Document:

Exhibit 10.2

 

January 15, 2019

 

KushCo Holdings, Inc.

11958 Monarch Street

Garden Grove, CA 92841

Attn: Nicholas Kovacevich

Chief Executive Officer

 

 

Dear Mr. Kovacevich:

 

This letter (the “Agreement”)
constitutes the agreement between A.G.P./Alliance Global Partners, as lead placement agent (“A.G.P.”), and Compass
Point Research & Trading, LLC, as co-placement agent (“Compass” and together with A.G.P, the “Placement
Agents”), and KushCo Holdings, Inc., a company incorporated under the laws of the State of Nevada (the “Company”),
that the Placement Agents shall serve as the placement agents for the Company, on a “reasonable best efforts” basis,
in connection with the proposed placement (the “Placement”) of (i) shares (the “Shares”)
of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and (ii) warrants to purchase
shares of Common Stock of the Company (the “Warrants,” and together with the Shares, the “Securities”).
The Securities actually placed by the Placement Agents are referred to herein as the “Placement Agent Securities.”
The terms of the Placement shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser”
and collectively, the “Purchasers”), and nothing herein constitutes that the Placement Agents would have the
power or authority to bind the Company or any Purchaser, or an obligation for the Company will issue any Securities or complete
the Placement. The Company expressly acknowledges and agrees that the Placement Agents’ obligations hereunder are on a reasonable
best efforts basis only and that the execution of this Agreement does not constitute a commitment by the Placement Agents to purchase
the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of the Placement
Agents with respect to securing any other financing on behalf of the Company. Each of the Placement Agents may retain other brokers
or dealers to act as sub-agents or selected-dealers on its behalf in connection with the Placement. Certain affiliates of the Placement
Agents may participate in the Placement by purchasing some of the Placement Agent Securities. The sale of Placement Agent Securities
to any Purchaser will be evidenced by a securities purchase agreement (the “Purchase Agreement”) between the
Company and such Purchaser, in a form reasonably acceptable to the Company and the Purchaser. Capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Purchase Agreement. Prior to the signing of any Purchase Agreement,
officers of the Company will be available to answer inquiries from prospective Purchasers.

 

SECTION 1.      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY; COVENANTS OF THE COMPANY.

 

A.         Representations
of the Company. With respect to the Placement Agent Securities, each of the representations and warranties (together with
any related disclosure schedules thereto) and covenants made by the Company to the Purchasers in the Purchase Agreement in connection
with the Placement, is hereby incorporated herein by reference into this Agreement (as though fully restated herein) and is, as
of the date of this Agreement and as of the Closing Date, hereby made to, and in favor of, the Placement Agents. In addition to
the foregoing, the Company represents and warrants that there are no affiliations with any FINRA member firm among the Company's
officers, directors or, to the knowledge of the Company, any five percent (5.0%) or greater stockholder of the Company, except
as set forth in the Purchase Agreement and SEC Reports.

 

    	 	1	 

     

    

 

B.           Covenants
of the Company. The Company covenants and agrees to continue to retain (i) a firm of independent PCAOB registered public accountants
for a period of at least three (3) years after the Closing Date and (ii) a competent transfer agent with respect to the Placement
Agent Securities for a period of three (3) years after the Closing Date.

 

SECTION 2.       REPRESENTATIONS
OF THE PLACEMENT AGENT. The Placement Agents, each severally, and not jointly and severally, represent and warrant that it
(i) is a member in good standing of FINRA, (ii) is registered as a broker/dealer under the Exchange Act, (iii) is licensed as a
broker/dealer under the laws of the United States of America, applicable to the offers and sales of the Placement Agent Securities
by the Placement Agents, (iv) is and will be a corporate body validly existing under the laws of its place of incorporation, (v)
has full power and authority to enter into and perform its obligations under this Agreement. Each of the Placement Agents will
immediately notify the Company in writing of any change in its status with respect to subsections (i) through (v) above. The Placement
Agents covenant that they will each use its reasonable best efforts to conduct the Placement hereunder in compliance with the provisions
of this Agreement and the requirements of applicable law.  

 

SECTION 3.        COMPENSATION.
In consideration of the services to be provided for hereunder, the Company shall pay to the Placement Agents or their respective
designees a total cash fee equal to seven percent (7%) of gross proceeds from the offering if the total amount of Placement Agent
Securities offered (the “Cash Fee”), of which $270,000 from the Cash Fee shall be payable to Northland Securities,
Inc. for advisory services in connection with the Placement. The Cash Fee shall be paid on the Closing Date. The Company shall
not be required to pay the Placement Agent any fees or expenses except for the Cash Fee, reimbursement of $100,000 for legal expenses,
$10,000 for IPREO software related expenses, $1,700 for background check expenses, $3,000 for tombstones and $10,300 in marketing
related expenses, including roadshow expenses, in each case with respect to the engagement hereunder; provided, however, that the
reimbursable amount shall not be more than an aggregate of $125,000. A.G.P. reserves the right to reduce any item of compensation
or adjust the terms thereof as specified herein in the event that a determination shall be made by FINRA to the effect that the
Placement Agents’ aggregate compensation is in excess of FINRA Rules or that the terms thereof require adjustment.

 

SECTION 4.       INDEMNIFICATION.

 

A.           To
the extent permitted by law, with respect to the Placement Agent Securities, the Company will indemnify the Placement Agents and
its affiliates, stockholders, directors, officers, employees, members and controlling persons (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the
same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder
or pursuant to this Agreement, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect
thereof) are found in a final judgment (not subject to appeal) by a court of law to have resulted primarily and directly from a
Placement Agent’s willful misconduct or gross negligence in performing the services described herein.

 

B.           Promptly
after receipt by the Placement Agents of notice of any claim or the commencement of any action or proceeding with respect to which
the Placement Agents are entitled to indemnity hereunder, the Placement Agents will notify the Company in writing of such claim
or of the commencement of such action or proceeding, but failure to so notify the Company shall not relieve the Company from any
obligation it may have hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial
rights and defenses. If the Company so elects or is requested by the Placement Agents, the Company will assume the defense of such
action or proceeding and will employ counsel reasonably satisfactory to the Placement Agents and will pay the fees and expenses
of such counsel. Notwithstanding the preceding sentence, each of Placement Agents will be entitled to employ its own counsel separate
from counsel for the Company and from any other party in such action if counsel for any Placement Agent reasonably determines that
it would be inappropriate under the applicable rules of professional responsibility for the same counsel to represent both the
Company and the Placement Agents. In such event, the reasonable fees and disbursements of no more than one such separate counsel
will be paid by the Company, in addition to fees of local counsel. The Company will have the right to settle the claim or proceeding,
provided that the Company will not settle any such claim, action or proceeding without the prior written consent of the Placement
Agents, which will not be unreasonably withheld.

 

    	 	2	 

     

    

 

C.           The
Company agrees to notify the Placement Agents promptly of the assertion against it or any other person of any claim or the commencement
of any action or proceeding relating to a transaction contemplated by this Agreement.

 

D.           If
for any reason the foregoing indemnity is unavailable to the Placement Agents or insufficient to hold the Placement Agents harmless,
then the Company shall contribute to the amount paid or payable by the Placement Agents as a result of such losses, claims, damages
or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company on the one
hand and the Placement Agents on the other, but also the relative fault of the Company on the one hand and the liable Placement
Agent on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations.
The amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed
to include any legal or other fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding
the provisions hereof, the liable Placement Agent’s share of the liability hereunder shall not be in excess of the amount
of fees actually received, or to be received, by such Placement Agent under this Agreement (excluding any amounts received as reimbursement
of expenses incurred by such Placement Agent).

 

E.           These
indemnification provisions shall remain in full force and effect whether or not the transaction contemplated by this Agreement
is completed and shall survive the termination of this Agreement, and shall be in addition to any liability that the Company might
otherwise have to any indemnified party under this Agreement or otherwise.

 

SECTION 5.       ENGAGEMENT
TERM. The Placement Agent’s engagement hereunder will be until the earlier of (i) January 31, 2019 and (ii) the Closing
Date. The date of termination of this Agreement is referred to herein as the “Termination Date.” In the event,
however, in the course of the Placement Agents’ performance of due diligence it deems, it necessary to terminate the engagement,
the Placement Agents may do so prior to the Termination Date. The Company may elect to terminate the engagement hereunder for any
reason prior to the Termination Date but will remain responsible for fees pursuant to Section 3 hereof with respect to the Placement
Agent Securities if sold in the Placement. Notwithstanding anything to the contrary contained herein, the provisions concerning
the Company’s obligation to pay any fees actually earned pursuant to Section 3 hereof and the provisions concerning confidentiality,
indemnification and contribution contained herein will survive any expiration or termination of this Agreement. If this Agreement
is terminated prior to the completion of the Placement, all fees due to the Placement Agents shall be paid by the Company to the
Placement Agents on or before the Termination Date (in the event such fees are earned or owed as of the Termination Date). The
Placement Agents agree not to use any confidential information concerning the Company provided to the Placement Agents by the Company
for any purposes other than those contemplated under this Agreement.

 

SECTION 6.      PLACEMENT
AGENT INFORMATION. The Company agrees that any information or advice rendered by the Placement Agents in connection with this
engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required
by law, the Company will not disclose or otherwise refer to the advice or information in any manner without each of the Placement
Agent’s prior written consent.

 

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SECTION 7.       NO
FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person
or entity not a party hereto, except those entitled hereto by virtue of the indemnification provisions hereof. The Company acknowledges
and agrees that the Placement Agents are not and shall not be construed as a fiduciary of the Company and shall have no duties
or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention
of the Placement Agents hereunder, all of which are hereby expressly waived.

 

SECTION 8.       CLOSING.
The obligations of the Placement Agents, and the closing of the sale of the Placement Agent Securities hereunder are subject to
the accuracy, when made and on the Closing Date, of the representations and warranties on the part of the Company contained herein
and in the Purchase Agreement, to the performance by the Company of its obligations hereunder, and to each of the following additional
terms and conditions, except as otherwise disclosed to and acknowledged and waived by the Placement Agents:

 

A.           All
corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of
this Agreement, the Placement Agent Securities, and all other legal matters relating to this Agreement and the transactions contemplated
hereby with respect to the Placement Agent Securities shall be reasonably satisfactory in all material respects to the Placement
Agents.

 

B.           The
Placement Agents shall have received from outside counsel to the Company such counsel’s written opinion with respect to the
Placement Agent Securities, addressed to the Placement Agents and dated as of the Closing Date, in form and substance reasonably
satisfactory to the Placement Agents.

 

C.           The
Common Stock shall be registered under the Exchange Act and, as of the Closing Date, the Placement Agent Securities shall be listed
and admitted and authorized for trading on the Trading Market or other applicable U.S. national exchange and satisfactory evidence
of such action shall have been provided to the Placement Agents. The Company shall have taken no action designed to, or likely
to have the effect of terminating the registration of the Common Stock under the Exchange Act or delisting or suspending from trading
the Common Stock from the Trading Market or other applicable U.S. national exchange, nor has the Company received any information
suggesting that the Commission or the Trading Market or other U.S. applicable national exchange is contemplating terminating such
registration or listing.

 

D.           No
action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Closing Date, prevent the issuance or sale of the Placement Agent Securities or materially
and adversely affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining
order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing
Date which would prevent the issuance or sale of the Placement Agent Securities or materially and adversely affect or potentially
and adversely affect the business or operations of the Company.

 

E.           The
Company shall have entered into a Purchase Agreement with each of the Purchasers of the Placement Agent Securities and such agreements
shall be in full force and effect and shall contain representations, warranties and covenants of the Company as agreed upon between
the Company and the Purchasers.

 

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F.           FINRA
shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
the Company shall, if requested by the Placement Agents, make or authorize Placement Agents’ counsel to make on the Company’s
behalf, any filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 2710 with respect to the Placement and
pay all filing fees required in connection therewith.

 

If any of the conditions
specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, all obligations of the Placement
Agents hereunder may be cancelled by the Placement Agents at, or at any time prior to, the Closing Date. Notice of such cancellation
shall be given to the Company in writing or orally. Any such oral notice shall be confirmed promptly thereafter in writing.

 

SECTION
9.       GOVERNING LAW. This Agreement will be governed by, and construed in accordance with,
the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement
may not be assigned by either party without the prior written consent of the other party. This Agreement shall be binding
upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to
trial by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith
is waived. Any dispute arising under this Agreement may be brought into the courts of the State of New York or into the
Federal Court located in New York, New York and, by execution and delivery of this Agreement, the Company hereby accepts for
itself and in respect of its property, generally and unconditionally, the jurisdiction of aforesaid courts. Each party hereto
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of this
Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney's
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or
proceeding.

  

SECTION 10.     ENTIRE
AGREEMENT/MISCELLANEOUS. This Agreement embodies the entire agreement and understanding between the parties hereto, and supersedes
all prior agreements and understandings, relating to the subject matter hereof. If any provision of this Agreement is determined
to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other
provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified
or waived except by an instrument in writing signed by both the Placement Agents and the Company. The representations, warranties,
agreements and covenants contained herein shall survive the Closing Date of the Placement and delivery of the Placement Agent Securities.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or a .pdf format file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof.

 

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SECTION 12.     NOTICES.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to
the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b)
the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature
pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c)
the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall
be as set forth on the signature pages hereto.

 

SECTION 13.     Press
Announcements. The Company agrees that the Placement Agents shall, on and after the Closing Date, have the right to
reference the Placement and the Placement Agents’ role in connection therewith in the Placement Agents’ marketing
materials and on its website and to place advertisements in financial and other newspapers and journals, in each case at its own
expense.

 

[The remainder of
this page has been intentionally left blank.]

 

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Please confirm that
the foregoing correctly sets forth our agreement by signing and returning to the Placement Agents the enclosed copy of this Agreement.

 

	 	Very truly yours,
	 	 
	 	A.G.P./ALLIANCE GLOBAL PARTNERS.
	 	 
	 	By:        	/s/ David Bocchi
	 	 	Name: David Bocchi
	 	 	Title:   Head of Investment Banking
	 	 
	 	Address for notice:
	 	
        590 Madison Avenue 36th Floor

        New York, New York 10022

        Attn: David Bocchi

        Email: db@allianceg.com 

	 	 
	 	COMPASS POINT RESEARCH & TRADING, LLC
	 	 	 
	 	By:	/s/ Christopher Nealon
	 	 	 
	 	Name:	Christopher Nealon
	 	Title:	Managing Director, Operations
	 	 	 
	 	
        Address for notice:

        1055 Thomas Jefferson Street, NW

        Suite 303

        Washington, DC 20007 USA

        Email:

 

[Signature Page to
Placement Agency Agreement.]

 

    	 	7	 

     

    

 

 

Accepted and Agreed
to as of

the date first written
above:

 

	KUSHCO HOLDINGS, INC.
	 
	By: 	/s/ Nicholas Kovacevich	 
	 	Name: Nicholas Kovacevich	 
	 	Title: Chief Executive Officer	 

 

	 	Address for notice:	 
	 	11958 Monarch Street,	 
	 	Garden Grove, CA 92841	 
	 	Attn: Chief Executive Officer	 

 

[Signature Page to
Placement Agency Agreement.]

 

    	 	8ASSIGNMENT
AGREEMENT

 

AGREEMENT
made this 27th day of September, 2018 (“Effective Date”) between Jacob Roth, with offices at 543 Bedford Avenue,
Suite 176, Brooklyn NY 11211 (“Roth”), and Golden Royal Development Inc., a Delaware corporation with offices
at 543 Bedford Avenue, Suite 176, Brooklyn NY 11211 (“Golden Royal”).

 

WHEREAS,
Roth owns beneficially and of record all of the right and title to the two Interests identified on Schedule 1 to Assignment
Agreement attached hereto (the “Interests”); and

 

WHEREAS,
Roth is the majority shareholder of Golden Royal, and has organized Golden Royal for the purpose of securing financing for investment
in mineral rights such as the Interests; and

 

WHEREAS,
Roth believes that transfer of the benefits of the Interests to Golden Royal will increase the ability of Golden Royal to
fulfill the aforesaid purpose.

 

NOW,
THEREFORE, it is agreed:

 

1.
Assignment. Roth hereby assigns to Golden Royal all of the benefit that may accrue to him from ownership of the Interests,
including any receipts of cash or distribution of assets, as well as any proceeds realized on the sale of either Interest, any
of which shall be promptly transferred by Roth to Golden Royal upon receipt. Roth hereby agrees that he shall hold the Interests
in trust for the benefit of Golden Royal, and shall not sell, transfer, pledge or otherwise permit any lien to be placed on either
of the Interests, except as directed by Golden Royal . In the event that Golden Royal directs Roth to sell, assign or otherwise
transfer either or both of the Interests, he will do so and will pay over to Golden Royal any proceeds realized by reason of said
transfer.

 

2.
Warranty of Title. Roth hereby warrants to Golden Royal that the execution of this Assignment Agreement will transfer to
Golden Royal the full beneficial interest in the Interests, free of liens or adverse claims.

 

3.
Assumption of Responsibility. Golden Royal hereby assumes responsibility for prompt payment of all fees, rents, taxes and
any other financial liabilities as may accrue to Roth by reason of his record ownership of the Interests.

 

4.
Term. The Term of this Assignment Agreement shall initiate on the Effective Date recited above and shall continue until
the date on which Roth ceases to be the record owner of either of the Interests, except that, if Roth ceases to be the record
owner of an Interest in violation of his covenants herein, the rights of Golden Royal hereunder shall continue until said violation
is remedied.

 

    	 

     

    

 

5.
Governing Law. This agreement and any disputes arising hereunder shall be governed by the laws of the State of New York.

 

6.
Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned
by either of the Parties (whether by operation of law or otherwise) without the prior written consent of the other Party. This
Agreement will be binding upon, inure to the benefit of and be enforceable by, the Parties and their respective heirs, legal representatives,
successors and assigns.

 

IN
WITNESS WHEREOF, the parties have executed this Assignment Agreement as of the Effective Date recited above.

 

	 	 	GOLDEN
    ROYAL DEVELOPMENT INC.
	 	 	 	 
	/s/
    Jacob Roth	 	By:	/s/
    Jacob Roth
	JACOB
    ROTH, individually	 	 	Jacob
    Roth, President

 

    	 

     

    

 

GOLDEN
ROYAL DEVELOPMENT INC.

 

Schedule
1 to Assignment Agreement

 

	Converse County WYW-177129
	 	 
	Property:	T33N, R75W, 6th P.M. Converse County, WY (320 acres)
	 	 
	Interest:	1% overriding royalty
	 	 
	Purchase	Price: Unknown

 

	Demonstrated
    By:
	 	 	 
	 	● 	Assignment
    of Record Title Interest in a Lease for Oil and Gas or Geothermal Resources dated August 10, 2012 by Royal Energy Resources,
    Inc. to Chase Oil Corporation
	 	 	 
	 	●	Subsidiaries
    Option Agreement dated January 31, 2015 between Royal Energy Resources, Inc. and Jacob Roth
	 	 	 
	 	● 	Letter
    dated April 20, 2015 from CEO of Royal Energy Resources to Robert Brant, counsel for Jacob Roth, exercising the put option
    in the Subsidiaries Option Agreement
	 	 	 
	 	● 	Letter
    dated March 15, 2018 from Chase Oil Corporation to Mr. Jacob Roth regarding assignment of lease by Chase Oil Corporation to
    Grayson Powder River, LLC

 

	Fremont
    County WYW-185478
	 	 
	Property:
    	T.0280N,
    R.0920W, 06th PM, Fremont County, WY (240 acres)
	 	 
	Interest:
    	Ten
    year mineral lease, effective 2/1/17
	 	 
	Purchase
    Price: 	$415
    filing fee; $360 annual rental fee

 

	Demonstrated
    By:
	 	 	 
	 	● 	Offer
    to Lease and Lease for Oil and Gas dated January 31, 2017
	 	 	 
	 	●	Invoice
    dated 1/25/18 from U.S. Department of the Interior

 

*   *    *    *    *

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