Document:

Memorandum
of Understanding

 

This
Memorandum of Understanding (“MOU” or “Agreement”)) is entered into on the 9th day of November
2018 (“Effective Date”) by and between Canbiola, Inc. (“CANB”), a Florida Corporation located at 960 S.
Broadway, Suite 120, Hicksville, NY 11801, and TZ Wholesale LLC (“TZ”), d.b.a. Pure Wholesale, located at 1538 Middleneck
Road, Port Washington, NY 11050 or collectively referred to as the Parties (“Parties”).

 

RECITALS

 

	 	1-	CANB
    is one of the leading providers of proprietary non-psychoactive cannabinoid extracted
    from the hemp plant (“CBD” or “Products”) and a proprietary therapy using Transcutaneous Electrical
    Nerve Stimulation (“TENS”) and Electrode Pads to relieve and reduce muscle and joint pain. 
	 	 	 
	 	2-	TZ
    is a wholesale distributor of various goods and products to both sub-distributors and retailers (“Customers”)
    worldwide.
	 	 	 
	 	3-	TZ
    has indicated interest in the sale and placement of Products into their Customers locations providing certain branding and
    pricing parameters can be met.
	 	 	 
	 	4-	CANB
    is a publicly traded (OTCQB:CANB) and supplier of Products for sale into medical, retail, and online consumers.
	 	 	 
	 	5-	CANB
    maintains a corporate office and shipping facility in Hicksville, NY.
	 	 	 
	 	6-	CANB
    is desirous of expanding its industry relationships to the TZ Customers.
	 	 	 
	 	7-	The
    Parties represent that they have sufficient resources to allow for expansion and growth into additional related markets and
    the TZ Customer base.
	 	 	 
	 	8-	CANB
    has provided sufficient Product samples to allow TZ to make an informed decision as to the purchase and subsequent sale of
    the Products.
	 	 	 
	 	9-	TZ
    confirms that all deliveries shall be made to their warehouse location at 4756 Glen Woods Street, Littleneck, NY 11362 with
    shipping charges the responsibility of TZ.
	 	 	 
	 	10-	This
    Agreement and subsequent manufacturing and distribution of Product by TZ is on a non-exclusive basis subject to the additional
    terms of this agreement including section B. b.

_______

Initial  

 

    	 

    	 

    

 

NOW
THEREFORE the Parties agree as follows:

 

	 	A-	Upon
    of signing of this agreement:

 

	 	 	a.	CANB
    will provide and confirm:

 

	 	 	i.	A
    final cost FOB factory of products per below:

 

	 	 	1.	Pure
    Ultra Hemp Oil Drops 250 mg 1 oz (30ml) $10.95
	 	 	2.	Pure
    Ultra Hemp Oil Drops 500 mg 1 oz (30ml) $16.99
	 	 	3.	Pure
    Ultra Hemp Oil Drops 1,000mg 1 oz (30ml) $26.89
	 	 	4.	Pure
    Ultra Hemp Oil Drops 1,500mg 1 oz (30ml) $31.99
	 	 	5.	Cryo-Gel
    125mg 3 oz (90ml) $15.00
	 	 	6.	Cryo-Gel
    300mg 3 oz (90ml) $30.00
	 	 	7.	Muscle
    & Joint Hemp Salve 100mg .5 oz (15ml) $12.50
	 	 	8.	Muscle
    & Joint Hemp Salve 200mg .5 oz (15ml) $20.00
	 	 	9.	Pet
    Pure Hemp Drops- Price TBD
	 	 	10.	TENS
    unit and CBD Patched TBD

 

	 	 	ii.	Prices
    are subject to change with 30 days written notice.
	 	 	 	 
	 	 	iii.	A
    $10,000 credit at wholesale cost per above. on the first order of Product.

 

	 	b.	TZ
    will provide:

 

	 	 	i.	Camera
    ready art and materials to CANB to allow the production of labels for products.

 

	 	 	1.	Both
    the design and printing of the labels shall be at TZ’s sole expense as we discussed, and the price will be passed through
    at CANB actual cost.

 

	 	 	a.	For
    clarity, EACH plate/ dye/ and set-up charges directly form the printer is approximately $400 per SKU.  Once TZ pays
    for these plates, they are the property of TZ.
	 	 	b.	Each
    SKU label run at the anticipated quantities is approximately $.17 per label at 2,500 labels or approximately $400. TZ
    is free to have labels produced at any printer provided the labels fit the CANB labeling machines and meet with label compliance
    requirements.

 

	 	 	2.	CANB
    shall apply the labels to all Products at no additional cost.
	 	 	 	 
	 	 	3.	TZ
    has the option to use additional private labels for the Products but any and all labels shall comply with the CANB design
    and regulatory requirements prior to printing and use and shall be at TZ’s sole expense.

_______

Initial  

 

    	 

    	 

    

 

	 	 	ii.	An
    initial order over ten thousand dollars ($10,000) for delivery to TZ’s warehouse location at the first Product availability
    opportunity.
	 	 	 	 
	 	 	iii.	Identifying
    the initial products for the launch.

 

	 	B-	General
    Terms and Conditions.

 

	 	 	a.	All
    marketing materials, brochures, posters, sell sheets, window displays, door stickers tri-fold pamphlets, educational materials,
    ”swag” such as shirts etc. (“Marketing Materials”) shall be approved by both parties for quality,
    quantity and cost and, once approved the actual cost shall be split 50/50.  CANB may pay for its 50% portion of
    the actual cost of the Marketing Materials in Product shipped to TZ.   
	 	 	 	 
	 	 	b.	Shipment
    terms are 10 business days date of order received from TZ.
	 	 	 	 
	 	 	c.	Sale
    terms are NET 10 days. Subsequent orders will not be shipped unless account is current.  Late fees per
    the CANB policy will be enforced.
	 	 	 	 
	 	 	d.	The
    Parties agree to non-circumvention and no-raid provisions for the term of this agreement whereas CANB agrees not to directly
    sell Products to any TZ Customers and TZ agrees not to contact any of the CANB suppliers or vendors used in production and
    procurement of the Products.
	 	 	 	 
	 	 	e.	Should
    TZ discontinue use or stop shipment of any single Product for 3 months or longer, the Product in inventory shall be shipped
    to and paid for by TZ under the usual terms of sale.
	 	 	 	 
	 	 	f.	Minimum
    order requirements for each manufacturing run and delivery shall be $5,000.
	 	 	 	 
	 	 	g.	The
    term of this agreement shall be for 5 years from Effective Date.

 

	 	C-	This
    MOU shall be binding upon the Parties and may be replaced with a definitive agreement signed by the Parties.   
	 	 	 
	 	D-	This
    MOU shall supersede all agreements, both oral and written, between the Parties.
	 	 	 
	 	E-	Whenever
    TZ places any product in 50 of their customer’s stores, CANB shall issue TZ or its principles two million (2,000,000)
    shares of common stock of the Corporation, said stock shall be issued under the SEC ’34 act as Rule 144 Restricted Shares
    of stock.  

_______

Initial  

 

    	 

    	 

    

 

REPRESENTATIONS
AND WARRANTIES

 

	 	A.	TZ
    will hold CANB, including all employees, officers, and employees harmless for any delay in shipping or availability of Products
    potentially causing any business interruption.
	 	 	 
	 	B-	Each
    Party represents that they have been represented by counsel, have the authority to execute this MOU and that it is understood
    it is binding in every respect.
	 	 	 
	 	C-	The
    Parties will or have executed a Non-Disclosure and Non-Circumvention Agreement.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding to be binding and effective as of the day and
your first written above.

 

********Signature
page follows********

_______

Initial  

 

    	 

    	 

    

 

****Signature
Page to Memorandum of Understanding TZ Wholesale LLC / CANB****

 

	Canbiola,
    Inc.	 
	 	 	 
	By:		 
	 	Marco
    Alfonsi, CEO	 
	 	 	 
	TZ
    Wholesale LLC	 
	 	 	 
	By:	 	 
	 	Ken
    Tawfik, Principal and Managing Member	 

_______

Initialex_140539.htm

Exhibit 10.19

 

EXHIBIT 10.19

 

SETTLEMENT AGREEMENT AND RELEASE

 

This Settlement Agreement and Release ("Settlement Agreement") is entered into this 21st day of January, 2019, by and between GOD’S LITTLE GIFT, INC. d/b/a HELIUM AND BALLOONS ACROSS AMERICA and Gary Page (“Page”) (hereafter collectively “HABAA”) and CTI INDUSTRIES CORPORATION, (hereafter “CTI”).

 

WHEREAS, on or about December 1, 2011, the parties entered into two agreements. One agreement, identified simply as “Agreement”, provided for the assignment by HABAA to CTI and HABAA One, Inc. of the right and obligation to sell balloons to certain pay-by-scan customers comprising the Delhaize Group, as defined therein, under the terms of an existing agreement between HABAA and Food Lion (“Food Lion”) (hereinafter referred to as “Assignment Agreement”). The second agreement was entitled “Master Representative Agreement,” and under the terms of both agreements, HABAA was eligible to receive certain commissions, reimbursement of certain expenses and certain other considerations; and

 

WHEREAS, a disagreement arose regarding monies owed to HABAA and the dispute was submitted to mandatory arbitration with the American Arbitration Association; and

 

WHEREAS, prior to the hearing, the parties resolved their differences as set forth herein, and the parties now desire to settle, compromise, and resolve any and all disputes arising out of and related to the litigation with respect to one another,

 

NOW, THEREFORE, in consideration of the mutual obligations and covenants set forth herein, as well as other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.     Stock. Within 30 days of the execution of this agreement, CTI shall issue, transfer and deliver into the name of Page 20,000 shares of CTI common stock (“Shares”) on the terms provided herein. Page understands that the shares of stock are “restricted securities” and have not been registered under the Securities Act of 1933 or any applicable state securities law, and that he is acquiring the Shares as principal for his own account and not with a view to, or for distributing or reselling such securities or any part thereof in violation of the Securities Act of 1933 or any applicable state securities laws. Page represents that he does not presently have any agreement, plan or understanding, directly or indirectly, with any Person to distribute or effect any distribution of any of the shares of stock to or through any person or entity.

 

 

 

 

Certificates evidencing the Shares shall bear the legend as required by the “blue sky” laws of any applicable state and a restrictive legend in substantially the following form:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY.

 

The legend set forth herein may be removed and the Company shall issue a certificate without such legend to Page upon his request, once they are eligible for sale under Rule 144 of the Securities and Exchange Commission.

 

2.     Filing fees. Contemporaneous with the execution of this agreement, CTI shall reimburse HABAA the sum of $5,000 towards the arbitration filing fees in this matter.

 

3.     Amendment to Agreement. Simultaneous with entering into this Settlement Agreement, the parties have entered into Amendment No. 1 to Agreement dated January 21, 2019 (“Amendment No. 1”), relating to payment of commissions under the Assignment Agreement.

 

4.     Mutual Releases. HABAA and CTI, for themselves, their agents, representatives, employees, successors, assigns, predecessors, subsidiaries, officers and directors, do hereby release each other, their agents, representatives, employees, and their successors and assigns from any and all liability, losses, expenses, claims, demands, actions, and any and all causes of action whatsoever whether known or unknown arising from or related to the litigation, including all allegations, facts, and claims which could have been made in the litigation arising out of any matter or event and in any agreement between the parties occurring prior to the date hereof, except for the obligations arising out of this Settlement Agreement and the obligations arising under Amendment No. 1.   

 

 

 

 

5.     No Admission of Liability. The parties hereby acknowledge that this Agreement is in compromise of disputed claims and, as such, this Settlement Agreement does not constitute an admission of liability of any sort by any party. The parties agree and acknowledge that neither this settlement nor the payment of any sum required by this Agreement nor the negotiations for this settlement, including all statements, admissions, or communications by the parties or their attorneys, shall be considered admissions by any of the parties and that no past, present, or future wrongdoing on the part of the parties, if any, shall be implied from this Agreement.

 

6.     Survival of Agreement. The terms, provisions, and conditions of this Agreement are binding upon the parties and respective successors and assigns. Causes of action based upon the breach of this Settlement Agreement and Amendment No. 1 to the Agreement shall survive the execution of this Agreement and Amendment No. 1.

 

7.     Counterparts.     This Settlement Agreement may be executed by the parties in any number of counterparts, each of which shall be an original document, but all of which taken together shall constitute one and the same document, notwithstanding that all parties may not have executed all counterparts or the same counterpart.

 

8.     Merger Clause. The Parties represent and warrant that they have not been induced into signing this Settlement Agreement by any warranty, representation, promise, covenant or agreement made by or on behalf of any party or other party, other than is specifically set forth in this Settlement Agreement. The Parties represent that they have relied on the legal counsel of their respective attorneys, who are the attorneys of their own choice, and that the terms of this Settlement Agreement have been completely read and explained to them by their respective attorneys, and that those terms are fully understood and voluntarily accepted.

 

9.     Authority. Each individual signing below on behalf of the respective parties represents and warrants that they are authorized to sign this Agreement on behalf of the party represented and that their signature is binding on said parry.

 

 

 

[SIGNATURE PAGE TO FOLLOW]

 

 

 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day first above written.

 

	God’s Little Gift, Inc.	 	CTI Industries Corporation	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/S/Gary Page	 	By:	(S) Jeffrey S. Hyland 	 
	Its:	 	 	Its:	Chief Executive Officer and President	 
	Name:	 	 	Print Name: Jeffrey S. Hyland	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Gary Page	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	/S/ Gary Page	 	 	 	 

 

 

 

 

 

EXHIBIT 10.19

 

AMENDMENT NO. 1 TO

AGREEMENT AMONG

CTI, GLG, GARY PAGE AND H ONE

 

This Amendment No. 1 to Agreement (“Amendment No. 1”) is entered into as of January 21, 2019, by and between CTI Industries Corporation (“CTI”), God’s Little Gifts, Inc. (“GLG”), Gary Page (“Page”) and HABAA One (“H One”) (collectively, the “Parties”).

 

WHEREAS, the Parties entered into a certain agreement dated December 1, 2011 (“Agreement”) under which CTI, through H One, was assigned certain rights and obligations with respect to pay by scan sales of balloons to Delhaize Group Customers, as defined in the Agreement, including Food Lion, L.L.C.; and

 

WHEREAS, following a dispute among the Parties relating to calculation of commissions and payment due under the Agreement and the filing of an arbitration action, the Parties have settled and resolved their dispute; and

 

WHEREAS, as part of such settlement, the Parties have agreed to enter into this Amendment No. 1 to modify and clarify the calculation and payment of commissions under the Agreement,

 

NOW, THEREFORE, in consideration of the premises and the terms, provisions and covenants recited herein, the Parties have agreed as follows:

 

1.     Commissions. Commencing as of March 1, 2019, CTI shall pay to GLG a commission on sales to Delhaize Group Customers an amount equal to 12% of Net Revenues, as defined herein, with GLG to receive a minimum monthly commission of $7,666.67 for 30 consecutive months, with the first payment to be made on March 1, 2019. For purposes of calculating the commission due hereunder “Net Revenue” shall be defined as gross revenue received by CTI from pay by scan sales to all Delhaize Group Customers less all expenses with respect to such sales, including, but not limited to, cost of goods sold, shrink, helium expense, transportation, shipping, boxing, handling, returns, price downs, discounts, allowances, displays, fixtures, packaging, ribbon weights, inventory management, inventory replenishment and rollout costs.

 

2.     Commission in Excess of Minimum. At the end of each quarter commencing with the quarter starting March 1, 2019, CTI shall reconcile the amount of commissions owed to GLG with the minimum commissions for such quarter. CTI shall, within 30 days of the closing of a quarter, provide a quarterly statement of commissions due and owing for that period.   CTI shall provide supporting documentation to validate the revenue and expenses for that quarter.  To the extent the actual commissions exceed the minimum commissions paid for such quarter, CTI shall pay to GLG, within 30 days after the end of each quarter, the amount by which commissions due exceed the minimum commissions for such quarter. Any excess commissions due shall not reduce the amount of minimum commissions due for future months as recited above. Other than to be used in the calculation of commissions, neither GLG or Page shall be responsible for any costs and expenses associated with the sale of helium and/or balloon products.

 

Page 1 of 3

 

 

3.     Deletion of Minimum Amount Calculation. The parties recognize that the formula for calculating commissions in Section 1 hereof shall replace the formula recited in Section 5 of the Agreement and applied previously in calculating commissions. Therefore, the term “CTI Minimum Amount” recited in Section 5.3.4 of the Agreement shall no longer apply.

 

4.     Default. For purposes of making the monthly minimum commission payments, a default shall occur upon CTI’s failure to make such payment within 72 hours following its receipt of a written notice of default.

 

5.     Notices. Any and all notices required or permitted to be given hereunder shall be in writing and shall be delivered by certified mail, return receipt requested, to the parties herein at the addresses set forth below:

 

	
			If to CTI:

				
			Jeffrey Hyland, CEO and President

			
	
			 

				CTI Industries Corporation
	 	
			22160 N. Pepper Road

			
	 	
			Lake Barrington, Illinois 60010

			
	 	 
	
			If to GLG:

				
			God’s Little Gift, Inc.

			
	 	
			c/o Gary Page

			
	 	
			4809 Pine Ridge Road

			
	 	
			Charlotte, North Carolina 27226

			
	 	 
	
			If to Page:

				
			Gary Page

			
	 	
			4809 Pine Ridge Road

			
	 	
			Charlotte, North Carolina 27226

			
	 	 
	
			If to H One:

				
			HABAA One, Inc.

			
	 	
			c/o Gary Page

			
	 	
			4809 Pine Ridge Road

			
	 	
			Charlotte, North Carolina 27226

			

 

Page 2 of 3

 

 

6.     Entire Agreement; Binding Effect. This Amendment No. 1 represents the entire agreement between the Parties with respect to commission payments due under the Agreement and supersedes all prior written or oral statements, representations, inducements or agreements. This Amendment No. 1 may not be amended except by a written instrument signed by all parties. The provisions of this Amendment No. 1 shall be binding upon and inure to the benefit of each of the parties and their respective successors in interest.

 

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 as of the date first above written.

 

 

	
			God’s Little Gift Inc.

				 	
			CTI Industries Corporation

			
	 	 	 	 	 
	 	 	 	 	 
	
			By:

				/S/Gary Page	 	
			By:

				/S/ Jeffrey S. Hyland
	
			Its:

				 	 	
			Its: Chief Executive Officer and President

			

	
			Print Name:

				 	 	
			Print Name: Jeffrey S. Hyland

			

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
			Gary Page

				 	
			HABAA One, Inc.

			
	 	 	 	 	 
	 	 	 	 	 
	
			/S/ Gary Page

				 	
			By:

				Gary Page
	
			 

				 	 	Its:	 

	
			 

				 	 	Print Name:	 

 

Page 3 of 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]