Document:

Exhibit 10.7

 

SALARY DEFERRAL AGREEMENT

This Salary Deferral Agreement (the “Agreement”)
is entered into as of this 24th day of June, 2013 by and among Davi Luxury Brand Group, Inc., a Nevada corporation (the "Company"),
and Parrish Medley (the "Executive").

WHEREAS:

A.                
As of the date hereof, the Company owes the Executive $72,000 in accrued but unpaid wages and salary (“Unpaid Salary”).

B.                
Due to its current financial condition, it is in the best interests of the Company to defer the payment of the Unpaid Salary.

C.                
The Executive is willing to defer payment of the Unpaid Salary in exchange for receiving a stock option to purchase 720,000
shares of the Company’s common stock.

NOW THEREFORE, for and in consideration
of the premises, covenants and obligations contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Company and the Executive hereby agree as follows:

		1.	GRANT OF OPTION.

(a)               
The Company hereby grants to the Executive a non-qualified option (the “Option”) to purchase 720,000 shares
of the Company’s common stock (the “Shares”). The form of the Option agreement is attached hereto as Exhibit
A. The option shall be exercisable at any time prior to September 30, 2015, and have an exercise price (the “Exercise Price”)
equal to $0.10 per share (the closing price of the common stock on the date of this Agreement as reported by the OTC Bulletin Board).
The foregoing $0.10 per share option exercise price shall be adjusted hereafter for stock splits, stock combinations or similar
events.

(b)              
The Option or any portion thereof may be exercised by the Executive paying the purchase price of any shares with respect
to which the Options are being exercised by cash, certified check, bank draft or postal or express money order. With the approval
of the Company’s Board of Directors, before the Option is exercised, (i) all or a portion of the Exercise Price may be paid
by the Executive by delivery of shares of Common Stock owned by the Executive having an aggregate fair market value (as of the
date of exercise) that is equal to the amount of cash that would otherwise be required; and (ii) the Executive may pay the Exercise
Price by authorizing a third party to sell shares of stock (or a sufficient portion of the shares) acquired upon exercise of the
Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and any tax withholding
resulting from such exercise, or (iii) the Executive may request that any amounts then owed to the Executive by the Company, including
without limitation the Unpaid Salary, be applied to, and offset as payment the Exercise Price.

2.                 
PAYMENT OF SALARY

(a)               
The Company hereby acknowledges and agrees that it owes the Executive the full amount of the Unpaid Salary ($72,000). The
Company hereby agrees to repay, in full, the Unpaid Salary in cash, in one or more payments, by no later than September 30, 2015.
The Company shall have the right to repay some or all of the Unpaid Salary at any time, or from time to time, provided that the
Company shall give the Executive no less than three business day’s written notice of its irrevocable intention to make such
a payment. The Executive shall have the right to exercise his Option during the three-day notification period.

(b)              
In consideration for the Option, the Executive hereby agrees to refrain from demanding payment of the Unpaid Salary until
September 30, 2015.

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3.                 
THE EXECUTIVE’S REPRESENTATIONS AND WARRANTIES.

The Executive represents and warrants that:

(a)               
Investment Purpose. In the event that the Executive exercises the Option, he will acquire the Shares for its own
account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof,
except pursuant to sales registered or exempted under the Securities Act of 1933, as amended.

(b)              
Information. The Executive understands that an investment in the Shares of the Company involves a high degree of
risk. The Executive has sought such accounting, legal and tax advice as he deems necessary to make an informed decision regarding
the exercise of the Option into Shares.

4.                 
THE COMPANY’S REPRESENTATIONS AND WARRANTIES.

(a)               
Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this
Agreement, to grant the Option, and to sell and issue Shares under the Option.

(b)              
Authorization. All corporate action on the part of the Company necessary for the authorization, execution, delivery
and performance of this Agreement by the Company, including the authorization, sale, issuance and delivery of the Shares, has been
taken. This Agreement constitutes a valid and binding obligations of the Company, enforceable in accordance with its terms, subject
to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific
performance, injunctive relief or other equitable remedies.

5.                 
MISCELLANEOUS.

(a)               
Amendment. This Agreement may be amended only in writing as agreed to by all parties hereto.

(b)              
Binding Effect. This Agreement shall be binding upon the parties hereto and inure to the benefit of the parties,
their respective heirs, administrators, executors, successors and assigns.

(c)               
Applicable Law. This Agreement shall be construed and governed by the laws of the State of California.

IN
WITNESS WHEREOF, the Executive and the Company have caused this Salary Deferral Agreement to be duly executed as of the date first
written above.

THE COMPANY:

DAVI LUXURY BRAND GROUP, INC.

 

By: /s/ Parrish Medley 

Name: Parrish Medley

Its: President  

THE EXECUTIVE:

 

By: /s/ Parrish Medley

Parrish Medley

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SALARY DEFERRAL
AGREEMENT WAIVER

Reference is hereby made to that certain
Salary Deferral Agreement (the “Agreement”), entered into as of June 24, 2013, by undersigned and Davi Luxury Brand
Group, Inc., a Nevada corporation (the "Company"). Effective as of June 30, 2013, I, Parrish Medley, do hereby irrevocably
and forever waive and relinquish any right that I may have had to exercise the Option (as defined in the Agreement) by any of the
means specified in subparagraph 1(b)(iii) of the Agreement.

 

/s/
Parrish Medley

Parrish Medley

    	3Exhibit
10.8

 

Text
Marked By [* * *] Has Been Omitted Pursuant To A Request For Confidential Treatment And Was Filed Separately With The Securities
And Exchange Commission.

 

 

 

 

 

 

 

 

 

 

Brand
and Trademark License Agreement

 

 

by and
between

 

Davi
LUXURY BRAND GROUP INC.

 

and

 

LG
Household and health care, ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September
4, 2012

    	1

    	 

    

 

Brand
and Trademark License Agreement

 

This Brand
and Trademark License Agreement (“Agreement”), dated September 4, 2012, is made and entered into by and between:

 

Davi Luxury
Brand Group Inc., a corporation incorporated under the laws of the State of Nevada, having its principal office at 9426 Dayton
Way, Beverly Hills, California 90210, United States of America ("Licensor"); and

 

LG Household
and Health Care, Ltd., a corporation organized and existing under the laws of the Republic of Korea, having its principal office
at LG GwangHwaMoon Building, 92, Sinmunno 2-ga, Jongno-gu, Seoul 110-062, Korea ("Licensee")

 

The Licensor
and Licensee are collectively referred to as the “Parties” and individually as the “Party.”

 

RECITALS

 

WHEREAS,
Licensor has developed a line of skincare products under the brand name “Davi”, including the Licensed Products (as
defined below);

 

WHEREAS,
Licensee is engaged in the manufacture, distribution, sale and marketing of cosmetic, skin care and healthcare products; and

 

WHEREAS,
Licensee desires to be granted, and Licensor desires to provide Licensee with, an exclusive license to manufacture and sell the
Licensed Products in the Territory (as defined below) pursuant to the terms and conditions of this Agreement.

 

NOW
THEREFORE, in consideration of the promises and mutual agreements contained herein, the Parties agree as follows:

 

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1.DEFINITIONS

 

The following
terms shall have the following meanings for purposes of this Agreement:

 

“Effective
Date” shall have the meaning set forth in Section 12 of this Agreement.

 

“Improvements”
shall mean any modification to or improvement or enhancement of the Licensed IP which is made or developed by either Party during
the term of this Agreement and is used, or is contemplated to be used, by such Party in commercial production of the Licensed
Products.

 

“Korea”
shall mean the Republic of Korea.

 

"Licensed
IP" shall mean any and all technology and know-how, whether patented or not, which presently has been developed or is
owned by Licensor relating to the design, manufacture, sale and quality inspection of the Licensed Products, designs and documentation
related thereto, information on the set-up and operation of the plant for manufacturing the Licensed Products (if applicable),
machinery and equipment, information and data for quality inspection of the Licensed Products,
and product ingredients and recipes, which shall include any and all intellectual property registered or applied for registration
in the Territory including, without limitation, (i) patents, applications
for patents and reissues, divisions, continuations, renewals, re-examinations, interferences, extensions and continuations-in-part
of patents or patent applications; (ii) copyrights, copyright registrations and applications for copyright registration; (iii)
designs, design registrations, and design registration applications; (iv) trade names, business names, corporate names, domain
names, website names and world wide web addresses, common law trade-marks, trade-mark and service mark registrations, trade-mark
and service mark applications, common law trade-marks and service marks, trade dress and logos, and the goodwill associated with
any of the foregoing; and (v) trade secrets, know-how (as well as any future statutory rights based on such know-how), inventions
(as well as any future statutory rights based on such inventions), product data, processes, procedures, databases, models and
other proprietary information and rights (whether or not patentable). The Licensed IP shall include, without limitation, the intellectual
property patented, registered or applied for registration/patenting that are listed in Schedule A attached hereto; it being
understood that the list in Schedule A will be expanded from time to time as the range of Licensor’s intellectual
property patented, registered or applied for registration/patenting is expanded. 

 

"Licensed
Products" shall mean cosmetic products, skin care products, fragrance products, hair care products, bath, body and personal
care products and other product lines that bear the “Davi”
Trademark(s), and any other products that are
to be manufactured, imported, exported, distributed, marketed and/or sold by Licensee, in each case, bearing the Trademark(s)
or other trademark(s) agreed between the Parties, including, without limitation, (i) those products that are listed in Schedule
B attached hereto, and (ii) the LGC Products; it being understood that the list in Schedule B will be expanded, from
time to time, as the range of the products bearing the “Davi” Trademark(s) is expanded. 

 

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“LGC
Products” shall mean any and all products (which, for the avoidance of doubt, shall not be limited to cosmetics and
skincare products) that Licensee elects to design, develop, manufacture, sell and/or distribute using or based on patents, patent
applications, copyrights, copyright applications, know-how, technologies, designs, design registrations, trade secrets or any
other intellectual property owned by or otherwise obtained by Licensee but at the same time bearing the Trademark(s). Licensee
agrees that it shall only design, develop, manufacture, sell and/or distribute LGC Products that are permitted to use, and be
associated with the Trademarks pursuant to this Agreement.

 

"Net
Sales" shall mean all amounts invoiced by Licensee to its retail customers, wholesalers or other outlet types, resellers,
distributors and end-customers in the Territory in respect of the Licensed Products, less VAT/sales taxes, returns, cash discounts
and invoiced rebates (including any department store margin) in accordance with the International Financial Reporting Standards
(IFRS).

 

"Raw
Materials" shall mean the raw materials required in manufacturing the Licensed Products.

 

“Territory”
shall mean Asia, which for the avoidance of doubt, shall include Korea, The Peoples’ Republic of China, Taiwan, Japan, and
the Southeast Asian countries (including, without limitation, the member countries of ASEAN), but shall not include the Middle
East countries, Australia, New Zealand and India.

 

"Trademarks"
shall mean the trademarks defined under the Licensed IP, which include, without limitation, the trademarks specified in Schedule
A attached hereto.

 

2.GRANT
OF EXCLUSIVE LICENSE

 

2.1Licensor
hereby grants to Licensee for the term of this Agreement an exclusive license to manufacture, use, sell, offer for sale, distribute,
market, import, export, or otherwise dispose of and exploit the Licensed Products in the Territory subject to certain rights previously
granted by Licensor to other third parties prior to the date hereof, which are set forth in Schedule C, further subject
to the representation and warranty of Licensor contained in the proviso set forth in Section 2.3 below.

 

2.2Licensor
hereby also grants to Licensee for the term of this Agreement an exclusive license to use the Trademarks in connection with the
manufacture, import, export, distribution, marketing and sale of Licensed Products, subject to certain rights previously granted
by Licensor to other third parties prior to the date hereof, which are set forth in Schedule C, further subject to the
representation and warranty of Licensor contained in the proviso set forth in Section 2.3 below. Licensee is permitted to use
the Trademarks on Licensee’s goods and products including, without limitation, packaging, labels, promotion materials, advertising,
signage, and other materials necessary to manufacture, use, sell, offer for sale, distribute, market, import, export, or otherwise
dispose of and exploit the Licensed Products.

 

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2.3For
the avoidance of doubt, for the term of this Agreement Licensor shall not directly or indirectly in any way extend the term of
any license, trademark, or distribution rights granted to any third parties prior to the date hereof; provided, however, that
Licensor represents and warrants to Licensee that none of the terms and conditions contained in or associated with any such rights
previously granted by Licensor to other third parties and set forth in Schedule C shall prohibit, restrict or otherwise limit:
(i) Licensee’s ability to manufacture, use, sell, offer for sale, distribute, market, import, export, or otherwise dispose
of and exploit the Licensed Products in the Territory, (ii) to use the Licensed IP as contemplated in this Agreement, or (iii)
to conduct its business or otherwise perform under this Agreement. Licensor shall provide full support in connection with the
execution of a distribution agreement between Licensee with Korean Air as set forth in Schedule C.

 

2.4Solely
for the purpose of effecting the manufacture, import, export, distribution, marketing or sale of Licensed Products, Licensee shall
have the right to grant a sublicense for the Licensed IP (including the Trademarks) to its affiliates, subsidiaries, subdistributors
and third-party OEM manufacturers; provided that Licensee shall remain responsible for such sublicensee’s compliance with
all obligations under this Agreement, and any action by a sublicensee that would, if conducted by Licensee, be a breach of this
Agreement by Licensee shall be deemed to be a breach of this Agreement by Licensee.

 

2.5Licensor
shall use all reasonable best efforts, at all times, to prevent any on-line or off-line sale of any and all products bearing the
Trademark(s) into the Territory by Licensor, its affiliates, its other licensees or its other distributors outside the Territory.

 

2.6Any
and all rights not expressly granted by Licensor pursuant to this Agreement, shall be specifically and expressly reserved to Licensor,
unless there is an agreement or instrument in writing signed by the Parties to the contrary.

 

2.7Licensee
covenants to use its commercially reasonable efforts to maximize the sales of Licensed Products in the Territory consistent with
all provisions of this Agreement and the image and reputation of the Trademarks.

 

    	5

    	 

    

		3.	PROVISION
                                                                OF THE LICENSED IP AND BRAND IMAGE SUPPORT

 

3.1.Licensor
shall disclose and provide to Licensee the Licensed IP in accordance with a
time schedule reasonably
requested by Licensee from time to time, in sufficient scope and detail
to enable Licensee to effectively manufacture and market the Licensed Products. 

 

3.2If
requested by Licensee, Licensor agrees to assist Licensee in procuring from third party vendors, the Raw Materials.

 

3.3To
the extent Licensor elects to develop, introduce or launch new products or product lines other than the cosmetic products and
the skincare products in any location, Licensor agrees to reasonably consult in advance with Licensee at the development and design
stage so that Licensee may provide meaningful input at such stage for the purpose of supporting, sustaining and improving the
brand image of, or associated with, the Trademark(s).

 

3.4To
the extent Licensor seeks to license any and all cosmetic products, skin care products, and other products lines bearing the Trademark(s)
outside of the Territory, Licensor shall first consult with Licensee so as to ensure that such licensing does not harm or contradict
the global brand image of “DAVI” as a premium, luxury brand and obtain Licensee’s consent; provided that, Licensee
shall not unreasonably delay or withhold its consent as long as such licensing is not expected to reasonably affect the global
brand image of “DAVI” as a premium, luxury brand.

 

3.5In
the event that Licensor seeks to engage in any Change of Control Transaction, Licensor shall give a notice to Licensee reasonably
in advance and Licensee shall have the right of first look for a period of thirty (30) days from the receipt of such notice to
explore a potential transaction with Licensor.

 

For the
purpose of this Agreement, “Change of Control Transaction” means (a) any proposal, offer, inquiry or indication of
interest, whether written or otherwise, with respect to a merger, joint venture, partnership, consolidation, dissolution, liquidation,
tender offer, exchange offer, recapitalization, reorganization, share exchange, business combination or similar transaction involving
Licensor or any third-party acquisition, which if consummated would result in any party (i) becoming the beneficial owner of 50%
or more of the total voting power of the equity securities of Licensor or 50% or more of the total assets of Licensor or (ii)
acquiring the power or ability to appoint a majority of the directors to the board of directors of Licensor through ownership
of voting shares, or by contract, or otherwise, or (b) any issuance of new voting shares in a single transaction (other than rights
offering to existing shareholders) in an amount greater than 20% of the then currently outstanding voting shares.

 

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4.IMPROVEMENTS

 

4.1During
the term of this Agreement, Licensor shall disclose to Licensee
any and all of its own Improvements upon receipt of Licensee’s
written request. Improvements by Licensor disclosed to Licensee shall be deemed included in the Licensed IP under this Agreement.

 

4.2All
Improvements conceived, created or otherwise developed by Licensee, derived or resulting from the Licensed IP shall be owned by
Licensee and shall be the sole property of Licensee. For the avoidance of doubt, the Licensee shall have sole discretion in determining
the manufacturing process, formulae, recipe and ingredients for the Licensed Products to be sold in the Territory, provided that
such determination is in compliance with the relevant regulatory requirements in the Territory. In the event Licensor wishes to
import, export, distribute, market, sell, offer to sell or license products incorporating such Improvements outside of the Territory,
the Parties shall engage in a good faith discussion to enter into one or more separate definitive agreements (including, without
limitation, a sale and purchase agreement or a technical license agreement) pursuant to which Licensor may purchase or acquire
the license to the Improvements from Licensee.

 

4.3During
the term of this Agreement, Licensee shall have the right and discretion to determine the “place of origin” of the
Licensed Products to be sold in the Territory. To the extent requested by Licensee in writing, Licensor shall use all commercially
reasonable efforts to make Improvements and/or otherwise change, alter or replace the ingredients or the “place of origin”
of such ingredients to effect the preferred “place of origin” for such Licensed Products.

 

5.CERTAIN
RULES AND OBLIGATIONS REGARDING THE USE OF TRADEMARKS

 

5.1Licensor
is and shall remain the sole owner of the Trademarks, and the use of the Trademarks by Licensee in the Territory shall inure to
the benefit of Licensor. Licensee shall not contest or challenge the validity, ownership, title or registration thereof. Licensee
agrees that it will, at no time, use or authorize the use of any trademark, service mark, trade name, design, logo or other designation
identical with, arguably similar to or incorporating the Trademarks, and will not apply for registration of any trademark in its
name, regardless of the types of goods/services covered by such registration, that would adversely affect the ownership of the
Trademarks, nor file any document with any governmental authority, in the Territory or elsewhere, to take any action that would
adversely affect the ownership of the Trademarks. Licensee shall not represent at any time that it has any right or title in and
to any of the Trademarks other than the license granted herein, and Licensee agrees not to do or cause to be done any act which
may in any way adversely affect or impair the right or title of Licensor in the Trademarks.

 

5.2Licensee
agrees to adhere to the quality control standards and other trademark guidelines and policies that have been adopted by Licensor
in its business operations as set forth in Schedule D attached hereto (hereinafter, “Quality Standard”),
including with respect to the nature and quality of all products or services sold or otherwise disposed of by Licensee in commerce
and covered by the Trademarks. Such Quality Standard (which may be amended from time to time with prior notice to Licensee to
the extent that such amendments would not materially and adversely affect the terms and conditions of this Agreement or the ability
of Licensee to manufacture, import, export, distribute, market or sell the Licensed Products in the Territory) shall be no greater
than the quality standards imposed by Licensor in general, and shall be at least equal in quality to the most recent products
(in the aggregate) sold by Licensor prior to the date such standards are communicated to Licensee.

 

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5.3The
representatives of Licensor and Licensee shall meet once a year at a time and place mutually agreeable to the Parties to review
the status of the business operations contemplated under this Agreement and to inspect Licensee’s goods that employ the
Trademarks to determine that they are of the proper quality.

 

5.4The
symbol “®” will be used immediately adjacent to each of the Trademarks each and every time either of them appear
or are used in the part of the Territory where such Trademark(s) is registered so long as each such Trademark is and remains a
registered trademark, and the symbol “TM” will be used immediately adjacent to each of the unregistered Trademarks.

 

5.5Before
commencing the use of the Trademarks in connection with the Licensed Products and promotional and packaging materials, Licensee
shall notify, and provide copies to, Licensor of artwork for, and samples of, promotional and packaging materials that include
the Trademarks.

 

5.6This
Section 5 shall not prevent Licensee from applying for and registering trademark(s) that are conceived or adopted by Licensee
independently of Licensor and are conspicuously different from any of the registered or non-registered trademarks that were used
prior to the signing of this Agreement or are used during the term of this Agreement by Licensor. Upon request from Licensee,
Licensor agrees to provide Licensee with its assistance for and in connection with Licensee’s such trademark application.

 

5.7With
prior consultation with Licensee, Licensor may apply for and register trademark(s) that are conspicuously different from any of
the Trademarks but may yet be associated with the brand image of the Trademarks (which, for the avoidance of doubt, shall include
brand images associated with grapes, wines and wineries); provided that Licensor shall keep Licensee advised, in writing, of its
filing of a trademark application and the subsequent development of such application and; provided, further, that
Licensee shall be given the right of first look for a period of ninety (90) days to review and consider such trademarks (i) for
inclusion into the scope of the Trademark(s) under this Agreement or (ii) for licensing and use by Licensee under a separate license
and assistance agreement to be negotiated in good faith and mutually agreed upon and entered into by Licensor and Licensee. Upon
request from Licensor, Licensee agrees to provide Licensor with its assistance for and in connection with Licensor’s such
trademark application.

 

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6.ROYALTIES

 

6.1Advance
Royalty. In consideration of the right and license granted by Licensor to Licensee hereunder, Licensee shall pay to Licensor
a non-refundable advance royalty of $250,000 (“Advance Royalty”), which payment shall be due and payable within
ten (10) business days from the date of this Agreement.

 

6.2Earned
Royalty. In consideration of the licenses and rights granted under this Agreement, Licensee shall pay to Licensor an on-going
royalty (the “Earned Royalty”) that is based on the annual Net Sales of the Licensed Products. The Earned Royalty
shall be paid in US dollars according to the following rates:  

 

		(i)	a
                                                                                                                               rate
                                                                                                                               of
                                                                                                                               [***]
                                                                                                                               percent
                                                                                                                               ([***]%)
                                                                                                                               of
                                                                                                                               Net
                                                                                                                               Sales
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Licensed
                                                                                                                               Products
                                                                                                                               within
                                                                                                                               the
                                                                                                                               Territory
                                                                                                                               up
                                                                                                                               to
                                                                                                                               the
                                                                                                                               first
                                                                                                                               US$[***]of
                                                                                                                               annual
                                                                                                                               Net
                                                                                                                               Sales;

		(ii)	a
                                                                                                                                rate
                                                                                                                                of
                                                                                                                                [***]
                                                                                                                                percent
                                                                                                                                ([***]%)
                                                                                                                                of
                                                                                                                                Net
                                                                                                                                Sales
                                                                                                                                of
                                                                                                                                the
                                                                                                                                Licensed
                                                                                                                                Products
                                                                                                                                within
                                                                                                                                the
                                                                                                                                Territory
                                                                                                                                between
                                                                                                                                US$[***]
                                                                                                                                US$[***]
                                                                                                                                of
                                                                                                                                annual
                                                                                                                                Net
                                                                                                                                Sales;
                                                                                                                                and

		(iii)	a
                                                                                                                                 rate
                                                                                                                                 of
                                                                                                                                 [***]
                                                                                                                                 percent
                                                                                                                                 ([***]%)
                                                                                                                                 of
                                                                                                                                 Net
                                                                                                                                 Sales
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Licensed
                                                                                                                                 Products
                                                                                                                                 within
                                                                                                                                 the
                                                                                                                                 Territory
                                                                                                                                 of
                                                                                                                                 US$[***]
                                                                                                                                 or
                                                                                                                                 higher
                                                                                                                                 or
                                                                                                                                 annual
                                                                                                                                 net
                                                                                                                                 sales.
                                                                                                                                 

 

Annual
Net Sales shall be determined based on each calendar year’s Net Sales. Earned Royalty payments under this Section shall
be payable semi-annually, in accordance with, and subject to, Section 8 below, commencing on the Effective Date. Licensee shall
furnish to Licensor royalty statements with such Net Sales pursuant to Section 8 below, and such Net Sales shall be subject to
an audit by Licensor and/or its auditors pursuant to Section 7.1 below.

 

7.RECORDS
AND ADJUSTMENTS

 

7.1Licensee
shall keep full, clear and accurate records with respect to all Licensed Products manufactured and the Net Sales of the Licensed
Products sold within the Territory and shall furnish any information which Licensor may reasonably prescribe from time to time
to enable Licensor to ascertain the proper royalty due hereunder. Licensor shall have the right through its external, accredited
auditors to make an examination, no more than once a year following advance notice and during normal business hours, of all records
and accounts bearing upon the amount of royalty payable to it hereunder. If any error or omission
is revealed through the examination, which is reasonably identified, explained and verified by the external auditors, Licensor
shall provide a written notice thereof to Licensee (which notice shall be delivered within twelve (12) months from the date of
the payment which included such alleged error or omission). Adjustments shall be made within sixty (60) days from
the date of such written notice to compensate for any errors or omissions set forth in
the notice unless Licensee disputes any alleged error or omission stated in the written notice by sending a written notice of
dispute to Licensor. In case Licensee disputes alleged error or omission, the Parties shall in good faith attempt to resolve such
disputes, and any dispute that cannot be resolved to both Parties' mutual satisfaction shall be resolved in accordance with Section
16.

 

7.2No
refund, credit or other adjustment of royalty payments shall be made by either Party
except as provided in this Section 7.

 

    	9

    	 

    

8.REPORTS
AND PAYMENTS

 

8.1.Within
ninety (90) days after the end of each semi-annual period ending on June
30th and December
31th of each year, Licensee shall furnish to Licensor at the address
specified in Section 15.1 a statement, in a form reasonably acceptable to Licensor, certified by a responsible officer of Licensee,
showing all Licensed Products which were sold within the Territory during such semiannual period, the Net Sales of such Licensed
Products and the amount of Earned Royalties payable thereon.

 

8.2Within
such ninety (90) days mentioned in Section 8.1 above, Licensee shall pay to Licensor
at the bank account designated by Licensor from time to time the Earned Royalties payable for such semiannual period as shown
in the statement required by Section 8.1 above, provided, that, Licensee shall have no obligation to pay any Earned Royalties
until and unless the aggregate amount of accrued Earned Royalties actually exceed the Advance Royalty. In the event the aggregate
amount of accrued Earned Royalties exceeds the Advance Royalty, then the first Earned Royalties payment to be made by Licensee
to Licensor shall represent the net amount of the accrued Earned Royalties minus the Advance Royalty, and all other subsequent
payments for Earned Royalties shall be paid in full in accordance with this Agreement.

 

8.3All
payments under Agreement shall be made in US dollars. Any conversion to US dollar shall be at T/T selling rate in effect at a
reputable foreign exchange bank in Korea on the date of payment.

 

8.4All
income taxes under Korean law required to be paid by each Party in connection with this Agreement shall be for the account of
such Party.

 

8.5Any
sum required under Korean law to be withheld by Licensee from royalty payments hereunder shall be withheld and promptly paid by
Licensee, and Licensee shall provide Licensor with official tax receipts and other evidence of such payments.

 

9.INTELLECTUAL
PROPERTY RIGHTS

 

9.1Licensor
shall diligently file, prosecute and maintain the patents, patent applications, trademarks, and registration of trademarks during
the term of this Agreement to fully protect the proprietary interests of the Licensed IP and/or Trademarks. From time to time
Licensee may request Licensor to file, prosecute and maintain additional trademarks or intellectual property or register certain
trademarks or intellectual property with customs office or similar authorities of enforcement, and such request shall not unreasonable
rejected by Licensor. Licensor shall, at its own expense, take all action necessary to perfect, maintain, preserve, protect against
infringement, defend the validity of and/or renew any applicable title and/or interest in the Licensed IP and/or any intellectual
property rights set forth in this Agreement and transactions contemplated hereby. Upon request by Licensee, Licensor shall cooperate
with Licensee in registering the license granted to Licensee hereunder to use Trademarks and other intellectual property rights
with the relevant authority.

 

    	10

    	 

    

9.2In
the event that any Party has reason to believe that a third party is or may be infringing any of the Licensed IP and/or Trademarks,
it shall notify in writing the other Party of such alleged infringement.

 

9.3Licensor
shall have the right to decide, in its reasonable discretion, whether or not to bring an action, at its own expense and risk,
against the infringement by a third party of the Licensed IP and/or Trademarks
(provided, that (i) Licensor shall provide full consideration of Licensee’s rights and interests as the sole and exclusive
licensee of the Licensed IP and Trademarks, (ii) shall provide to Licensee a reasonable written disclosure of the circumstances
and action, and (iii) shall consult with Licensee before making any decision).
If Licensor decides to bring such action, Licensee shall provide Licensor with such information/documents in
its possession and assistance as are
reasonably necessary for Licensor to successfully pursue the legal proceedings.

 

9.4 For
any infringement or suspected infringement of any Licensed IP by any third party that has occurred or is taking place within the
Territory, the Licensee shall have the right to take any action with respect to such matter in the event that the Licensor elects,
pursuant to Section 9.3 above, not to take any action whatsoever. In such case, the Licensee shall: (i) conduct any such action,
at its sole cost, as it shall deem necessary; and (ii) be entitled to all damages and other sums that may be paid or awarded as
a result any such action.

 

10.CONFIDENTIALITY

 

10.1For
the term of this Agreement and for a period of three (3) years thereafter, each Party shall keep any and all Confidential Information
it receives from the other Party under this Agreement, including without limitation the Licensed IP, secret and confidential;
provided, however, that the obligation of each Party hereunder shall not apply to the Confidential Information that the receiving
Party can show:

 

		(a)	becomes
                                                                                                        part of the public domain
                                                                                                        through no fault of the
                                                                                                        receiving Party;

		(b)	was
                                                                                                        known to the receiving
                                                                                                        Party prior to the disclosure
                                                                                                        by the other Party;

		(c)	has
                                                                                                        been independently developed
                                                                                                        by the receiving Party
                                                                                                        without use of any of
                                                                                                        the Licensed IP; 

		(d)	the
                                                                                                        receiving Party rightfully
                                                                                                        and legally received from
                                                                                                        a third party having no
                                                                                                        obligation to maintain
                                                                                                        the secrecy of such information;
                                                                                                        or 

		(e)	is
                                                                                                        required by law or regulation
                                                                                                        to be disclosed; provided
                                                                                                        that the receiving Party
                                                                                                        shall use its reasonable
                                                                                                        efforts to restrict the
                                                                                                        scope of such disclosure
                                                                                                        and to obtain confidential
                                                                                                        treatment.

 

In addition
the Licensed IP, “Confidential Information” also includes, but is not limited to, the following: all nonpublic information
concerning either Party, its products or services, prospective products or services, research, prices, discounts, costs, marketing
plans, marketing techniques, market studies, test data, client identities, client lists and records, suppliers, contracts, business
records and plans, and financial information.

 

10.2Each
Party agrees to use the Confidential Information only for the purpose of this Agreement.

 

    	11

    	 

    

11.REPRESENTATIONS
AND WARRANTIES; INFRINGEMENT OF THIRD PARTY’S
INTELLECTUAL PROPERTY RIGHTS;
INDEMNIFICATION

 

11.1Licensor
represents and warrants that it has legitimate ownership of or the right to use the Licensed IP (including, without limitation,
all patents and patent applications that have been duly filed and/or registered with the relevant authorities) and that it has
the full and lawful right, authority and power to grant a license to Licensee as specified in Section 2.

 

11.2Licensor
represents and warrants that, to its knowledge after due and reasonable inquiry, the
use by Licensee of the Licensed IP and/or Trademarks under this Agreement does not, and will
not, infringe any patent rights, other intellectual property rights, including
but not limited to copyrights, or other rights of any kind or nature of a third party (each
a “Third Party IPR”). 

 

11.3In
the event that the use of the Licensed IP and/or Trademarks by Licensee under this Agreement is alleged to infringe any
Third Party IPR, Licensor shall, at its own discretion
and expense, either defend any suit or action brought by such third party, or obtain a license for or assignment of such Third
Party IPR in order to enable Licensee’s lawful
use of the Licensed IP and/or Trademarks. Licensor shall reimburse Licensee for all costs and expenses incurred by Licensee in
connection with any suits, proceedings or claims (including, but not limited to, reasonable attorneys’
fees and disbursements) and any amount of award in a final judgment (or
settlement) entered against the Licensee based on such suits, proceedings or claims and shall indemnify and hold Licensee and
its directors, officers, shareholders, employees, affiliates and agents harmless from
and against any and all damages or liabilities recognized
under applicable laws and regulations arising out of, or related to, directly or indirectly, the infringement of any Third Party
IPR or the breach of or the
inaccuracy in any of the representations and warranties contained in this Agreement.

 

11.4Licensor
shall promptly inform Licensee, in writing, of any side effects or adverse reactions or suspected side effects or adverse reactions
encountered by or reported to it in connection with the Licensed Products or any of its ingredients. Licensor shall indemnify
and hold harmless Licensee, and, at Licensee’s request, defend Licensee and its affiliates, directors, officers, employees,
agents, and customers from and against any loss, cost, liability, or expense (including court costs and the reasonable fees and
disbursements of attorneys and other professionals) arising from or relating to any suit, claim or action brought by a third party
against Licensee as a result of such side effects or adverse reactions; provided that the foregoing obligation of Licensor
shall not apply to the LGC Products except to the extent arising from or in connection with any suit, claim or action in respect
of the Trademarks borne by such LGC Products.

 

11.5Notwithstanding
anything to the contrary contained herein, Licensor shall indemnify, defend and hold Licensee and its directors, officers, shareholders,
employees, affiliates and agents harmless from all costs, expenses, damages, claims, actions and legal fees resulting from third
party claims and suits made against Licensee arising out of or related to any
death, personal injury or damage to the property of a third party relating to any
of the Licensed Products manufactured by Licensee based on and in strict reference to the Licensed IP or in accordance with the
specifications/standards provided by Licensor, whether based on strict liability, the Products Liability Act of Korea, negligence,
breach of warranty (express or implied), breach of contract or otherwise; provided that the foregoing obligation of Licensor
shall not apply to the LGC Products except to the extent arising from or in connection with any suit, claim or action in respect
of the Trademarks borne by such LGC Products.

 

    	12

    	 

    

12.TERM

 

This Agreement
shall come into force and effect upon the receipt by Licensor of the Advanced Royalty (the date of the receipt by Licensee shall
be the “Effective Date”) and continue in full force and effect for a period of ten (10) years (the “Initial
Term”). Upon the expiration of the Initial Term, this Agreement shall be automatically renewed for an additional ten
(10) year term on the same terms and conditions, unless the royalties received or to be received by Licensor under Section 6 in
respect of the final year of the Initial Term falls below US$1 million.

 

13.TERMINATION

 

13.1This
Agreement may be terminated immediately by either Party by written notice to the other Party in the event that:

 

		(a)	the
                                                                                                        other Party commits a
                                                                                                        material breach of this
                                                                                                        Agreement and fails to
                                                                                                        remedy such breach within
                                                                                                        sixty (60) days after
                                                                                                        being notified of it;
                                                                                                        

 

		(b)	the
                                                                                                        other Party is incapable
                                                                                                        of performing any of its
                                                                                                        obligations under this
                                                                                                        Agreement due to a force
                                                                                                        majeure as provided in
                                                                                                        Section 20.2 below for
                                                                                                        six (6) consecutive months
                                                                                                        or for six (6) months
                                                                                                        out of any period of nine
                                                                                                        (9) consecutive months;
                                                                                                        

 

		(c)	a
                                                                                                        bankruptcy, reorganization
                                                                                                        (in Korean “hoesa
                                                                                                        jungri”), composition
                                                                                                        (in Korean “hwa
                                                                                                        eui”), dissolution
                                                                                                        or similar proceeding
                                                                                                        has been initiated by
                                                                                                        or against the other Party,
                                                                                                        or its banking transactions
                                                                                                        have been suspended; or

 

		(d)	a
                                                                                                        third party, engaged in
                                                                                                        a business or activity
                                                                                                        which is in direct or
                                                                                                        indirect competition with
                                                                                                        (or may otherwise adversely
                                                                                                        affect the business of)
                                                                                                        the terminating Party
                                                                                                        or its affiliates, acquires
                                                                                                        the power or ability to
                                                                                                        appoint more than half
                                                                                                        of the directors of the
                                                                                                        other Party, through ownership
                                                                                                        of voting shares, or by
                                                                                                        contract, or otherwise.
                                                                                                        

 

13.2This
Agreement may be terminated upon mutual agreement between the Parties.

 

13.3This
Agreement may be terminated immediately by Licensee if any of the registered trademarks set forth in Item 2 of Schedule A is revoked
or cancelled for any reason after the Effective Date.

 

14.CONSEQUENCE
OF TERMINATION

 

14.1Termination
of this Agreement shall be without prejudice to the accrued rights and liabilities of the Parties at the date of termination.

 

14.2Upon
termination of this Agreement, Licensee shall immediately cease to use and exploit any of the Licensed IP and Trademarks in any
manner whatsoever and shall immediately deliver to Licensor all plans, drawings, written materials, patterns or other tangible
items or devices using or embodying the Licensed IP or any portion thereof. The Parties shall consult in good faith with each
other for the purpose of determining the terms and conditions for the treatment of the inventory of the Licensed Products after
the termination of this Agreement.

 

    	13

    	 

    

15.NOTICE

 

15.1 Method
of Notice. Any notice, request and other correspondence required or permitted under or in connection with this Agreement shall
be in writing and in English and be delivered by personal service, courier, e-mail, facsimile transmission or equivalent electronic
communication means or by first class, registered or certified mail, postage prepaid, to the following addresses:

 

If
to Licensor, to:

 

Davi Luxury
Brand Group Inc.

Address:
9426 Dayton Way, Beverly Hills,

California
90210, USA

Telephone:
(310) 288-8393

Facsimile:
(310) 288-0125

Attention:
Chief Executive Officer

 

If
to Licensee, to:

 

LG Household
and Health Care, Ltd.

Address:
LG GwangHwaMoon Building, 92,

Sinmunno
2-ga, Jongno-gu, Seoul 110-062 Korea

Telephone:
(822) 6924-6062

Facsimile:
(822) 6924-6068

Attention:
Junsik Han, General Counsel

 

15.2Notice
Date. All notices and other communications shall be deemed received upon actual receipt when personally delivered, upon delivery
when sent by e-mail, facsimile or equivalent electronic communication means, or upon the expiration of the seventh (7th) day after
being deposited in the mails, postage prepaid, certified or registered mail, addressed to the Party at its address set forth in
Section 15.1 above.

 

15.3Change
of Address. Any Party may at any time change its address by notifying the other Parties of such change in accordance with
the procedures provided in Section 18.1 above.

 

16.GOVERNING
LAW AND ARBITRATION

 

16.1Governing
Law. This Agreement shall be governed by and construed in accordance with the substantive laws of Korea.

 

    	14

    	 

    

16.2Arbitration.
Any dispute that arises out of or in connection with this Agreement or the interpretation hereof, including with respect to
its existence, validity or termination, so far as is reasonably possible, shall be settled amicably through friendly consultation
between Licensor and Licensee. In the event that they are unable to settle any dispute within sixty (60) days of its submission
in writing by one Party to the other, then such dispute shall be submitted for arbitration to the International Chamber of Commerce
(“ICC”) in accordance with the ICC Rules of Arbitration in effect at the time of the arbitration. Arbitration
shall be conducted in Singapore, and in the English language before a tribunal of three (3) arbitrators. All decisions of the
arbitration tribunal shall be final and binding on the Parties and shall be enforceable in accordance with its terms. The arbitrators
shall have the power (to the fullest extent permitted by law) to render declaratory judgements and to issue injunctive orders,
as well as to award monetary damages. The arbitration tribunal shall determine the costs of arbitration in its award, and such
costs shall be allocated between the Parties as determined by the arbitration tribunal. The award may include interest from the
date of any damages incurred for breach or other violation of this Agreement until payment is made, at a rate determined by the
arbitration tribunal. Notwithstanding the foregoing, the Parties shall have the right to bring judicial proceedings to obtain
preliminary injunctive relief at any time before or during the pendency of arbitration proceedings, provided that such preliminary
injunctive relief shall be subject to final arbitral decisions.

 

17.MISCELLANEOUS

 

17.1Non-Waiver.
Any waiver of any term or condition of this Agreement must be in a writing signed by the Party sought to be charged with such
waiver referring specifically to the term or condition to be waived, and no such waiver shall be deemed to constitute the waiver
of any other breach of the same or of any other term or condition of this Agreement.

 

17.2Force
Majeure. Failure or delay of any Party in performance of its obligations under this Agreement shall not subject such Party
to any liability to the other Parties or place it in breach of any term or condition of this Agreement to the extent such failure
or delay is caused by riot, civil commotions, wars, hostilities between nations, governmental laws, orders or regulations, embargoes,
actions by the government or any agency thereof, acts of God, storms, fires, accidents, strikes, sabotages, explosions, or other
similar contingencies beyond its reasonable control.

 

17.3Assignment.
Neither this Agreement nor any rights or benefits or obligations hereunder may be assigned, in whole or in part, by any Party
without the prior written consent of the other Party.

 

17.4Amendment.
No amendment or supplement hereof shall be effective or binding on any Party unless reduced to writing and executed by the duly
authorized representatives of the Parties.

 

    	15

    	 

    

17.5Severability.
If any provision of this Agreement is determined to be invalid or void, the remaining provisions shall remain in effect.

 

17.6Headings.
The headings contained in this Agreement are for convenience of reference only and do not form any part of this Agreement for
the purpose of interpretation or construction of this Agreement.

 

17.7Entire
Agreement. This Agreement sets forth the entire agreement and understanding of the Parties with respect to the subject matter
contained herein and supersedes all previous representations, understandings or agreements, oral or written, between the Parties.

 

17.8Schedules.The
Schedules
attached hereto form an integral part of this Agreement.

 

17.9Counterparts.This
Agreement may be executed in counterparts, each of which shall constitute an original and all of which, when taken together, shall
constitute one and the same instrument.

 

[Signature
page follows.]

 

    	16

    	 

    

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the day
and year first written above.

 

 

	Davi
        Luxury Brand Group Inc. (Licensor)

         

         

         

        By:
         /s/ Parrish Medley

        Name:
        Parrish Medley

        Title:
        Chief Executive Officer
	LG
        Household and Health Care, Ltd. (Licensee)

         

         

         

        By:
         /s/ CHUN-GU KIM

        Name:
        CHUN-GU KIM

        Title:
        Senior Vice President

    	17

    	 

    

 

Schedule
A

INTELLECTUAL
PROPERTY LIST

 

TRADEMARKS
AND TRADEMARK APPLICATIONS

The following
is a list of Licensor’s trademarks (the “Trademarks”):

 

1.Registrations
or pending applications in the United States for (a) DAVI SKIN, Reg. No. 3,029,808, Ser. No. 76/549,132; (b) LE GRAND CRU, Reg.
No. 4,135,614, Ser. No. 85/462,875; (c) DAVI, Ser. No. 85/412,103; and (d) DAVI NAPA, Ser. No. 85/412,131.

 

2.Pending
applications in Korea for (a) DAVI SKIN, Application No. 40-2011-50724; (b) DAVI, Application No. 40-2011-50722; and (c) DAVI
NAPA, Application No. 40-2011-50723.

 

3.All
associated DAVI and/or LE GRAND CRU trademarks (whether registered or unregistered), trade names, service names, logos and designs,
including, without limitation, all designs, logos, word marks or other uses in commerce that incorporate, constitute or comprise
the names, terms or words “DAVI” and/or “LE GRAND CRU,” and/or any names, terms, words or other uses in
commerce in the United States and/or in South Korea that are confusingly similar thereto, in standard characters, specialized
characters or otherwise.

 

4.Registration
in Japan for “DAVI SKIN,” Reg. No. 4910617.

 

5.Unregistered
trademarks in People’s Republic of China (and also in Hong Kong), Philippines, and Thailand.

    	18

    	 

    

Schedule
B

PRODUCT
LIST

 

 

Womens

Le Grand
Cru Face Cream

Le Grand
Cru Intense Regeneration Lotion

Le Grand
Cru Eye Treatment

Meritage
Anti-Aging Serum

Intensive
Eye Treatment

Vine Fresh
Spf 30 Lotion

Vine Fresh
Spf 15 Lotion

Moscato
Purifying Cleanser

Harvest
Mist Toner

Crushed
Grape Seed Exfoliating Cleanser

 

Men

Le Grand
Cru Face Cream

Crushed
Grape Seed Exfoliating Cleanser

Reserve
Shave Cream

Coastal
Vine After Shave Soothing Mist Spray

Coastal
Vine After Shave Oil

Multi
Action Face Wash

 

-Phytosphere
Meritage Antioxidant Complex

 

 

 

    	19

    	 

    

 

Schedule
C

PRIOR
RIGHTS GRANTED TO THIRD PARTIES

 

(a).Licensor
has entered into an agreement pursuant to which it granted gategroup Singapore Trading PTE Limited a license (i) to manufacture
and distribute certain amenity products to be provided to Korean Air first class and business class passengers, (ii) to use the
“DAVI” and “Davi Skin” word and design trademarks on those amenity products, and (iii) to exclusively
use the amenity products in Korean Air washrooms and lounges located on Korean Air aircraft and at Korean Air lounges located
at airports.

 

(b).Licensor
has granted Gilchrist & Soames, Inc. a license to manufacture certain the hotel amenity products that bear the DAVI word and
design trademarks on those amenity products, and to exclusively sell and distribute the DAVI branded products to Peninsula Hotels
worldwide.

 

(c).In
addition to the license granted pursuant to paragraph (a) of this Schedule C, Licensor also sells certain Licensed Products to
Korean Air for re-sale by Korean Air in its onboard duty free sales and Sky Shop magazine programs. The Parties agree that Licensee
shall have the right to provide Korean Air with all Licensed Products that Korean Air may hereafter request for its aircraft/Sky
Shop sales of Licensed Products. Licensor hereby agrees to fully cooperate with Licensee in transitioning the sale of Licensed
Products to Licensee, including, if necessary, assisting Licensee with the execution of a distribution agreement between Licensee
and Korean Air for in-flight/Sky Shop sales of the Licensed Products.

 

 

    	20

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