Exhibit
10.1


  


 





Orange Door Capital, LLC PURCHASE AGREEMENT


 


This Purchase Agreement (“Agreement”)
dated November 16, 2017 between Orange Door Capital, LLC (“Company”) and the merchant or other
business listed below (“Merchant”).


 


MERCHANT INFORMATION 


Business
Legal Name: VPR Brands LP                                                                                                                                                    


 


D/B/A:
HoneyStick, VaporX, Vaporin, Krave, Helium                State
of Incorporation/Organization: FL                                           








Type of entity:


Corporation





Physical Address: 3001
Griffin Road                        City:
Dania Beach                        State:
FL                           
Zip: 33312           


Mailing Address: SAME
                                               City:
                                                State:
                                Zip:
                       


Date Business Started:
2009                            
Federal Tax ID or Social Security #: 30-0956562                                                     


Contact Name: Kevin
Frija                    Position:
Owner                          


Phone:
305.749.2676           Fax: 954.371.0097                            Email:
                                          Website:
www.vprbrands.com,

www.vapehoneystick.com 


 





PURCHASE AND SALE OF FUTURE RECEIVABLES


In exchange for payment by
Company to Merchant of the purchase price specified below (“Purchase Price”), Company hereby purchases
from Merchant and Merchant hereby sells to Company all of Merchant’s right, title and interest in and to the amount specified
below (“Specified Amount”) of Merchant’s future receivables (“Future Receivables”)
arising from electronic payments by Merchant’s customers with credit or debit cards, checks that are processed and converted
electronically, or any other electronic payment to Merchant (“Electronic Payments”). Merchant will remit
the Specified Amount of Future Receivables to Company in one of the two following ways:


 


(1) by authorizing and directing
a processor acceptable to Company (“Processor”) to pay Company each day an amount of cash equal to the
percentage specified below (“Specified Percentage”) of all Electronic Payment receivables settled by
Processor to Merchant on the day in question (“Receivables”); or (2) by debiting each day an amount of
cash equal to the Specified Percentage of the Receivables from a deposit account established by Merchant that is approved by Company
(the “Account”). Company may decide in its sole discretion which of the two methods it will accept for
the remittance of the Specified Percentage and will notify Merchant prior to delivering the Purchase Price to Merchant. Company
will continue to receive the Specified Percentage of Receivables until Merchant has remitted to Company the entire Specified Amount
and Applicable Fees. A list of all fees applicable under this agreement is contained in Appendix A.


 


Purchase Price = $ 240,000Specified Amount = $312,000Specified
% = Addendum


 


GUARANTEE BY OWNER(S)


The owners of Merchant (such
owners, whether shareholders, partners, members or other owners are jointly and severally referred to herein as “Owner”)
personally guarantee the performance of all of the covenants and the truth and accuracy of all of the representations







 






THE MERCHANT / OWNER HAS REVIEWED AND
AGREES TO THE TERMS OF THIS CONTRACT, INCLUDING THE ARBITRATION CLAUSE IN SECTION 4.15, AND ACKNOWLEDGES RECEIPT OF A COMPLETED
COPY OF IT.


 


MERCHANT
/ OWNER REPRESENTATIVE


By:
Kevin Frija                                                                  /s/
Kevin Frija                                                                                   


            (Print
Name)                                                                               (Signature)


 


By:
                                                                                                                                                                                                       


            (Print
Name)                                                                               (Signature)




 


By:
                                                                                                                                                                                                       


            (Print
Name)                                                                               (Signature)




 


By:
                                                                                                                                                                                                       


            (Print
Name)                                                                               (Signature)




 


Orange
Door Capital, LLC:                             
                                                     
                                                                           


                                        (Orange Door Capital, LLC Officer)                                   (Signature)


Each
of the parties is obligated upon his, her or its execution of the Agreement to all terms of the Agreement, including the Additional
Terms set forth below. Each of above-signed Merchant and Owner represents that he or she is authorized to sign this Agreement and
that the information provided in this Agreement and in all of Company’s forms
is true, accurate and complete in all respects. If any such information is false or misleading, Merchant shall be deemed in material
breach of all agreements between Merchant and Company and Company shall be entitled to all remedies available under law. An investigative
or consumer report may be made or requested by Company in connection with the Agreement.





Merchant
and each Owner authorize Company, its agents and representatives and any credit reporting agency engaged by Company, to (i) investigate
any references given or any other statements or data obtained from or about Merchant or its Owner for the purpose of this Agreement,
and (ii) pull credit reports at any time, so long as Merchant and/or Owner continue to owe any obligation to Company as a consequence
of this Agreement or in order for Company to determine Merchant’s eligibility to enter into any future agreement with Company.


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ADDITIONAL
TERMS OF THE PURCHASE AGREEMENT


 


Capitalized terms used
but not defined in these Additional Terms of the Purchase Agreement shall have the meanings assigned to such terms above.


I.  
PROCESSING TERMS AND ARRANGEMENTS. Section 1.1. Processing Agreement.
If Company elects to accept the remittance of the Specified Percentage directly from
Processor, Merchant (i) will enter, or has already entered, into an agreement acceptable to Company with Processor to obtain processing
services (“Processing Agreement”) and (ii) irrevocably authorizes and instructs Processor to pay daily
the cash attributable to the Specified Percentage of Receivables to Company rather than to Merchant until Company receives the
cash equal to the entire Specified Amount. This authorization may be revoked only by written consent of Company. Merchant agrees
that Processor may rely upon the instructions of Company, without any independent verification, in paying the Specified Percentage
of Receivables to Company. Merchant waives any claim for damages it may have against Processor in connection with actions taken
based on instructions from Company or the actions or omissions of Company, unless such
damages were due
to Processor’s failure to
follow Company’s reasonable instructions.
Merchant acknowledges that (a) Processor
is not an affiliate of Company, (b) Company does not have any power or authority to control Processor’s actions
with respect to the processing of Electronic Payment transactions, and (c) Company is not responsible
for, and Merchant agrees to hold Company harmless
for, the actions of Processor. If Processor transfers to any account of Merchant
or Owner any funds that should have been transferred to Company pursuant to Sections 1.1 and 1.2 hereof, or if Merchant otherwise
has monies deposited in its or Owner’s account(s) that otherwise should have been transferred to Company pursuant to Sections
1.1 and 1.2 hereof, Merchant and/or Owner shall immediately segregate and hold all such funds in express trust for Company’s
sole and exclusive benefit.


Section
1.2. Instructions to Processor. Merchant irrevocably authorizes and instructs Processor to hold the Specified Percentage
of Receivables on behalf of Company and to remit directly to Company the cash equal thereto at the same time it remits to Merchant
the cash equal to the Receivables less the Specified Percentage. Merchant acknowledges and agrees that Processor shall provide
Company with Merchant’s Electronic Payment transaction history from time to time upon request by Company. This Agreement
does not prohibit, limit or alter the rights possessed by Processor pursuant to the Processing Agreement, including but not limited
to Processor’s right to withhold, debit, offset or chargeback funds sent to or to be sent to Merchant or, funds that may
become owing to Processor, or to terminate the Processing Agreement.


Section
1.3. Indemnification. Merchant indemnifies and holds
Processor, its officers,
directors, affiliates, employees,
agents and representatives harmless
from and against
all losses,
damages, claims, liabilities and expenses (including reasonable attorneys’
fees) suffered or incurred
by Processor resulting from
actions taken by Merchant.


Section
1.4. Processing Fees. Processor may charge certain fees for processing Electronic Payment transactions and providing
related services as set forth in the Processing Agreement (the “Processing Fees”) and such Processing
Fees and other amounts, fees, charges, fines and penalties, may be deducted from the gross amount of Electronic Payment receivables
before determining the amount of Receivables payable to Merchant, to which the Specified Percentage will be applied.


Section
1.5. No Modification or Termination of Processing Agreement. Merchant
will comply with the Processing Agreement and will not modify the Processing Agreement
in any manner that could have a material adverse effect upon Company’s
interests, without Company’s prior written consent.
Merchant will not terminate the Processing Agreement,
nor do anything that may cause the Processing Agreement
to be suspended or terminated, until the Specified Amount
has been remitted to Company. Until the Specified Amount has been remitted
to Company, Merchant may not replace Processor, or enter into an agreement
with another payment processing company, without
the prior written consent of
Company.


Section
1.6. Account. If Company agrees to accept the remittance of the Specified Percentage by debiting the Account, Merchant
agrees to complete all necessary forms to establish the Account. Company may, in its sole discretion, require Merchant to establish
a new deposit account to replace and become the Account at a financial institution reasonably selected by Company. Merchant shall
cause all proceeds of Receivables to be deposited in the Account. Until the Specified Amount is remitted in full to Company, Merchant
shall maintain in the Account a minimum balance equal to $2,000 (“Minimum Balance).


Merchant acknowledges and
agrees that any funds deposited in the Account by Merchant’s card processor will remain in the Account until the cash equal
to the Specified Percentage is withdrawn by Company, and then the remaining funds, minus the Minimum Balance, will be forwarded
to the account identified by the account name, account number and bank name and address that is shown on the face of the voided
check that Merchant shall provide to Company along with this Agreement, the delivery of which voided check is a condition precedent
to Company’s obligations under this Agreement, (“Merchant’s Account”). Merchant and Owner
authorize Company to debit funds directly from the Account, and agree to not revoke or cancel such authorizations until such time
as Company has received the entire Specified Amount. Merchant acknowledges and agrees that Company may issue a pre- notification
to Merchant’s bank(s) with respect to such debit transactions. Within twenty-four (24) hours of any request by Company,
Merchant shall provide, or cause Merchant’s card processor to provide, Company with records and other information regarding
Merchant’s Electronic Payment sales, the Account and any other bank accounts of Merchant or Owner. If Merchant has monies
deposited in its or Owner’s account(s) that otherwise should have been transferred to Company pursuant to this Section 1.6,
Merchant and/or Owner shall immediately segregate and hold all such funds in express trust for Company’s sole and exclusive
benefit. Section 1.7. Processing Trial. After this Agreement has been signed by both Merchant and Company but prior
to Company’s determination as to whether to pay the Purchase Price, Merchant agrees to permit Company to conduct a short
processing trial (the “Processing Trial”) to ensure that Merchant’s Electronic Payment transactions
are being correctly processed through Processor or to the Account and that the cash attributable to the Specified Percentage of
Receivables will be appropriately remitted to Company. Company agrees to make a determination as to whether to purchase the Specified
Amount promptly after the commencement of the Processing Trial. If Company elects to purchase the Specified Amount, then all of
the cash received by Company in connection with the Processing Trial prior to the payment of the Purchase Price shall be applied
to reduce the Specified Amount. Nothing herein shall create an obligation on behalf of Company to purchase any Future Receivables,
and Company expressly reserves the right to not purchase the Specified Amount and not pay the Purchase Price to Merchant. If Company
decides to not purchase the Specified Amount and not pay the Purchase Price, this Agreement shall have no further effect and Company
shall, promptly after receipt from Processor or the Account, return to Merchant any cash received by Company in connection with
the Processing Trial.


Section
1.8. Excess Cash. If the amount of cash remitted to Company pursuant to this Agreement exceeds the Specified Amount
(such excess being the “Excess Cash”) by at least $50.00, Company agrees to pay such Excess Cash to
Merchant within 30 days after receipt thereof by Company. In the event the Excess Cash is less than $50.00, Company agrees to
pay such Excess Cash to Merchant within 30 days after its receipt of a written request from Merchant, provided such request is
made within 90 days of Company’s receipt of such Excess Cash. Company has no obligation to take any action (including against
Processor) with respect to any cash being held by Processor, which will become Excess Cash once it is paid by Processor to Company,
prior to the receipt of such Excess Cash by Company, and that Processor shall have no liability to Merchant for any Excess Cash.


Section
1.9. Reliance on Terms. The provisions of this Agreement are agreed to for the benefit of Merchant, Owner, Company,
and Processor and, notwithstanding the fact that Processor is not a party to this Agreement, it may rely upon the terms of this
Agreement and raise them as defenses in any action.


Section
1.10. Estoppel Certificate. Merchant will at any time, and from time
to time, upon at least one (1) day’s prior notice from Company to Merchant, execute, acknowledge and deliver to Company
and/or to any other person, person firm or corporation specified by Company, a statement certifying that this Agreement is unmodified
and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and
stating the modifications) and stating the dates which the Specified Amount or any portion thereof has been repaid.


II.  
REPRESENTATIONS,WARRANTIESAND COVENANTS.


Merchant and each Owner
represent, warrant and covenant the following as of the date of this Agreement and continuing until the Specified Amount is paid
in full to Company: Section 2.1. Merchant General Business Covenants. Merchant agrees (i) to use its best efforts
to conduct its business consistent with past practice; (ii) to not take any action, including changing its arrangements with Processor,
to discourage the use of Electronic Payments and to not permit any event to occur that could have an adverse effect on the use,
acceptance or authorization of Electronic Payments for the purchase of Merchant’s services and/or products; (iii) to not
open a new bank account other than the Account to which Electronic Payment settlement proceeds will be deposited and to not take
any action to cause Future Receivables to be settled or delivered to any bank account other than the Account; and (iv) not to
sell, dispose, convey or otherwise transfer its business or assets without the express prior written consent of Company and the
assumption of all of Merchant’s obligations under this Agreement pursuant to documentation reasonably satisfactory to Company.


Section
2.2. Business Information. All information (financial and other) provided by or on behalf of Merchant to Company in
connection with the execution of or pursuant to this Agreement is true, accurate and complete in all respects. Merchant shall
furnish Company such additional information as Company may request from time to time.


Section
2.3. Reliance on Information. All information (financial and other) provided by or on behalf of Merchant has been relied
upon by Company in connection with its decision to purchase the Specified Amount of Future Receivables and is true, accurate and
complete in all respects.


Section
2.4. Default Under Other Contracts; Compliance. Merchant’s execution of and/or performance under this Agreement
will not cause or create an event of default by Merchant under any contract with another person or entity. Merchant is not in
default under any of the terms, covenants and conditions of any other agreement with Company. Merchant is in compliance with any
and all applicable federal, state and local laws and regulations and rules and regulations of card associations and payment networks.
Merchant possesses and is in compliance with all permits, licenses, approvals, consents, registrations and other authorizations
necessary to own, operate and lease its properties and to conduct the business in which it is presently engaged.


Section
2.5. Authorization. Merchant and the person(s) signing this Agreement on behalf of Merchant have full power and authority
to enter into and perform the obligations under this Agreement and the Processing Agreement, all of which have been duly authorized
by all necessary and proper actions.


Section
2.6. Insurance. Merchant shall maintain insurance in such amounts and against such risks as are consistent with past
practice and shall show proof of such insurance upon the request of Company.


Section
2.7. Change Name or Location. Merchant does not and shall not conduct Merchant’s business under any name other
than as disclosed to Company and Processor and shall not change its jurisdiction of organization, ownership or other legal structure
without the prior written consent of Company, which consent may be withheld for any reason. Merchant shall not change its place
of business or transport or move, interrupt, suspend, dissolve or terminate its business without advance, written notice to Company.


Section
2.8. Exclusive Use of Processor. Merchant understands and agrees that if Company elects to accept the remittance of
the Specified Percentage directly from Processor, until the Specified Amount is paid in full to Company, the services of Processor
are the exclusive means by which Merchant can and shall process its Electronic Payment transactions. Merchant shall not take any
action that has the effect of causing the Processor to be changed to another processor. Merchant has not been notified by Processor
and is not aware of any fact that would trigger the termination or suspension of the Processing Agreement or the creation of a
reserve account. If Merchant receives such notice, Merchant shall immediately notify Company. If Merchant’s action or inaction
results in the Processing Agreement being terminated or suspended, Company may immediately debit the difference between (x) the
Specified Amount, and (y) the portion of the Specified Amount that Company has received to date by initiating a debit via the
Automatic Clearing House (ACH) system from Merchant’s Account or such other bank account that


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Merchant
maintains, or any bank account maintained by each Owner.


Section
2.9. Exclusive Use of Account. Merchant understands and agrees that if Company elects to accept the remittance of the
Specified Percentage by debiting the Account, until the Specified Amount is paid in full to Company, all proceeds of Receivables
shall be deposited into the Account. If Merchant’s action or inaction results in the Account being terminated or suspended,
Merchant and each Owner irrevocably authorizes Company or its designated successor to immediately withdraw the difference between
(x) the Specified Amount, and (y) the portion of the Specified Amount that Company has received to date by initiating a debit
via the Automatic Clearing House (ACH) system from Merchant’s Account or such other bank account that Merchant maintains,
or any other bank account maintained by each Owner.


Section
2.10. Working Capital Funding. Merchant shall not enter into any other arrangement, agreement or commitment that relates
to or involves Future Receivables, whether in the form of a purchase of, a loan against, or the sale or purchase of credits against,
Future Receivables or future Electronic Payment sales with any party other than Company.


Section
2.11. Unencumbered Future Receivables. Subject to the terms of the Processing Agreement, Merchant has good, complete
and marketable title to all Future Receivables, free and clear of any and all liabilities, liens, claims, charges, restrictions,
conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever
or any other rights or interests that may be inconsistent with the transactions contemplated with, or adverse to the interests
of, Company. Merchant shall make or send notice of any intended bulk sale or transfer by Merchant.


Section 2.12. Business
Purpose. Merchant is a valid business in good standing under the laws of the jurisdictions in which it is organized and/or
operates, and Merchant is entering into this Agreement for business purposes and not as a consumer for personal, family or household
purposes. Section 2.13. No Bankruptcy/Litigation. As of the date of this Agreement, Merchant does not contemplate
and has not filed any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary
petition brought or pending against Merchant. Merchant further warrants that it does not anticipate filing any such bankruptcy
petition and it does not anticipate that an involuntary petition will be filed against it. There is no action, suit or investigation
pending or, to Merchant’s or Owner’s knowledge, threatened against it or any of its assets, before any court or governmental
authority which, if determined adversely to it, would have a material adverse effect on Merchant’s business.


Section
2.14. Merchant Fraud. Merchant and Owner shall immediately notify Company if any of the representations, warranties
or covenants contained in this Agreement are no longer true. Any false representation or warranty shall constitute fraud against
Company, and Merchant consents to entry of a judgment admitting to such fraud in an amount to be determined by the applicable
court in favor of Company.


		III.	ADDITIONAL
                                         TERMS.



Section
3.1. Sale of Future Receivables. Merchant and Company agree that the Purchase Price paid by Company in exchange for
the Specified Amount is a purchase of the Specified Amount of Future Receivables and is not intended to be, nor shall it be construed
as, a loan or financial accommodation from Company to Merchant. If Merchant’s business slows down and Merchant’s Electronic
Payments decrease (and merchant has not violated the terms of this Agreement), Company may not increase the Specified Percentage
without Merchant’s prior written consent. If Merchant’s business closes or goes bankrupt (and Merchant has not violated
the terms of this Agreement), Merchant and Owner will not be in default under this Agreement. Merchant shall treat this transaction
as a sale of assets for all purposes, including but not limited to tax preparation, financial reporting and accounting purposes.


Section
3.2. No Right to Repurchase. Merchant has no right to repurchase the Specified Amount of Future Receivables from Company
and Company may not force Merchant to repurchase the Specified Amount.


Section
3.3. Remedies. If any of the representations or warranties contained in this Agreement are not true, accurate and complete,
or in the event of a breach of any of the covenants contained in this Agreement, or in the event that any Owner seeks to cancel
the guaranty, Company shall be entitled to all remedies available under law, including the right to non judicial foreclosure of
any collateral. If Merchant breaches any of the representations or covenants specified in Sections 2.1 through 2.14, Merchant
agrees that Company shall be entitled to, but not limited to, damages equal to the


amount
by which the Specified Amount exceeds the amount of cash received from Receivables that have previously been delivered to Company
pursuant to this Agreement. Merchant and Owner agree that Company may automatically debit such damages via the ACH system or wire
transfers from Merchant’s Account or such other bank account that Merchant maintains, or any bank account maintained by
each Owner. The obligations of Owner, including the guarantee on the first page of this Agreement are primary and unconditional
and Owner waives any rights to require Company to first proceed against Merchant. Notwithstanding any other provision of
this Agreement to the contrary and provided that Merchant/Owner has no current intention to close or slow down business or file
for bankruptcy protection, Merchant will not be in default under this Agreement if Merchant closes its business, files for bankruptcy
protection or experiences a business slow down due to any of the following: an act of God; the destruction of Merchant's business
(where Merchant played no role in the destruction); the death of the Owner (if the Merchant is a sole proprietorship); the Owner
becoming seriously ill or disabled such that he or she can no longer work (if the Merchant is a sole proprietorship); or a decline
in Merchant's business caused by market or other forces and despite Merchant's/Owner's good faith efforts to succeed at Merchant's
business.


Section
3.4. Financing Statements. To secure performance of all of the obligations of Merchant to Company under this Agreement
or any other agreement between Merchant and Company, Merchant grants to Company, immediately upon an event of default under this
Agreement or any other agreement between Merchant and Company, a security interest, subject only to the security interest of Processor,
if any, in the following property of Merchant wherever found: (a) All personal property of Merchant, including, all accounts,
chattel paper, documents, equipment, general intangibles, instruments, inventory (as those terms are defined in Article 9 of the
Uniform Commercial Code (“UCC”) in effect from time-to-time in the State of California), and liquor
licenses, wherever located, now or hereafter owned or acquired by Merchant; (b) all trademarks, trade names, service marks, logos
and other sources of business identifiers, and all registrations, recordings and applications with the U.S. Patent and Trademark
Office (“USPTO”) and all renewals, reissues and extensions thereof (collectively “IP”)
whether now owned or hereafter acquired, together with any written agreement granting any right to use any IP; and (c) all proceeds
with respect to the items described in (a) and (b) above, as the term “proceeds” is defined in Article
9 of the UCC. Merchant understands and agrees that Company may file one or more UCC-1 financing statements (i) at anytime to perfect
the interest created under the UCC upon the sale of the account (as that term is defined in the UCC), (ii) after an event of default
to perfect the grant of the security interest in the other assets of Merchant described above, and (iii) after an event of default
assignments with USPTO to perfect the security interest in IP described above. The UCC-1 financing statements specified in item
(i) of the preceding sentence may state that the sale of the Specified Amount is intended to be a sale and not an assignment for
security.


Section
3.5. Protection of Information. Merchant and each person signing this Agreement on behalf of Merchant and/or as Owner,
in respect of himself or herself personally, authorizes Company to disclose to any third party information concerning Merchant’s
and each Owner’s credit standing (including credit bureau reports that Company obtains) and business conduct. Merchant and
each Owner hereby waives to the maximum extent permitted by law any claim for damages against Company and any of its affiliates
or agents and Processor relating to any (i) investigation undertaken by or on behalf of Company as permitted by this Agreement
or (ii) disclosure of information as permitted by this Agreement.


Section
3.6. Solicitations. Merchant and each Owner authorizes Company and its affiliates to communicate with, solicit and/or
market to Merchant and each Owner via regular mail, telephone, email and facsimile in connection with the provision of goods or
services by Company, its affiliates or any third party that Company shares, transfers, exchanges, discloses or provides information
with or to pursuant to Section 3.5 and will hold Company, its affiliates and such third parties harmless against any and all claims
pursuant to the federal CAN-SPAM ACT of 2003 (Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003),
the Telephone Consumer Protection Act (TCPA), and any and all other state or federal laws relating to transmissions or solicitations
by any of the methods described above.


Section
3.7. Confidentiality. The terms and conditions of the products and services
offered by Company, including this Agreement and any other Company documentation


(collectively,
“Confidential Information”)
are proprietary and confidential information of Company.
Accordingly, unless disclosure is required by law or court order, Merchant
shall not disclose Confidential Information to any person
other than an attorney, accountant, financial
advisor or employee of Merchant
who needs to know such information for the purpose of advising Merchant (“Advisor”),
provided such Advisor uses such information solely for the purpose of advising Merchant
and first agrees in writing to be bound by the terms of this Section 3.7.


Section
3.8. Publicity. Merchant and each Owner authorizes Company to use its, his or her name in a listing of clients and
in advertising and marketing materials.


		IV.	MISCELLANEOUS.



Section
4.1. Modifications; Amendments; Construction. No modification,
amendment or waiver of any provision of this Agreement
shall be effective unless the same shall
be in writing and signed by the parties affected. The headings of the sections
and subsections are inserted for convenience only and shall not affect in
any way the meaning or interpretation of this Agreement. For purposes of this Agreement,
“including” shall mean “including, without
limitation”.


Section
4.2. Notices. All notices, requests, demands and other communications shall be in writing and shall be delivered by
mail, overnight delivery or hand delivery to the respective parties to this Agreement. Notices to Company shall be sent to the
following address:


Orange Door Capital


330 E. Lambert Road, Suite 275


Brea, CA 92821


Section
4.3. Waiver; Remedies. No failure on the part of Company to exercise, and no delay in exercising, any right under this
Agreement shall operate as a waiver, nor shall any single or partial exercise of any right under this Agreement preclude any other
or further exercise of any other right. The remedies provided in this Agreement are cumulative and not exclusive of any remedies
provided by law or equity.


Section
4.4. D/B/A’s. Merchant understands and acknowledges that Company may be using “doing business as”
or “d/b/a” names in connection with various matters relating to the transaction between Company and Merchant,
including the filing of UCC-1 financing statements and other notices or filings.


Section
4.5. Binding Effect. This Agreement shall be binding upon and inure to the benefit of Merchant, Owner, Company and
their respective successors and assigns, except that Merchant and Owner shall not have the right to assign its rights or obligations
under this Agreement or any interest in this Agreement without the prior written consent of Company, which consent may be withheld
in Company’s sole discretion. Company reserves the right to assign this Agreement or its rights or obligations hereunder
with or without prior notice to Merchant.


Section
4.6. Governing Law. This Agreement, all transactions it contemplates,
the construction of the terms of the Agreement and all transactions, and the interpretation, performance and enforcement of the
rights and duties of Merchant, Company and each individual signatory shall be governed by and construed in accordance with the
laws of the State of California, without regards to any applicable principles of conflicts of law. Without limiting the generality
of the foregoing, the Parties agree that the laws of the State of California shall govern the entire relationship between and
among the Parties, including, without limitation, all issues or claims arising out of, relating to, in connection with or incident
to this Agreement and any transaction it contemplates, whether such claims are based in tort, contract, or arise under statute
or in equity. The Parties acknowledge and agree that this Agreement is made and performed in the State of California.


Section
4.7. Costs. Company shall be entitled to receive from Merchant and/or Owner, and Merchant and/or Owner shall pay, all
reasonable costs associated with a breach by Merchant of term of this Agreement and the enforcement thereof, including court costs
and attorneys’ fees.


Section
4.8. Term and Survival. This Agreement shall continue in full force and effect until all obligations hereunder have
been satisfied in full; provided, however, that Sections 1.3, 3.3, 3.6, 3.7, 3.8, 4.6, 4.7, 4.8, 4.11, 4.12, 4.13, 4.14 and


4.15
shall survive indefinitely.


Section
4.9. Severability. In case any one or more of the provisions contained in this Agreement is found to be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.


Section
4.10. Counterparts and Facsimile Signatures. This Agreement may be signed in one or more counterparts, each of which
shall constitute an original and all of which when taken together shall constitute one and the same agreement. Facsimile signatures
or signed documents scanned in .pdf (or similar) format shall have the same legal


 


 


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force
and effect as an original of such signature and shall be treated as an original document for evidentiary purposes.


Section
4.11. Limitation of Liability. In no event will Processor or Company be liable for any claims asserted by Merchant
for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential
damages, even if advised of the possibility of such damages, under any theory of law, including any tort or contract theory, each
of which is expressly waived by Merchant.


Section
4.12. Entire Agreement. This Agreement contains the entire agreement and understanding between Merchant, Owner and
Company and supersedes all prior agreements and understandings, whether oral or in writing, relating to the subject matter unless
otherwise specifically reaffirmed or restated in this Agreement. Merchant and Owner each


acknowledge
and agree that he, she or it is not relying on any representations not specifically embodied in this Agreement. Section 4.13.
Jury Trial Waiver. THE PARTIES WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING
IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT, EXCEPT WHERE
SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC
POLICY. THE PARTIES ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY
AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS.


Section
4.14. Class Action Waiver. THE PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST


THE
OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW
AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE
ACTION AGAINST THE OTHER, THE PARTIES AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES
OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT);
AND (2) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY
RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.


 


 


 





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Section
4.15. Arbitration Agreement; Class Action Waiver. This Arbitration Clause is an agreement between the Merchant and
the Company to arbitrate disputes. “Disputes” has the broadest possible meaning, and includes but is
not limited to any and all disputes, claims or controversies, in law or in equity, between the Merchant and the Company arising
out of or relating in any way to the Agreement, any prior purchase agreement Merchant entered into with Company (a "Prior
Agreement"), the transaction this Agreement contemplates, any prior transaction under a Prior Agreement. “Disputes”
include , including without limitation,: (a) any claims of breach of contract, tort, usury, misrepresentation, conversion, fraud,
or unfair and deceptive trade practices, or (b) any claim of a violation of any local, state or federal statute, regulation, ordinance,
rule, etc.


At
the request of either the Merchant or the Company, any Dispute shall be decided in binding arbitration before the Merchant’s
choice of the American Arbitration Association (“the AAA”) or any other arbitration organization the Merchant choose
and that the Company approves of in writing (“the Arbitration Organization”). The arbitration shall be conducted under
the then current rules for the Arbitration Organization. The Merchant can get a copy of the rules from the AAA by calling (1-800-778-7879).
The arbitration hearing shall be conducted in the federal district in which the Merchant resides or in which the Agreement was
signed.


The
Merchant and the Company agree that once the Merchant or the Company have elected to arbitrate, binding arbitration is the exclusive
method for resolving any and all Disputes and that under this arbitration clause the Merchant and the Company are waiving the
right to a jury trial and the right to bring or participate in any class action in
court or through arbitration (this is referred to below as “the Class Action Waiver”).


The
arbitrators shall be attorneys or retired judges and shall be selected in accordance with the applicable rules. The arbitration
award shall be in writing, but without a supporting opinion unless such an opinion is requested by the Merchant or the Company.
If the Merchant elects arbitration first, the Merchant will pay one half of any arbitration filing fee. The Company will pay the
rest of the filing fee, and the whole filing fee if the Company elects arbitration first or if the arbitrator determines that
applicable law requires the Company to do so or that the Merchant is unable to do so. The Company will pay the arbitration costs
and fees for the first day of arbitration, up to a maximum of eight hours. The Company will also pay any fees and charges
that the arbitrator determines that the Company must pay in order to assure that this arbitration clause is enforceable. The
arbitrator shall decide who shall pay any additional costs and fees. The arbitrator shall have the authority to award fees, costs,
and injunctive or equitable relief in accordance with this arbitration clause and applicable law.


If
either the Merchant or the Company fail to arbitrate as required under this arbitration clause, the party electing arbitration
shall, unless prohibited by applicable law, be entitled to recover its/their attorneys’ fees and costs incurred in compelling
the other party to arbitrate the Dispute.


The
parties acknowledge and agree that the Federal Arbitration Act (9 U.S.C. § 1 et seq.) shall govern any arbitration under
this arbitration clause. 


If
any part of this arbitration clause conflicts with the terms of any other document or agreement between the parties or the rules
of the Arbitration Organization, the terms of this arbitration clause shall prevail. If any part of this arbitration clause other
than the Class Action Waiver shall be deemed or found unenforceable for any reason, the remainder of the arbitration clause shall
remain enforceable. If the Class Action Waiver shall be deemed or found unenforceable for any reason, the remainder of the arbitration
clause shall be enforceable.





The
Merchant and the Company agree that the mutual promises in this arbitration clause constitute the consideration necessary to make
this arbitration clause enforceable even if the Company does not enter into any further agreements. This arbitration clause shall
survive the termination, rescission or payment in full of this Agreement.





The
Merchant may opt out of this arbitration clause by notifying the Company in writing of the Merchant’s intent to do so. The
Merchant’s election to opt out must be mailed by first class mail postmarked no later than 10 days from the date of this
Agreement and addressed to the Company at:







Orange
Door Capital, LLC

330 E. Lambert Road, Suite 275

Brea, CA 92821 


If
more than one Merchant and/or Owner is shown in this contract, all Merchants and/or Owners must elect to opt out in order for
the opt-out to be effective.


 


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APPENDIX
A: FEES


Filing
Fee. Merchant shall be responsible for fees associated with the proper filing of any financing statements in the appropriate
jurisdiction. This fee may vary by state or county but is generally accepted to be equal to half of one percent of the Specified
Amount. This fee may be collected directly from the funds being dispersed to purchase receivables if not paid in full before funding.
This fee is non-refundable.


Underwriting
Fee. This fee is paid by the Merchant to the Company to cover the costs of underwriting. These fees include the cost of credit
reports, site surveys, and other administrative costs and proper filing of financing statements. This fee will be calculated as
follows: Advances with a Specified Amount of $7,500 or less will be assessed a fee of $295.00, advances with a Specified Amount
from $7,501-$50,000 will be assessed a fee of $395.00; advances with a Specified Amount from $50,001-


$100,000
will be assessed a fee of $595.00; advances with a Specified Amount from $100,001-$160,000 will be assessed a fee of $795.00;
and advances with a Specified Amount over $160,000 will be assessed a fee of .5% of the Specified Amount.


Monthly
Administrative Fee. A $50.00 fee is applied on the initial day of funding and every month thereafter,
until the Specified Amount is paid in full


Multiple
Site Inspection Fee. For any Merchant who has multiple locations, a fee of $100.00 per additional location will be collected.
If this is not paid in advance, this fee will be collected from receipts prior to the collection of the Specified Amount purchased
by the Company. This fee is non-refundable.


Wire
Transfer Fee. A $45.00 fee is applied for any wire transfer.


 


Monthly
Lockbox Fee (if applicable). A $40.00 fee is applied on the initial day of funding and every 30 days to follow, until the
Specified Amount is paid in full.


Bank
Account Change Fee. A $65.00 fee is applied anytime the Merchant changes bank accounts during the term of the Agreement.


NSF
Fee. A $50.00 fee will be applied to the Merchants account for each check or automated debit returned as NSF or otherwise
stopped.


Lockbox
Close Fee (if applicable). In the event that a Merchant is notified to change bank account affiliated with the lockbox and
Merchant fails to do so within 48 hours, a fee in the amount of $10.00 per day will be applied until the lockbox is closed.


Default
Waiver Fee. Upon Merchant's request, the Company may elect in its sole and absolute discretion to waive to occurrence of an
event of default hereunder, provided that Merchant shall pay a default waiver fee for each such waiver in the amount of


$5,000.00
to The Company, which shall be due and payable to the Company on demand. Such default waiver fee shall be payable for each event
of default. In addition, if a merchant obtains and completes another loan, purchase receivable financing and/or other financing
contract without the Company's written approval, then the default fee will be $10,000.00


 


Card
Processor / Bank Change Fee. Merchant shall pay to the Company $5,000.00 in the event that Merchant (i) uses multiple credit/debit/bank
card processing terminals without the prior written consent of the Company; or (ii) changes its credit/debit/bank card Processor
without prior written consent of the Company; or (iii) changes its bank depository accounts which have been agreed as payment
remittance sources without prior written consent of the Company; or (iv) any violation of Section 3.1 of this Purchase Agreement.
Such change fee (i) shall be due and payable to the Company on demand; (ii) is not exclusive of, and is cumulative with, any other
fee or amount paid or payable to the Company by Merchant pursuant to this agreement; and (iii) shall not be construed as a waiver
of any event of default hereunder or as otherwise operating to reduce or limit the Company’s rights or remedies provided
for hereunder or at law or in equity.


 


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