern California Edison Company, dated April 10, 2014, as amended ($176,234) 

 

	
 
	
4.
	
Letter of Credit No. L5LS-427629 issued by JPMorgan Chase Bank, N.A. to Southern California Edison Company, dated April 10, 2014, as amended ($176,234) 

(d)The following text shall be added as new items to the end of Part A of Schedule IV:

14.FSAM Kingbird Solar Holdings, LLC

15.Kingbird Solar, LLC

16.Kingbird Solar A, LLC

17.Kingbird Solar B, LLC

2

 

 

Section 1.03Representations and Warranties.   

(a)Representations and Warranties of Each Sponsor.  Each Sponsor hereby represents and warrants to the other Sponsor, the Operating Company, the YieldCo General Partner, Holdings and the Partnership, as follows as of the date hereof:

(i)Organization; Qualification.  Such Sponsor has been duly formed and is validly existing and in good standing as a corporation under the Laws of its jurisdiction of formation with all requisite corporate power and authority to own, lease or otherwise hold and operate its properties and assets and to carry on its business as presently conducted, except where the failure to have such power and authority would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on its ability to perform its obligations under this Agreement.

(ii)Authority and Power.  Such Sponsor (A) has all requisite corporate power and authority to execute and deliver this Amendment and to perform its obligations hereunder, and (B) has taken all necessary corporate action to authorize the execution, delivery and performance of this Amendment.

(iii)Valid and Binding Obligation.  This Amendment has been duly and validly executed and delivered by such Sponsor and, assuming this Amendment has been duly and validly authorized, executed and delivered by all other Persons party hereto, constitutes a legal, valid and binding obligation of such Sponsor, enforceable against such Sponsor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar Laws relating to or affecting the enforcement of creditors’ rights in general and by general principles of equity.

(iv)No Conflicts.  The execution, delivery and performance of this Amendment by such Sponsor will not (a) conflict with or violate any provision of its certificate of incorporation or bylaws, (b) constitute, with or without notice or the passage of time or both, a material violation, a material breach or default, create a material lien, conflict in any material respect with, or require any material consent or approval, or give rise to any material right of termination, modification, cancellation, prepayment, suspension, limitation, revocation, preemption, right of first refusal (or similar right to purchase) or acceleration under any material any material indenture, mortgage, chattel mortgage, deed of trust, lease, conditional sales contract, loan or credit arrangement to which such Sponsor is a party, or (c) contravene, in any material respect, any material Law.

(v)Consents and Approvals.  The execution, delivery and performance of this Amendment by such Sponsor does not requires any material consent, approval, exemption, waiver, clearance, authorization, filing, registration or notification, of or to (as applicable) any Governmental Entity or other Person, except as has already been obtained, made or waived.

3

 

 

(b)Representations and Warranties of the Operating Company, the YieldCo General Partner, Holdings and the Partnership.  Each of the Operating Company, the YieldCo General Partner, Holdings and the Partnership hereby represents and warrants to the Sponsors, as follows as of the Execution Date: 

(i)Organization; Qualification.  Such Person has been duly formed and is validly existing and in good standing as a limited liability company or partnership, as applicable, under the Laws of its jurisdiction of formation with all requisite limited liability company or partnership, as applicable, corporate power and authority to own, lease or otherwise hold and operate its properties and assets and to carry on its business as presently conducted, except where the failure to have such power and authority would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on its ability to perform its obligations under this Amendment.

(ii)Authority and Power.  Such Person (A) has all requisite limited liability company or partnership, as applicable, power and authority to execute and deliver this Amendment and to perform its obligations hereunder, and (B) has taken all necessary limited liability company or partnership, as applicable, action to authorize the execution, delivery and performance of this Amendment.

(iii)Valid and Binding Obligation.  This Amendment has been duly and validly executed and delivered by such Person and, assuming this Amendment has been duly and validly authorized, executed and delivered by the Sponsors party hereto, constitutes a legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar Laws relating to or affecting the enforcement of creditors’ rights in general and by general principles of equity.

(iv)No Conflicts.  The execution, delivery and performance of this Amendment by such Person will not (a) conflict with or violate any provision of its certificate of incorporation or bylaws, (b) constitute, with or without notice or the passage of time or both, a material violation, a material breach or default, create a material lien, conflict in any material respect with, or require any material consent or approval, or give rise to any material right of termination, modification, cancellation, prepayment, suspension, limitation, revocation, preemption, right of first refusal (or similar right to purchase) or acceleration under any material any material indenture, mortgage, chattel mortgage, deed of trust, lease, conditional sales contract, loan or credit arrangement to which such Person is a party, or (c) contravene, in any material respect, any material Law.

(v)Consents and Approvals.  The execution, delivery and performance of this Amendment by such Person does not requires any material consent, approval, exemption, waiver, clearance, authorization, filing, registration or notification, of or to (as applicable) any Governmental Entity or other Person, except as has already been obtained, made or waived.

4

 

 

Section 1.04Continuity.  Except as expressly modified hereby, the terms and provisions of the Agreement and all instruments, agreements or other documents executed and delivered in connection therewith shall continue in full force and effect.   Whenever the “Agreement” is referenced in the Agreement or any of the instruments, agreements or other documents executed and delivered in connection therewith, such references shall be deemed to mean the Agreement as modified hereby. 

Section 1.05No Effect on Article III.  This Amendment shall have no effect on the terms and provisions of Article III of the Agreement, which shall continue in full force and effect.  All capitalized terms used in Article III of the Agreement shall have the meanings ascribed to such terms in the Agreement as in effect immediately prior to this Amendment.  To the extent this Amendment has the effect of modifying any capitalized term used in Article III of the Agreement, such term shall be deemed modified solely for purposes of the provisions of the Agreement other than Article III.

Section 1.06Parties in Interest.  This Amendment is binding upon and is for the benefit of the Parties hereto and their respective successors and permitted assigns.  This Amendment is not made for the benefit of any Person not a party hereto, and no Person other than the Parties hereto and their respective successors and permitted assigns will acquire or have any benefit, right, remedy or claim under or by virtue of this Amendment.

Section 1.07Severability.  Whenever possible each provision and term of this Amendment will be interpreted in a manner to be effective and valid.  If any term or provision of this Amendment or the application of any such term or provision to any Person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions hereof, or the application of such term or provision to Persons or circumstances other than those as to which it has been held invalid, illegal or unenforceable, will remain in full force and effect and will in no way be affected, impaired or invalidated thereby.  If any term or provision of this Amendment is held to be prohibited or invalid, then such term or provision will be ineffective only to the extent of such prohibition or invalidity without invalidating or affecting in any manner whatsoever the remainder of such term or provision or the other terms and provisions of this Amendment.  Upon determination that any other term or provision of this Amendment is invalid, void, illegal, or unenforceable, a court of competent jurisdiction will modify such term or provision so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible under the Law.

Section 1.08Facsimile; Counterparts.  Any Party may deliver executed signature pages to this Amendment by facsimile transmission to the other Parties, which facsimile copy shall be deemed to be an original executed signature page.   This Amendment may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute a single instrument.

5

 

 

Section 1.09GOVERNING LAW.  THIS AMENDMENT, INCLUDING THE FORMATION, BREACH, TERMINATION, VALIDITY, INTERPRETATION AND ENFORCEMENT THEREOF, AND ALL TRANSACTIONS CONTEMPLATED BY THIS AMENDMENT, SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO PRINCIPLES OR RULES OF CONFLICT OF LAWS, TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD PERMIT OR REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  FOR THE AVOIDANCE OF DOUBT, IT IS INTENDED THAT 6 DEL. C. § 2708, WHICH PROVIDES FOR ENFORCEMENT OF DELAWARE CHOICE OF LAW WHETHER OR NOT THERE ARE OTHER RELATIONSHIPS WITH DELAWARE, SHALL APPLY. 

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

6

 

 

IN WITNESS WHEREOF, each of the Parties has caused this Amendment to be executed as of the date first above written and delivered in their names by their respective duly authorized officers or representatives.

 

	
8point3 Energy Partners LP

	
 
	
 
	
 

	
By: 8point3 General Partner, LLC, its general partner

	
 
	
 
	
 

	
By:
	
/s/ Alexander Bradley

	
 
	
Name:
	
Alexander Bradley

	
 
	
Title:
	
Vice President of Operations

	
 
	
 
	
 

	
8point3 General Partner, LLC

	
 
	
 
	
 

	
By: 
	
/s/ Alexander Bradley

	
 
	
Name: 
	
Alexander Bradley

	
 
	
Title:
	
Vice President of Operations

	
 
	
 
	
 

	
8point3 Operating Company, LLC

	
 
	
 
	
 

	
By: 8point3 Energy Partners LP, its managing member

	
 
	
 
	
 

	
By: 8point3 General Partner, LLC, its general partner

	
 
	
 
	
 

	
By: 
	
/s/ Alexander Bradley

	
 
	
Name:
	
Alexander Bradley

	
 
	
Title:
	
Vice President of Operations

	
 
	
 
	
 

[Amendment to Omnibus Agreement]

 

	
8point3 Holding Company, LLC

	
 
	
 
	
 

	
By: First Solar 8point3 Holdings, LLC, its member

	
 
	
 
	
 

	
By:
	
/s/ Alexander Bradley

	
 
	
Name:
	
Alexander Bradley

	
 
	
Title: 
	
Vice President, Treasury and 

	
 
	
 
	
Project Finance

	
 
	
 
	
 

	
By: SunPower YC Holdings, LLC, its member

	
 
	
 
	
 

	
By:
	
/s/ Natalie Jackson

	
 
	
Name:
	
Natalie Jackson

	
 
	
Title: 
	
Vice President

	
 
	
 
	
 

	
First Solar, Inc.

	
 
	
 
	
 

	
By:
	
/s/ Alexander Bradley

	
 
	
Name:
	
Alexander Bradley

	
 
	
Title: 
	
Vice President, Project Finance 

	
 
	
 
	
and Treasurer 

	
 
	
 
	
 

	
SunPower Corporation

	
 
	
 
	
 

	
By:
	
/s/ Howard J. Wenger

	
 
	
Name:
	
Howard J. Wenger

	
 
	
Title:
	
President

 

[Amendment to Omnibus Agreement]

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