EWSD I, LLC and Whole Hemp Company Enters into Certain Farming Agreement
May 19 16
On December 18, 2015, Notis Global Inc.and its subsidiary EWSD I, LLC and Whole Hemp Company entered into that certain Farming Agreement. On March 11, 2016, the First Farming Agreement was amended and restated. Pursuant to the First Amended and Restated Farming Agreement, Whole Hemp agreed to manufacture products from hemp and cannabis crops it grew on EWSD farmland, and EWSD agreed to build greenhouses for such activities up to an aggregate size of 200,000 square feet. Whole Hemp agreed to pay all preapproved costs of such construction on or before September 30, 2017 as partial consideration for a revocable license to use the greenhouses and a separate 10-acre plot of EWSD farmland (the 10 Acres). EWSD retained ownership of the greenhouses. Commencing in the second growing season, EWSD had the option to provide marketing, sales, and related services to Whole Hemp in connection with the sale of products generated from the EWSD farmland, of which EWSD would have retained a percentage of gross sales. Further, EWSD would have received half of the gross profits from the sale of products produced from crops grown on a dedicated 40-acre parcel of Whole Hemp's farmland in exchange for marketing, sales, and related services provided by EWSD on an exclusive basis. Whole Hemp agreed to be responsible for obtaining all requisite permits and approvals from governmental authorities necessary to conduct the farming activities and for compliance with all federal, state and local regulations and procedures related to its business.
Notis Global and EWSD I, LLC Enters First Amended and Restated Farming Agreement with Whole Hemp Company
Mar 17 16
On March 11, 2016, Notis Global, Inc. and its subsidiary EWSD I, LLC (EWSD), entered into a First Amended and Restated Farming Agreement (the Restated Farming Agreement) with Whole Hemp Company (Whole Hemp), amending and restating in certain respects that certain Farming Agreement, dated December 18, 2015, by and between the same parties. The Restated Farming Agreement clarifies that EWSD, rather than the Company, will be responsible for the building of greenhouses to be utilized by Whole Hemp for growing hemp and cannabis crops pursuant to the agreement, and that EWSD will be the recipient of all payments by Whole Hemp (including all revenue sharing arrangements) under the agreement. Additionally, the Restated Farming Agreement calls for EWSD to dedicate a portion of any equity financings to mutually agreed capital expenditures with respect to the greenhouses. If such capital expenditures are deployed, Whole Hemp will pay EWSD a percentage of gross sales of all Whole Hemp products during the period from March 15, 2016 until September 30, 2016 or, if greater, a fixed minimum amount. The Company's revenue share and corresponding minimum payment during this period will increase incrementally based on the extent of such capital expenditures. As before, the Company will continue to share in the gross sales of all Whole Hemp products during each subsequent growing season.
