SEC Contract Filing

Filing Date: 2017-11-01

Document Content:
<DOCUMENT>
<TYPE>EX-10.33
<SEQUENCE>9
<FILENAME>trtc_ex1033.htm
<DESCRIPTION>FUNDING AGREEMENT
<TEXT>
<html><head><title>trtc_ex1033.htm</title></head><body style="text-align:justify;font:10pt TIMES NEW ROMAN;margin:0px 7%"><p style="MARGIN: 0px" align="right"><b>EXHIBIT 10.33</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px" align="center"><b>FUNDING AGREEMENT</b></p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">This FUNDING AGREEMENT (this &#8220;<b><i>Agreement</i></b>&#8221;) is made and entered into as of October 30, 2017, by and between NULEAF, INC (the &#8220;<b><i>Nuleaf</i></b>&#8221;) and MEDIFARM III, LLC, a Nevada limited liability company (&#8220;<b><i>Medifarm III</i></b>&#8221;). Nuleaf and Medifarm III shall be collectively referred to herein as &#8220;the Parties&#8221;). </p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">WHEREAS Nuleaf and Medifarm III have entered into a certain Convertible Loan Agreement whereby Medifarm III desires to hold 50% of the issued and outstanding Membership Interest in Nuleaf Reno Production, LLC (the &#8220;<b><i>Company</i></b>&#8221;);</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">WHEREAS Medifarm III has agreed to loan Nine Hundred Thousand Two Hundred Twenty Six Dollars and 02/100 ($918,226.27) (the &#8220;<b><i>Convertible Note Contribution</i></b>&#8221;) to Nuleaf, which upon regulatory suitability of Medifarm III shall convert to 50% Membership Interest in the Company, pursuant to a certain &#8220;<b><i>Convertible Promissory Note</i></b>&#8221; by and between the Nuleaf and Medifarm III as set forth therein; </p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">WHEREAS, the Company shall require an additional capital commitment to complete the construction of the Nuleaf Sparks Cultivation facility in the amount of Eight Hundred Sixty Thousand Dollars and 00/100 ($860,000) (the &#8220;<b><i>Additional Capital Commitment</i></b>&#8221;) to be disbursed as (a) $260,000 for current construction costs; (b) $150,000 as estimated costs for additional packaging area; (c) $250,000 for equipment and (d) $200,000 for additional equipment;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">WHEREAS Nuleaf and Medifarm III each desires to contribute 50% of the required Additional Capital Commitment, subject to the terms and conditions set forth herein below.</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">1. <u>Capital Contribution</u>. Effective upon the execution of this Agreement, Nuleaf and Medifarm III each shall agree to contribute 50% the Additional Capital Commitment to the Company, in the amount of $430,000 each, on or before November 30, 3017. Funding made by Medifarm III prior to conversion of the Convertible Promissory Note to equity shall be added as principal to the Convertible Promissory Note. </p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">2. <u>Use of Proceeds</u>. The Parties agree that the foregoing Additional Capital Commitment totaling $860,0,000 shall be used in accordance with the following allocation:<u></u></p> <p style="MARGIN: 0px; TEXT-INDENT: 45px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px" align="justify">2.1 Current construction costs $260,000 </p> <p style="MARGIN: 0px; TEXT-INDENT: 90px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px" align="justify">2.2 Estimated costs for additional packaging area $150,000</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px" align="justify">2.3 Equipment $250,000</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 90px" align="justify">2.4 Additional equipment $200,000</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">Upon conversion of Medifarm III&#8217;s Convertible Promissory Note, distributions of profits of the Company shall be made to all Members, pro rata, in accordance with their percentage of Membership Interest, as set forth in the Amended and Restated Operating Agreement (as attached and incorporated herein by reference). </p> <p style="MARGIN: 0px" align="justify">&nbsp;</p> <p style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px"> <table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="2" cellpadding="0" width="100%" align="center" border="0"> <tr> <td style="BORDER-TOP: black 1px solid" width="50%"> <p style="MARGIN: 0px">NuLeaf Reno Production | Medifarm III</p> <p style="MARGIN: 0px">Capital Contribution Agreement</p></td> <td style="BORDER-TOP: black 1px solid" valign="bottom" width="50%"> <p style="MARGIN: 0px" align="right">1&nbsp;| Page</p></td></tr></table></p> <p style="MARGIN: 0px"> <table id="pagebreake018625c-e185-4b92-9724-bdb1d7eeb8b1" 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">&nbsp;</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 style="MARGIN: 0px">&nbsp;</p> <p style="MARGIN: 0px; TEXT-INDENT: 45px" align="justify">4. <u>Representation as to T