SEC Contract Filing

Filing Date: 2019-06-11

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>bmmj_ex102.htm
<DESCRIPTION>EX-10.2
<TEXT>
<html><head><title>bmmj_ex102.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 10.2</b></p><p style="MARGIN: 0px" align="right">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>EQUIPMENT LEASE AGREEMENT</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">This equipment lease agreement (this &#8220;<b>Agreement</b>&#8221;) is made and entered into as of June 6, 2019 (the &#8220;<b>Effective Date</b>&#8221;), by and among NMG Cathedral City, LLC (the &#8220;<b>Lessor</b>&#8221;) and Satellites Dip, LLC (the <b>&#8220;Lessee&#8221;</b>). Lessor and Lessee are each referred to herein as a &#8220;<b>Party</b>&#8221; and are collectively referred to herein as the &#8220;<b>Parties</b>.&#8221;</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">WHEREAS, Lessor is the owner of the Equipment;</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">WHEREAS, Lessee is a licensed commercial cannabis business conducting Commercial Cannabis Activity within the state of California;</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">WHEREAS, Lessor desires to lease the Equipment to Lessee, and Lessee desires to lease the Equipment from Lessor upon the terms and conditions set forth in this Agreement;</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement agree as follows. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b>1. DEFINITIONS</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">a. &#8220;<b>Affiliate</b>&#8221; of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term &#8220;<b>control</b>&#8221; (including the terms &#8220;controlled by&#8221; and &#8220;under common control with&#8221;) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">b. &#8220;<b>Agreement</b>&#8221; shall have the meaning set forth in the recitals of this Agreement.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">c. &#8220;<b>Applicable Law</b>&#8221; means any and all applicable local, state and federal laws, rules and regulations. Notwithstanding anything to the contrary contained herein, the parties acknowledge that, at the time of the execution of this Agreement, the terms of this Agreement may not comply with the CSA. The parties acknowledge that a violation of the CSA shall not be deemed to violate Applicable Law as used herein. </p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">d. &#8220;<b>Casualty Loss</b>&#8221; means the destruction, loss, theft, requisition of title, or use, confiscation, taking, or damage to the Equipment.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">e. &#8220;<b>Casualty Value</b>&#8221; means the Lessor&#8217;s reasonable estimate, at that time, of the fair market value of the Casualty Loss at the time of the notice.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">f. &#8220;<b>Collection</b> <b>Costs</b>&#8221; means all reasonable costs related to recovery of unpaid Rent, including, but not limited to, administrative and attorney&#8217;s fees that may be incurred by Lessor and/or Lessor&#8217;s Representatives in an effort to collect past due amounts owed by Lessee to Lessor for more than sixty (60) days.</p><p style="MARGIN: 0px 0px 0px 0in">&nbsp;</p><p style="MARGIN: 0px 0px 0px 0in">Equipment Lease Agreement</p><p style="MARGIN: 0px"><table id="pagebreak647717ec-d1c8-415d-97b3-97b73d2cc7e3" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0"><tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">Page 1 of 18</td></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div>&nbsp;</td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">g. &#8220;<b>Commercial Cannabis Activity</b>&#8221; means all commercial cannabis activity that Lessee is lawfully engaged in at the Premises pursuant to the Licenses.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">h. &#8220;<b>Claims</b>&#8221; means any claim, demand, dispute, controversy or cause of action.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">i. &#8220;<b>CSA</b>&#8221; means 21 U.S.C. &#167; 811, et seq., short titled the Controlled Substance Act.</p><p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p><p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">j. &#8220;<b>Default</b>&#8221; means any of the events spec