Document:

uhln_ex101.htm

EXHIBIT 10.1
   
  JOINT VENTURE AGREEMENT
   
  This Joint Venture Agreement, dated as of September 25, 2015 (this “Agreement”), by and between USH Distribution Corp., a U.S. corporation formed in the state of Oklahoma with business address located at 5930 Royal Lane, Suite E211, Dallas, Texas, 75230 (“USH”), and M&M Sourcing Sdn Bhd., an entity formed under the laws of Malaysia with business address located at #75 Jalan USJ9/5B, Subang Jaya, Selangor 47620, Malaysia (“M&M,” and together with USH, the “Parties,” and individually a “Party”).
   
  WHEREAS, USH and M&M have jointly formed Lahva, Inc., a Nevada corporation (“Lahva” or the “Company”), for the purposes of acting as the U.S. based representative of M&M to provide apparel sourcing services to U.S. based brands and retailers, develop in-house apparel brands and invest in and develop non in-house apparel brands (the “Joint Venture”).
   
  WHEREAS, this Agreement sets out the terms of the Joint Venture and timetable for implementation.
   
  Article I
  BUSINESS OF THE COMPANY
   
  The Parties have entered into this Joint Venture for the purposes of acting as the U.S. based representative of M&M to provide apparel sourcing services to U.S. based brands and retailers, develop in-house apparel brands and invest in and develop non in-house apparel brands.
   
  Article II
  STRUCTURE
   
  Section 2.01 The business Joint Venture will be conducted through the Company, but the Parties may agree on a different structure if it becomes necessary or desirable for commercial or other reasons.
   
  Section 2.02 The headquarters of the Company will be based at the business address of USH.
   
  Section 2.03 The authorized capital stock of the Company shall consist of 75,000 total shares (the “Shares”) further consisting of 50,000 shares common stock, par value $0.0001 per share (the “Common Stock”) plus 25,000 shares preferred stock, par value $0.0001 per share (the “Preferred Stock”).
   
  	 
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  Section 2.04 Each Party will own the initial share capital of the Company as follows:
   
    	  Party:
	  Share Capital Percentage:

	  USH
	  40%

	  M&M
	  60%

  
 
  Article III
  CONTRIBUTIONS TO THE JOINT VENTURE
   
  Section 3.01 As consideration for the Shares in the Company to USH at closing, USH shall provide services to the Joint Venture (the “USH Responsibilities”) including but not limited to the following:
   
    		(a) 	  Management mentoring;

			
		(b) 	  Mentoring to brand designers and entrepreneurs;

			
		(c) 	  Sales consulting;

			
		(d) 	  Sales support;

			
		(e) 	  Business advisory services;

			
		(f) 	  U.S. market advisory services;

			
		(g) 	  Introductions to U.S. business contacts; and

			
		(h) 	  Use of USH offices, warehouses and business mailing address.

   
  Section 3.02 As consideration for the Shares in the Company to M&M at closing, M&M shall provide services to the Joint Venture (the “M&M Responsibilities”) including but not limited to the following:
   
    		(a) 	  Management mentoring;

			
		(b) 	  Mentoring to brand designers and entrepreneurs;

			
		(c) 	  Client management;

			
		(d) 	  Apparel production and supply chain development consulting; and

			
		(e) 	  Business advisory services.

   
  	 
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  Section 3.03 In addition to the foregoing, the Company may pay the Parties for their respective services rendered to the Joint Venture, as determined by the Company.
   
  Article IV
  CONDITIONS AND APPROVALS
   
  The proposed Joint Venture will be conditional on:
   
  (a) the board of directors of both Parties approving the Joint Venture;
   
  (b) any third Party, regulatory or tax consents required for the Joint Venture being received in terms satisfactory to both Parties;
   
  (c) there not having occurred any material adverse change in the business, operations, assets, position (financial, trading or otherwise), profits or prospects of USH or M&M between the signing of this Agreement and closing; and
   
  (d) no legislation or regulation being proposed or passed that would prohibit or materially restrict the implementation of this Agreement or the participation in the Joint Venture of either Party.
   
  Article V
  REPRESENTATIONS AND WARRANTIES
   
  Section 5.01 Representations and Warranties of USH. USH represents and warrants to M&M that:
   
  (a) it is a corporation duly organized, validly existing and in good standing under the laws of its formation;
   
  (b)  it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement, except where the failure to be so qualified, in the aggregate, would not reasonably be expected to adversely affect its ability to perform its obligations under this Agreement;
   
  (c) it has the full right, corporate power and authority to enter into this Agreement, and to perform its obligations hereunder;
   
  (d) the execution of this Agreement by the individual whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by USH, have been duly authorized by all necessary corporate action on the part of USH;
   
  (e) the execution, delivery and performance of this Agreement by USH will not violate, conflict with, require consent under or result in any breach or default under (i) any of USH’s organizational documents (including its certificate of incorporation and by-laws), (ii) any applicable Law or (iii) the provisions of any contract or agreement to which USH is a Party or to which any of its material assets are bound;
   
  	 
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  (f) this Agreement has been executed and delivered by USH and (assuming due authorization, execution and delivery by M&M, constitutes the legal, valid and binding obligation of USH, enforceable against USH in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting creditors' rights generally or the effect of general principles of equity;
   
  (g) it is in material compliance with all applicable laws relating to this Agreement and the operation of its business;
   
  (h) it has all of the requisite resources, skill, experience and qualifications to perform all of the services under this Agreement;
   
  Section 5.02 Representations and Warranties of M&M. M&M represents and warrants to USH that:
   
  (i) it is a corporation duly organized, validly existing and in good standing under the laws of its formation;
   
  (j)  it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement, except where the failure to be so qualified, in the aggregate, would not reasonably be expected to adversely affect its ability to perform its obligations under this Agreement;
   
  (k) it has the full right, corporate power and authority to enter into this Agreement, and to perform its obligations hereunder;
   
  (l) the execution of this Agreement by the individual whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by M&M, have been duly authorized by all necessary corporate action on the part of M&M;
   
  (m) the execution, delivery and performance of this Agreement by M&M will not violate, conflict with, require consent under or result in any breach or default under (i) any of M&M’s organizational documents (including its certificate of incorporation and by-laws), (ii) any applicable Law or (iii) the provisions of any contract or agreement to which M&M is a Party or to which any of its material assets are bound;
   
  (n) this Agreement has been executed and delivered by M&M and (assuming due authorization, execution and delivery by USH, constitutes the legal, valid and binding obligation of M&M, , enforceable against M&M in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting creditors' rights generally or the effect of general principles of equity;
   
  	 
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  (o) it is in material compliance with all applicable laws relating to this Agreement and the operation of its business; and
   
  (p) it has all of the requisite resources, skill, experience and qualifications to perform all of the services under this Agreement.
   
  Article VI
  ACCOUNTS
   
  Section 6.01 The financial year end of the Company will be December 31.
   
  Section 6.02 The accounts of the Company will be prepared in accordance with U.S. generally acceptable accounting principles (GAAP) and the first auditors of the Company will be GBH CPA’s PC.
   
  Section 6.03 The management of the Company will prepare an annual business plan for approval by the Parties as shareholders (“Shareholders”) and quarterly management accounts, which will be sent to the Parties as Shareholders (together with such other financial and operational information as they may reasonably require from time to time). The first business plan will be prepared by the Company and adopted by the Company within 90 days of closing.
   
  Article VII
  MANAGEMENT
   
  Section 7.01 The board of directors of the Company (the “Board of Directors”) shall have three members, one of whom shall be appointed by USH (the “USH Board Representative”) and two by M&M (the “M&M Board Representatives”). No board resolution will be passed without at least a majority of the board voting in favor of it.
   
  Section 7.02 The M&M Board Representatives shall appoint the executive officers of the Company.
   
  Section 7.03 The executive officers will be responsible for the day to day management of the Company, but the following issues will be reserved for agreement between the shareholders, in accordance with the bylaws of the Company:
   
  (a) altering the name of the Company;
   
  (b) altering any articles of incorporation or bylaws of the Company;
   
  (c) adopting or amending the business plan for each financial year; and
   
  (d) other reserved matters.
   
  	 
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  Article VIII
  RESTRICTIONS ON PARTIES
   
  No Shareholder of the Company shall compete with the business of the Company or solicit its customers.
   
  Article IX
  TRANSFER OF SHARES
   
  Neither Party may transfer, give, convey, sell, pledge, bequeath, donate, assign, encumber or otherwise dispose of any Shares except pursuant to this Agreement.
   
  Section 9.01 Transfer to Others. Any Shareholder desiring to dispose of some or all of its Shares may do so only pursuant to a bona fide offer to purchase (the “Offer”) and after compliance with the following provisions. Such Shareholder (the “Offering Shareholder”) shall first give written notice to the Company and the other Shareholders (the “Continuing Shareholders”) of its intention to dispose of its Shares, identifying the number of Shares it desires to dispose of, the proposed purchase price per Share and the name of the proposed purchaser and attaching an exact copy of the Offer received by such Shareholder.
   
  (a) The Company's Right to Purchase. The Company shall have the exclusive right to purchase all of the Shares which the Offering Shareholder proposes to sell at the proposed purchase price per Share. The Company shall exercise this right to purchase by giving written notice to the Offering Shareholder with a copy thereof to each of the Continuing Shareholders within thirty (30) days after receipt of the notice from the Offering Shareholder (the “30 Day Period”) that the Company elects to purchase the Shares subject to the Offer and setting forth a date and time for closing which shall be not later than ninety (90) days after the date of such notice from the Company. At the time of closing, the Offering Shareholder shall deliver to the Company certificates representing the Shares to be sold, together with stock powers duly endorsed in blank. The Shares shall be delivered by the Offering Shareholder free of any and all liens and encumbrances. All transfer taxes and documentary stamps shall be paid by the Offering Shareholder.
   
  (b) The Continuing Shareholders Right to Purchase. If the Company fails to exercise its right to purchase pursuant toSection 9.01(a)above, the Continuing Shareholders shall have the right for an additional period of thirty (30) days (the “Additional 30 Day Period”) commencing at the expiration of the 30 Day Period to purchase the Shares which the Offering Shareholder proposes to sell at the proposed purchase price per Share. The Continuing Shareholders shall exercise this right to purchase by giving written notice to the Offering Shareholder prior to the expiration of the Additional 30 Day Period that they elect to purchase its Shares and setting forth a date and time for closing which shall be not later than ninety (90) days after the expiration of the Additional 30 Day Period. Any purchase of Shares by all or some of the Continuing Shareholders shall be made in such proportion as they might agree among themselves or, in the absence of any such agreement, pro rata in proportion to their ownership of Shares of the Company (excluding the Offering Shareholder's Shares) at the time of such offer, but in any event one or more of the Continuing Shareholders must agree to purchase all the Shares which the Offering Shareholder proposes to sell. At the time of closing, the Offering Shareholder shall deliver to buyer certificates representing the Shares to be sold, together with stock powers duly endorsed in blank. Said Shares shall be delivered by the Offering Shareholder free and clear of any and all liens and encumbrances. All transfer taxes and documentary stamps shall be paid by the Offering Shareholder.
   
  	 
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  (c) Sale to Third Party. If either the Company or some or all of the Continuing Shareholders do not elect to purchase all of the Shares which the Offering Shareholder proposes to sell, the Offering Shareholder may accept the Offer which the Offering Shareholder mailed with its notice to the Company and transfer all (but not less than all) of the Shares which he proposes to sell pursuant thereto on the same terms and conditions set forth in such Offer, provided that any transferee of such Shares shall be bound by this Agreement and further provided that if such sale is not completed within one hundred twenty (120) days after the date notice is received by the Company, all such Shares shall again become subject to the restrictions and provisions of this Agreement.
   
  Section 9.02 Right of First Refusal
   
  (a) Except in the case of Excluded Securities (as defined below), the Company shall not issue, sell or exchange, agree to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange, any: (i) shares of Common Stock or any other equity security of the Company which is convertible into Common Stock or any other equity security of the Company; (ii) any debt security of the Company which is convertible into Common Stock or any other equity security of the Company; or (iii) any option, warrant or other right to subscribe for, purchase or otherwise acquire any equity security or any such debt security of the Company, unless in each case the Company shall have first offered to sell to each Shareholder, pro rata in proportion to such Shareholder's then ownership of Shares of the Company, such securities (the “Offered Securities”) (and to sell thereto such Offered Securities not subscribed for by the other Shareholders as hereinafter provided), at a price and on such other terms as shall have been specified by the Company in writing delivered to such Shareholder (the “Stock Offer”), which Stock Offer by its terms shall remain open and irrevocable for a period of ten days (subject to extension pursuant to the last sentence of Section 9.02(b) below) from the date it is delivered by the Company to the Shareholder.
   
  	 
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  (b) Notice of each Shareholder's intention to accept, in whole or in part, a Stock Offer shall be evidenced by a writing signed by such Shareholder and delivered to the Company prior to the end of the ten day period of such Stock Offer, setting forth such portion of the Offered Securities as such Shareholder elects to purchase (the “Notice of Acceptance”). If any Shareholder shall subscribe for less than its pro rata share of the Offered Securities to be sold, the other subscribing Shareholders shall be entitled to purchase the balance of that Shareholder's pro rata share in the same proportion in which they were entitled to purchase the Offered Securities in the first instance (excluding for such purposes such Shareholder), provided any such other Shareholder elected by a Notice of Acceptance to purchase all of its pro rata share of the Offered Securities. The Company shall notify each Shareholder within five days following the expiration of the ten day period described above of the amount of Offered Securities which each Shareholder may purchase pursuant to the foregoing sentence, and each Shareholder shall then have ten days from the delivery of such notice to indicate such additional amount, if any, that such Shareholder wishes to purchase.
   
  (c) In the event that Notices of Acceptance are not given by the Shareholders in respect of all the Offered Securities, the Company shall have 120 days from the expiration of the foregoing ten day or 25 day period, whichever is applicable, to sell all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by the Shareholders (the “Refused Securities”) to any other person or persons, but only upon terms and conditions in all respects, including, without limitation, unit price and interest rates, which are no more favorable, in the aggregate, to such other person or persons or less favorable to the Company than those set forth in the Stock Offer. Upon the closing, which shall include full payment to the Company, of the sale to such other person or persons of all the Refused Securities, the Shareholders shall purchase from the Company, and the Company shall sell to the Shareholders the Offered Securities in respect of which Notices of Acceptance were delivered to the Company by the Shareholders, at the terms specified in the Stock Offer.
   
  (d) The rights of the Shareholders under this Section 9.02 shall not apply to the following securities (the “Excluded Securities”):
   
  (i) Common Stock issued as a stock dividend or upon any stock split or other subdivision or combination of the outstanding shares of Common Stock;
   
  (ii) Securities issued pursuant to the acquisition by the Company of another corporation to the stockholders of such other corporation by merger or purchase of substantially all of the assets whereby the Company owns not less than a majority of the voting power of such other corporation; and
   
  (iii) Common Stock issued in connection with a firm underwritten public offering of shares of Common Stock, registered pursuant to the Securities Act.
   
  	 
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  Section 9.03 Forced Sale.
   
  (i) M&M shall have the right and option upon the written declaration (a “Declaration”) by such Shareholder to USH to purchase all, but not less than all, of the Shares held by USH, and USH shall have the obligation to sell M&M such shares.
   
  (ii) M&M shall exercise any option provided for in this within thirty (30) days after delivery of the Declaration. Any closing of the sale of Shares pursuant to this Section 9.03 must occur within thirty (30) days after receipt of the Declaration.
   
  (iii) The purchase price for the Shares held by USH shall be determined by USH’s pro rata portion of three times the Company’s EBITDA (as determined by the auditors of the Company) for the prior 12 months and shall be paid at the closing.
   
  Article X
  EXCLUSIVE RIGHTS
   
  (a) At any time during the term of this Agreement, and subject to the terms and conditions specified in this Article X, USH shall have the exclusive right of first offer (“ROFO”) to provide consignment sales to the Joint Venture’s new customers (“Customers”). The Company shall give written notice (the "Notice") to USH specifying all of the relevant information about the Customer and shall be irrevocable for a period of ten business days (the "ROFO Notice Period"). Upon receipt of the Notice, USH shall have a period of ten business days (the "ROFO Notice Period") to make a written consignment offer to the Customer (“Offer”). If USH does not deliver an Offer to the Customer during the ROFO Notice Period, the exclusive right under this Article X shall be deemed to be waived.
   
  (b) During the term of this Agreement, M&M shall have the exclusive right to provide international sourcing services to the Joint Venture’s sourcing clients and brands (both in-house and non-in-house).
   
  Article XI
  TERMINATION AND LIQUIDATION
   
  Section 11.01 This Agreement may be terminated at any time upon the mutual agreement of the Parties.
   
  Section 11.02 If either Party materially breaches this Agreement, files for bankruptcy protection (voluntary or involuntary), becomes insolvent or is subject to a change of control, the other Party shall be entitled to purchase its shares in the Company at a price to be determined by an independent expert.
   
  	 
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  Section 11.03 If the Company is wound up, the Parties will endeavour to ensure that assets contributed by each Party will, so far as possible, be transferred back to that Party.
   
  Article XII
  MISCELLANEOUS
   
  Section 12.01 Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.
   
  Section 12.02 Attorneys' Fees. In the event that any Party institutes any legal suit, action or proceeding, including arbitration, against the other Party to enforce the covenants contained in this Agreement (or obtain any other remedy in respect of any breach of this Agreement) arising out of or relating to this Agreement, the prevailing Party in the suit, action or proceeding shall be entitled to receive in addition to all other damages to which it may be entitled, the costs incurred by such Party in conducting the suit, action or proceeding, including actual attorneys' fees and expenses and court costs.
   
  Section 12.03 Public Announcements. Unless otherwise required by applicable law or stock exchange requirements (based upon the reasonable advice of counsel), no Party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed), and the Parties shall cooperate as to the timing and contents of any such announcement.
   
  Section 12.04 Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder (each, a "Notice") shall be in writing and addressed to the Parties at the addresses set forth on the first page of this Agreement (or to such other address that may be designated by the receiving Party from time to time in accordance with this section). All Notices shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile or e-mail of a PDF document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage prepaid). Except as otherwise provided in this Agreement, a Notice is effective only (a) upon receipt by the receiving Party, and (b) if the Party giving the Notice has complied with the requirements of this Section.
   
  	 
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  Section 12.05 Interpretation. For purposes of this Agreement, (a) the words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation"; (b) the word "or" is not exclusive; and (c) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to sections, schedules and exhibits mean the sections of, and schedules and exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instrument to be drafted. The schedules and exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
   
  Section 12.06 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
   
  Section 12.07 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
   
  Section 12.08 Entire Agreement. This Agreement, together with any other documents incorporated herein by reference and all related exhibits and schedules, constitutes the sole and entire agreement of the Parties to this Agreement with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and any other agreement, the statements in the body of this Agreement shall control.
   
  Section 12.09 Amendment and Modification. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each Party hereto.
   
  	 
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  Section 12.10 Waiver. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving. No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
   
  Section 12.11 Cumulative Remedies. The rights and remedies under this Agreement are cumulative and are in addition to and not in substitution for any other rights and remedies available at law or in equity or otherwise.
   
  Section 12.12 Equitable Remedies. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to equitable relief, including injunctive relief or specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.
   
  Section 12.13 Assignment. Neither Party may assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the other Party. Any purported assignment or delegation in violation of this Section shall be null and void. No assignment or delegation shall relieve the assigning or delegating Party of any of its obligations hereunder.
   
  Section 12.14 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective permitted successors and permitted assigns.
   
  Section 12.15 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
   
  Section 12.16 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction).
   
  	 
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  Section 12.17 Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby or shall be instituted in the federal courts of the United States of America or the courts of the State of Nevada in each case located in the City of Carson City, and each Party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.
   
  Section 12.18 Waiver of Jury Trial. Each Party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement.
   
  Section 12.19 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
   
  Section 12.20 Force Majeure. No Party shall be liable or responsible to the other Party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, when and to the extent such failure or delay is caused by or results from acts beyond the affected Party's reasonable control, including, without limitation: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this Agreement; (f) action by any governmental authority; (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; and [(i) shortage of adequate power or transportation facilities.
   
  [SIGNATURE PAGE FOLLOWS]
   
  	 
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  IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
   
    		  USH DISTRIBUTION, CORP.

			  	   

		  By:
	  /s/ Josh Whitaker
	   

		  Name:
	  Josh Whitaker
	   

		  Title:
	  President
	   

		  
		  
		  M&M SOURCING SDN BHD

			  	   

		  By:
	  /s/ Mofizul Kareem
	   

		  Name:
	  Mofizul Kareem
	   

		  Title:
	  Managing Director
	   

  
 
   
   
  14uhln_ex102.htm

EXHIBIT 10.2
   
  CONSIGNMENT AGREEMENT
   
  THIS CONSIGNMENT AGREEMENT (“Agreement”) is made this September 28, 2015 by and between Consignor: Rhino Workwear USA, Ltd., with a business address at 123 W. Nye Lane, Suite 129, Carson City, Nevada, 89076, (hereinafter referred to as “RWUS”) and Consignee: USH DISTRIBUTION, Corp., a Nevada corporation with a business address at 5930 Royal Lane, Suite E211, Dallas, Texas, 75230 and with offices/warehouse at 720 Aviator Drive, Ft. Worth, Texas 76179 (hereinafter referred to as “USH”), RWUS and USH may be referred to as “Party or “Parties,” as applicable. 
   
  PREAMBLE
   
  WHEREAS, RWUS is in the business of designing, manufacturing, marketing and distributing workwear apparel and other accessories for the workwear industry (hereinafter “Products”);
   
  WHEREAS, USH possesses sufficient technical and commercial knowledge in the advertising, promotion, distribution and sale of Products; 
   
  WHEREAS, RWUS would like to arrange for the sales and distribution of Products in the United States of America, including its possessions and territories (hereinafter “Territory”);
   
  WHEREAS, USH is interested in selling Products in Territory;
   
  NOW, THEREFORE, FOR AND IN consideration of the mutual covenants and agreement set forth herein, and other good and valuable consideration, the receipt and sufficiently of which is hereby acknowledged, and intending to be legally bound, the Parties agree as follows: 
   
  ARTICLE I
  Delivery of Products
   
  1.1 Products shall be delivered by RWUS to USH to be stored by USH pending sale of the PRODUCTS by USH.
   
  1.2 RWUS shall supply to USH such quantity of Products, in RWUS’s reasonable discretion, necessary to adequately service the Territory. Models and versions of PRODUCTS are to be defined by RWUS. 
   
  1.3 USH shall pay all freight and shipping charges from the RWUS factories wherever located, including but not limited to Dhaka, Bangladesh, to USH’s warehouse(s) in the United States, as well as all charges related to clearing shipments through US Customs. USH shall also pay all delivery charges and associated costs to deliver the product to the purchaser.
   
  1.4 USH shall be responsible for any loss of or damage to Products commencing from the time the Products are loaded in the shipping container at the factory. USH shall supply to RWUS proof of insurance, at USH’s expense, naming RWUS as beneficiary/payee on such policies, covering the Products, from the time the Products are loaded in such shipping container until the Products are sold, shipped and delivered to USH’s customers. USH shall provide proof of such insurance to RWUS.
   
  	 
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  1.5 RWUS shall provide Products to USH on consignment; i.e. meaning payment for such products shall be made to RWUS only when USH has sold any particular Product. 
   
  ARTICLE II
  Sale of Products, Monthly Statements and Payment to RWUS
   
  2.1 USH shall devote its best commercial efforts to sell RWUS’s Products throughout the Territory. USH shall have the exclusive right to sell the products in the Territory for eighteen (18) months from the date of this Agreement. RWUS retains the right to retail the product in any areas it deems and at its discretion, may limit USH from selling in those areas.
   
  2.2 USH is responsible for payment to RWUS for all Products sold. 
   
  2.3 USH shall furnish RWUS with bi-monthly statements on the 1st and 15th of each month indicating a detailed list of all sales transactions during the preceding weeks, and the status of current inventory on the last day of the preceding month (with sufficient detail to show sales by item, including the date of sale, the sales price and customer name) along with a detailed accounting of all receivables for all sales.
   
  2.4 With the bi-monthly statement detailed above, USH shall remit payment to RWUS for Products which have been paid for by customers during the previous weeks. The payment to RWUS shall be the amount referenced on the invoices to USH from RWUS for the particular PRODUCTS sold. Payment shall be remitted via swift transfer to wire instructions attached as Exhibit A. 
   
  2.5 Failure to pay a single installment renders all debts immediately payable, even if their due date has not yet occurred. Interest on arrears applies as of right at the highest rate permitted by law per month of delay, up until complete payment of all amounts due. In the event of any legal action by RWUS to recover any debt, USH shall pay the costs, reasonable attorneys’ fees or other expenses incurred by RWUS. 
   
  2.6. USH agrees to sell the Products as per the RWUS approved Products price list. USH agrees to execute a marketing program throughout the Territory for the Products as per the RWUS approved marketing program and marketing budget to be agreed upon in writing as per a marketing agreement to be finalized between the Parties within 90 days of the date of this Agreement.
   
  2.7 Any return of Products, for any reason whatsoever, must be contained in the original packaging, and must be ratified by explicit prior written agreement by RWUS. A packing list and a document specifying the reason for returning the Product(s) must be attached. The delivery costs shall be payable by USH, subject to special terms explicitly approved in writing by RWUS.
   
  	 
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  2.8 RWUS reserves the right to modify its prices at any time upon thirty (30) days written notice to USH. In turn, USH has the right to modify the sales price to the dealer. 
   
  2.9 Any special delivery, pricing or payment terms that RWUS may grant to USH on an occasional basis shall not commit RWUS on any other occasion.
   
  2.10 Upon receipt of the Products, USH shall verify that the number of packages received corresponds to the number indicated on the carrier’s document, that the original seals have not been damaged, that there has been no visible tampering, and that the packages have not suffered any apparent damage. If one or more of these points cannot be confirmed, precise descriptions must be entered on the accompanying delivery documents. A copy of this document must be sent to RWUS within 48 hours (by email, fax or registered letter with acknowledgement of receipt).
   
  2.11 USH shall be responsible for all stock discrepancies occurring after receipt, verification and inventory of Products. An inventory of all products in the possession of USH shall be submitted to RWUS on the 1st day of each month. 
   
  2.12 USH shall sell products on a “First-In-First-Out” basis. 
   
  2.13 RWUS shall have the right to conduct audits of inventory of Products at any time with or without notice to USH.
   
  2.14 USH shall provide all customers a copy of any applicable RWUS warranty, and shall instruct all customers to register the warranty with RWUS within ten (10) days of the sale of the PRODUCT. USH shall not enlarge, extend or modify any term of RWUS warranty in any way. 
   
  2.15 USH shall not change, alter or otherwise modify any Products in any way.
   
  ARTICLE III
  Insurance and Indemnity
   
  3.1 RWUS shall at its own cost and expense, procure and maintain comprehensive general liability insurance, specifically including but not limited to products liability insurance coverage, through solvent and reputable carriers, and shall name USH as a vendor under such policy. 
   
  3.2 As detailed above, USH shall maintain insurance coverage for inventory and transportation from the factory to delivery to customer in the Territory, naming RWUS as the payee / beneficiary on such policies. In the event USH does not provide proof of insurance or maintain, in RWUS’S sole and reasonable discretion, adequate levels of insurance, RWUS shall procure any necessary insurance, at USH’s cost. At RWUS’s option, such cost may be offset against any sums due and owing from RWUS to USH. 
   
  	 
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  3.3 USH agrees to indemnify and hold harmless RWUS from and against any claims brought upon RWUS due to any negligent conduct of USH for any matter, cause or thing related to or otherwise arising out of this Agreement or the business relationship between USH and RWUS. 
   
  ARTICLE IV
  Title to Products and 
  Storage of Products
   
  4.1 All Products shall remain the property of RWUS until sold by USH in the regular course of USH’s business. 
   
  4.2 Title to and ownership of the Products shall not pass to USH at any time.
   
  4.3 USH shall be responsible to warehouse and otherwise store all Products. All Products shall be warehoused at the following location, unless RWUS consents in writing to an alternative location: 720 Aviator Drive, Ft. Worth, TX 76179. 
   
  4.4 USH shall not mortgage, promise, pledge or otherwise encumber any Product to secure any debt whatsoever. 
   
  4.5 USH shall keep Products separate and segregated from other products which USH may keep in its warehouse. 
   
  4.6 USH shall not move Products from it warehouse to another storage facility without RWUS’s knowledge and consent.
   
  4.7 USH shall prominently identify Products as property of RWUS. 
   
  4.8 RWUS shall have the right to file any appropriate UCC statements. USH shall properly register to do business in the State of Texas.
   
  ARTICLE V
  Confidentiality and Non-Disclosure
   
  5.1 Neither Party shall disclose or appropriate to its own use, or to the use of any third party, at any time during or subsequent to the Term of this Agreement, any secret or confidential information of the other Party or any of the other Party’s affiliates or subsidiaries (hereinafter “Confidential Information”), of which either Party was informed before and during the Term of this Agreement. 
   
  5.2 Upon termination or expiration of this AGREEMENT, or at the RWUS’s request, USH shall promptly deliver to RWUS all materials, including but not limited to notes, memoranda, reports, lists, records, drawings, sketches, specifications, software programs, data, documentation, product samples or other materials of any nature and in any form, whether written, printed, or in digital format or otherwise, relating to any matter within the scope of the business of RWUS or concerning any of its dealings or affairs domestically and internationally. 
   
  	 
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  5.3 All documents and other tangible objects containing or representing Confidential Information and all copies thereof which are in the possession of USH shall be and remain the sole and exclusive property of RWUS. Nothing in this Agreement is intended to grant any rights to USH under any patent, trademark, copyright or trade secret of RWUS , nor shall this Agreement grant USH any rights in or to Confidential Information, and related documents, software or other tools made available to USH by RWUS. 
   
  5.4 The terms of this Paragraph 5 shall survive the termination or expiration of this Agreement.
   
  ARTICLE VI
  No Assignment or Transfer
   
  6.1 This Agreement cannot be assigned or transferred by USH without the prior written consent of RWUS. If, and only if, RWUS consents in writing to the assignment of transfer, such assignment and transfer is contingent upon the assignee or transferee duly accepting in writing the provisions of this Agreement and assuming, in all respects, USH’s duties relative to rights to be assigned.
   
  ARTICLE VII
  Applicable law and Resolution of Disputes
   
  7.1 Any and all claims or disputes of whatever nature arising out of or otherwise relating to this Agreement shall be governed and construed in accordance with the laws of the State of Nevada. The Parties expressly acknowledge and irrevocably agree that an Arbitrator in State of Nevada shall have exclusive jurisdiction over any such claim or dispute, and that such claim or dispute shall be resolved by binding arbitration in State of Nevada, to the exclusion of the jurisdiction of the courts, arbitrators or other decision-making body of any other place.
   
  ARTICLE VIII
  Termination
   
  8.1 The Agreement may be terminated, at any time, by mutual agreement in writing by RWUS and USH. 
   
  8.2 The Agreement shall expire and terminate eighteen (18) months from the effective date of this Agreement. Ninety (90) days prior to the expiration of the Term of this Agreement, Parties shall make good faith efforts to discuss extension of the Term of this Agreement. 
   
  8.3 RWUS may terminate this Agreement by written notice to USH if USH breaches any of the terms of this Agreement and has not remedied such breach within thirty (30) days of receiving notice of such breach by RWUS. 
   
  	 
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  8.4 RWUS may immediately terminate this Agreement in the following circumstances:
   
  a) Any change, transfer or attempted transfer by USH or USH Affiliates, voluntarily or by operation of law, of the whole or any part of this Agreement, other than to an affiliate of USH as part of a corporate reorganization or restructuring, or any change in control outside the ordinary course of business without prior written consent of RWUS;
   
  b) Knowingly submitting to RWUS any intentional fraudulent statement, application, report, request for issuance of reimbursement, compensation, refund or credit; 
   
  c) Knowing use by USH of any deceptive or fraudulent practice, whether willful, or intentional, in the sale of any Product;
   
  d) Any indictment for any crime or violation of any law by USH which will have an adverse effect on the reputation of USH, USH’s operations or RWUS; or any conviction in any court of original jurisdiction of USH for any crime or violation of any law which will adversely and materially affect the conduct of USH operations or will be materially harmful to the goodwill or reputation of RWUS, Products or the RWUS Trademarks;
   
  e) USH’s entering into any agreement, combination, understanding, conspiracy or contract, oral or written, with any other party with the known purpose of fixing prices of Products; 
   
  g) USH’s abandonment of all of its business operations or failure to maintain a going business;
   
  h) Insolvency by any definition of USH; or the commission of any act of bankruptcy; or the existence of facts or circumstances which would require the voluntary commencement by USH or the involuntary commencement against USH of any proceedings under any bankruptcy act or law or under any state insolvency law; or the filing of a petition by or against USH under any bankruptcy or insolvency law; or the appointment of a receiver or other officer having similar powers for USH or USH operations; or any levy under attachment, garnishment or execution or similar process which is not, within ten (10) days, vacated or removed by payment or bonding.
   
  ARTICLE XIX
  Obligations of Parties upon
  Termination or Expiration of Agreement
   
  9.1 The acceptance by RWUS of orders from USH, the shipment by RWUS to USH of any PRODUCTS, the tender of orders to RWUS by USH or the continued sale of Products by USH, or any other act or course of dealing of RWUS or USH after termination or expiration of the Agreement shall not be construed as or deemed to be a renewal of the Agreement for any further term or a waiver of such termination by or against either Party. Any dealings after termination or expiration shall be on a case-by-case or day-to-day basis. In all cases, USH and RWUS each agree to conduct itself and its operations until the effective date of termination or expiration, and after termination or expiration of the Agreement, so as not to injure the reputation or goodwill of each other.
   
  	 
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  9.2 Upon the mailing of a written notice of termination or after date of the expiration of the Agreement without renewal, RWUS shall fulfill all pending requests of USH for Products that are under contract to a customer, if previously accepted by RWUS unless the Parties agree otherwise.
   
  9.3 In addition to any other requirements set forth in the Agreement, within a reasonable time following the termination or expiration of the Agreement, USH shall, at its sole expense, discontinue any and all uses of the RWUS Trademarks and all words, symbols and marks which may be confusingly similar thereto, remove all signs bearing RWUS Trademarks and destroy all stationery, advertising and solicitation materials, and all other printed matter bearing RWUS Trademarks or referring directly or indirectly to RWUS or the Products. 
   
  9.4 USH shall provide to RWUS, within five (5) business days of termination of this Agreement, a detailed accounting of all Products in USH’S possession, custody or control. In addition, USH shall provide to RWUS, within five (5) business days of termination of this Agreement, a detailed accounting of unsold Product in USH’s warehouse and all sums due or other receivables for all Products sold by USH to any entity.
   
  9.5 Upon termination of this Agreement, USH shall continue to maintain, store and safeguard all Products in USH’S warehouse for thirty (30) days and will not make any claims on or to such Products, including but not limited to any claims to offset any amounts allegedly due from RWUS to USH. USH will allow RWUS free access, upon reasonable (i.e. at least two (2) business days) notice, to retrieve all Products from USH’S warehouse. As a consignee, USH may be entitled to a reasonable fee for storing PRODUCTS post termination, such fee not to exceed the actual rental fees for the warehouse. 
   
  9.6 Termination of this agreement does not relieve USH of its obligation to pay to RWUS all sums due and owing for any Products. USH shall be responsible at its costs to send back all inventory not sold, to a destination to be determined by RWUS. 
   
  ARTICLE X
  Miscellaneous
   
  10.1 Limitation of liability. IN NO EVENT SHALL EITHER PARTY OR ITS SUBSIDIARIES BE LIABLE TO THE OTHER PARTY OR ITS SUBSIDIARIES FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
   
  10.2 Entire agreement. This Agreement and the Exhibits and Schedules referenced or attached hereto and thereto, constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof.
   
  	 
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  10.3 Notices. Any notice, demand, offer, request or other communication required or permitted to be given by either Party pursuant to the terms of this Agreement shall be in writing and shall be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one (1) Business Day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one (1) Business Day after being deposited with a nationally recognized overnight courier service or (v) four (4) days after being deposited in the U.S. mail, First Class with postage prepaid, and addressed to the attention of:
   
  IF TO RWUS: 
  Rhino Workwear USA, Ltd. 
  123 W. Nye Lane, Suite 129
  Carson City, NV, 89706
   
  IF TO USH: 
  USH Distribution, Corp. 
  5930 Royal Lane, Suite E211
  Dallas, Texas, 75230
   
  RWUS and USH may substitute contact information from time to time upon written notice to the other Party. 
   
  10.4 Counterparts. This Agreement, including the Schedules hereto and the other documents referred to herein, may be executed in counterparts via facsimile or otherwise, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
   
  10.5 Binding effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement.
   
  10.6 Severability. The Parties hereto have negotiated and prepared the terms of this Agreement in good faith with the intent that each and every one of the terms, covenants and conditions herein be binding upon and inure to the benefit of the respective Parties. Accordingly, if any one or more of the terms, provisions, promises, covenants or conditions of this Agreement or the application thereof to any person or circumstance shall be adjudged to any extent invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, such provision shall be as narrowly construed as possible, and each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement or their application to other persons or circumstances shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. To the extent this Agreement is in violation of applicable law, then the Parties agree to negotiate in good faith to amend the Agreement, to the extent possible consistent with its purposes, to conform to law.
   
  	 
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  10.7 Waiver of breach. The waiver by either Party hereto of a breach or violation of any provision of this Agreement shall not operate as, or be construed to constitute, a waiver of any subsequent breach of the same or another provision hereof.
   
  10.8 Amendment and Execution. This Agreement and amendments hereto shall be in writing and executed in multiple copies via facsimile or otherwise on behalf of RWUS and USH by their respective duly authorized officers and representatives. Each multiple copy shall be deemed an original, but all multiple copies together shall constitute one and the same instrument.
   
  10.9 Authority. Each of the Parties hereto represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity principles.
   
  10.11 Descriptive headings. The headings contained in this Agreement, in any Exhibit or Schedule hereto are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized term used in any Schedule or Exhibit but not otherwise defined therein, shall have the meaning assigned to such term in this Agreement. When a reference is made in this Agreement to an Article or a Section, Exhibit or Schedule, such reference shall be to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated.
   
  10.12 Force majeure. Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this Agreement or other interruption of service deemed to result, directly or indirectly, from acts of God, civil or military authority, acts of public enemy, war, accidents, explosions, earthquakes, floods, failure of transportation, strikes or other work interruptions by either party's employees, or any other similar cause beyond the reasonable control of either Party unless such delay or failure in performance is expressly addressed elsewhere in this Agreement.
   
  10.13 Construction: This Agreement shall not be construed in favor of or against any Party hereto but shall be construed as if all parties prepared this Agreement. Whenever used in this Agreement, the singular shall include the plural, the plural shall include the singular, and the neuter gender shall include the male and female as well as a trust, firm, company, or corporation, all as the context and meaning of this Agreement may require.
   
  	 
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  IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on its behalf by its officers thereunto duly authorized on the day and year first above written.
   
   
    	  Rhino Workwear USA, Ltd.
	   
	  USH Distribution, Corp. 
	   

	   
	   
	   
	   
	   
	   

	  By:
	  /s/ M. Kahn
	   
	  By:
	  /s/ Josh Whitaker
	   

	  Name:
	  M. Kahn
	   
	  Name:
	  Josh Whitaker
	   

	  Title:
	  President
	   
	  Title:
	  President
	   

   
   
   
   
  10

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