Document:

ex_124121.htm

 

Exhibit 10.4

 

STANDARD PRODUCTION AGREEMENT

 

THIS STANDARD PRODUCTION AGREEMENT (“Agreement”), dated as of ___ 7/23/15 ___ by INTERNATIONAL SPRITS BEV. GRP. and between and, LLC and Florida Caribbean Distillers LLC, DBA Florida Distillers Co. (“COMPANY”), a Florida corporation with offices at 530 Dakota Avenue, Lake Alfred, FL 33850.

 

RECITALS

 

WHEREAS, Customer and its Affiliates (as hereinafter defined) are engaged in the business of brand ownership, manufacturing and distributing of numerous types and brand of beverage alcohol and non-alcohol products throughout the world; and

 

WHEREAS, Company is engaged in the business of producing and packaging numerous types of beverage products on behalf of third parties; and

 

WHEREAS, Customer desires to engage Company to produce and package the Product (as hereinafter defined) and to perform various other Services (as hereinafter defined) relating thereto, and Company desires to accept such engagement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual terms, conditions, covenants and agreements contained herein, Customer and Company agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

SECTION 1.1 Certain Defined Terms. Capitalized terms used in this Agreement (as hereinafter defined) shall have the following meanings (such meanings to be equally applicable to the singular and plural forms of such terms):

 

“Affiliate” means, as to any Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such Person. For purposes of this definition, the term “control” shall mean the possession, direct or indirect, of the power to vote more than 50% of the securities having ordinary voting power for the election of directors of such Person or to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, by contract or otherwise.

 

“Agreement” means, collectively, this Standard Production Agreement and all of the Exhibits hereto.

 

“Bulk Supplies” means, collectively, the Company Bulk Supplies and the Customer Bulk Supplies.

 

“Business Day” means any day other than Saturday, Sunday or any other day on which banks are authorized or required by law to close in Florida.

 

“Case” means, with respect to Product, a corrugated carton of 750ml in 6 count case.

 

“Company Bulk Supplies” means the Product ingredients listed on Exhibit A hereto which are provided and used by Company in connection with the production of Product hereunder.

 

“Contract Year” means any one-year period during which this Agreement remains in effect. Effective date to commence July 23, 2015 and end December 30, 2015.

 

“Customer Bulk Supplies” means the Product ingredients listed on Exhibit B hereto, which are provided by Customer and used by Company in connection with the production of Product hereunder.

 

“Shipping: Order” means each order delivered to Company from time to time instructing Company to

 

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deliver Cases, as more particularly described in Section 3.2 (b).

 

“Designated Vendor” means a vendor of Bulk Supplies that has been approved by Customer and notified to Company in writing.

 

“Fee” means the aggregate amount payable by Customer to Company for the Services, calculated in accordance with Exhibit C hereto.

 

“Force Majeure Event” has the meaning set forth in Section 12.7.

 

“Initial Term” has the meaning set forth in Section 11. 1.

 

“Intellectual Property” means the Trademarks and any other materials, trade dress, label designs, packaging designs, copyrighted works, patented works, trade names, service names, service marks, logos, formulas, or any other identifying marks, or intellectual property, whether or not registered, copyrighted or patented by Customer or any of its Affiliates, which identify or are used in connection with the Product and supplied by Customer.

 

“Packaging Supplies” means the dry supplies supplied at Customer’s expense to Company as listed on Exhibit B hereto which are used by Company in connection with the packaging, labeling, packing, handling, storage and preparation for shipment of Product hereunder.

 

“Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof,

 

“Plant” means Company’s production facilities at Lake Alfred, Florida or Auburndale, Florida, or both, and any other alternative Company production facility that is approved.

 

“Product” means all finished, bottled products consisting of non-carbonated spirits, or other alcohol ingredients, fruit flavors and other materials or flavors containing approximately twenty four percent (40%) alcohol by volume, in whatever flavors and formulations Customer may from time to time specify, including the products listed on Exhibit D hereto, as such Exhibit D may be amended or supplemented from time to by Customer.

 

“Product Estimate” means a writing report of Customer delivered to Company from time to time pursuant to Section 3.1 hereof informing Company of the actual and estimated quantities, as applicable, of Cases to be produced during particular calendar periods.

 

‘‘Product Specifications” means Customer’s written specifications and quality control requirements and procedures for, among other things, the formulation, blending, production, packaging, handling and storage of Customer Bulk Supplies and Product, a copy of which is attached hereto as Exhibit E and incorporated herein by reference, together with all written modifications and supplements thereto provided by Customer from time to time to Company.

 

“Receiving Party” has the meaning set forth in Section 7.1.

 

“Renewal Term” has the meaning set forth in Section 11.1.

 

“Representative” means, as to Customer or Company, each of its Affiliates and their respective directors, officers, employees, representatives (including, without limitation, financial advisors, attorneys and accountants) and agents.

 

“Services” means: (i) the ordering, receipt and storage of the Bulk Supplies and the Packaging Supplies; (ii) the formulation, blending, manufacturing and production of the Product; (iii) the filling of bottles with the Product, (iv) the packaging of bottles of Product in Cases; (v) the packing, labeling, handling, storage, preparation for shipment and loading onto carriers of Product; (vi) the preparation and delivery of bills of lading and reports

 

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pertaining to the Product, the Bulk Supplies, the Packaging Supplies and other matters as may be requested from time to time by Customer; (vii) the purchase of slip sheets and pallets as required; (viii) the coordination and scheduling of carriers for the Product; (ix) maintenance of inventories of the Product, the Bulk Supplies, the Packaging Supplies, and ail other supplies required to produce the Product in accordance with Customer’s Order Administration systems, as such systems may be amended from time to time by customer; and; (x) all processes, procedures and activities relating or incidental to each of the foregoing.

 

“Stock Keeping Unit” (SKU) means the individual products that make up the final finished goods inventory produced by the Company and ultimately delivered to the Customer. Each distinctive flavor and package profile is represented by an individual SKU.

 

“Supply Order” means each written order of Company delivered to Customer or a Designated Vendor from time to time instructing Customer or a Designated Vendor, as the case may be, to deliver quantities of the Customer Bulk Supplies or Packaging Supplies to Company.

 

“Tooling and Equipment” means the items of equipment described on Exhibit G and any and all Change Parts (defined in Section 3.9).

 

“Trademarks” means the trademarks (whether registered, applied for, or unregistered), trade names and brand names listed on Exhibit H hereto, and any other trademarks, trade names, brand names and trade dress which are used on or in connection with the Product.

 

“Third-Party Products” means any and all beverage products produced or distributed by any Person other than Customer or its Affiliates.

 

ARTICLE II

 

SCOPE OF ENGAGEMENT

 

SECTION 2.1     Engagement.

 

(a)     Customer hereby engages Company to provide Customer with the Services at the Plant, to the extent requested by Customer hereunder, and Company hereby accepts such engagement. Nothing in this Agreement shall be construed to interfere with or limit the right of Customer or any of its Affiliates to engage directly in the Services or to engage others to provide the Services.

 

(b)     Company shall provide the Services to Customer in compliance with the Product Specifications, the Production Estimates, the provisions of this Agreement, and all applicable laws, rules and regulations. Company shall commence Services no later than July 20, 2015.

 

SECTION 2.2     Third-Party Products. Company and its Affiliates shall have the right to produce and package Third-Party Products.

 

ARTICLE III

 

PRODUCTION OF PRODUCTS

 

SECTION 3.1     Production On Estimate Demand.

 

a. Customer is notified and hereby acknowledges that no SKU will be produced or run in a quantity less than 2000 cases per SKU. All liquid purchased for customer must be bottled within 30 days of receipt of liquid by Company.

 

SECTION 3.2     Intentionally deleted.

 

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SECTION 3.3     Cancellation or Modification of Production Estimate. Not applicable.

 

SECTION 3.4     Submission of Supply Orders. Orders shall be submitted via purchase order to orders@floridadistillers.com

 

SECTION 3.5     Shipping Release Orders. Customer will submit shipping release orders to Company Customer Service Department provided that the ship to location specified is properly licenses to accept beer, wine, or spirits to the extent necessary as determined solely by the Company.

 

SECTION 3.6     Customer Bulk Supplies and Packaging Supplies.

 

(a)     Customer shall supply or cause to be supplied to Company all Customer Bulk Supplies and Packaging Supplies ordered by Company pursuant to the Supply Orders. All Customer Bulk Supplies and Packaging Supplies shall be supplied to Company free of charge and delivered to the Plant at Customer’s cost and expense, subject to the loss yield allowances described on Exhibit C.

 

(b)     Company shall not use: (i) any substitutes for the Customer Bulk Supplies or the Packaging Supplies for the production of Product; or (ii) or any of the Packaging Supplies for any purpose other than the production and packaging of the Product hereunder.

 

(c)     All Company Bulk Supplies used in the production of the Product shall be: (i) approved by Customer prior to their first use by Company; and (ii) acquired only from Designated Vendors.

 

SECTION 3.7     Storage: No Liens.

 

(a)     Company shall dedicate and make available warehouse space at the Plant for storage of all Customer Bulk Supplies and Packaging Supplies until used. Company agrees to segregate such Bulk Supplies and Packaging Supplies from other property stored at the Plant, whether such other property is Company’s own inventory or the inventory of third parties. All such storage instructions supplied to Company by Customer in writing, and industry practice.

 

(b)     The Company shall ensure that the Bulk Supplies, the Packaging Supplies and the product (whether finished or in process) are kept free and clear of any and all liens, pledges, encumbrances and security interests of any and all kinds whatsoever.

 

(c)     The Company will charge Customer for any Bulk Supplies and Packaging Supplies that remain at the Company’s warehouses following the completion of production runs where no additional production has occurred for 30 calendar days in accordance with Exhibit A.

 

SECTION 3.8     Delivery of Finished Product. Company shall coordinate and schedule the availability of carriers at the Plant on the date of Production. Company will arrange transportation Best Way, however, all outbound freight expenses will be ordered collect to Customer. Customer retains the right, at any time, to specify any common carrier, including Customer self pickup of product at Company shipping docks. Company retains the right to reject carriers that in Company’s sole opinion represent an undue risk of product damage, loss, or contamination in transit. All shipments require a 10 day lead time after production is complete.

 

SECTION 3.9     Tooling and Equipment and Change Parts.

 

(a)     Customer agrees to be responsible for purchasing and installing the Tooling and Equipment listed in Exhibit G required for performing Company’s obligations under this Agreement, at its sole expense.

 

(b)     Company shall be wholly responsible for the care and maintenance of the Tooling and Equipment. Company shall bear all risk of loss for the Tooling and Equipment, whether from theft, loss, destruction or wrongful disposition or otherwise. Company shall keep and maintain the Tooling and Equipment in good working condition through regular and routine maintenance.

 

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(c)     Any Tooling and Equipment parts required for new or modified Product packaging or bottles (“Change Parts”) shall be obtained by either Customer or Company (upon mutual agreement) at Customer’s request and expense.

 

(d)     Customer shall be solely responsible for all expenditures, including equipment modifications and make ready costs that are required to be made by Company to enable it to perform the Services hereunder.

 

SECTION 3.10     Additional Undertakings by Company. In connection with its performance of the Services, Company further undertakes and agrees not to do any act or thing which in any way materially impairs: (i) the Customer name or the value of the Intellectual Property; (ii) Customer’s image as a manufacturer and distributor of quality beverage products; or (iii) Company’s image as a producer and packager of quality beverage products.

 

ARTICLE IV

 

PAYMENTS

 

SECTION 4.1     Compensation for Services. As full and complete compensation for any and all Services rendered by Company hereunder, Customer shall pay Company the Fee described on Exhibit C hereto, which shall be calculated based on the quantity of Product produced. All applicable Federal Excise Taxes will apply.

 

SECTION 4.2     Terms of Payment.

 

(a)     Fee.     Company shall submit a written invoice to Customer during the Term of this Agreement. The invoices shall specify the number of Cases of Product to be produced with corresponding charges as described in Exhibit C, Fees (ii) charges for pallets used by Company in connection with the Services.

 

(b)     Taxes.     Company shall submit a written invoice to Customer during the Term of the Agreement, which invoice shall specify the amount of any Federal Excise Tax that Customer is required to pay to Company pursuant to Section 4.3 hereof, accompanied by supporting documentation which describes such taxes.

 

(c)     Payment Terms.

 

(i)     Payment by Customer of the amounts owed to Company in accordance with the invoices described above in Section 4.2(a) Fee, and the calculation of the Fee as described on Exhibit C, shall be made by electronic funds transfer, check or wire transfer (pursuant to instructions provided by Company) as a prepayment no less than 3 weeks prior to production.

 

SECTION 4.3     Taxes.

 

(a)     Customer shall pay all federal excise taxes upfront before production.

 

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ARTICLE V

 

QUALITY CONTROL

 

SECTION 5.1     Quality Control.

 

(a)     Company shall formulate, blend, manufacture, produce, package, inspect, test, handle and store the Product in accordance with the Product Specifications, all applicable laws, rules and regulations and accepted industry standards of safety, cleanliness and skill. Customer may, on written notice to Company, revise or supplement the Product Specifications from time to time in Customer’s sole discretion. Such revisions or supplementations of Product Specifications that cause an increase in manufacturing cost to Company will be remunerated by an adjustment to the Fee as agreed by both parties prior to the revision or supplement to the Product Specifications becoming effective.

 

(b)     Company shall ensure that the Company Bulk and Packaging Supplies (including water) and the finished Product: (i) are pure, wholesome, merchantable and fit for human consumption; (ii) comply fully with and are not adulterated or contaminated within the meaning of, all applicable federal, state and local laws, rules and regulations; (iii) are not an article or articles that may not, under the provisions of any applicable law or regulation, be introduced into interstate commerce; and (iv) are not packaged in damaged bottles or cases, which damage causes or may cause the Product to be unmerchantable, adulterated, contaminated or misbranded or in any way in violation of any applicable federal, state or local law, rule or regulation; and; (v) are in compliance with the Product Specifications. Company shall have no responsibility for failing to comply with the foregoing requirements to the extent that; (i) such noncompliance is caused by the Customer Bulk and Packaging Supplies, or (ii) such noncompliance is caused by the failure of any label copy provided by Customer to comply with any applicable law or regulation.

 

(c)     Company’s responsibility will be limited to only those attributes that have been mutually agreed upon in advance and in writing. In the event the Customer has not adequately specified an attribute in accordance with an industry accepted description of the specification and testing methodology to be utilized, the Customer will not reject the finished product for this reason. Customer may authorize and provide a representative to be on site during the formulation, blending, manufacture, production, packaging, inspections, tests, handling and storage of the Product(s) and the Company agrees to make best efforts to comply with Customer representative’s reasonable direction.

 

SECTION 5.2     Samples. Company shall maintain quality control samples of the Product, the Bulk Supplies, the Packaging Supplies and all other materials and supplies used by Company in connection with the Services rendered hereunder as specified in the Product Specifications. Company shall furnish such quality control samples to Customer upon Customer’s request, to any location or Person as Customer may reasonably direct and by the means reasonably specified by Customer, at the sole expense of Customer.

 

SECTION 5.3     Right to Reject.

 

(a)     Customer may reject any Product which does not conform to the requirements set forth in this Article V and to the extent of the previously mutually agreed Product Specifications at the time of manufacture. Upon any such rejection by Customer, Company shall replace such defective Product, Bulk Supplies and Packaging Supplies at Company’s cost and expense, or, at Customer’s election, pay to Customer their replacement value, except to the extent that: (i) such rejection is caused by the Customer Bulk Supplies and testing of the Customer Bulk Supplies by Company, pursuant to and in accordance with the Product Specifications, did not reveal (as evidenced by Company’s written records) that such Customer Bulk Supplies were nonconforming to the Product Specifications or that use of such Customer Bulk Supplies would result in the production of nonconforming to the Products; or (ii) such noncompliance is caused by the failure of any label copy provided by Customer to comply with any applicable law or regulation; or (iii) the specification(s) in question were not previously and mutually agreed upon.

 

(b)     Upon immediate notice to Customer and giving Customer an opportunity to cure as described below, Company may reject any Customer Bulk Supplies that could impair Company’s ability to efficiently and

 

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effectively manufacture the Products, appears to be adulterated or defective, in an amount less than as slated on an accompanying Bill of Lading, or otherwise non-conforming to the bulk intended usage in or with the manufacture of the Products. Prior to rejecting the Customer Bulk Supplies or Packaging Supplies, Company will give Customer (or its suppliers) five (5) Business Days to correct or satisfactorily explain the defect. Company will make every reasonable effort to protect and safeguard rejected supplies, communicate to appropriate Customer representatives the nature and status of rejected supplies, and work with Customer and Customer suppliers for cost-effective resolution of rejected Bulk Supplies and Packaging Supplies.

 

SECTION 5.4     Records: Right to Inspect: Monitoring.

 

(a)     Company shall keep and maintain at the Plant complete and accurate books and records relating to the Services, Bulk Packaging Supplies, Product, and calculation of the Fee. Such books and records shall comply with all requirements of the Alcohol and Tobacco Tax and Trade Bureau, the Florida Division of Alcoholic Beverages and Tobacco and all other applicable governmental authorities.

 

SECTION 5.5     Notification. Company shall notify Customer promptly (if practicable, by the next Business Day) of: (i) any customer or consumer complaints, inquiries or contacts relating to the Product; (ii) any notice of inspection of the Product or the Plant which relates to the Product from any federal, state or local governmental or regulatory authority; (iii) any failure of the Product, Bulk Supplies or the Packaging Supplies to meet the Product Specifications or other quality standards specified in this Agreement; and (iv) any failure or anticipated failure to tender Product in accordance with any Customer Order. Customer shall have the authority and discretion, without notifying Company, to settle, refer to its insurance carrier(s) or otherwise dispose of any complaint, claim or dispute relating to the Product.

 

SECTION 5.6     Traceability; Product Recall.

 

(a)     Traceability. Company will maintain complete records of the Products showing identity and quantities shipped, lot codes of each shipment, time and date of shipment, Plant, specific equipment used (e.g. packaging line), dates and time of production for each lot, inventories on hand by lot code, plus any other detail as mutually agreed to by Customer and Company. Company shall also maintain complete and accurate records of all Bulk Supplies used to make the Products., Company shall maintain such records for each lot for at least three (3) years after production (or for such additional time as may be required by United States federal regulations). Company shall ensure lot codes and production dates are printed on bottles, outer cartons, and pallet cubes according to the specifications agreed with Customer.

 

(b)     Product Recall. Customer shall have the final decision as to whether a Product withdrawal or recall shall be issued and the extent of such withdrawal or recall after consulting with Company. In the event of any Product withdrawal or Product recall, Company shall use its best efforts to provide all such information set forth above in Section 5.6(a) to Customer within one (1) Business Day of the request (but in no event later than five (5) Business Days) by electronic format as well as hard copy. Further, Company shall cooperate with Customer in withdrawing and/or recalling the Products, including providing to Customer all information known or suspected by Company to cause, or potentially cause, the withdrawal or recall of the Products. Company shall also provide to Customer subsequent testing, whether internal or external, of the Products or a subcomponent thereof, relating to such withdrawal or recall for conformity. Company will not be responsible for any costs associated with recall subsequent destruction due to the failure of any packaging material components or the failure of any liquid component or blend once the product has been satisfactorily produced to Customer provided specifications. Company will not be responsible for any costs associated with withdrawal or recall of any product or products that have exceeded their shelf life and subsequently degraded beyond merchantability or fitness for human consumption

 

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ARTICLE VI

 

INTELLECTUAL PROPERTY

 

SECTION 6.1     Intellectual Property.

 

(a)     Customer hereby grants to Company the right to use the Intellectual Property to the extent, and only to the extent, necessary to perform the Services.

 

(b)     Company hereby acknowledges and agrees that; (i) the Intellectual Property is and shall remain the sole and exclusive property of Customer and its Affiliates; (ii) Company does not have, by virtue of this Agreement or otherwise, and shall not at any time claim, any right, title or interest (including, without limitation, any property or ownership interest) in or to the Intellectual Property; (iii) Company shall not use the Intellectual Property for any purpose other than to perform the Services to the extent and in the manner permitted herein and subject to all of the terms and conditions hereof, and only for so long as this Agreement remains in full force and effect; and (iv) all use of the Intellectual Property by Company in connection with its performance of the Services shall inure solely to the benefit of, and result in goodwill solely in favor of, Customer and its Affiliates.

 

ARTICLE VII

 

CONFIDENTIALITY

 

SECTION 7.1     Confidentiality.

 

(a)     All technical, commercial and other information (including, without limitation, the Product Specifications), whether written or oral, disclosed by either party (the “Disclosing Party”) or its Representatives (whether before or after the date hereof) to the other patty (the “Receiving Party”) or its Representatives which relates to the Disclosing Party, any of its Representatives, or to any of their respective businesses, operations or products, shall be considered confidential and shall be maintained by the Receiving Party in confidence; provided, however, that this confidentiality requirement shall not apply to the extent and only to the extent, that: (i) such information is or becomes publicly available other than as a result of a disclosure by the Receiving Party or any of its Representatives; (ii) disclosure of such information is required by court order or applicable law (provided that the Receiving Party shall inform the Disclosing Party in advance of any such disclosure so that the Disclosing Party may seek a protective order or similar relief); (iii) disclosure of such information is required for the purpose of enforcing this Agreement; or (iv) such information becomes known to the Receiving Party on a non-confidential basis from a source (other than the Disclosing Party or its Representatives) which, to the Receiving Party’s knowledge after due inquiry, is not prohibited from disclosing such information to the Receiving Party by a legal, contractual or fiduciary obligation to the Disclosing Party. The Receiving Party shall be liable for any breach of the foregoing confidentiality requirement by any of its Representatives.

 

(b)     The Receiving Party acknowledges and agrees that the Disclosing Party’s remedies at law for a breach or threatened breach of any of the provisions of Section 7.1(a) would be inadequate and that, in recognition of this fact, in the event of a breach or threatened breach by the Receiving Party of any of such provisions, in addition to any remedy at law, the Disclosing Party shall be entitled to seek equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available. Nothing herein contained shall be construed as prohibiting the Disclosing Party from pursuing, in addition, any other remedies available to it for such breach or threatened breach.

 

(c)     The provisions of this Article VII shall survive the expiration or termination of this Agreement.

 

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ARTICLE VIII

 

RISK OF LOSS AND INSURANCE

 

SECTION 8.1     Risk of Loss. Company shall bear all risk of loss with respect to all Customer Bulk Supplies, Packaging Supplies, the Tooling and Equipment, and other Product supplies and ingredients in the possession of Company or any of its Affiliates, Title to the Tooling and Equipment, Change Parts, Bulk Supplies, Packaging. Supplies and other Product supplies provided by Customer shall remain with Customer while in the Company’s possession. Title to all Product (whether finished or in process) shall remain with Company until the earlier of: (a) such Product is loaded onto a carrier at Company’s plant, or (b) Company has received full payment for such Product.

 

SECTION 8.2     Insurance.

 

(a)     For so long as this Agreement shall remain in effect, Company shall, at its sole cost and expense, obtain and maintain in full force and effect:

 

(i)     worker’s compensation insurance providing statutory benefits as required by applicable law for all of Company’s employees engaged in the performance of the Services, as well as employer liability insurance with a limit of not less than five hundred thousand dollars ($500,000.00) per occurrence;

 

(ii)     Property insurance covering loss, damage, destruction to or confiscation of the Tooling and Equipment and the Product (whether under this Agreement or otherwise), providing protection against the perils covered under standard all risk policy forms in an amount equal to the cost at the Plant with respect to equipment or raw materials; and

 

(iii)     Commercial general liability insurance including, without limitation, contractual liability insurance and products liability insurance pertaining to the Product, covering all operations of Company, as named insured, against claims for bodily injury or death, including personal injury, and property damage, with not less than a combined single limit of five million dollars ($5,000,000.00) per occurrence.

 

(b)     Company shall provide Customer with evidence of the insurance required to be maintained under Section 8.2(a), Such evidence shall be in the form of insurance certificates, each of which shall: (i) list Customer as an additional insured; (ii) shall provide that Customer is a loss payee as its interests may appear with respect to property which Company has agreed to accept the risk of loss hereunder; and (iii) indicate that the insurance company will provide Customer with at least thirty (30) days prior written notice of its intention to cancel, modify or not renew the policy.

 

(c)     For so long as this Agreement shall remain in effect, Customer shall, at its sole cost and expense, obtain and maintain in full force and effect commercial general liability insurance including, without limitation, contractual liability insurance and products liability insurance pertaining to the Customer Bulk Supplies, Packaging Supplies and Product, covering all operations of Customer, as named insured, against claims for bodily injury or death, including personal injury, and property damage, with not less than a combined single limit of five million dollars ($5,000,000.00) per occurrence.

 

(d)     Customer shall provide Company with evidence of the insurance required to be maintained under Section 8.2(c). Such evidence shall be in the form of insurance certificates, each of which shall: (i) list Company as an additional insured; (ii) shall provide that Company is a loss payee as its interests may appear with respect to property which Customer has agreed to accept the risk of loss hereunder; and (iii) indicate that the insurance company will provide Company with at least thirty (30) days prior written notice of its intention to cancel, modify or not renew the policy.

 

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ARTICLE IX

 

INDEMNIFICATION

 

SECTION 9.1     Indemnification by Customer. Customer shall indemnify and bold Company and its Representatives harmless from and against all liabilities, penalties, costs, losses, damages and expenses (including, without limitation, reasonable attorneys’ fees and expenses) arising out of or resulting from: (i) any breach by Customer of this Agreement; (it) any inaccuracy in or breach of any representation, warranty, covenant or agreement made by Customer herein or in any document delivered by Customer hereunder or in connection herewith; (iii) the infringement of the trademark rights of any Person arising out of or resulting from the use of the Intellectual Property by Company hereunder and in conformity with the terms hereof; (iv) the death of or any injury to any Person or any damage to or loss of property arising out of or resulting from defects in the Customer Bulk Supplies, except to the extent such death, injury, damage or loss was caused by or contributed to by Company; and (v) all demands, claims, suits, proceedings, assessments and judgments incidental to any of the foregoing matters.

 

SECTION 9.2     Indemnification by Company. Company shall indemnify and hold Customer and its Affiliates and their respective Representatives harmless from and against all liabilities, penalties, costs, losses, damages and expenses (including, without limitation, reasonable attorneys’ fees and expenses) arising out of or resulting from: (i) any breach by Company of this Agreement; (ii) any inaccuracy in or breach of any representation, warranty, covenant or agreement made by Company herein or in any document delivered by Company hereunder or in connection herewith; (iii) any unauthorized use of the Intellectual Property by Company; (iv) any violation by Company of intellectual property rights of any Person arising out of or relating to the Services to the extent such violation of trademark rights arises out of or results solely from the use of the Trademarks in non-conformity with the terms of this Agreement(v) the death of or any injury to any Person or any damage to or loss of property arising out of or resulting from the quality or condition of the Company Bulk Supplies or the Product, except to the extent of such death, injury, damage or loss was caused by or contributed to by defects in the Customer Bulk Supplies; and (vi) all demands, claims, suits, proceedings, assessments and judgments incidental to any of the foregoing matters.

 

SECTION 9.3     Procedures for Indemnification.

 

(a)     If a claim by a third party is threatened or made against an indemnified party, and the indemnified party intends to, or determines that it may have the right to seek indemnity against such claim pursuant to this Article IX, the indemnified party shall notify the indemnifying party of such claim within thirty (30) days of becoming aware of such claim; provided, however, that the failure to provide such notice shall not release the indemnifying party from any of its obligations under this Article IX except to the extent the indemnifying party is materially prejudiced by such failure. Such notice shall include full particulars concerning such claim and shall refer to the terms of this Agreement in respect of which such right of indemnification is claimed or may arise.

 

(b)     If, within ten (10) Business Days of the receipt of such notice from the indemnified party, the indemnifying party acknowledges in writing its obligation to indemnify the indemnified party hereunder against and with respect to such claim, the indemnifying party shall be entitled to undertake, conduct and control the defense of such claim, through counsel of its own choosing, and at the indemnifying party’s expense. In such event: (i) the indemnifying party shall permit the indemnified party to participate in such defense through counsel chosen by the indemnified party, provided that the fees and expenses of such counsel shall be borne by the indemnified party unless the indemnifying party and the indemnified party are both defendants to an action and the counsel selected by the indemnifying party has a conflict of interest because of the availability of different defenses to the indemnified party and the indemnifying party, in which case the reasonable fees and expenses of one separate counsel shall also be paid by the indemnifying party; and (ii) the indemnified party shall cooperate fully and shall cause its Representatives to cooperate fully with the indemnifying party in connection with such defense. The indemnifying patty shall not, without the written consent of the indemnified party, which consent shall not be unreasonably withheld or delayed: (i) pay, settle or compromise any such claim or consent to the entry of any judgment which does not include as an unconditional and irrevocable term thereof the delivery by the claimant or plaintiff to the indemnified party of a written release from all liability in respect of such claim; or (ii) pay, settle or compromise any such claim in any manner that may adversely affect the indemnified party; provided that, the indemnifying party may pay, settle or compromise a claim if the sole remedy sought is the payment of

 

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money and the indemnifying party agree to make such payment. Similarly, so long as the indemnifying party is reasonably contesting any such claim in good faith, the indemnified party shall not pay, settle or compromise any such claim or consent to the entry of any judgment without the written consent of the indemnifying party, which consent shall not be unreasonably withheld.

 

(c)     If the indemnifying party does not deliver the acknowledgment described in clause (b) above within the required ten (10) Business Day period, or if the indemnifying party delivers such acknowledgment within such period but fails to undertake such defense promptly or to maintain the defense of such claim, the indemnified party shall have the right to contest, pay, settle or compromise such claim in the exercise of its reasonable judgment at the expense of the indemnifying party.

 

(d)     Any indemnifiable claim that is not a third-party claim shall be asserted by written notice to the indemnifying party. If the indemnifying party does not respond to such notice within thirty (30) days, it shall have no further right to contest the validity of such claim.

 

(e)     The provisions of this Article IX shall survive the termination or expiration of this Agreement.

 

ARTICLE X

 

REPRESENTATIONS AND WARRANTIES

 

SECTION 10.1     Representations and Warranties of Customer. Customer hereby represents and warrants to Company as follows:

 

(a)     Customer is a California Corporation duly organized, validly existing and in good standing under the laws of California.

 

(b)     The execution and delivery by Customer of this Agreement are, and the performance by Customer of this Agreement will be, within Customer’s corporate powers, duly authorized by all necessary corporate action, and do not and will not: (i) contravene Customer’s charter or bylaws; (ii) violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Customer; (iii) conflict with or result in the breach of, or constitute a default under, any contract, loan agreement, indenture, mortgage, deed of trust, lease, or other instrument, agreement or arrangement (whether written or oral) binding on or affecting Customer or any of its properties; or (iv) result in or require the creation or imposition of any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, upon or with respect to any of the properties of Customer.

 

(c)     No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution and delivery of this Agreement by Customer, or for the performance of this Agreement by Customer,

 

(d)     This Agreement is the legal, valid and binding obligation of Customer enforceable against Customer in accordance with its terms.

 

(e)     There is no pending or, to the best of Customer’s knowledge, threatened, action or proceeding affecting Customer before any court, governmental agency or arbitrator, which purports to affect the legality, validity or enforceability of this Agreement or the transactions contemplated hereby.

 

(f)     Customer and its Affiliates own the Intellectual Property or possess adequate licenses, authority or other rights in the Intellectual Property to perform the transactions contemplated by this Agreement and shall maintain such rights during the term of this Agreement, Each of the Trademarks is registered or applied for in the name of Customer or a Customer Affiliate in the United States, and all such registrations and applications are in full force and effect.

 

11

 

 

 

 

SECTION 10.2     Representations and Warranties of Company. Company hereby represents and warrants to Customer as follows:

 

(a)     Company is a corporation duly organized, validly existing and in good standing under the laws of Florida.

 

(b)     The execution and delivery by Company of this Agreement arc, and the performance by Company of this Agreement will be, within Company’s corporate powers, duly authorized by all necessary corporate action, and do not and will not: (i) contravene Company’s charter or by-laws; (ii) violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect and having applicability to Company; (iii) conflict with or result in the breach of, or constitute a default under, any contract, loan agreement, indenture, mortgage, deed of trust, lease, or other instrument, agreement or arrangement (whether written or oral) binding on or affecting Company or any of its properties, including, without limitation, any contract, agreement, arrangement or relationship relating to the production and packaging of Third-Party Products by Company; or (iv) result in or require the creation or imposition of any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, upon or with respect to any of the properties of Company, Company is not in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease, or other instrument, agreement or arrangement, the violation or breach of which could have a material adverse effect on the financial condition or operations of Company or the ability of Company to perform its obligations hereunder.

 

(c)     No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by Company of this Agreement.

 

(d)     This Agreement is the legal, valid and binding obligation of Company enforceable against Company in accordance with its terms.

 

(e)     There is no pending or, to the best of Company’s knowledge, threatened action or proceeding affecting Company before any court, governmental agency or arbitrator, which purports to affect the legality, validity or enforceability of this Agreement or the transactions contemplated hereby,

 

(f)     Company has obtained and shall maintain in effect during the term of this Agreement at its sole cost and expense, all necessary permits, licenses, consents and approvals of any nature whatsoever required of Company to perform its obligations hereunder, including permits, licenses, consents and approvals required by the Bureau of Alcohol, Tobacco and Firearms, the Florida Division of Alcoholic Beverages and Tobacco and any other applicable regulatory authority,

 

(g)     Company shall comply in all material respects with all applicable federal, state and local laws, rules, regulations, ordinances and requirements of any governmental body in effect during the term of this Agreement and applicable to the performance of the Services hereunder, including, without limitation, keeping the Plant in a clean and sanitary condition, consistent with the provisions contained in Good Manufacturing Practice Regulations set forth in 21 C.F.R. Part 110, as from time to time amended, to the extent such regulations are applicable to Company and complying with the laws, rules, regulations, ordinances and requirements of the Bureau of Alcohol, Tobacco and Firearms, the Florida Division of Alcoholic Beverages and Tobacco and any other applicable regulatory authority.

 

(h)     Company shall keep and maintain all machinery and equipment at the Plant related to the manufacture of the Product, including the Tooling and Equipment listed in Exhibit H, in good working condition through regular and routine maintenance so as to preserve current and anticipated production and quality levels.

 

12

 

 

 

 

ARTICLE XI

 

TERM AND TERMINATION

 

SECTION 11.1     Term. This Agreement shall have an initial term commencing on the date hereof and ending upon expiration of the first Contract Year (the “Initial Term”), unless earlier terminated pursuant to Section 11.2. Upon the expiration of the Initial Term, and unless earlier terminated pursuant to Section 11.2 or Section 11.3, this Agreement shall renew, automatically for subsequent one-year terms, unless the parties otherwise agree in writing to renew the Agreement for a period of time longer than a one-year term (each, a “Renewal Term”); provided, however, that either party may elect, in its sole discretion, to terminate this Agreement as of the end of the Initial Term or as of the end of any subsequent Renewal Term by giving the other party not less than ninety (90) days prior written notice of such election.

 

SECTION 11.2     Termination.

 

(a)     Termination by Customer. Customer may, upon not less thirty (30) days written notice to Company, terminate this Agreement with respect to the production and packaging of certain flavors of the Product by Company if: (i) Customer elects, in its sole discretion, to cease distribution of such Flavors of Product; or (ii) if the ability or right of Customer to distribute any of the Products is materially altered or terminated for any reason.

 

(b)     Termination by Company. Company may, upon not less thirty (30) days written notice to Customer, terminate this Agreement with respect to the production and packaging of the Product by Company at the sole discretion of the Company.

 

(c)     Termination by Either Party. Customer and Company each shall have the right to terminate this Agreement upon written notice to the other party, upon the occurrence of any of the following:

 

(i)     a material breach or default by the other party of any of its representations, warranties, covenants or agreements under this Agreement, which breach or default is not susceptible to cure;

 

(ii)     a material breach or default by the other party of any of its representations, warranties, covenants or agreements under this Agreement, which breach or default is susceptible to cure and is not cured within a period of thirty (30) days following written notice thereof to the breaching party; provided, however, that a failure to cure such breach or default within such period shall not be grounds for termination of this Agreement so long as: (A) the breaching party has theretofore commenced taking, and continues in good faith to take, all steps necessary to cure such breach or default; and (B) such breach or default is cured within a period of time which, under all prevailing circumstances, is reasonable;

 

(iii)     the other party shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the other party seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of thirty (30) days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property) shall occur;

 

(iv)     if a Force Majeure Event (defined in Section 12.7(b)) continues for a period of more than six (6) months and substantially affects the ability of the other party to perform any of its material obligations hereunder.

 

13

 

 

 

 

SECTION 11.3     Rights and, Obligations Upon Expiration or Termination.

 

(a)     Upon the expiration or termination of this Agreement for any reason, Company shall: (i) immediately cease the performance of all Services under this Agreement, except with respect to Customer Orders and other work in process which Customer requests be completed (ii) deliver to Customer, or to such other Persons as may be specified by Customer in accordance with Customer’s written instructions, at the Plant, all of the Product, the Customer Bulk Supplies, the Packaging Supplies, and other materials bearing or consisting of the Intellectual Property and relating to such Product flavors; and (iii) comply with Section 3.9(c). Customer shall pay Company for all product and Company Bulk Supplies purchased for production of the Products still in the Company’s inventory and any other supplies and labor costs relating to production of the Products incurred up to the date of termination or expiration plus amounts owing for the then current Contract Year under Section 3,3 as if the date of expiration or termination was the last day of such Contract Year.

 

(b)     Upon the expiration or termination of this Agreement for any reason or the discontinuance of any SKU or package format for any reason, or as may be amended for new SKUs and new package formats in the future, Customer agrees to compensate Company within fourteen (14) days of receipt of invoice from Company for all Product finished or work in progress (at the agreed upon Pee), the cost of Company Bulk Supplies and Packaging Supplies purchased, caused to be purchased, committed to purchase, stored at Company or Company’s supplier warehouses, in transit, and/or in production at Company’s suppliers and vendors, the related storage and transportation costs, plus amounts owing for the then current Contract Year under Section 3.4 as if the date of expiration or termination was the last day of such Contract Year. Customer shall be entitled to take possession of all Product, Bulk Supplies and Packaging Supplies upon full payment to Company.

 

ARTICLE XII

 

MISCELLANEOUS

 

SECTION 12.1     Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties with respect to the subject matter hereof and cancels and supersedes any and all prior negotiations, understandings and agreements, whether verbal or written, with respect thereto, including, without limitation, the Confidentiality Agreement. Except as otherwise expressly provided herein, this Agreement may be altered, amended or modified only by a written instrument duly executed by both parties.

 

SECTION 12.2     Binding Effect: Assignments. This Agreement shall inure to the benefit of and be binding upon each of the parties hereto and their respective successors and permitted assigns; provided, however, that neither this Agreement nor any rights hereunder may be assigned in whole or in part by either party without the prior written consent of the other party, which consent may be withheld in their sole discretion except that the Customer shall be permitted to assign this Agreement to any of its Affiliates or to any person who may purchase all or substantially all of Customer’s Product or beverage business.

 

SECTION 12.3     No Waiver: Remedies. No failure on the part of either party hereto to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or future exercise thereof or the exercise of any other right. The remedies herein are cumulative and in addition to any other remedies provided by applicable law.

 

SECTION 12.4     Notices. Except as set forth in the final sentences of this Section 12.4, all written notices and demands that may or are required to be given by either Customer or Company to the other party shall be deemed to have been fully given when made in writing and delivered by hand or by facsimile on five (5) business days after being deposited in the United States mail, certified or registered, postage prepaid, and addressed as follows:

 

14

 

 

 

 

If to Customer, to:

 

 

 

If to Company:

 

Florida Caribbean Distillers Company

P.O. Box 1447

530 Dakota Avenue

Lake Alfred, FL 33850

Attn: Jose Rivera

 

SECTION 12.5     Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

SECTION 12.6     Agreement Controls Over Orders. In the event of any conflict between this Agreement and the terms of any Product Estimate, Customer Order, Supply Order or invoice issued hereunder, the provisions of this Agreement shall control.

 

SECTION 12.7     Force Majeure.

 

(a)     An obligation of a party hereunder shall be temporarily suspended during the period in which such party is unable to perform such obligation by reason of a Force Majeure Event (as defined below), but only to the extent of such inability to perform. Immediately following the occurrence of a Force Majeure Event, a party asserting a suspension of obligations in connection therewith shall notify the other party of the events giving rise to the assertion, the estimated period of suspension and the degree of disruption of operations. Such notice shall be by the most rapid and effective means available under the circumstances. No Force Majeure Event shall relieve either party from those of its obligations that are not suspended by such Force Majeure Event and the obligations of the parties to perform as provided by this Agreement through facilities not affected by the Force Majeure Event shall continue. The parties shall use reasonable efforts to resume normal performance under this Agreement after the occurrence of any Force Majeure Event. Prior to such resumption, the parties shall perform their respective obligations to the extent practicable. In any of such cases, the parties shall use all reasonable efforts to mitigate any damage resulting therefrom.

 

(b)     A “Force Majeure Event” shall mean any event or condition that directly or indirectly prevents a party from performing an obligation hereunder, is beyond the reasonable control of such party, and could not, by the exercise of due diligence, have been avoided in whole or part by such person, and shall include, subject to the foregoing, without limitation, an act of God, strike, lockout or other industrial dispute, act of the public enemy, war, riot, lightning, fire, storm, flood, interruption or delay in transportation or power supply, governmental law, regulation, ruling or other restraint (excluding actions taken by any court or regulatory or governmental authority as a result of alleged violations or wrongful acts by Company or Customer, as the case may be), inability to obtain necessary equipment, materials or supplies in the open market, or any failure of any supplier to supply or any delay of any supplier in supplying any necessary equipment, materials or supplies.

 

SECTION 12.8     Relationship of Parties.

 

(a)     Nothing in this Agreement shall constitute or be deemed to constitute either party as the legal

 

representative or agent of the other, nor shall either party have the right or authority to assume, create, or incur any liability or any obligation of any kind, express or implied, in the name of or on behalf of the other party.

 

15

 

 

 

(b)     Company shall act as an independent contractor under this Agreement and shall maintain complete control over its employees and all of its suppliers and contractors, including, without limitation, suppliers of the Company Bulk Supplies and Packaging Supplies, and off-site storage locations, and nothing contained in this Agreement shall create any contractual relationship between Customer and any such employee, supplier or contractor. Company shall perform its obligations hereunder in accordance with its own methods and procedures, subject only to compliance with this Agreement, The presence of any employee or representative of Customer at the Plant shall not relieve Company in any manner from any of its obligations and responsibilities hereunder.

 

SECTION 12.9     Headings. Article and Section headings in this Agreement are included for convenience of reference only, and shall in no way restrict or affect the interpretation of any provision hereof.

 

SECTION 12.10     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument,

 

SECTION 12.11     Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Florida, without regard to the principles of conflicts of laws of such State. EACH PARTY HERETO UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING RELATING TO THIS AGREEMENT.

 

	
			International Spirits Bev. Grp.

				 	
			Florida Caribbean Distillers

			
	 	 	 
	
			By:

				
			

				 	
			By:

				
			

			
	 	 	 
	
			Name:

				
			Alonzo V. Pierce

				 	
			Name:

				
			Jose A. Rivera

			
	 	 	 
	
			Title:

				
			Chairman of Board

				 	
			Title:

				
			General mgr.

				 

16

 

 

 

EXHIBIT C

 

THE FEE

 

	 	 	 	 	 	 	 	 	 

PRODUCT

 

	
			1.

				
			The Fee payable by Customer to Company under this Agreement for all of the Services relating to the Product shall be as follows:

			

 

100% prepayment prior to production

 

See Attached Exhibit C-1 “Pricing Schedule”

 

2.     Customer shall reimburse Company for the cost of pallets used in connection with the Services at a rate of $7.00 per pallet.*

 

3.      Company does not have sufficient warehouse space to inventory Customer’s Product longer than 30 days. Charges for storage for up to but not exceeding sixty (30) days are included in the bottling fee referred to in “Exhibit C-1”. Storage exceeding 30 days will incur a $8.50 per pallet per calendar day additional fee. Storage exceeding 180 days will incur a $ 1.00 per case per calendar day additional fee.

 

19Blueprint

 

Exhibit 4.10

Form of Representative’s Warrant

 

THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE
HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS
PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED
HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL,
TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A
PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THE REGISTRATION STATEMENT (DEFINED BELOW) TO ANYONE OTHER THAN (I)
THINKEQUITY (DEFINED BELOW) OR AN UNDERWRITER OR A SELECTED DEALER
IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR
PARTNER OF THINKEQUITY OR OF ANY SUCH UNDERWRITER OR SELECTED
DEALER.

 

THIS
WARRANT IS NOT EXERCISABLE PRIOR TO [DATE THAT IS ONE HUNDRED EIGHTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT]. VOID
AFTER 5:00 P.M., NEW YORK TIME, [___________________] [DATE THAT IS FIVE YEARS FOLLOWING THE EFFECTIVE
DATE OF THE REGISTRATION STATEMENT].

 

WARRANT TO PURCHASE COMMON STOCK

 

LEVEL BRANDS, INC.

 

Warrant
Shares: _______1

Initial
Exercise Date:_________, 2019

 

THIS
WARRANT TO PURCHASE COMMON STOCK (the “Warrant”) certifies that,
for value received, _____________ or his, her or its assigns (the
“Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after, ______,
2019 (one hundred and eighty (180) days following the Effective
Date (as defined below), the “Initial Exercise Date”)
and, in accordance with FINRA Rule 5110(f)(2)(G)(i), prior to or at
5:00 p.m. (New York time) on the date that is five (5) years
following the Effective Date (the “Termination Date”) but
not thereafter, to subscribe for and purchase from LEVEL BRANDS,
INC., a North Carolina corporation (the “Company”), up to ______
shares of common stock, par value $0.001 per share
(“Common
Stock”), of the Company (the “Warrant Shares”), as
subject to adjustment hereunder. The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1. Definitions. In addition to the
terms defined elsewhere in this Agreement, the following terms have
the meanings indicated in this Section 1:

 

“Affiliate” means any
Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed
under Rule 405 under the Securities Act.

 

“Business Day” means any
day except any Saturday, any Sunday, any day which is a federal
legal holiday in the United States or any day on which banking
institutions in the State of New York are authorized or required by
law or other governmental action to close.

 

 

1 Equal to 3.0% of the
shares issued and sold in the Offering.

 

1

 

 

“Commission” means the
United States Securities and Exchange Commission.

 

“Effective Date” the date
on which the Commission declares the Registration Statement
effective.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

 

“Offering” has the meaning
set forth in the Underwriting Agreement.

 

“Person” means an
individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind.

 

“Registration Statement”
means the registration statement, and
an amendment or amendments thereto, on Form S-1 (File No. 333-[ ]),
filed by the Company with the Commission in connection with the
Offering.

 

“Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission
having substantially the same purpose and effect as such
Rule.

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

“ThinkEquity” means
ThinkEquity, a division of Fordham Financial Management Inc., as
representative of the underwriters set forth in the Underwriting
Agreement.

 

“Trading Day” means a day
on which the New York Stock Exchange is open for
trading.

 

“Trading Market” means any
of the following markets or exchanges on which the Common Stock is
listed or quoted for trading on the date in question: the NYSE
American LLC, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market, or the New York Stock Exchange (or
any successors to any of the foregoing).

 

“Underwriting Agreement”
means that certain Underwriting Agreement, dated [______], 2018, by
and between the Company and ThinkEquity.

 

“VWAP” means, for any
date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock then listed or quoted on a
Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted
as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)),
(b)  if OTCQB or OTCQX is not a Trading Market, the volume
weighted average price of a share of Common Stock for such date (or
the nearest preceding date) on the OTCQB or OTCQX as applicable,
(c) if Common Stock is not then listed or quoted for trading on the
OTCQB or OTCQX and if prices for Common Stock are then reported in
on the OTC Pink Open Market published by OTC Markets Group, Inc.
(or a similar organization or agency succeeding to its functions of
reporting prices), the most recent bid price per share of Common
Stock so reported, or (d) in all other cases, the fair market
value of the Common Stock as determined by an independent appraiser
selected in good faith by the Holder and reasonably acceptable to
the Company, the fees and expenses of which shall be paid by the
Company.

 

 

 

2

 

 

Section 2. Exercise.

 

a)
Exercise of the purchase rights represented by this Warrant may be
made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by
delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered
Holder at the address of the Holder appearing on the books of the
Company) of a duly executed facsimile copy (or e-mail attachment)
of the Notice of Exercise Form annexed hereto. Within two (2)
Trading Days following the date of exercise as aforesaid, the
Holder shall deliver the aggregate Exercise Price for the shares
specified in the applicable Notice of Exercise by wire transfer or
cashier’s check drawn on a United States bank unless the
cashless exercise procedure specified in Section 2(c) below is
specified in the applicable Notice of Exercise. No ink-original
Notice of Exercise shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any
Notice of Exercise form be required. Notwithstanding anything
herein to the contrary, the Holder shall not be required to
physically surrender this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within five
(5) Trading Days of the date the final Notice of Exercise is
delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the
outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable number of Warrant Shares purchased.
The Holder and the Company shall maintain records showing the
number of Warrant Shares purchased and the date of such purchases.
The Company shall deliver any objection to any Notice of Exercise
Form within two (2) Business Days of receipt of such notice.
The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a
portion of the Warrant Shares hereunder, the number of Warrant
Shares available for purchase hereunder at any given time may be
less than the amount stated on the face
hereof. 

 

b)
Exercise Price. The
exercise price per share of the Common Stock under this Warrant
shall be $________2, subject to adjustment hereunder (the
“Exercise
Price”).

 

c)
Cashless Exercise.
If at any time on or after the Initial Exercise Date, there is no
effective registration statement registering, or the prospectus
contained therein is not available for the issuance of the Warrant
Shares to the Holder, then this Warrant may also be exercised, in
whole or in part, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive
the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

 

(A) =
the VWAP on the Trading Day immediately preceding the date on which
Holder elects to exercise this Warrant by means of a
“cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

2 125.0% of the public
offering price per share of common stock in the
Offering.

 

3

 

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

If Warrant Shares are issued in such a
“cashless exercise,” the parties acknowledge and agree
that in accordance with Section 3(a)(9) of the Securities Act, the
Warrant Shares shall take on the registered characteristics of the
Warrants being exercised, and the holding period of the Warrants
being exercised may be tacked on to the holding period of the
Warrant Shares.  The Company agrees not to take any
position contrary to this Section 2(c). 

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this
Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)
Mechanics of
Exercise.

 

(i)
Delivery of Warrant Shares
Upon Exercise. The Company shall cause the Warrant Shares
purchased hereunder to be transmitted by its transfer agent to the
Holder by crediting the account of the Holder’s or its
designee’s balance account with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by Holder, or (B)
the Warrant Shares are eligible for resale by the Holder without
volume or manner-of-sale limitations pursuant to Rule 144 and, in
either case, the Warrant Shares have been sold by the Holder prior
to the Warrant Share Delivery Date (as defined below), and
otherwise by physical delivery of a certificate, registered in the
Company’s share register in the name of the Holder or its
designee, for the number of Warrant Shares to which the Holder is
entitled pursuant to such exercise to the address specified by the
Holder in the Notice of Exercise by the date that is two
(2) Trading Days after the delivery to the Company of the
Notice of Exercise (such date, the “Warrant Share Delivery
Date”). If the Warrant Shares can be delivered via
DWAC, the transfer agent shall have received from the Company, at
the expense of the Company, any legal opinions or other
documentation required by it to deliver such Warrant Shares without
legend (subject to receipt by the Company of reasonable back up
documentation from the Holder, including with respect to affiliate
status) and, if applicable and requested by the Company prior to
the Warrant Share Delivery Date, the transfer agent shall have
received from the Holder a confirmation of sale of the Warrant
Shares (provided the requirement of the Holder to provide a
confirmation as to the sale of Warrant Shares shall not be
applicable to the issuance of unlegended Warrant Shares upon a
cashless exercise of this Warrant if the Warrant Shares are then
eligible for resale pursuant to Rule 144(b)(1)). The Warrant Shares
shall be deemed to have been issued, and Holder or any other person
so designated to be named therein shall be deemed to have become a
holder of record of such shares for all purposes, as of the date
the Warrant has been exercised, with payment to the Company of the
Exercise Price (or by cashless exercise, if permitted) and all
taxes required to be paid by the Holder, if any, pursuant to
Section 2(d)(vi) prior to the issuance of such shares, having
been paid. If the Company fails for any reason to deliver to the
Holder the Warrant Shares subject to a Notice of Exercise by the
second Trading Day following the Warrant Share Delivery Date, the
Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such
exercise (based on the VWAP of the Common Stock on the date of the
applicable Notice of Exercise), $10 per Trading Day (increasing to
$20 per Trading Day on the fifth Trading Day after such liquidated
damages begin to accrue) for each Trading Day after the second
Trading Day following such Warrant Share Delivery Date until such
Warrant Shares are delivered or Holder rescinds such
exercise.

 

 

4

 

 

           (ii)
Delivery of New Warrants
Upon Exercise. If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon
surrender of this Warrant certificate, at the time of delivery of
the Warrant Shares, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares
called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.

 

(iii)
Rescission Rights.
If the Company fails to cause its transfer agent to deliver to the
Holder the Warrant Shares pursuant to Section 2(d)(i) by the
Warrant Share Delivery Date, then the Holder will have the right to
rescind such exercise; provided, however, that the Holder shall
be required to return any Warrant Shares or Common Stock subject to
any such rescinded exercise notice concurrently with the return to
Holder of the aggregate Exercise Price paid to the Company for such
Warrant Shares and the restoration of Holder’s right to
acquire such Warrant Shares pursuant to this Warrant (including,
issuance of a replacement warrant certificate evidencing such
restored right).

 

(iv)
Compensation for Buy-In on
Failure to Timely Deliver Warrant Shares Upon Exercise. In
addition to any other rights available to the Holder, if the
Company fails to cause its transfer agent to transmit to the Holder
the Warrant Shares pursuant to an exercise on or before the Warrant
Share Delivery Date, and if after such date the Holder is required
by its broker to purchase (in an open market transaction or
otherwise) or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2)
the price at which the sell order giving rise to such purchase
obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored (in which
case such exercise shall be deemed rescinded) or deliver to the
Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and
delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to
cover a Buy-In with respect to an attempted exercise of shares of
Common Stock with an aggregate sale price giving rise to such
purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder
$1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the
Buy-In and, upon request of the Company, evidence of the amount of
such loss. Nothing herein shall limit a Holder’s right to
pursue any other remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the
Company’s failure to timely deliver shares of Common Stock
upon exercise of the Warrant as required pursuant to the terms
hereof.

 

(v)
No Fractional Shares or
Scrip. No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which the Holder would otherwise be entitled to
purchase upon such exercise, the Company shall, at its election,
either pay a cash adjustment in respect of such final fraction in
an amount equal to such fraction multiplied by the Exercise Price
or round up to the next whole share.

 

(vi)
Charges, Taxes and
Expenses. Issuance of Warrant Shares shall be made without
charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such Warrant
Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the
Holder or in such name or names as may be directed by the Holder;
provided,
however, that in
the event that Warrant Shares are to be issued in a name other than
the name of the Holder, this Warrant when surrendered for exercise
shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto. The Company shall pay all transfer
agent fees required for same-day processing of any Notice of
Exercise and all fees to the Depository Trust Company (or another
established clearing corporation performing similar functions)
required for same-day electronic delivery of the Warrant
Shares.

 

 

5

 

 

(vii)
Closing of Books.
The Company will not close its stockholder books or records in any
manner which prevents the timely exercise of this Warrant, pursuant
to the terms hereof.

 

(viii)
Signature. This
Section 2 and the exercise form attached hereto set forth the
totality of the procedures required of the Holder in order to
exercise this Purchase Warrant.  Without limiting the
preceding sentences, no ink-original exercise form shall be
required, nor shall any medallion guarantee (or other type of
guarantee or notarization) of any exercise form be required in
order to exercise this Purchase Warrant.  No additional legal
opinion, other information or instructions shall be required of the
Holder to exercise this Purchase Warrant.  The Company shall
honor exercises of this Purchase Warrant and shall deliver Shares
underlying this Purchase Warrant in accordance with the terms,
conditions and time periods set forth herein. 

 

e)
Holder’s Exercise
Limitations. The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the
extent that after giving effect to such issuance after exercise as
set forth on the applicable Notice of Exercise, the Holder
(together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the
Holder’s Affiliates), would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below).  For
purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall
include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which
would be issuable upon (i) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of
its Affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company
(including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any
of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(e), beneficial ownership
shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this
Section 2(e) applies, the determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and
the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. In addition, a
determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. For purposes of
this Section 2(e), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the
Company’s transfer agent setting forth the number of shares
of Common Stock outstanding.  Upon the written or oral request
of a Holder, the Company shall within two Trading Days confirm
orally and in writing to the Holder the number of shares of Common
Stock then outstanding.  In any case, the number of
outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock
was reported. The “Beneficial Ownership
Limitation” shall be 9.99% of the number of shares of
the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock issuable upon exercise of this
Warrant. The Holder, upon notice to the Company, may increase or
decrease the Beneficial Ownership Limitation provisions of this
Section 2(e), provided that the Beneficial Ownership Limitation in
no event exceeds 9.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of
shares of Common Stock upon exercise of this Warrant held by the
Holder and the provisions of this Section 2(e) shall continue to
apply. Any increase in the Beneficial Ownership Limitation will not
be effective until the 61st day after such
notice is delivered to the Company. The provisions of this
paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2(e) to
correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a
successor holder of this Warrant. 

 

 

6

 

 

Section 3. Certain
Adjustments.

 

a)
Stock Dividends and
Splits. If the Company, at any time while this Warrant is
outstanding: (i) pays a stock dividend or otherwise makes a
distribution or distributions on shares of its Common Stock or any
other equity or equity equivalent securities payable in shares of
Common Stock (which, for avoidance of doubt, shall not include any
shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a
larger number of shares, (iii) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a
smaller number of shares, or (iv) issues by reclassification of
shares of the Common Stock any shares of capital stock of the
Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares
of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after
such event, and the number of shares issuable upon exercise of this
Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any
adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in
the case of a subdivision, combination or re-classification. For
the purposes of clarification, the Exercise Price of this Warrant
will not be adjusted in the event that the Company or any
Subsidiary thereof, as applicable, sells or grants any option to
purchase, or sell or grant any right to reprice, or otherwise
dispose of or issue (or announce any offer, sale, grant or any
option to purchase or other disposition) any Common Stock or Common
Stock Equivalents, at an effective price per share less than the
Exercise Price then in effect.

 

b)
[RESERVED]

 

c)
Subsequent Rights
Offerings. In addition to any adjustments pursuant to
Section 3(a) above, if at any time the Company grants, issues or
sells any Common Stock Equivalents or rights to purchase stock,
warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the
“Purchase
Rights”), then the Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which the Holder could have acquired if the Holder
had held the number of shares of Common Stock acquirable upon
complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date on
which a record is taken for the grant, issuance or sale of such
Purchase Rights, or, if no such record is taken, the date as of
which the record holders of shares of Common Stock are to be
determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to
participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder
shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a
result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until
such time, if ever, as its right thereto would not result in the
Holder exceeding the Beneficial Ownership Limitation).

 

d)
Pro Rata
Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend
(other than cash dividends) or other distribution of its assets (or
rights to acquire its assets) to holders of shares of Common Stock,
by way of return of capital or otherwise (including, without
limitation, any distribution of shares or other securities,
property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or
other similar transaction) (a “Distribution”), at any
time after the issuance of this Warrant, then, in each such case,
the Holder shall be entitled to participate in such Distribution to
the same extent that the Holder would have participated therein if
the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of
which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such
Distribution (provided, however, to the extent that the
Holder’s right to participate in any such Distribution would
result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such
Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such
extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation). To the extent that this Warrant
has not been partially or completely exercised at the time of such
Distribution, such portion of the Distribution shall be held in
abeyance for the benefit of the Holder until the Holder has
exercised this Warrant.

 

 

7

 

 

e)
Fundamental
Transaction. If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or
more related transactions effects any merger or consolidation of
the Company with or into another Person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii)
any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash
or property, or (v) the Company, directly or indirectly, in one or
more related transactions consummates a stock or share purchase
agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme
of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the
number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”)
receivable by holders of Common Stock as a result of such
Fundamental Transaction for each share of Common Stock for which
this Warrant is exercisable immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 2(e) on
the exercise of this Warrant). For purposes of any such exercise,
the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company
shall apportion the Exercise Price among the Alternate
Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If
holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. The Company shall cause any
successor entity in a Fundamental Transaction in which the Company
is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this
Warrant in accordance with the provisions of this Section 3(e)
pursuant to written agreements prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the
Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in
form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common
Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and with an exercise price
which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the
shares of Common Stock pursuant to such Fundamental Transaction and
the value of such shares of capital stock, such number of shares of
capital stock and such exercise price being for the purpose of
protecting the economic value of this Warrant immediately prior to
the consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and
after the date of such Fundamental Transaction, the provisions of
this Warrant referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the
Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

 

8

 

 

f)
Calculations. All
calculations under this Section 3 shall be made to the nearest cent
or the nearest 1/100th of a share, as the case may be. For purposes
of this Section 3, the number of shares of Common Stock deemed to
be issued and outstanding as of a given date shall be the sum of
the number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding.

  

g)
Notice to
Holder.

 

(i)
Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to
any provision of this Section 3, the Company shall promptly mail to
the Holder a notice setting forth the Exercise Price after such
adjustment and any resulting adjustment to the number of Warrant
Shares and setting forth a brief statement of the facts requiring
such adjustment.

 

(ii)
Notice to Allow Exercise
by Holder. If (A) the Company shall declare a dividend (or
any other distribution in whatever form) on the Common Stock, (B)
the Company shall declare a special nonrecurring cash dividend on
or a redemption of the Common Stock, (C) the Company shall
authorize the granting to all holders of the Common Stock rights or
warrants to subscribe for or purchase any shares of capital stock
of any class or of any rights, (D) the approval of any stockholders
of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger
to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, or any compulsory
share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up
of the affairs of the Company, then, in each case, the Company
shall cause to be mailed a notice to the Holder at its last address
as it shall appear upon the Warrant Register of the Company, at
least fifteen (15) calendar days prior to the applicable record or
effective date hereinafter specified, stating (x) the date on which
a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not
to be taken, the date as of which the holders of the Common Stock
of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date
on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares
of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided that the failure to
provide such notice or any defect therein shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

  

Section 4. Transfer of
Warrant.

 

a)
Transferability.
Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any
Warrant Shares issued upon exercise of this Warrant shall be sold,
transferred, assigned, pledged, or hypothecated, or be the subject
of any hedging, short sale, derivative, put, or call transaction
that would result in the effective economic disposition of the
securities by any person for a period of one hundred and eighty
(180) days immediately following the Effective Date pursuant to
which this Warrant is being issued, except the transfer of any
security:

 

 

9

 

 

(i)

by operation of law
or by reason of reorganization of the Company;

 

(ii)

to any FINRA member
firm participating in the offering and the officers or partners
thereof, if all securities so transferred remain subject to the
lock-up restriction in this Section 4(a) for the remainder of the
time period;

 

(iii)

if the aggregate
amount of securities of the Company held by the Holder or related
person do not exceed 1% of the securities being
offered;

 

(iv)

that is
beneficially owned on a pro-rata basis by all equity owners of an
investment fund, provided that no participating member manages or
otherwise directs investments by the fund, and participating
members in the aggregate do not own more than 10% of the equity in
the fund; or

 

(v)

the exercise or
conversion of any security, if all securities received remain
subject to the lock-up restriction in this Section 4(a) for the
remainder of the time period.

 

Subject
to the foregoing restriction, any applicable securities laws and
the conditions set forth in Section 4(d), this Warrant and all
rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company or its
designated agent, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by
the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such
surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee
or assignees, as applicable, and in the denomination or
denominations specified in such instrument of assignment, and shall
issue to the assignor a new Warrant evidencing the portion of this
Warrant not so assigned, and this Warrant shall promptly be
cancelled. The Warrant, if properly assigned in accordance
herewith, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

 

b)
New Warrants. This
Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice. All Warrants issued on
transfers or exchanges shall be dated the initial issuance date of
this Warrant and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant
thereto.

 

c)
Warrant Register.
The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.

 

 

 

10

 

 

d)
Representation by the
Holder. The Holder, by the acceptance hereof, represents and
warrants that it is acquiring this Warrant and, upon any exercise
hereof, will acquire the Warrant Shares issuable upon such
exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof
in violation of the Securities Act or any applicable state
securities law, except pursuant to sales registered or exempted
under the Securities Act. 

 

Section 5. Registration
Rights.

 

a)
Demand
Registration–Grant of Right. The Company, upon written
demand (a “Demand
Notice”) of the Holder(s) of at least 51% of the
Warrants and/or the underlying Shares (“Majority Holders”),
agrees to register, on one occasion, all or any portion of the
Warrants and the underlying Shares (the “Registrable Securities”).
On such occasion, the Company will file a registration statement
with the Commission covering the Registrable Securities within
sixty (60) days after receipt of a Demand Notice and use its
commercially reasonable efforts to have the registration statement
declared effective promptly thereafter, subject to compliance with
review by the Commission; provided, however, that the Company shall
not be required to comply with a Demand Notice if the Company has
filed a registration statement with respect to which the Holder is
entitled to piggyback registration rights pursuant to Section 5(c) hereof and either:
(i) the Holder has elected to participate in the offering covered
by such registration statement or (ii) if such registration
statement relates to an underwritten primary offering of securities
of the Company, until the offering covered by such registration
statement has been withdrawn or until thirty (30) days after such
offering is consummated. The demand for registration may be made at
any time beginning one hundred and eighty (180) days after the
Effective Date and expiring on the fifth anniversary of the
Effective Date. The Company covenants and agrees to give written
notice of its receipt of any Demand Notice by any Holder(s) to all
other registered Holders of the Warrants and/or the Registrable
Securities within ten (10) days after the date of the receipt of
any such Demand Notice.

 

b)
Demand
Registration–Terms. The Company shall bear all fees
and expenses attendant to the registration of the Registrable
Securities pursuant to Section 5(a), but the Holders
shall pay any and all underwriting commissions and the expenses of
any legal counsel selected by the Holders to represent them in
connection with the sale of the Registrable Securities. The Company
agrees to use its commercially reasonable efforts to cause the
filing required herein to become effective promptly and to qualify
or register the Registrable Securities in such States as are
reasonably requested by the Holder(s); provided, however, that in no event shall
the Company be required to register the Registrable Securities in a
State in which such registration would cause: (i) the Company to be
obligated to register or license to do business in such State or
submit to general service of process in such State, or (ii) the
principal shareholders of the Company to be obligated to escrow
their shares of capital stock of the Company. The Company shall
cause any registration statement filed pursuant to the demand right
granted under Section
5(a) to remain effective for a period of at least twelve
(12) consecutive months after the date that the Holders of the
Registrable Securities covered by such registration statement are
first given the opportunity to sell all of such securities. The
Holders shall only use the prospectuses provided by the Company to
sell the shares covered by such registration statement, and will
immediately cease to use any prospectus furnished by the Company if
the Company advises the Holder that such prospectus may no longer
be used due to a material misstatement or omission. Notwithstanding
the provisions of this Section 5(b), the Holder shall
be entitled to a demand registration under this Section 5(b) on only one (1)
occasion and such demand registration right shall terminate on the
fifth anniversary of the Effective Date in accordance with FINRA
Rule 5110(f)(2)(G)(iv).

 

 

 

11

 

 

c)
“Piggy-Back”
Registration–Grant of Right. In addition to the demand
right of registration described in Section 5(a) hereof, the Holder
shall have the right, for a period of six (6) years commencing one
year after the Effective Date, to include the Registrable
Securities as part of any other registration of securities filed by
the Company (other than in connection with a transaction
contemplated by Rule 145 promulgated under the Securities Act or
pursuant to Form S-4, S-8 or any equivalent forms); provided, however, that if, solely in
connection with any primary underwritten public offering for the
account of the Company, the managing underwriter(s) thereof shall,
in its reasonable discretion, impose a limitation on the number of
shares of common stock which may be included in the registration
statement because, in such underwriter(s)’ judgment,
marketing or other factors dictate such limitation is necessary to
facilitate public distribution, then the Company shall be obligated
to include in such registration statement only such limited portion
of the Registrable Securities with respect to which the Holder
requested inclusion hereunder as the underwriter shall reasonably
permit. Any exclusion of Registrable Securities shall be made pro
rata among the Holders seeking to include Registrable Securities in
proportion to the number of Registrable Securities sought to be
included by such Holders; provided, however, that the Company shall
not exclude any Registrable Securities unless the Company has first
excluded all outstanding securities, the holders of which are not
entitled to inclusion of such securities in such Registration
Statement or are not entitled to pro rata inclusion with the
Registrable Securities.

 

d)
“Piggy-Back”
Registration–Terms. The Company shall bear all fees
and expenses attendant to registering the Registrable Securities
pursuant to Section
5(c) hereof, but the Holders shall pay any and all
underwriting commissions and the expenses of any legal counsel
selected by the Holders to represent them in connection with the
sale of the Registrable Securities. In the event of such a proposed
registration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than thirty (30)
days written notice prior to the proposed date of filing of such
registration statement. Such notice to the Holders shall continue
to be given for each registration statement filed by the Company
until such time as all of the Registrable Securities have been sold
by the Holder. The holders of the Registrable Securities shall
exercise the “piggy-back” rights provided for herein by
giving written notice, within ten (10) days of the receipt of the
Company’s notice of its intention to file a registration
statement. Except as otherwise provided in this Warrant, there
shall be no limit on the number of times the Holder may request
registration under this Section 5(d); provided,
however, that such registration rights shall terminate on the
seventh anniversary of the Effective Date in accordance with FINRA
Rule 5110(f)(2)(G)(v).

 

Section 6.
Miscellaneous.

 

a)
No Rights as Stockholder
Until Exercise. This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of
the Company prior to the exercise hereof as set forth in Section
2(d)(i).

 

b)
Loss, Theft, Destruction
or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant or any
certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably
satisfactory to it (which, in the case of the Warrant, shall not
include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in
lieu of such Warrant or stock certificate.

 

 

 

12

 

 

c)
Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking
of any action or the expiration of any right required or granted
herein shall not be a Business Day, then, such action may be taken
or such right may be exercised on the next succeeding Business
Day.

 

d)
Authorized
Shares.

 

The
Company covenants that, during the period the Warrant is
outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase
rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock
certificates to execute and issue the necessary Warrant Shares upon
the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure
that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may
be listed. The Company covenants that all Warrant Shares which may
be issued upon the exercise of the purchase rights represented by
this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges created by
the Company in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

 

Except
and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant.

 

Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction
thereof.

 

e)
Jurisdiction. All
questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance
with the provisions of the Underwriting Agreement.

 

 

 

13

 

 

f)
Restrictions. The
Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, and the Holder does
not utilize cashless exercise, will have restrictions upon resale
imposed by state and federal securities laws.

 

g)
Nonwaiver and
Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as
a waiver of such right or otherwise prejudice the Holder’s
rights, powers or remedies. Without limiting any other provision of
this Warrant or the Underwriting Agreement, if the Company
willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the
Company shall pay to the Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to,
reasonable attorneys’ fees, including those of appellate
proceedings, incurred by the Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

 

h)
Notices. Any
notice, request or other document required or permitted to be given
or delivered to the Holder by the Company shall be delivered in
accordance with the notice provisions of the Underwriting
Agreement.

 

i)
Limitation of
Liability. No provision hereof, in the absence of any
affirmative action by the Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or
privileges of the Holder, shall give rise to any liability of the
Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

 

j)
Remedies. The
Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for
any loss incurred by reason of a breach by it of the provisions of
this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law
would be adequate.

 

k)
Successors and
Assigns. Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors and permitted assigns
of the Company and the successors and permitted assigns of Holder.
The provisions of this Warrant are intended to be for the benefit
of any Holder from time to time of this Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

 

l)
Amendment. This
Warrant may be modified or amended or the provisions hereof waived
with the written consent of the Company and the
Holder.

 

m)
Severability.
Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be
prohibited by or invalid under applicable law, such provision shall
be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the
remaining provisions of this Warrant.

 

n)
Headings. The
headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose, be deemed a part of this
Warrant.

 

********************

 (Signature
Page Follows)

 

 

14

 

             

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer
thereunto duly authorized as of the date first above
indicated.

 

 

	
 

	

LEVEL BRANDS, INC.

	
 

	
 

	
 

	
 

	

By:

	

                           

	
 

	
 

	

Name:

	
 

	
 

	

Title:

 

	
 

	
 

	
 

 

 

15

 

NOTICE OF EXERCISE 

 

	

TO:

	

LEVEL
BRANDS, INC.

	
 

	
 

	
 

	
 

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of
the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if
any.

 

(2)
Payment shall take the form of (check applicable box):

 

☐ in lawful money of the United States;
or

 

☐ if permitted the cancellation of such number of
Warrant Shares as is necessary, in accordance with the formula set
forth in subsection 2(c), to exercise this Warrant with respect to
the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in subsection
2(c).

 

(3)
Please register and issue said Warrant Shares in the name of the
undersigned or in such other name as is specified
below:

 

_______________________________

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

(4)
Accredited
Investor. If the Warrant is being exercised via cash
exercise, the undersigned is an “accredited investor”
as defined in Regulation D promulgated under the Securities Act of
1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of
Investing Entity:
________________________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:
_________________________________________________

 

Name of
Authorized Signatory:
___________________________________________________________________

 

Title
of Authorized Signatory:
____________________________________________________________________

 

Date:
_______________________________________________________________

 

	
 

	
 

	
 

 

 

16

 

ASSIGNMENT FORM

 

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do not
use this form to exercise the warrant.)

 

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing
Warrant and all rights evidenced thereby are hereby assigned
to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

Dated:
______________, _______

 

Holder’s
Signature: ___________________________

 

Holder’s
Address: ____________________________

 

_____________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name
as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever. Officers of corporations and
those acting in a fiduciary or other representative capacity should
file proper evidence of authority to assign the foregoing
Warrant.

 

 

 

17

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