DISTRIBUTORSHIP AGREEMENT
BY AND BETWEEN
TOTALLYHEMPCRAZY,INC.("COMPANY")
AND
M·& SUp North. Distributing
("DISTRIBUTOR")
Colorado Agreement
LIST OF SCHEDULES
SCHEDULE A TERRITORY
SCHEDULE B TERRITORY PRODUCTS, PRICE AND PAYMENT TERM
DISTRIBUTORSHIPAGREEMENT
THIS DISTRIBUTORSHIPAGRUMENT (hereinafter referredtoastheAgreement")Ismade andentered intobyandbetween TOTALLYHEMPCRAZY INC.a Nevada corporation, locatedat9101LBJ Freeway,Suite 200, Dallas, TX 75243(the Company'), andM & S Up North Distributing, a Minnesota·corporation, locatedat1202 Ave SW Suite Roseau, MN 56151 (theDistributor).
WITNESSETH
WHEREAS, theCompany is in the business of producing,canning,bottling,marketingand selling Hemp-Infused products (primarily beverages);and
WHEREAS, theCompanyholdscertainpropertyrights,including,butnotlimitedto,rightsto tradenames,trademarks,servicemarks,logos,formulas,patentsandcopyrights(hereafter referred tocollectively as the"Trademarks"); and
WHEREAS, theCompanyandDistributordesiretoenterintoadistributorshipagreementfor themarketing,sellinganddistributingofcertainCompany productspackagedin variouscontainersunder the Trademarkswithin the Territoryhereinafterdescribed; and
NOWTHEREFORE,forand inconsideration ofthemutual agreements,covenantsand obligations containedherein, andtheperformancethereof,theparties,intendingtobelegally bound, agree asfollows:
I
RIGHT TO SELL WITHIN THE TERRITORY
1.1 GrantofRighttoDistributor.TheCompanygrantstoDistributortheright,subjecttoSection1.3hereof, in theTerritory described in andattachedheretoasSchedule "A"(the "Territory"), tosellthose products in the containers listedanddescribed inSchedule "B"hereto (the "Products"). Distributormay sellaccountswithin theTerritorytotheextent permitted in Section 1.4 hereof.
1.2 Acceptance of Right to Distribute.Distributor hereby accepts therightto sell theProductswithintheTerritoryandagreestoexercisesuchrightsinaccordancewiththetermsof this Agreement. Distributor further agrees that it will useitsbest efforts to solicit, promote,increaseor cause to be increased the sales of the Productsinthe Territory. Distributor shallmaintainsufficient personnel,delivery and distribution facilities,andequipment and vehicles to ensure that it has the capacity and capability to deliver the Productsinsufficient quantitiesto fully satisfy the demand for the Products in the Territory.
1.3 SaleswithintheTerritory andtheParties'ReservedRights.TheCompanyreserves therighttosell the Products, or togrant theright tootherDistributorsto sell the Products, insideor outsideoftheTerritory. The Company may sellwithin the Territoryvia the Internet and theCompany may sell within the Territory, any item notlisted onSchedule "B".
1.4 RestrictiononDistributor'sSatesOutside oftheTerritory.Nothinghereinshallbe deemedtograntDistributortheright, or otherwise permit Distributor, to sell the Productsoutside of the Territory. Distributor shall notsell any Products outside the Territory, nor shall Distributor sellany Productsin the Territory to a wholesaler,retailer orotherwise whichare ultimatelyshippedoutside the Territory. Distributor may sell to wholesalers within the Territory,but only if such wholesaler resells the Products for DirectDelivery within the Territory.DistributormaysellProducts outside theTerritory uponthe reasonable writtenrequestto theCompany,and upon such commerciallyreasonable terms as the parties may agree.
1.5 RightofFirstRefusal.The Companygrantsto Distributoraqualifiedrightoffirst refusal,withintheTerritoryonly, tobethedistributorofany newbeverageProductsintroducedintothemarket by the Company.Distributormust exercisethis right within 60daysofofficial Company Product launchintothe marketplace by sending a written acceptance to the Company. This acceptancemust be accompanied with a written plan showing the Company howtheDistributor has or will gain the capability to distribute, market and promote the new Products, and thatDistributor has all licenses andotherrequired documentation necessary todistributethenew Products in the Territory. TheCompanyhassole discretion as to whether ornotDistributoris qualified to distribute the newProducts.
1.6 ExclusivityofProducts.Distributor agrees thatinorderforthisAgreementtobecome andremaineffective,Distributorwill notmarket,promote, sell orotherwise distributein any manner whatsoever, anyhempInfusedbeveragesorotherproducts related thereto, otherthan thoseof the Company. A breach ofthissection by Distributor may result in immediate termination of this Agreement at Company's option.
1.7 Volume Objective.Distributor must purchase Product quantities as set forthinScheduleB.
II.
TRADEMARKS
2.1 Ownership of Trademarks and Use Thereof by Distributor.Distributor acknowledgestheCompany'sexclusiveright,tieandInterestinandtotheTrademarks.Distributor is onlyauthorizedto usepointofsale (POS) Items, banners, artwork, wearable andany other materials of any nature whatsoever containing, displaying or utilizing any of the Company's Trademarks, images or graphic artwork whicharedelivered by the Company to Distributor, at Distributor'scost, whichmay be derivedin part from theCooperative MerchandisingFund set forth herein. Distributorshallnot create, develop,market orsellany of these items on their own without written permission from the Company.
2.2 DefenseofLicensedRightsandTrademarks.Distributoragreestotimelynotifythe Companyofanyclaimoraction,orthreatenedclaimoraction, forinfringementorallegedinfringementof any Trademarks, patents or trade secretsmade against it orthe Companyduetoitsexercise of any rights granted under this Agreement or activities of the Company undertaken In supportof Distributor inthe Territory. Distributoragrees tocooperate fullywiththe Company inany Trademark or patent Infringementaction by or againsttheCompany.
2.3 CessationofUseofTrademarks.Upon termination of this Agreement, Distributor shallimmediatelycease all use whatsoever of the Trademarks and shall not thereafter usetheTrademarksoradoptanyotherdesignationsimilartoorwhichIslikelytobe confused with theTrademarks.
2.4 CompliancewithLaws.Distributorshall complywithallapplicablelaws,regulations andordinancespertainingtotrademarks,atalltimeswhenusingtheTrademarks.
III.
ADVERTISING
3.1 SubstanceofAdvertisingIn itsadvertising,Distributorshallrepresentthatithasthe ProductsavailableforsalealongwiththeotherItemsand services thatitoffers,provided that it does notrepresent that itis the agentorrepresentative oftheCompany. Distributor maydisplaythe Trademarks on its trucks or other equipment, the clothing worn by its employees, agents or representatives, and onanyofitsother property, butonly consistent with 2.1 above. Any requests forvariationsof colors andgraphics usedbyDistributordepicting theTrademarksorother Intellectual property oftheCompany mustbe consistentwith thestylesandformats specified bythe Company and must be approved by the Company in writing prior to use by distributor. ·
3.2 Advertising Requirements Restrictions.Distributor must have written Company approvalallof itsadvertising,sales,marketingandpromotionalmaterialinwhichanyoftheProducts are mentioned. Distributors utilizing any of the Company Trademarks, must use the appropriate trademarknotices,copyright notices and trademark designations. Distributorshall maintaina prominent "Website" advertisement andlisting oftheProducts offeredbyit. Thecontentofthis websiteshallbe subject toreview and approvalby the Company.
3.3 CooperativeMerchandisingFund.Companywillplace$.50Icaseforeachcase orderedbytheDistributorinto aCooperativeMerchandising Fund. This total$.50Icase Cooperative Merchandising Fund may be used by the Distributor for "mutually agreed upon• promotional activities such asPOS Materials, truck graphics, price promotions, etc.
3.4 Approval.Distributoragreesthatalladvertisingandsalesandpromotionalmaterials (hereinafter collectivelyreferredtoas"Advertising")inwhich any of the Productsarementioned and/or anyofthe Trademarks are usedshall besubjecttothepriorwrittenapproval ofthe Company, said approval not to be unreasonably withheld.
3.5 Sales and Service Telephone Numbers.Distributor shall use andpublicize toits customers the Distributor owned telephone numberanywhereDistributor's customer sales and service telephone numbers arelisted.
3.6 Websites.Distributor shallutilizetheCompany'sproprietaryInternetsite,andmaylink to"TOTALLYHEMPCRAZY.COM"asasourcefornewcustomersandrelated matters.
IV
DISTRIBUTION OF THE PRODUCTS
4.1 Solicitation ofAccounts.Distributor will proactivelysolicitaccountsandpromotethe ProductsthroughouttheTerritoryforsalesoftheProductsandwill maintainregularroutestoservice same.
4.2 Servicing.Distributor shall service all ofitsaccounts with such frequency asisreasonablynecessarytokeepthemfullysuppliedwith,andsatisfyfullythedemandfor,theProduct in theTerritoryand shall maintain an adequate supply oftheProducts to promptly meet and satisfy fullythe demandsfor the Products withinthe Territory,including, but not limitedto, peak seasonal demands.
V.
QUALITY CONTROL
5.1 Cleanliness Standards.Distributor shall comply with all ordinances,lawsand regulationspertainingto the sale, storage, transportation and distribution of the Products andthe operationofitsfacilities.Distributorshallatalltimesmaintainallof Itsfacilitiesand equipment usedin thesale, storage, transportation and distribution of the Productsina clean, wholesome and sanitary condition. Companypersonnel mayinspectstorageandother facilities of Distributor(owned orleased) at any time duringnormalworking hoursupon reasonablenotice.
5.2 Rotation.Distributorrecognizes theshelflife of the Products, and acknowledgesthat rotationensuresmaximumquality.Distributoragreestotakeallreasonablestepsnecessarytosee thatallsuchProductssoldby itareproperlyrotatedIn conformitywith thedate stamped on the labels of thecontainers. Distributoragreesthat it willnotstorethe Products outside, unprotectedfrom temperature fluctuations and theelements.
5.3 Qualityof the Products.The Company agrees that it will use its commerciallyreasonable,goodfaitheffortstomaintainthehighqualityofallofProductsdeliveredto Distributor.
VI,
PRICING AND DELIVERY OF THE PRODUCTS
6.1 SupplyofProducts;Pricing.TheCompanywillsupplyDistributorwiththeProducts at theprices and on the payment terms listed onSchedule"B"or asotherwise may bemutually agreed between the Company and Distributorinwriting. The Company requires a 100% Payment made for the Productsprior to shipment. The Company may increasesuchpricesupon sixty(60) days writtennotice to Distributor. The Company willuse its commerciallyreasonable,good faith efforts to supply the Products in thequantitiesrequested by Distributor and as promptly as commercially and reasonablypracticable after an orderisreceived from Distributor.
6.2 OrderingProcedures.DistributorshallsubmittotheCompanyfirmpurchaseorders in accordancewithSchedule"B" in advance ofthe delivery datesspecified.Apurchase order may be submittedand accepted In writing,by faxor bymail.Allpurchase orders shall specify thequantity and typeofProduct, the requesteddelivery date,the deliverypoint(s), and any other special instructions with regard toshipping,packaging or delivery. All purchase orders receivedby the Company shall constitute Distributor'sbindingcommitment to purchase the quantity and type of Product set forththerein at thepurchasepricethenIn effecton thedatetheCompanyreceives the purchase order.
6.3 Delivery.DistributorshallpickupProductsattheCompany'swarehouse.Titletothe ProductsandriskoflossshallpasstoDistributor uponpick-upatthe Company'swarehouse by Distributor, Independent carrier or another third party.
6.4 InspectionofProducts.DistributorwillonlyberequiredtopayfortheProductswhich areprovidedtoDistributorfree of defects at the time of pick up at Company'swarehouse. Auditors of Distributor shall promptly and Immediatelyinspect all containers for damage and shall not accept any containers that do not passthat Inspection. The Company willeithernot charge Distributor for. orshallprovide a credit to Distributorfor, any damaged containersDistributorreceives fromthe Company and which Distributor discovers to be damaged during its prompt Inspection of such containers upontheirreceipt byDistributor. TheCompanyshall not beresponsible for,andDistributorshallindemnify, defendand hold the Company wholly harmlessfrom, any damages, loss, claim, liability or expense of any customer ofDistributor caused, In wholeorin part,by a damaged container.TheProducts willbe deemed receivedfree ofdefects unless(I) anypatentdefects In the Products are notedonthe deliveryreceiptatthetimeofdelivery to Distributor andImmediatewritten noticethereofIsprovided to the Company, or (Ii) the Company Is notified in writing or in any manner acceptableto the Company withinthirty(30)daysafter delivery of anyof the Productscontaining latent defects. TheCompanywill not beresponsible for damages occurring during shipment to the Distributor at Distributor's warehouseor during delivery byDistributor,at its customers' premises, during return from the Customer to Distributor, or duringthe return from Distributorto the Company.
6.5 PriceLevels.The CompanymayfromtimetotimesuggesttoDistributorthepricesat whichProductsmightbesoldbyDistributortoitscustomers.Suchsuggestedretailsareadvisoryonlyand non-binding onDistributor, andboth the Company and Distributoracknowledgeand agree that Distributor hassole, complete and absolute discretion to establish andmaintain the prices at which ItsellstheProductstoitscustomers.Distributoracknowledgesitsobligationstomaximizeits sales andselling efforts inthe Territory as providedin Section 1.2 of this Agreement and further acknowledgesthatbysetting its pricessoastobeno longercompetitiveIn theTerritory,Distributormaythereby breachtheterms ofthisAgreement.
6.6 ForceMajeure.ThefailurebyeitherPartytoperform its obligations hereundershallbe completelyexcused, withoutliabilitytoeitherParty,tothe extentthatsuchfailure to performresults directlyorIndirectlyfrom "actsofGod" (including flood, fire ornatural casualties); strikes, slowdowns or otherlabor disputes or shortages;civilunrestor sabotage; shortagesofmaterials, transportation or supplies; director indirect acts, orders or regulations of any governmental body; or any othercauses beyond thereasonablecontrolof theParty.
6.7 Reporting.Atreasonableintervals(an inanyevent,not less frequentlythanquarterly),DistributorwillprovidetotheCompanyinformationregardingProducts sold, promotional activitiesor other information reasonably requested by the Company.
VII,
TAXES AND EXPENSES
7.1Expenses. Charges.Feesand Taxes.Distributorwill pay and discharge at its own expenseanyandallexpenses,charges,feesandtaxesarisingoutoforIncidentaltothecarryingon ofits business, including, withoutlimitingthe generality ofthe foregoing, allworker's compensation, unemploymentinsuranceand socialsecurity taxes, sales, use,income, businessand franchisetaxes leviedor assessedwith respect to its businessand/or employees, and Distributor willindemnify,defend andsaveharmlesstheCompany against anyandall claims for such expenses,charges, fees and taxes.
VIII.
INSURANCE, WARRENTIES AND INDEMNIFICATION
8.1 Duty to Defend.Indemnifyand Hold Harmless.Distributoragrees toindemnify,defendandholdharmlesstheCompany,itsofficers,employees,agentsandrepresentativesfromand againstanyandallclaims,causes ofaction,damages, claims for damages, liability, loss, cost or expense,including reasonable attorneys' fees and expenses of litigation, arising out of or inanyway relatedtoperformance of thisAgreement byDistributor, except claims arising from the solegross negligence of the Company.
Without limitingtheforegoing,Distributoragreestoindemnify,defendandholdharmlessthe Company,itsofficers,agents, employeesandrepresentativesfromanyandall suchclaims,including butnotlimited toclaimsforpropertydamage, bodilyInjury,lossofconsortium,emotionaldistress or death, whether sustained or alleged to have been sustained by Distributor's employees,theCompany's employees orany other person orentity, and including but not limited toclaims,injuries or damages caused or allegedto be causedin whole orin part by the negligence, gross negligence or willful act or omission of Distributor or anyone for whose acts Distributor may be liable or legally responsible. Distributoralso agrees to Indemnify, defend and hold harmless the Company,its officers, employees, agentsandrepresentativesfromany andall such claims, whetheror not theyarise from or are alleged to be causedinpartby the negligenceor gross negligence ofthe Company,itsagents, officers, employees,or representatives. However,Distributorshallnot be obligated toIndemnifythe Companyagainst anyclaim arising from the sole grossnegligenceof the Company.
The foregoingindemnity,defenseandholdharmlessobligationsshallapplytoallsuchclaims, losses orliabilities,whether suchclaimsarise from Products acquired by DistributorfromtheCompanypriortotheexecutionofthis Agreement orsubsequent thereto.
8.2 InsuranceCoverage.Distributorfurtheragreestoprocureandmaintain, atitssolecost and expense from aninsurancecarrier reasonably acceptable to the Company, Comprehensive
General Liability Insurance and Automobile Liability Insurance, all in conformance with the requirements of this Agreement.
The Company,shallbenamedasanadditionalInsuredoneachoftheabove-listedpolicies.Distributorshall provide the Company certificates ofinsuranceevidencingthe existence and maintenanceofeach ofthese policies and the factthatthe Company is affordedinsurance coverage as an additionalinsured under each of the policies specified above.
Distributor's failuretoprovidesaidcertificatesofinsurance,andtheCompany'sfailuretoinsistthatsuchcertificatesbe furnished to it shall not relieveDistributorof its obligationto procureinsurance asrequiredherein.
TheinsurancerequiredbythisSectionshallspecificallyIncludeandprovidecontractualliabilityInsurancecoveringDistributor'sobligations underthe indemnity provisions of this Agreement asset forth in Section 8.1 above.Saidinsurance shall provide primary coverage to theCompany, and any otherinsurancewhichmay be available to the Company for any claim, loss or liability encompassed bythis Agreement shallbeexcess over theinsurance required bythis Section.
Distributor's Comprehensive General Liability and Automobile Liability Insurance shall be written with combined single limits of liability not less than $1,000,000.00.
Allinsurancepoliciesshallcontainsprovisionthatthecoveragesaffordedthe reundershallnot becanceledornotrenewed,norrestrictivemodificationsadded,untilatleastthirty(30)daysafter priorwritten noticehasbeengiven the Company.
In theeventDistributorfailstoobtainormaintainanyinsurancecoveragerequiredunderthis Agreement,theCompany may at its option purchasesuchcoverage and charge the expense thereof toDistributororterminate this Agreement.
8.3 Limitations of Distributor's Remedies.Distributor's soleand exclusive remedy againsttheCompanyfordefectiveProductsordeficientservices,asthecasemaybe,shallbe,atthe optionoftheCompany, thereplacementthereoforacredit to Distributor'saccountfor thecostthereof.Distributor'sremedy for any breach by the Company of this Agreement or arising under or in connection with this Agreement or for any action taken or not taken by the Company in connection here with or conduct relating thereto, under contract, tort or any other legal theory, shall not include, under any circumstance, any special,Indirect, exemplary, punitive, incidental or consequential damages nor lostprofits, lostrevenues or lost opportunity costs
IX.
DEFAULT
9.1 EventsofDefault.Distributorshallbedeemedtobeindefaultofthetermsofthis Agreementifanyone ofthefollowingevents("Events of Default') occur:
| a) | Distributorattempts todispose,assignorsub-licensetherights,privilegesand obligations created by thisAgreement; |
(b) DistributorviolatesanyofthetermsandconditionsofthisAgreement;
| (c) | Majority ownership ofDistributorchanges; |
(d) DistributorshallfileavoluntarypetitionInbankruptcyortakethebenefitofanyInsolvencyactorbedissolvedoradjudicated bankruptor ifa receiver shall beappointed for Distributor's business or Its assets and the appointment of such receiver is not vacated within thirty(30)daysaftersuch appointment,orifDistributorshallmakean assignment for the benefit of its creditors, or If the Interest of Distributor passes by operation of lawto any person or entity other thanDistributor;
(e) Distributor becomesinsolvent,regardless of howsaidinsolvencymay be evidenced;
| (f) | Distributor fails to pay the Company for the Products on a timely basis; |
| (g) | Distributor failstopurchaseProductswithin1Obusinessdaysofthesigningof thisAgreement.CompanymayimmediatelyTerminatethis Agreementwith no cure period needed; or |
| (h) | Distributor fails to achieve VolumeObjectives. |
9.2 Remedies.UpontheoccurrenceofanEventofDefault,theCompanymaygivewritten noticeto Distributordemandingthatthecondition of defaultbe cured withinten(10) calendar days and,ifnot so cured, theCompany, in additiontoany otherrightsorremediesit may have,maydo any one or more ofthe following:
(a) Commenceacollectionactiontorecoverallsumsofmoneydue,reservingtherightto recoverforsuchothersumsofmoneywhichmaybecome dueunder this Agreementor otherwise;
| (b) | Commence anaction tospecificallyenforceitsrightsunderthisAgreement;or |
| (c) | Immediatelyterminate thisAgreement. |
9.3 RemediesCumulative.AllrightsandremediesgrantedunderthisAgreementshallbe cumulative,andresortbytheCompanytoanyoneremedyprovidedforhere undershallnotexclude orpreventthe Companyfrompursuing anyotherrights andremedies providedunder this Agreement orby law.
9.4 Attorneys'Fees.IftheCompanyorDistributorbringsanactiontoenforceorassert anyrightgrantedpursuanttothisAgreementandis successful in suchaction, theunsuccessful party shall pay all reasonable costs and expenses, including reasonableattorneys' fees, incurred by the successful partyin exercising itsrightsand remedies hereunder.
X.
TERM
10.1 Term.ThisAgreementshall commenceonthedateofitsexecutionandshallcontinueinfullforceandeffectforaperiodof one (1)yearthereafter,(the "Primary Term"),unlesssooner canceled or terminated as provided in this Agreement. At the end of the Primary Term, and at the end of each year thereafter (each such year being a "Renewal Term"), this Agreement shall be automatically renewed for a successive one-year period provided the Distributor has complied with all terms and conditions of this Agreement. Not with standing anything contained herein to the contrary, either party may terminate this Agreement at any time by written notice to the other party provided a minimum of sixty (60) days' notice, or earlier if specifically stated herein.
10.2 Termination.IntheeventthatthisAgreementisterminatedasprovidedforhereinor is not renewed in accordance with Section 10.1,neitherthe Company nor Distributor shall have any claimor right againstthe other as a resultthereof, and neither shallhave any further responsibilityfor the performance of any term, provision, or condition of the Agreement except as contained inthelast sentence ofSection 1. 2, and Sections 2.1,2.3,2.4, 2.5, 7.1, 8.1,8.2, 8.3, 9.2, 9.3, 9.4, 10.2, 12.1, 12.2, 12.5, 12.6, 12.7, 12.8,12.9and12.10, orexcept asresultingfromaction orinactionduringthe term of this Agreementor relating to the payment of outstanding moniesowned to the Company or Distributor, as the case may be.
XI.
ASSIGNMENT
11.1Assignment.This Agreement is personal as to the Company andDistributor.Therights,dutiesandobligationspursuanttothisAgreementcannotbetransferred,assigned,pledged,madesubjecttoasecurityinterest,orotherwise disposedofby either theCompany or Distributorinwhole orin part.
XII.
MISCELLANEOUS
12.1Purchase Orders/Invoices.Company requires a 100% Payment made for the Products prior to shipment.
12.2Notice.Allnotices, consents,waivers,andothercommunicationsunderthisAgreement mustbein writingandwillbedeemedtohave been duly given (a)when deliveredby hand (with written confirmation of receipt), (b) three(3) days after being deposited in the mails, if sent by certified mail, with returnreceiptrequested, (c) upon confirmed receipt,if sent by facsimile transmission during normal businesshoursofthereceiving party ona business day, (d) one (1) day after sending, if sent bya nationallyrecognized overnightdelivery service (receiptrequested) specifying next daydelivery, or (e) same dayif sent viae-mail, ineachcase to the appropriate addresses or telecopynumbers set forth on the signature page hereto (or tosuchother addresses or telecopy number asa party may designate bynotice to the other parties).
12.3No Partnership. Joint Venture, Franchise, Employer/Employee Relationship.It isunderstoodandagreedthatDistributorisanindependentcontractor,andthisAgreementand therelationshipcreatedherebyshallnotbeconsideredtobeapartnership,jointventure, franchise, or anemployer/employeerelationship,andneithertheCompanynor Distributorshallhavetherightor authority to represent the other In any capacity or to transact any business or incur any obligations, contractual or otherwise for, In the name of, or on behalf of the other, unless otherwise authorized to do so In writing. The relationship between the Company and Distributor shall be that of supplier and purchaser.
| 12.4 | Authority to Enter into Agreement.The Company andDistributoraffirm that they are validly constituted corporate entitles with full right, power and authority to enterintothis Agreement and to perform their respective obligationshereunder. |
| 12.5Waivers. | NofailureordelayonthepartoftheCompanyorDistributortoexerciseany right,powerorremedyshalloperate as awaiver thereof, nor shallany single or partialexercise of any suchright, power orremedy preclude any other orfurther exercisethereof orthe exerciseof anyother right,power orremedyunder thisAgreement. Noamendment, modification orwaiver ofanyprovision ofthis Agreement shallbe effective unlessthesame shallbein writing signedby theCompanyand Distributor. |
| 12.6 | GoverningLawandJurisdiction.ThisAgreementshallbegovernedandinterpretedinaccordancewiththelawsof the State of Texas. Distributor hereby consentstoservice of process In, and to thesole andexclusiveJurisdiction of the state or federal courts of Dallas County, Texaswith respect toanydisputes ofany nature whatsoever which mayarisebetweenthe Companyand Distributorrelating to the rights and obligations under this Agreement. |
12.7 Confidentiality.DuringthePrimaryTermandanyRenewalTermandforthethree(3) yearperiodfollowingtheterminationhereofforanyreason,the parties hereto shallkeep theterms andconditionsof this Agreement,the transactions contemplatedhereby, and eitherparty's records, books, data and other confidential Information concerning the Products,eitherparty's accounts, employees,clientdevelopment (including customer and prospect lists), sales activities and procedures, promotional andmarketingtechniques, pricing,marketing or businessplansand strategies, financing, development and expansion plans and credit and financial data concerning customers and suppliers and all otherbusiness Informationinvolvingeither party (all collectively, the "Confidential Information") strictly confidential,andneither the Company nor Distributor will make, or cause or permit to be made, any disclosureof any such Confidential Information to any person (it beingunderstood, however, that In any event such Confidential Information may be disclosed ona confidential basis to the parties' respective employees and professional advisers who have a need to know suchinformation).
| 12.8 | Entire Agreement.This Agreement, whichincorporateshereinby reference |
Schedules "A"and"B", constitutes theentire,completeandexclusivestatementofthetermsofthe agreementbetweentheparties withrespect to the subject matterhereof andsupersedes andcancels any prior agreements, understandings, covenants, promises, assurances, course of dealing or performance,representations, warranties,or communications, whetheroral or written,between the parties hereto. No covenant, term, provision, representation or agreementnot expresslycontainedherein shall beImpliedas a matter of law, interpretation, coarse of performance or conduct of the parties.Neither this Agreement nor any provision here of maybe amended, waived ormodified except by written instrument signed after the date hereof by all parties hereto and expressly stating therein that such Instrument is intended as an amendment, modification or waiver hereof.
12.9 Severability.If anytermsorprovisionsofthisAgreementaredeemedtobeinvalidor unenforceable,suchdeterminationshallnot affectthe validity orenforceabilityof theremainingterms and provisions hereof.
12.10 BenefitedParties.ThisAgreementshallbebindinguponandInuretothebenefitofanypermittedpurchasers,successorsorassignsof the Companyand Distributor.
IN WITNESS WHEREOF, this Agreement has been executed on this 3th day of August, 2015.
THE COMPANY
TOTALLY HEMPCRAZY, INC
By/s/ TomShuman
Print Name: Tom Shuman
Its: President/CEO
DISTRIBUTOR
By/s/Shawn Burkel
Print Name: Shawn Burkel
Its: President/CEO
Addresses:
TOTALLY HEMP CRAZY, INC
9101 LBJFreeway Suite 200
Dallas, TX75243
Attn: TomShuman
Title:CEOIPresident Phone:214-212-5006
E-mail: Tom@TotallyHempCrazy. com
M&S Up North Distributing
1202 Ave SW Suite
Roseau, MN 56151
Attn: Shawn Burkel
Title: President/CEO
Phone: Phone: 218-242-0604
E-mail: mandsupnorth@mncable.net
SCHEDULE A
TERRITORY GRANTED
The TerritorysetforthforthisAgreementencompassesthecountiesof_Seebelow_,State of Colorado_
Denver County 663,862
El Paso County 663,519
Arapahoe County 618,821
Jefferson County 558,503
Adams County 480,718
Larimer County 324,122
Douglas County 314,638
Boulder County 313,333
Weld County 277,670
Pueblo County 161,875
Mesa County 148,255
Broomfield County 62,138
Garfield County 57,461
La Plata County 53,989
Eagle County 52,921
Fremont County 46,502
Montrose County 40,873
Delta County 29,870
Summit County 29,404
Morgan County 28,328
Montezuma County 25,772
Elbert County 24,195
Routt County 23,865
Teller County 23,389
Logan County 22,524
Otero County 18.488
Chaffee County 18,363
Pitkin County 17,626
Park County 16,345
Alamosa County 16,177
Gunnison County 15,725
Grand County 14,546
Las Animas County 14,052
Moffat County 12,928
Archuleta County 12,244
Prowers County 12,034
Rio Grande County 11,607
Yuma County 10,202
Clear Creek County 9,187
Conejos County 8,265
Kit Carson County 8,072
San Miguel County 7,840
Lake County 7,357
Rio Blanco County 6,707
Huerfano County 6,462
Saguache County 6,196
Gilpin County 5,851
Bent County 5,630
Lincoln County 5,510
Crowley County 5,360
Washington county 4,780
Ouray County 4,629
Phillips County 4,363
Custer County 4,361
Baca County 3,645
Costilla County 3,568
Sedgwick County 2,348
Dolores County 1,978
Cheyenne County 1,871
Kiowa County 1,402
Jackson County 1,396
Hinsdale County 786
San Juan County 720
Mineral County 698
2014 Population 5,355,866
SCHEDULE B
PRODUCTS, PRICE&PAYMENT TERMS
| PRODUCTS: | ROCKY MOUNTAINHIGHHEMPENERGYDRINK ROCKY MOUNTAINHIGHHEMP ICEDTEA ROCKY MOUNTAINHIGHHEMP LEMONADE ROCKY MOUNTAINHIGHHEMP COCONUTLIME |
RIGHTOFFIRST REFUSALONNEWBEVERAGEPRODUCTS
PACKAGE SIZE: 12- PACK/ 12oz.SLIM-LINE CANSPERCASE
FOB COMPANYWAREHOUSE PRICING TO DISTRIBUTOR:
$12.00PER CASEIMINIMUMONE(1)PALLET*
208 CASESIPALLET
20 PALLETSPERTRUCKLOADICONTAINERLOAD4,160CASESPERTRUCKLOADICONTAINERLOAD
*MinimumOrderper SKU is one(1)pallet INO"mixedpallets"of all 4 products.
VOLUME OBJECTIVE
DISTRIBUTOR HAS THE FOLLOWING VOLUME REQUIREMENTS:
Purchase of_20_palletsoftheProductsperquarterbeginning7/8/2015.
COOPERATIVE MERCHINDICING FUND
Company willplace$.50Icase for each case ordered bytheDistributorintoa Cooperative MerchandisingFund.This total $.50Icase CooperativeMerchandisingFundmaybeusedbytheDistributorfor"mutuallyagreedupon"promotionalactivities suchasPOS Materials, truck graphics,price promotions, etc.
THCZ STOCK
DistributorwillreceivefromCompanyone(1)shareofrestrictedTHCZcommonstock foreachcaseofthe Productspurchased from the Company in 2015.
PAYMENT TERMS:
Company requires a 100% Payment made for the Products prior to shipment.
SCHEDULE B
PRODUCTS, PRICE&PAYMENT TERMS
| PRODUCTS: | ROCKY MOUNTAIN HIGH HEMPENERGYDRINK ROCKY MOUNTAIN HIGH HEMP ICED TEA ROCKY MOUNTAIN HIGH HEMP LEMONADE ROCKY MOUNTAIN HIGH HEMP COCONUT LIME ROCKY MOUNTAIN HIGH HEMP MANGOENERGY |
PACKAGE SIZE:12 - PACK / 12 oz. SLIM-LINE CANS PER CASE
FOB COMPANY WAREHOUSE PRICING TO DISTRIBUTOR:
$ 12.00PER CASEIMINIMUM ONE (1) PALLET*
208 CASESIPALLET
20 PALLETS PER TRUCKLOADICONTAINER LOAD 4,160 CASES PER TRUCKLOADICONTAINER LOAD
*Minimum Order per SKU is one (1) palletINO "mixed pallets" of all 4 products.
VOLUME OBJECTIVE
DISTRIBUTOR HAS THE FOLLOWING VOLUME REQUIREMENTS:
Purchase of twenty (20) pallets of the Products per quarter beginning 10I22 /2015.
COOPERATIVE MERCHANDISING FUND
Company will place $.50Icase for each case ordered by the Distributor into a Cooperative MerchandisingFund.Thistotal$.50IcaseCooperativeMerchandising Fundmay beusedby theDistributorfor"mutuallyagreedupon"promotional activitiessuchasPOSMaterials,truck graphics, price promotions,etc.
THCZ STOCK
Distributor will receive from Company one (1) share of restricted THCZ common stock for each case of the Products purchased from the Company in2015.
TERMINATION WITHOUT CAUSE BUYOUT
In case of Company Termination of this Agreement without "Cause", the Company will pay the Distributor $6.00 per case for each 12-pack case of the Products purchased from the Company during the most recent 12months.
PAYMENT TERMS
Company requires a 100% Payment made for the Products prior to shipment.
