Document:

DISTRIBUTORSHIP
AGREEMENT

BY
AND BETWEEN

TOTALLY
HEMP CRAZY, INC.

("COMPANY")

AND

M
& S Up North Distributing

("DISTRIBUTOR")

 

Iowa

LIST
OF SCHEDULES

SCHEDULE
A TERRITORY

SCHEDULE
B PRODUCTS AND PAYMENT TERM

 

 

    	 		 

    	 

    

 

DISTIBUTORSHIP
AGREEMENT

 

THIS
DISTRIBUTORSHIP AGREEMENT (hereinafter
referred to as
the "Agreement") is
made and entered
into by
and between TOTALLY HEMP CRAZY, INC.
a Nevada corporation, located at 9101 LBJ Freeway, Suite
200, Dallas, TX 75243 (the "Company"), and
M & S Up North Distributing a Minnesota corporation, located
at 120 2nd Ave SW Suite 5 Roseau, MN 66751(the "Distributor'')

 

WITNESSETH:

 

WHEREAS,
the Company is in the business
of producing, canning, bottling, marketing and selling Hemp-Infused products (primarily beverages); and

 

WHEREAS,
the Company holds certain property rights, including,
but not limited to, rights to trade names, trademarks, service marks, logos,
formulas, patents and copyrights (hereafter referred to collectively as the "Trademarks");
and

 

WHEREAS,
the Company and Distributor desire to enter into a distributorship agreement for the
marketing, selling and distributing of certain Company products packaged in
various containers under the Trademarks within the Territory hereinafter described;
and

 

NOW
THEREFORE, for and in consideration of the mutual
agreements, covenants and obligations contained herein, and the performance thereof,
the parties, intending to be legally

bound,
agree as follows:

I.

RIGHT
TO SELL WITHIN THE TERRITORY

 

1.1
Grant of Right
to Distributor. The
Company grants to
Distributor the right,
subject to Section 1.3 hereof, in the Territory described in and attached hereto
as Schedule “A" (the "Territory"), to sell those products in
the containers listed and described
in Schedule "B" hereto (the "Products").
Distributor may sell accounts within the Territory to the extent permitted in Section

1.4
hereof.

 

1.
..
2                           Acceptance of
Right to Distribute. Distributor hereby accepts the right
to sell the Products within the Territory and agrees to exercise such rights in accordance with
the terms of this Agreement. Distributor further agrees that it will use
its best efforts to solicit, promote, increase or
cause to be increased the sales of the Products in the
Territory. Distributor shall maintain sufficient personnel, delivery and
distribution facilities, and equipment and vehicles to ensure that it has the capacity and capability to deliver the Products in sufficient
quantities to fully satisfy the demand for the Products in the
Territory.

 

1
..
3                              Sales within
the Territory and the Parties' Reserved Rights. The
Company reserves the right to sell the Products, or to grant the right to
other Distributors to sell the Products, inside or outside of the Territory.
The Company may sell within the Territory via the Internet
and the Company may sell within the Territory, any item
not listed on Schedule "B".

  

    	 	2	 

    	 

    

 

1..4                               Restriction on Distributor's Sales Outside of the Territory. Nothing herein shall
be deemed to grant Distributor the right, or otherwise permit Distributor, to
sell the Products outside of the Territory. Distributor shall not sell any Products outside the Territory, nor
shall Distributor sell any Products in the Territory to a wholesaler, retailer
or otherwise which are ultimately shipped outside the Territory. Distributor
may sell to wholesalers within the Territory, but only if such wholesaler resells
the Products for Direct Delivery within
the Territory. Distributor may sell Products outside the Territory upon
the reasonable written request to the Company, and upon such commercially
reasonable terms as the parties
may agree.

 

1..5                             
Right of First Refusal.
The Company grants to Distributor a qualified right of first refusal, within the
Territory only, to be the distributor of any new beverage Products introduced into
the market by the Company. Distributor must exercise this right within 60
days of official Company Product launch into
the marketplace by sending a written acceptance to the Company. This acceptance must be accompanied with a written plan
showing the Company how the Distributor has or will gain the capability to
distribute, market and promote the new Products, and that Distributor has all licenses and other
required documentation necessary to distribute the new Products in
the Territory. The Company has sole discretion as to whether or not Distributor is qualified
to  distribute

the
new Products.

 

1..6                             
Exclusivity of Products.
Distributor agrees that in order for this Agreement to
become and remain
effective, Distributor will
not market, promote,
sell or otherwise
distribute in any manner whatsoever,
any hemp infused beverages or other products related
thereto, other than those of the Company. A breach of this section 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 forth in Schedule
B.

II.

TRADEMARKS

 

2.1        
Ownership of Trademarks and Use Thereof by Distributor. Distributor
acknowledges the Company's
exclusive right,
title and
interest in
and to the
Trademarks. Distributor is only
authorized to use point of sale (POS) items,
banners, artwork, wearable and any other materials of any nature whatsoever
containing, displaying or utilizing any of the Company's Trademarks, Images or graphic
artwork which are delivered by the Company to Distributor, at Distributor's cost,
which may be derived in part
from the Cooperative Merchandising Fund set forth in 3.3 herein. Distributor
shall not create, develop, market or sell any of these Items
on their own without
written permission from the
Company.

 

2.2        
Defense of Licensed Rights and Trademarks. Distributor agrees
to timely notify the Company of any claim or action, or threatened claim
or action, for infringement or
alleged infringement of any Trademarks, patents or trade secrets made against it
or the Company due to its exercise of
any rights granted under this Agreement or activities of the Company undertaken in

 

 

    	 	3	 

    	 

    

 

support
of Distributor in the Territory. Distributor agrees to cooperate fully with the Company in any Trademark or patent infringement
action by or against the Company.

 

2.3        
Cessation of Use of Trademarks. Upon termination of this Agreement, Distributor shall Immediately
cease all use whatsoever of the Trademarks and shall not thereafter use the Trademarks or adopt any other designation
similar to or which is likely to be confused with the Trademarks.

2.4        
Compliance with Laws.
Distributor shall comply with
all applicable laws,
regulations and ordinances pertaining
to trademarks, at
all times when
using the Trademarks.

 

III.

ADVERTISING

 

3.1            
Substance of Advertising.
 In its
advertising, Distributor shall
represent that it
has the Products available
for sale along with the other
items and services that it offers,
provided that it does not represent
that it is the agent or representative of
the Company. Distributor may display the Trademarks on its trucks or other equipment,
the clothing worn by its employees, agents or representatives, and on any of its other
property, but only consistent with 2.1 above. Any requests for variations of colors and graphics used by Distributor depicting
the Trademarks or other Intellectual property
of the Company must be consistent
with the styles and formats specified by
the Company and must be approved by the Company
in writing prior to use by Distributor.

 

3.2            
Advertising Requirements I Restrictions. Distributor must have written Company approval all of its
advertising, sales, marketing and promotional material in which
any of the Products are mentioned. Distributors utilizing any of the Company Trademarks, must use the appropriate trademark
notices, copyright notices and trademark designations. Distributor shall maintain a
prominent "Website" advertisement
and listing of
the Products offered
by it.
The content of this
website shall be subject to review and
approval by the Company.

 

3.3                  
Cooperative Merchandising Fund. Company will place $.50
I case for each case ordered by the Distributor into a Cooperative Merchandising
Fund. This total $.50 I case Cooperative Merchandising Fund may be used by the Distributor for "mutually agreed upon"
promotional activities such as POS Materials, truck graphics, price promotions, etc.

 

3.4            
Approval. Distributor agrees that all advertising and sales and promotional materials (hereinafter
collectively referred to as "Advertising") in which any of the Products
are mentioned and/or any of the Trademarks are used shall be subject to the prior
written approval of the Company, said approval not to be unreasonably withheld.

 

3.5                
Sales and Service Telephone
Numbers. Distributor shall use and publicize to its customers the Distributor
owned telephone number anywhere Distributor’s customer sales
and service telephone numbers are listed.

 

3.6             
Websites. Distributor shall utilize the Company's
proprietary Internet site, and may link to "TOTALLYHEMPCRAZY.COM” as a
source for new customers and related matters.

 

    	 	4	 

    	 

    

 

IV.

DISTRIBUTION
OF THE PRODUCTS

 

4.1             
Solicitation of Accounts. Distributor will proactively solicit accounts and promote the Products throughout
the Territory for sales of the Products and will maintain regular routes to service
same.

 

4.2               
Servicing. Distributor shall service all of its accounts with such frequency as is reasonably necessary to
keep them fully supplied with, and satisfy
fully the demand for, the Products in the Territory and shall maintain
an adequate supply of the Products to promptly meet and satisfy fully the
demands for the Products within the Territory, including,
but not limited to, peak seasonal demands.

 

V.

QUALITY
CONTROL

 

5.1             
Cleanliness Standards. Distributor shall comply with all ordinances, laws and regulations pertaining to the
sale, storage, transportation and distribution of the Products and the operation of its facilities. Distributor shall at all times
maintain all of its facilities and equipment used in the sale, storage, transportation
and distribution of the Products in a clean, wholesome and sanitary condition. Company
personnel may inspect storage and other facilities of Distributor (owned or leased}
at any time during normal working hours upon reasonable notice.

 

5.2             
Rotation. Distributor recognizes the shelf life of the Products, and acknowledges that rotation ensures maximum
quality. Distributor agrees to take all reasonable steps necessary to see that all
such Products sold by it are properly rotated in
conformity with the date stamped on the labels of the containers. Distributor
agrees that it will not store the Products outside, unprotected from temperature fluctuations and the
elements.

 

5.3             
Quality of the Products. The Company agrees that it will use
its commercially reasonable, good faith efforts to maintain the high quality
of all of Products delivered to Distributor.

 

VI.

PRICING
AND DELIVERY OF THE PRODUCTS

 

6.1        
Supply of Products; Pricing. The Company
will supply Distributor with the Products at the prices and on the payment terms listed on
Schedule "B" or as otherwise may be mutually agreed between the Company and Distributor in writing. The
Company requires a 100% Payment made for the Products prior to shipment. The Company
may increase such prices upon sixty (60} days
written notice to
Distributor. The Company
will use its
commercially reasonable, good
faith efforts to supply the Products in the quantities requested by Distributor and as promptly as commercially and reasonably
practicable after an order is received from Distributor.

 

    	 	5	 

    	 

    

 

6.2        
Ordering Procedures. Distributor shall
submit to the
Company firm purchase
orders in accordance with Schedule "B" in advance of the delivery
dates specified. A purchase order may be submitted
and accepted
in writing, by fax
or by e-mail. All purchase orders shall
specify the quantity and type of Product, the requested delivery date, the delivery
point(s), and any other special Instructions with regard to shipping,
packaging or delivery. All purchase orders
received by the Company shall constitute Distributor's
binding commitment to purchase the quantity
and type of Product set forth therein
at the purchase price then in
effect on the dale
the Company receives the purchase order.

 

6.3        
Delivery. Distributor shall pick up Products at
the Company's warehouse. Title to the Products and risk of toss shall pass to Distributor
upon pick-up at the Company's warehouse by Distributor, independent
carrier or another third party.

 

6.4        
Inspection of Products. Distributor will only
be required to pay for the Products which
are provided to
Distributor free of
defects at the
time of
pick up
at Company's warehouse. Auditors
of Distributor shall promptly and immediately
Inspect all containers for damage
and shall not accept any containers
that do not pass that inspection.
The Company will
either not charge Distributor
for, or shall
provide a credit to Distributor
for, any damaged containers Distributor receives from the Company and which
Distributor discovers to be damaged
during its prompt inspection of such containers
upon their receipt by Distributor. The Company shall not be responsible
for, and Distributor
shall indemnify, defend and
hold the Company
wholly harmless from, any damages, loss,
claim, liability or expense of
any customer of Distributor caused, in whole or in part, by a damaged container. The
Products will be deemed received free of defects unless (I) any patent defects in
the Products are noted on the delivery
receipt at the time of delivery
to Distributor and immediate written notice
thereof is provided to
the Company, or (ii) the Company is notified in writing or in any manner acceptable
to the Company within thirty (30) days after delivery of any of the Products containing latent defects. The Company will
not be responsible for damages occurring
during shipment to the Distributor at Distributor's warehouse or during delivery
by Distributor, at its customers' premises,
during return from the Customer to Distributor, or during
the return from Distributor
to the Company.

 

6.5        
Price Levels.
The Company may
from time to
time suggest to
Distributor the
prices at which
Products might be
sold by Distributor to its customers.
Such suggested retails are
advisory only and non-binding
on Distributor, and both the Company and
Distributor acknowledge and agree that Distributor has sole, complete and absolute discretion to establish and maintain
the prices at which it
sells the Products to its
customers. Distributor acknowledges its
obligations to maximize
its sales and selling efforts
in the Territory as provided in
Section 1.2 of this Agreement
and further acknowledges that by setting
its prices so as
to be no longer
competitive in the Territory,
Distributor may thereby breach the terms of this Agreement.

 

6.6        
Force Majeure. The failure by either Party to perform its
obligations hereunder shall be completely excused, without liability to either
Party, to the extent that such failure to perform results directly or indirectly
from "acts of God" (including flood, fire or natural casualties);
strikes, slowdowns or other labor disputes or shortages; civil unrest or sabotage; shortages of materials, transportation or supplies;
direct or indirect acts, orders or regulations of any governmental body; or any other causes beyond the reasonable control of
the Party.

 

 

    	 	6	 

    	 

    

 

6.7        
Reporting. At reasonable intervals (an in
any event, not less frequently than quarterly},
Distributor will
provide to the
Company information
regarding Products sold,
promotional activities or other
information reasonably requested by the
Company.

 

VII.

TAXES
AND EXPENSES

 

7.1
Expenses. Charges. Fees and Taxes. Distributor will pay and discharge
at its own expense any and
all expenses, charges,
fees and taxes
arising out of
or incidental
to the carrying
on of its business, including,
without limiting the generality of the foregoing, all worker's compensation, unemployment insurance
and social security taxes, sales, use, income, business and franchise taxes levied or assessed with respect to its business
and/or employees, and Distributor will Indemnify,
defend and save harmless the Company
against any and all claims for such expenses,

charges,
fees and taxes.

 

 

VIII.

INSURANCE,
WARRANTIES AND INDEMNIFICATION

 

8.1        
Duty to Defend, Indemnify and Hold Harmless. Distributor
agrees to indemnify,
defend and hold harmless the Company,
its officers, employees, agents and representatives from and against any and all claims,
causes of action, damages, claims for damages, liability,
loss, cost or expense, including reasonable
attorneys' fees and expenses of litigation, arising out of or in
any way related to performance of this Agreement by Distributor, except claims arising
from the sole gross negligence of the Company.

 

Without
limiting the foregoing, Distributor agrees
to indemnify, defend and hold
harmless the Company, its officers,
agents, employees and representatives from any and all such claims,
including but not limited to claims
for property damage, bodily injury, loss of
consortium. emotional distress or death, whether sustained or alleged to have been
sustained by Distributor's employees, the Company's employees or any other person
or entity, and including but not limited
to claims, injuries or damages caused
or alleged to be caused in whole or in 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. Distributor also agrees to indemnify,
defend and hold harmless the Company, its
officers, employees, agents and representatives from any and all such claims, whether or not they arise from or are alleged
to be caused in part by the negligence or gross negligence of the Company, its
agents, officers, employees, or representatives. However, Distributor shall
not be obligated to indemnify the Company against any claim
arising from the sole gross negligence
of the Company. The
foregoing indemnity, defense and hold harmless obligations shall apply to all such claims, losses or liabilities, whether such
claims arise from Products acquired by Distributor from the Company prior to the execution of this Agreement or subsequent thereto.

 

 

    	 	7	 

    	 

    

 

8.2        
Insurance Coverage. Distributor further agrees to procure and maintain, at its sole cost and expense from
an insurance carrier reasonably acceptable
to the Company, Comprehensive General U Ability Insurance
and Automobile Liability Insurance, all in
conformance with the requirements of this Agreement.

 

The
Company, shall be named as an additional insured on each of the
above-listed policies. Distributor
shall provide the Company certificates of insurance evidencing the existence and maintenance
of each of these policies and the fact
that the Company is afforded insurance coverage as an additional insured
under each of the policies specified above.

 

Distributor's
failure to provide said certificates of insurance, and the Company's failure to insist
that such certificates be furnished to it, shall not relieve Distributor of
its obligation to procure insurance as
required herein.

 

The
insurance required by this Section shall specifically include
and provide contractual liability insurance
covering Distributor's obligations
under the
indemnity provisions
of this Agreement as
set forth in Section 8.1 above.
Said insurance shall provide primary
coverage to the Company, and any other insurance which may be available to
the Company for any claim, loss or liability
encompassed by this Agreement
shall be excess over the insurance required
by this 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.

 

All
insurance policies shall contain a provision that the coverages afforded thereunder
shall not be canceled or not renewed, nor restrictive modifications added, until
at least thirty (30) days after prior written
notice has been given the Company.

 

In
the event
Distributor fails to
obtain or maintain
any insurance
coverage required under
this Agreement, the Company may at its
option purchase such coverage and charge the expense thereof to
Distributor or terminate
this Agreement.

 

8.3        
Limitations of Distributor's
Remedies Distributor's sole and exclusive remedy against the Company for
defective Products or deficient services, as the case may be, shall be, at the option of the Company, the replacement thereof
or a credit to Distributor's account for the cost thereof. Distributor's remedy 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 herewith 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 lost
profits, lost revenues or lost
opportunity costs

    	 	8	 

    	 

    

 

IX.

DEFAULT

9.1        
Events of Default. Distributor shall be deemed to be in default
of the terms of this Agreement if any one of
the following events ("Events of Default") occur:

		a)	Distributor
                                         attempts to dispose, assign or sub-license the
                                         rights, privileges and obligations created
                                         by this Agreement;

		(b)	Distributor
                                         violates any of the terms and conditions of this
                                         Agreement:

		(c)	Majority
                                         ownership of Distributor
                                         changes;

(d)         
Distributor shall file a voluntary petition
in bankruptcy or take the benefit of any insolvency
act or be dissolved or adjudicated bankrupt or if a receiver shall be appointed
for Distributor's business or its assets and the appointment of such receiver is
not vacated within thirty (30) days after such appointment, or if Distributor
shall make an assignment for the benefit of its creditors, or if the interest
of Distributor passes by operation of law to any person or entity other than  Distributor:

(e)         
Distributor becomes insolvent, regardless of how said
Insolvency may be evidenced;

(f)
Distributor fails to pay the Company for the Products on a timely basis:

		(g)	Distributor
                                         fails to purchase Products within 10 business
                                         days of the signing of this Agreement.
                                         Company may immediately Terminate this Agreement
                                         with no cure period needed; or

 

		(h)	Distributor
                                         fails to achieve Volume Objectives.

 

9.2        
Remedies. Upon the occurrence of an Event of Default, the Company
may give written notice to Distributor demanding that the condition of default be cured within ten (10) calendar days and, if
not so cured, the Company, in addition to any other rights
or remedies it may have, may do any one or more of the
following:

 

(a)   
Commence a collection action to recover all sums of money due, reserving the right
to recover for such other sums of money which may become due under this Agreement or otherwise;

		(b)	Commence
                                         an action to specifically enforce its rights under
                                         this Agreement:  or

		(c)	Immediately
                                         terminate
                                         this Agreement.

 

9.3        
Remedies Cumulative. All rights and remedies granted under
this Agreement shall be cumulative, and resort by the Company to any one remedy provided for hereunder shall
not exclude or prevent the Company from pursuing any other rights and remedies
provided under this Agreement or by law.

9.4       
Attorneys' Fees. If the Company or Distributor
brings an action to enforce or assert any
right granted pursuant to this
Agreement and is successful in such action, the unsuccessful party
shall pay all
reasonable costs and
expenses, including
reasonable attorneys' fees,
incurred by the successful
party in exercising its
rights and
remedies hereunder.

 

    	 	9	 

    	 

    

 

X.

TERM

 

10.1      
Term, This Agreement shall
commence on the date of its execution and shall continue
in full
force and effect
for a period
of one
(1) year
thereafter, (the "Primary
Term"), unless sooner 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. Notwithstanding 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. In
the event that
this Agreement
is terminated as
provided for herein
or is not renewed
in accordance with Section 10.1,
neither the Company nor Distributor shall
have any claim or right against the other as a result thereof, and neither shall
have any further responsibility for the performance of any term,
provision. or condition of the Agreement except as contained in the last sentence
of Section 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,
12.9 and 12.10, or except
as resulting from action or inaction during the term of this Agreement or relating to the payment of outstanding monies
owned to the Company or Distributor, as the case may be.

 

 

XI.

ASSIGNMENT

 

11.1
Assignment. This
Agreement is
personal as to
the Company and
Distributor. The rights, duties
and obligations pursuant to this
Agreement cannot be transferred, assigned, pledged.
made subject to a security
interest, or otherwise disposed
of by either the Company or Distributor
in whole or in part.

 

XII.

MISCELLANEOUS

 

12.1  
Purchase Orders
I Invoices. Company requires a 100% Payment made for the Products
prior to
shipment.

 

12.2  
Notice. All notices, consents,
waivers, and other communications under this Agreement must be in writing and will be
deemed to have been duly given (a) when delivered by hand (with
written confirmation of receipt), (b) three (3) days after being deposited In the
mails, if sent by certified mail, with return receipt requested, (c) upon confirmed receipt, if sent by facsimile transmission
during normal business hours of the receiving party on a business day, (d) one (1) day after sending, if
sent by a nationally recognized overnight delivery service (receipt requested)
specifying next day delivery, or (e) same day if sent via e-mail, In
each case to the appropriate addresses or telecopy numbers set forth on the signature page hereto (or to such other addresses
or telecopy number as a party may designate by notice to the other parties).

 

    	 	10	 

    	 

    

 

12.3         
No Partnership, Joint
Venture. Franchise. Employer/Employee
Relationship. It
is understood and agreed that Distributor is an independent contractor, and
this Agreement and the relationship created
hereby shall not
be considered to be a partnership,
joint venture, franchise,
or an employer/employee relationship, and
neither the Company nor Distributor shall
have the right or 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 and Distributor
affirm that they are validly constituted corporate entities with full right, power and authority to enter into this Agreement
and to perform their respective obligations hereunder.

 

12.5         
Waivers. No failure or delay on the part of the Company or Distributor to exercise any right,
power or remedy shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy under this Agreement. No amendment, modification or waiver
of any provision of this Agreement shall be effective unless the same shall be in writing
signed by the Company and Distributor.

 

 

12.6         
Governing Law and Jurisdiction. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Texas. Distributor hereby consents
to service of process in, and to the sole and exclusive jurisdiction of the state
or federal courts of Dallas County, Texas with respect to any disputes of any nature whatsoever which may arise between the Company
and Distributor relating to the rights and obligations under this Agreement.

 

 

		12.7	Confidentiality.
                                         During the Primary Term and any Renewal Term and for the
                                         three

(3)    
year period following the termination hereof for any reason, the parties hereto shall keep the terms and conditions of this Agreement,
the transactions contemplated hereby, and either party's records, books, data and other confidential information concerning the
Products, either party's accounts, employees, client development (including customer
and prospect lists), sales activities and procedures, promotional and marketing techniques,
pricing, marketing or business plans and strategies, financing, development and expansion plans
and credit and financial data concerning customers and suppliers and all other business information involving
either party (all collectively, the "Confidential Information") strictly confidential, and neither
the Company nor Distributor will make, or cause or permit to be made, any disclosure of any such Confidential Information
to any person (it being understood, however, that in any event such Confidential
Information may be disclosed on a confidential basis to the parties' respective employees and professional advisers who have a
need to know such information).

 

    	 	11	 

    	 

    

 

12.8         
Entire Agreement. This Agreement, which incorporates herein by reference Schedules
"A" and "B",
constitutes the entire,
complete and exclusive
statement of the
terms of the agreement
between the parties
with respect to
the subject matter
hereof and supersedes
and cancels any prior agreements, understandings, covenants, promises, assurances,
course of dealing or performance, representations,
warranties, or communications, whether
oral or written, between the parties hereto. No covenant, term, provision, representation
or agreement not expressly contained herein shall be Implied as a matter of law, interpretation,
coarse of performance or conduct of the
parties. Neither this Agreement nor
any provision hereof may be amended,
waived or modified 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 any terms or provisions of this Agreement are
deemed to be invalid or unenforceable, such determination shall not affect the validity
or enforceability of the remaining terms and provisions hereof.

 

12.10     
0 Benefited Parties. This Agreement shall be binding upon and
Inure to the benefit of any permitted purchasers, successors or assigns of the
Company and Distributor.

 

 

 

IN
WITNESS WHEREOF, this Agreement has been executed
on this 30th day of July, 2015.

 

 

THE
COMPANY

TOTALLY
HEMP CRAZY, INC.

By:
/s/Tom Shuman

Print
name: Tom
Shuman

Its:
President I
CEO

 

DISTRIBUTOR:

By:
/s/Shawn Burkel

Print
Name: Shawn Burkel

Title:
President/CEO

 

 

Addresses:

 

TOTALLY
HEMP CRAZY, INC

9101
LBJ Freeway I Suite 200 Dallas,
TX  75243

Attn:
Tom Shuman Title:
CEO I President

Phone:
214-212-5006

E-mail:
Tom@TotallyHempCrazy.com

 

M
& S Up North Distributing

			120
                                         2nd Ave SW Suite 5 Roseau, MN 66751

Attn:
Shawn Burkel

Title:
President/CEO

Phone:
218-242-0604

Email:
mandsupnorth@mncable.net

 

 

 

    	 	12	 

    	 

    

SCHEDULE
A

TERRITORY
GRANTED

The
Territory set forth
for this Agreement
encompasses the counties
of _See below , State
of Iowa

Polk
County 459,862

Linn
County217.751

Scott
County171.387

Johnson
County142,287

Black
Hawk County132.89

Woodbury
County102.271

Dubuque
County96.370

Story
County94.073

Pottawattamie
County93,128

Dallas
Country77.400

Clinton
County48.051

Warren
County47,956

Cerro
Gordo Country43,254

Muscatine
County42,903

Marshall
County40,866

Des
Moines County40.255

Webster
County36.955

Jasper
County36,872

Lee
County35,285

Wapello
County35,212

Sioux
County34,681

Marion
County33,365

Boone
County26,433

Benton
County25,680

Plymouth
County24,874

Bremer
County24,721

Mahaska
County22,370

Washington
County22,070

Buchanan
County21,038

Winneshiek
County 20,768

Buena
Vista County20,578

Carroll
County20,562

Jones
County20,454

Fayette
County20,343

Henry
County20,217

Jackson
County19,482

Poweshiek
County18,668

Cedar
County 18,411

Clayton
County 17,692

Tama
County17,451

Delaware
County17,398

Jefferson
County17,325

Hardin
County17,311

Crawford
County17,228

Dickinson
County16,935

Clay
County16,515

Iowa
County16,375

Floyd
County16,077

Madison
County15,609

Page
County15,496

Kossuth
County15,222

Hamilton
County15,117

Butler
County15,006

Mills
County14,831

Harrison
County14,324

O’Brien
County14,056

Allamakee
County14,038

Cass
County13,448

Wright
County12,840

Appanoose
County12,661

Union
County12,516

Grundy
County12,375

Chickasaw
County12,264

Shelby
County11,948

Cherokee
County11,836

Lyon
County11,683

Louise
County11,161

Hancock
County11,026

Mitchell
County10,779

Guthrie
County10,722

Winnebago
County10,559

Franklin
County10,436

Montgomery
County10,421

Keokuk
County10,231

Sac
County10,035

Emmet
County9,990

Calhoun
County9,866

Humboldt
County9,640

Howard
County9,449

Clarke
County9,217

Greene
County9,200

Palo
Alto County9,099

Monona
County8,996

Davis
County8,781

Lucas
County8,701

Decatur
County8,263

Monroe
County8,001

Worth
County7,624

Van
Buren County7,468

Adiar
County7,454

Pocahontas
County7,138

Ida
County7,042

Fremont
County7,022

Wayne
County6,395

Osceola
County6,218

Taylor
County6,143

Audubon
County5,794

Ringgold
County5,051

Adams
County3,875

Total
Population3,107,12

 

    	 	13	 

    	 

    

 

SCHEDULE
B

 

PRODUCTS.
PRICE & PAYMENT TERMS

 

		PRODUCTS:	ROCKY
                                         MOUNTAIN HIGH HEMP
                                         ENERGY DRINK
                                         ROCKY MOUNTAIN HIGH HEMP ICED
                                         TEA ROCKY MOUNTAIN HIGH
                                         HEMP LEMONADE ROCKY MOUNTAIN HIGH HEMP
                                         COCONUT LIME

RIGHT
OF FIRST REFUSAL ON NEW
BEVERAGE PRODUCTS PACKAGE SIZE:12
- PACK / 12 oz. SLIM-LINE CANS PER CASE

FOB
COMPANY WAREHOUSE PRICING TO DISTRIBUTOR:

$
12.00 PER CASE I MINIMUM ONE (1) PALLET*

208
CASES I PALLET

20
PALLETS PER TRUCKLOAD I CONTAINER LOAD 4,160 CASES PER TRUCKLOAD I CONTAINER LOAD

		*	Minimum
                                         Order
                                         per SKU
                                         is
                                         one (1)
                                         pallet I
                                         NO "mixed
                                         pallets" of
                                         all 4
                                         products.

 

VOLUME
OBJECTIVE

DISTRIBUTOR
HAS THE FOLLOWING VOLUME REQUIREMENTS:

Purchase
of _20_ pallets
of the Products
per quarter beginning 
7/8/2015.

 

 

COOPERATIVE
MERCHANDISING FUND

 

Company
will place $.50 I case for each case ordered by the Distributor into a Cooperative Merchandising Fund. This total $.50
I case Cooperative Merchandising Fund may be used by the Distributor for "mutually agreed upon" promotional activities
such as POS Materials, 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
in 2015.

 

PAYMENT
TERMS:

Company
requires a 100% Payment made for the Products prior to shipment.

 

    	 	14	 

    	 

    

 

 

SCHEDULE
B

REVISED
for Iowa

10
/ 22/ 15

 

 

 

PRODUCTS,
PRICE & PAYMENT TERMS.

		PRODUCTS:	ROCKY
                                         MOUNTAIN HIGH HEMP ENERGY
                                         DRINK ROCKY MOUNTAIN HIGH HEMP ICED TEA ROCKY MOUNTAIN HIGH HEMP LEMONADE ROCKY
                                         MOUNTAIN HIGH HEMP COCONUT LIME ROCKY MOUNTAIN HIGH HEMP MANGO
                                         ENERGY

 

PACKAGE
SIZE:12 - PACK / 12 oz. SLIM-LINE CANS PER CASE

 

FOB
COMPANY WAREHOUSE PRICING TO DISTRIBUTOR:

$
12.00 PER CASE I MINIMUM ONE (1) PALLET*

 

208
CASES I PALLET

20
PALLETS PER TRUCKLOAD I CONTAINER LOAD 4,160 CASES PER TRUCKLOAD I CONTAINER LOAD

 

		*	Minimum
                                         Order per
                                         SKU is one
                                         (1) pallet
                                         I NO
                                         "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 10 I 22 /2015.

 

COOPERATIVE
MERCHANDISING FUND

Company
will place $.50 I case for each case ordered by the Distributor into a Cooperative Merchandising
Fund. This total
$.50 I case
Cooperative Merchandising Fund may
be used by the
Distributor for "mutually
agreed upon" promotional
activities such as
POS Materials, 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
in 2015.

 

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 12 months.

 

PAYMENT
TERMS

Company
requires a 100% Payment made for the Products prior to shipment

 

    	 	15DISTRIBUTORSHIP
AGREEMENT

 

 BY
AND BETWEEN

 

TOTALLY
HEMP CRAZY, INC.

("COMPANY").

 

AND

 

M
& S Up North Distributing ("DISTRIBUTOR")

 

 

WISCONSIN

LIST
OF SCHEDULES

SCHEDULE
A TERRITORY

SCHEDULE
B PRODUCTS, PRICE, AND TERM

 

    	 		 

    	 

    

 

DISTRIBUTORSHIP
AGREEMENT

 

THIS
DISTRIBUTORSHIP AGREEMENT (hereinafter
referred to as
the "Agreement") is
made and entered into by and between
ROCKY MOUNTAIN HIGH BRANDS, INC. a Nevada
corporation, located at 9101 LBJ Freeway, Suite 200, Dallas, TX 75243 (the "Company"), and M & S Up North Distributing,
a Minnesota corporation, located at 120 2nd Ave SW Suite 5 Roseau, MN 56751 (the “Distributor").

 

WITNESSETH:

 

WHEREAS,
the Company is in the business of producing, canning, bottling, marketing and selling Hemp-Infused products (primarily beverages);
and

 

WHEREAS,
the Company holds certain property rights, including, but not limited to, rights
to trade names, trademarks, service marks, logos, formulas, patents and copyrights (hereafter referred to collectively as
the "Trademarks"); and

 

WHEREAS,
the Company and Distributor desire to enter into a distributorship agreement for the marketing, selling and distributing of certain
Company products packaged in various containers under the Trademarks within the Territory hereinafter described; and

 

NOW
THEREFORE, for and in consideration of the mutual agreements, covenants and obligations
contained herein, and
the performance thereof,
the parties, intending to
be legally bound, agree
as follows:

 

I.

RIGHT
TO SELL WITHIN THE TERRITORY

 

1.1              
Grant of Right to Distributor. The Company grants to Distributor the right, subject to Section
1.3 hereof, in the Territory described in and attached hereto as Schedule "A"
(the "Territory"), to sell those products in the containers listed and described in Schedule "B" hereto
(the "Products"). Distributor may sell accounts within the Territory to the extent permitted in Section 1.4 hereof.

 

1.2              
Acceptance of Right to Distribute. Distributor hereby accepts the right to sell the Products within the Territory
and agrees to exercise such rights in accordance with the terms of this Agreement. Distributor further agrees that it will use
its best efforts to solicit, promote, increase or cause to be increased the sales of the Products in the Territory. Distributor
shall maintain sufficient personnel, delivery and distribution facilities, and equipment and vehicles to ensure that it has the
capacity and capability to deliver the Products in sufficient quantities to fully satisfy the demand for the Products in the
Territory.

 

1.3             
Sales within the Territory and the Parties’ Reserved Rights. The Company reserves the right
to sell the Products, or to grant the right to other Distributors to sell the Products, inside or outside of the Territory. The
Company may sell within the Territory via the Internet and the Company may sell within the Territory, any item not listed on Schedule
“B".

 

 

    	 	2	 

    	 

    

 

1.4              
Restriction on Distributor’s Sales Outside of the Territory. Nothing herein shall be deemed to grant
Distributor the right, or otherwise permit Distributor, to sell the Products outside of the Territory. Distributor shall not sell
any Products outside the Territory, nor shall Distributor sell any Products in the Territory to a wholesaler, retailer or otherwise
which are ultimately shipped outside the Territory. Distributor may sell to wholesalers within the Territory, but only
if such wholesaler
resells the Products
for Direct Delivery
within the Territory.
Distributor may sell Products
outside the Territory upon the reasonable written request to the Company, and upon such commercially reasonable terms as the parties
may agree.

 

1.5              
Right of First Refusal. The Company grants to Distributor a qualified right of first refusal, within the
Territory only, to be the distributor of any new beverage Products introduced into
the market by the Company. Distributor must exercise this right within 60 days of official Company Product launch into the marketplace
by sending a written acceptance to the Company. This acceptance must be accompanied with a written plan showing the Company how
the Distributor has or will gain
the capability to
distribute, market and
promote the new
Products, and that
Distributor has all licenses and other required documentation necessary to
distribute the new Products in the Territory. The Company has sole discretion as to whether or not Distributor is qualified to
distribute the new Products.

 

1.6              
Exclusivity of Products. Distributor agrees that in order for this Agreement to
become and remain effective, Distributor will not market, promote, sell or otherwise distribute in any manner whatsoever,
any hemp infused beverages or other products related thereto, other than those of the Company. A breach of this section 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 forth in Schedule
B.

 

II.

TRADEMARKS

2.1
Ownership of Trademarks and Use Thereof by Distributor. Distributor
acknowledges the Company's exclusive right, title and interest in and to the Trademarks. Distributor is only authorized to use
point of sale (POS) items, banners, artwork, wearable’s and any other materials of any nature whatsoever containing, displaying
or utilizing any of the Company's Trademarks, images or graphic artwork which are delivered by the Company to Distributor, at
Distributor's cost, which may be derived in part from the Cooperative Merchandising Fund set forth
in

3.3
herein. Distributor shall
not create, develop,
market or sell
any of these
items on their
own without written permission from the
Company.

 

2.2                
Defense of Licensed Rights and Trademarks. Distributor agrees to timely
notify the Company of
any claim or
action, or threatened
claim or action,
for infringement or
alleged infringement of any Trademarks, patents or trade secrets made against
it or the Company due to its exercise of any rights granted under this Agreement or activities of the Company undertaken in support
of Distributor in the Territory. Distributor agrees to cooperate fully with the Company in
any Trademark or patent infringement action by or against the Company.

 

    	 	3	 

    	 

    

 

2.3                
Cessation of Use of Trademarks. Upon termination of this Agreement, Distributor shall immediately cease all
use whatsoever of the Trademarks and shall not thereafter use the Trademarks or adopt any other designation similar to or which
is likely to be confused with the Trademarks.

 

2.4                
Compliance with Laws. Distributor shall comply with all applicable laws, regulations and
ordinances pertaining to
trademarks, at all
times when using
the Trademarks.

 

III.

ADVERTISING

 

3.1               
Substance of Advertising. In its advertising, Distributor shall represent that it has the Products available
for sale along with the other items and services that it offers, provided that it does not represent that it is the agent or representative
of the Company. Distributor may display the Trademarks on its trucks or other equipment, the clothing worn by its employees, agents
or representatives, and on any of its other property, but only consistent with 2.1 above. Any requests for
variations of colors and
graphics used by
Distributor depicting the
Trademarks or other
intellectual property of the Company must be consistent with the styles and formats specified by the Company and must be
approved by the Company in writing prior to use by
Distributor.

 

3.2               
Advertising Requirements I Restrictions. Distributor must have written Company approval all of its advertising,
sales, marketing and promotional material in which any of the Products are mentioned.
Distributors utilizing any of the Company Trademarks, must use the appropriate trademark notices, copyright notices and trademark
designations. Distributor shall maintain a prominent "Website" advertisement and listing of the Products offered by
it. The content of this website shall be subject to review and approval by the Company.

 

3.3                    
Cooperative Merchandising Fund. Company will place $.50 I case for each case ordered by the Distributor
into a Cooperative Merchandising Fund. This total $.50 I case Cooperative
Merchandising Fund may be
used by the
Distributor for "mutually
agreed upon" promotional activities such as POS Materials, truck graphics, price
promotions, etc.

 

3.4               
Approval. Distributor agrees that all advertising and sales and promotional materials (hereinafter
collectively referred to as
"Advertising") in which
any of the
Products are mentioned
and/or any of the Trademarks are used shall be subject to the prior written approval of the Company, said approval not
to be unreasonably withheld.

 

3.5                  
Sales and Service Telephone Numbers. Distributor shall use and publicize to its customers the Distributor
owned telephone number anywhere Distributor’s customer sales and service telephone numbers are
listed.

 

3.6                
Websites. Distributor shall utilize the Company's proprietary Internet site, and may link to "TOTALLYHEMPCRAZY.COM"
as a source for new customers and related matters.

 

 

    	 	4	 

    	 

    

 

IV.

DISTRIBUTION
OF THE PRODUCTS

 

4.1               
Solicitation of Accounts. Distributor will proactively solicit accounts and promote the Products
throughout the Territory for
sales of the
Products and will
maintain regular routes to
service same.

 

4.2                 
Servicing. Distributor shall service all of its accounts with such frequency as is reasonably
necessary to keep
them fully supplied
with, and satisfy fully
the demand for,
the Products in the Territory and shall maintain an adequate supply of the
Products to promptly meet and satisfy fully the demands for the Products within the Territory, including, but not limited to,
peak seasonal demands.

 

V.

QUALITY
CONTROL

 

5.1               
Cleanliness Standards. Distributor shall comply with all ordinances, laws and regulations pertaining to the
sale, storage, transportation and distribution of the Products and the operation of its facilities. Distributor shall at all times
maintain all of its facilities and equipment used in
the sale, storage,
transportation and distribution of
the Products in
a clean, wholesome
and sanitary condition. Company personnel may inspect
storage and other facilities of Distributor (owned or leased) at any time
during normal working hours upon reasonable notice.

 

5.2              
Rotation. Distributor recognizes the shelf life of the Products, and acknowledges that rotation ensures maximum
quality. Distributor agrees to take all reasonable steps necessary to see that all
such Products sold by
it are properly rotated
in conformity with
the date stamped
on the labels of the containers.
Distributor agrees that it will not store the Products outside, unprotected from temperature fluctuations and the
elements.

 

5.3               
Quality of the Products. The Company agrees
that it will use its commercially reasonable, good
faith efforts to
maintain the high
quality of all
of Products delivered to
Distributor.

 

VI.

PRICING
AND DELIVERY OF THE PRODUCTS

 

6.1               
Supply of Products; Pricing. The Company will supply Distributor with the Products at the prices and on the
payment terms listed on Schedule “B” or as otherwise may be mutually agreed between the Company and
Distributor in writing. The Company requires a 100% Payment made for the Products prior to shipment. The Company may increase
such prices upon sixty (60) days written notice to Distributor. The Company will use its commercially reasonable, good faith efforts
to supply the Products in the quantities requested by Distributor and as promptly as commercially and reasonably practicable after
an order is received from Distributor.

 

 

    	 	5	 

    	 

    

 

6.2               
Ordering Procedures. Distributor shall submit to the Company firm purchase orders in accordance with Schedule
"B" in advance of the delivery dates specified. A purchase order may be
submitted and accepted
in writing, by fax
or by e-mail.
All purchase orders
shall specify the
quantity and type of Product, the requested delivery date, the delivery point(s), and any other special instructions with
regard to shipping, packaging or delivery. All purchase orders received by the Company shall constitute Distributor's binding
commitment to purchase the quantity and type of Product set forth therein at the purchase price then in effect on the date the
Company receives the purchase order.

 

6.3              
Delivery. Distributor shall pick up Products at the Company's warehouse. Title to the Products and risk of
loss shall pass to Distributor upon pick-up at the Company's warehouse by Distributor, independent carrier or another third
party.

 

6.4               
Inspection of Products. Distributor will only be required to pay for the Products which are provided to Distributor
free of defects at the time of pick up at Company's warehouse. Auditors of Distributor shall promptly and immediately inspect
all containers for damage and shall not accept any containers that do not pass that inspection. The Company will either not charge
Distributor for, or shall provide a credit to Distributor for, any damaged containers Distributor receives from the Company and
which Distributor discovers to be damaged during its prompt inspection of such containers upon
their receipt by Distributor.
The Company shall
not be responsible
for, and Distributor shall indemnify,
defend and hold the Company wholly harmless from, any damages, loss, claim, liability or
expense of any customer of Distributor
caused, in whole or in part, by a damaged
container. The Products will be deemed received free of defects unless (I) any patent defects in the Products are noted on the
delivery receipt at the time of delivery to Distributor and immediate written notice thereof is provided to the Company, or (ii)
the Company is notified in writing or in any manner acceptable to the Company within thirty (30) days after delivery of any of
the Products containing latent defects. The Company will not be responsible for damages occurring during shipment to the Distributor
at Distributor's warehouse or during delivery by Distributor, at its customers' premises, during return from the Customer to Distributor,
or during the return from Distributor to the Company.

 

6.5            
Price Levels. The Company may from time to time suggest to Distributor the prices at which Products
might be sold by Distributor to its customers. Such suggested retails are advisory only and non-binding on Distributor, and both
the Company and Distributor acknowledge and agree that Distributor has sole, complete and absolute discretion to establish and
maintain the prices at which it sells the Products to its customers. Distributor acknowledges
its obligations to maximize its sales and selling efforts in the Territory as provided in Section 1.2 of this Agreement and further
acknowledges that by setting its prices so as to be no longer competitive in the Territory, Distributor may
thereby breach the
terms of this
Agreement.

 

6.6              
Force Majeure. The failure by either Party to perform its obligations hereunder shall
be completely excused, without liability to either Party, to the extent that such failure to perform results directly or
indirectly from "acts of God" (including flood, fire or natural casualties); strikes, slowdowns or other labor disputes
or shortages; civil unrest or sabotage; shortages of materials, transportation or supplies;
direct or indirect
acts, orders or
regulations of any
governmental body; or
any other causes beyond the reasonable
control of the Party.

 

 

6.7              
Reporting. At reasonable
intervals (an in any
event, not less
frequently than quarterly), Distributor
will provide to the Company information regarding Products sold, promotional activities or
other information reasonably
requested by the Company.

 

VII.

TAXES
AND EXPENSES

 

7.1
Expenses, Charges, Fees and Taxes. Distributor will pay and discharge at its own expense any and all expenses,
charges, fees and taxes arising out of or incidental to the carrying on of its business,
including, without limiting the generality of the foregoing, all worker's compensation,
unemployment insurance
and social security
taxes, sales, use,
income, business and
franchise taxes levied or assessed with respect to its business and/or employees,
and Distributor will indemnify, defend and
save harmless the
Company against any
and all claims
for such expenses,
charges, fees and taxes.

 

VIII.

INSURANCE,
WARRANTIES AND INDEMNIFICATION

 

8.1              
Duty to Defend, Indemnify and Hold Harmless. Distributor agrees
to indemnify, defend and hold
harmless the Company,
its officers, employees,
agents and representatives
from and against any and all claims, causes of action, damages, claims for
damages, liability, loss, cost or expense, including reasonable attorneys' fees and expenses of litigation, arising out of or
in any way related to performance of this Agreement by Distributor, except claims
arising from the sole gross negligence of the
Company.

 

Without
limiting the foregoing, Distributor agrees to indemnify, defend and hold harmless
the Company, its officers,
agents, employees and
representatives from any
and all such
claims, including but not limited to claims for property damage, bodily injury, loss of consortium, emotional distress
or death, whether sustained or alleged to have been sustained by Distributor's employees, the Company's employees or any other
person or entity, and including but not limited to claims, injuries or damages caused
or alleged to be caused in whole or in 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. Distributor
also agrees to
indemnify, defend and hold
harmless the Company, its officers, employees, agents and representatives
from any and all such claims, whether or not they arise from or are alleged to
be caused in
part by the negligence or
gross negligence of the Company,
its agents, officers, employees, or representatives. However, Distributor shall not
be obligated to indemnify the Company against any claim
arising from the
sole gross negligence of the Company.

 

The
foregoing indemnity, defense
and hold harmless
obligations shall apply
to all such
claims, losses or liabilities, whether such claims arise from Products acquired by Distributor from the Company
prior to the
execution of this
Agreement or subsequent
thereto.

 

8.2              
Insurance Coverage. Distributor
further agrees to procure
and maintain, at
its sole cost and expense from
an insurance carrier reasonably acceptable to the Company, Comprehensive General Liability Insurance and Automobile Liability
Insurance, all in conformance with the requirements of
this Agreement.

 

The
Company, shall be named as an additional insured on each of the above-listed policies. Distributor shall provide the Company certificates
of insurance evidencing the existence and maintenance
of each of
these policies and
the fact that
the Company is afforded insurance
coverage as an additional
insured under each
of the policies specified above.

 

Distributor's
failure to provide said certificates of insurance, and the Company's failure to insist that such certificates be furnished to
it, shall not relieve Distributor of its obligation to procure insurance as required herein.

 

The
insurance required by
this Section shall
specifically include and
provide contractual liability
insurance covering Distributor's obligations under the indemnity provisions of this Agreement as set forth in Section 8.1
above. Said insurance shall provide primary coverage to the Company, and any other insurance which may be available to the Company
for any claim, loss or liability encompassed by this
Agreement shall be
excess over the insurance required by
this 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.

 

All
insurance policies shall contain a provision that the coverages afforded thereunder
shall not be canceled or not renewed, nor restrictive modifications added, until at least
thirty (30) days after prior written notice has been given the Company.

 

In
the event Distributor fails to obtain or maintain any insurance coverage required under this Agreement,
the Company may
at its option
purchase such coverage and
charge the expense
thereof to Distributor or
terminate this Agreement.

 

8.3              
Limitations of Distributor’s Remedies Distributor’s
sole and exclusive remedy against the Company for defective Products or deficient services,
as the case may be, shall be, at the option of the Company, the replacement thereof or a credit to Distributor's account for the
cost thereof. Distributor's remedy 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 herewith 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 lost profits, lost revenues or lost opportunity 
costs

 

 

    	 	6	 

    	 

    

 IX.

DEFAULT

 

9.1               
Events of Default. Distributor shall be deemed to be in default of the terms of this Agreement if any one
of the following events ("Events of Default") occur:

		a)	Distributor
                                         attempts to dispose, assign or sub-license the rights, privileges and obligations created
                                         by this Agreement;

(b)               
Distributor violates any of the terms and conditions of this Agreement;

		(c)	Majority
                                         ownership of Distributor changes;

(d)               
Distributor shall file a voluntary petition in bankruptcy or take the benefit of any insolvency
act or be
dissolved or adjudicated bankrupt
or if a
receiver shall be
appointed for Distributor's business or its assets and the appointment of such receiver is not vacated within thirty (30)
days after such appointment, or if Distributor shall make an assignment for the benefit
of its creditors, or if the interest of Distributor passes by operation of law to any person or entity other than
Distributor;

(e)               
Distributor becomes insolvent, regardless of how said insolvency may be evidenced;

		(f)	Distributor
                                         fails to pay the Company for the Products on a timely
                                         basis;

 

		(h)	Distributor
                                         fails to achieve Volume Objectives.

 

9.2               
Remedies. Upon the occurrence of an Event of Default, the Company may give
written notice to Distributor demanding that the condition of default be cured within ten (10) calendar days and, if
not so cured, the Company, in addition to any other rights or remedies it may have, may do any one or more of
the following:

 

(a)   
Commence a collection action to recover all sums of money due, reserving the right to recover for such other sums of money which
may become due under this Agreement or otherwise;

		(b)	Commence
                                         an action to specifically enforce its rights under this Agreement;
                                         or
	 	(C)	Immediately
                                         terminate this Agreement.

 

9.3               
Remedies Cumulative. All rights and remedies granted under this Agreement shall be cumulative, and resort
by the Company to any one remedy provided for hereunder shall not exclude or prevent
the Company from pursuing
any other rights
and remedies provided
under this Agreement or by
law.

 

 

9.4               
Attorneys' Fees. If the Company or Distributor brings an action to enforce or assert any right granted pursuant
to this Agreement and is successful in such action, the unsuccessful party shall pay all reasonable costs and expenses, including
reasonable attorneys' fees, incurred by the successful party in exercising its rights and remedies
hereunder.

 

X.

TERM

 

10.1           
Term. This Agreement shall commence on the date of its execution and shall continue in full force and effect
for a period of one (1) year thereafter, (the "Primary Term"), unless sooner
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. Notwithstanding 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. In the event that this Agreement is terminated as provided for herein or is not renewed in accordance
with Section 10.1, neither the Company nor Distributor shall have any claim or
right against the other
as a result
thereof, and neither
shall have any
further responsibility for the
performance of any
term, provision, or
condition of the
Agreement except as
contained in the last sentence of Section 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, 12.9 and 12.10, or except as resulting from
action or inaction during the term of this Agreement or relating to the payment of
outstanding monies owned to the Company or Distributor, as the case may be.

 

    	 	7	 

    	 

    

 

XI.

ASSIGNMENT

 

11.1
Assignment. This Agreement is personal as to the Company and Distributor. The rights, duties and obligations
pursuant to this Agreement cannot be transferred, assigned, pledged, made subject to a security interest, or otherwise disposed
of by either the Company or Distributor in whole or in part.

 

XII.

MISCELLANEOUS

 

12.1          
Purchase Orders I Invoices. Company requires a 100% Payment made for the Products
prior to shipment.

 

12.2          
Notice. All notices,
consents, waivers, and other
communications under this
Agreement must be in
writing and will
be deemed to have been duly given
(a) when delivered by hand (with written confirmation of receipt), (b) three (3) days after being deposited in the mails, if sent
by certified mail, with return receipt requested, (c) upon confirmed receipt, if sent by facsimile transmission during normal
business hours of the receiving party on a
business day, (d) one (1) day
after sending, if sent

 

by
a nationally recognized overnight delivery service (receipt requested) specifying next day delivery, or (e) same day if sent via
e-mail, in each case to the appropriate addresses or telecopy numbers set forth on the signature page hereto (or to such other
addresses or telecopy number as a party may designate by notice to the other parties).

 

12.3          
No Partnership, Joint Venture, Franchise, Employer/Employee Relationship. It is understood and agreed that
Distributor is an independent contractor, and this Agreement and the relationship created hereby shall not be considered to be
a partnership, joint venture, franchise, or an employer/employee relationship, and neither
the Company nor Distributor shall have the right or 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 and Distributor
affirm that they are validly constituted corporate entities with full right, power
and authority to enter into this Agreement and
to perform their
respective obligations hereunder.

 

12.5           
Waivers. No failure or delay on the part of the Company or Distributor to exercise any right, power or remedy
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy under this Agreement. No amendment, modification
or waiver of any provision of this Agreement shall be effective unless the same shall be in writing signed by the Company and
Distributor.

 

12.6           
Governing Law and Jurisdiction. This Agreement shall be governed and interpreted in accordance with the laws
of the State of Texas. Distributor hereby consents to service of process in, and to the sole and exclusive jurisdiction of the
state or federal courts of Dallas County, Texas with respect to any disputes of any nature whatsoever which may arise between
the Company and Distributor relating to the rights and obligations under this Agreement.

 

12.7           
Confidentiality. During the Primary Term and any Renewal Term and for the three (3) year period following
the termination hereof for any reason, the parties hereto shall keep the terms and conditions of this Agreement, the transactions
contemplated hereby, and either party's records, books, data and other confidential information concerning the Products, either
party's accounts, employees, client development (including customer and prospect lists), sales activities and procedures,
promotional and marketing techniques, pricing, marketing or business plans and strategies, financing, development and expansion
plans and credit and financial data concerning customers and suppliers and all other business information involving either party
(all collectively, the "Confidential Information") strictly confidential, and neither the Company nor Distributor will
make, or cause or permit to be made, any disclosure of any such Confidential Information to any person (it being understood, however,
that in any event such Confidential Information may be disclosed on a confidential basis to the parties' respective employees
and professional advisers who have a need to know such  information).

 

    	 	8	 

    	 

    

 

12.8          
Entire Agreement. This Agreement, which incorporates herein by reference Schedules
"A" and "B",
constitutes the entire, complete
and exclusive statement of
the terms of
the agreement between the
parties with respect
to the subject matter hereof and
supersedes and cancels any prior agreements, understandings, covenants, promises, assurances, course of dealing or performance,
representations, warranties, or communications, whether oral or written, between the parties hereto. No covenant, term, provision,
representation or agreement not expressly contained herein shall be implied as a matter of law, interpretation, coarse of performance
or conduct of the parties. Neither this Agreement nor any provision
hereof may be amended, waived or
modified 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 any terms or provisions of this Agreement are deemed to be invalid or unenforceable, such
determination shall not affect the validity or enforceability of the remaining terms and provisions
hereof.

 

12.10       
Benefited Parties. This Agreement shall be binding upon and inure to the benefit of any permitted purchasers,
successors or assigns of the Company and  Distributor.

 

IN
WITNESS WHEREOF, this Agreement has been executed on this 26th day of October, 2015.

 

 

THE
COMPANY

 

Rocky
Mountain High Brands, Inc.

 

By:
/s/Tom Shrman

Print
Name: Tom Shuman

Title:
President/CEO

 

DISTRIBUTOR

M&S
Up North Distributing

 

By:
/s/Shawn Burkel

Print
name: Shawn Burkel

Title:
President/CEO

 

 

 

Addresses:

 

Rocky
Mountain High Brands, Inc. 9101 LBJ Freeway I Suite 200

Dallas,
TX 75243 Attn: Tom Shuman Title: CEO I President Phone:  214-212-5006

E-mail:
Tom@RockyMountainHiqhBrands.com

 

M
& S Up North Distributing 

120
2nd Ave SW Suite 5

Roseau,
MN 56751

Attn:
Shawn Burkel Title:President I/CEO Phone: 218-452-0936

E-mail:
 mandsupnorth@mncable.net

 

    	 	9	 

    	 

    

 

SCHEDULE
A

 

TERRITORY
GRANTED

The
Territory set forth for this Agreement encompasses all of the counties in the State of Wisconsin.

 

    	 	10	 

    	 

    

SCHEDULE
B

 

PRODUCTS.
PRICE & PAYMENT TERMS

 

		PRODUCTS:	ROCKY
                                         MOUNTAIN HIGH HEMP
                                         ENERGY DRINK ROCKY MOUNTAIN HIGH
                                         HEMP ICED TEA ROCKY MOUNTAIN HIGH HEMP LEMONADE ROCKY MOUNTAIN
                                         HIGH HEMP COCONUT LIME ROCKY MOUNTAIN HIGH
                                         HEMP MANGO ENERGY

 

PACKAGE
SIZE: 12 - PACK I 12 oz. SLIM-LINE CANS PER CASE

 

FOB
COMPANY WAREHOUSE PRICING TO DISTRIBUTOR:

$
12.00 PER CASE I MINIMUM ONE (1) PALLET

 

208
CASES I PALLET

20
PALLETS PER TRUCKLOAD I CONTAINER LOAD 4,160 CASES PER TRUCKLOAD I CONTAINER LOAD

 

*
Minimum Order per SKU is one (1) pallet I NO "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 10 I 26 /2015.

 

COOPERATIVE
MERCHANDISING FUND

Company
will place $.50 I case for each case ordered by the Distributor into a Cooperative Merchandising Fund. This total $.50
I case Cooperative Merchandising Fund may be used by the Distributor for "mutually
agreed upon" promotional activities such as POS Materials, 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
in 2015.

 

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 12 months.

 

PAYMENT
TERMS:

Company
requires a 100% Payment made for the Products prior to shipment

 

    	 	11

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