Document:

Exhibit 10.1

PURCHASE AGREEMENT

This Purchase Agreement (the "Agreement") is effective as of June 24th, 2016, and is by and between Rapid Fire Marketing group, with address at 1530 Jamacha Rd Suite D, El Cajon, CA 92019 (the "Purchaser") and EWSD 1, with address at 600 Wilshire Blvd, Suite 1500, Los Angeles, CA 9001 (the "Seller").  Purchaser and Seller are referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, the Seller desires to sell to the Purchaser certain hemp oil Goods (the "Goods"), for the purpose of making products to resell and distribute; and

WHEREAS, the Purchaser desires to accept delivery of the Goods and to make necessary payment for the Goods on the terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which the Parties hereto both acknowledge, the Seller and the Purchaser hereby agree as follows:

1.  Shipping of Goods.  The Seller shall deliver, at Seller's sole cost and expense, the Goods to the Purchaser's Premises located at 1530 Jamacha Rd Suite D, El Cajon, San Diego, CA 92019. Any damage to the Goods during shipping shall be the sole responsibility of the Seller.  Upon delivery, the Purchaser shall accept delivery of the Goods.  Purchaser hereby acknowledges that it takes possession and ownership of the Goods when delivered. Purchaser agrees to store the Goods in accordance with the terms of this Agreement.

2.  Title.  The title to and property of the Goods shall remain with the Seller until such time as the Goods are purchased and delivered to Buyer by Purchaser or a third Party.

3.  Premises.  The Purchaser shall store the Goods in the following Premises: 1530 Jamacha Rd Suite D, El Cajon, San Diego, CA 92019 (the "Premises"). The Purchaser shall store the Goods at its Premises so as to be at all times segregated as best possible from all of the other inventory.

4.  Sale of the Goods.  Sale is deemed to be completed upon receipt of product by the purchaser.

5.  Payments.  The Purchaser agrees to make payments according to the schedule set forth in Exhibit A.

6.  Inspection.  The Purchaser shall have 10 days or until test results come back. If no claim is made by Purchaser the sale is deemed complete and final.

8.  Term.  This term of this Agreement is from October 1, 2016 through October 1, 2017.

9.  Assignment.  Buyer and Seller shall not assign any of their rights under this Agreement, or delegate the performance of any of the obligations or duties hereunder, without the prior written consent of the Other party and any attempt by either to so assign, transfer, or subcontract any rights, duties, or obligations arising hereunder shall be void and of no effect.

11.  Notices.  Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during receiving Party's regular business hours or by facsimile before or during receiving Party's regular business hours; or (b) on the second business day following deposit in the United States mail, postage prepaid, to the addresses set forth above for each Party, or to such other addresses as the Parties may, from time to time, designate in writing pursuant to the provisions of this section.

12.  Governing Law and Venue.  This Agreement is to be construed in accordance with and governed by

	
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the internal laws of the State of California.  Venue for any legal action or arbitration shall be the County of San Diego, State of California.

13.  Dispute Resolution.  All disputes under this Agreement shall be settled by arbitration in Los Angeles County, State of California before a single arbitrator pursuant to the commercial law rules of the American Arbitration Association. Arbitration may be commenced at any time by any Party hereto giving written notice to the other Party to a dispute that such dispute has been referred to arbitration. Any award rendered by the arbitrator shall be conclusive and binding upon the Parties hereto.  This provision for arbitration shall be specifically enforceable by the Parties and the decision of the arbitrator in accordance herewith shall be final and binding without right of appeal.

14.  Severability.  If any provision of this Agreement shall be held to be illegal, invalid or unenforceable under present or future laws, such provisions shall be fully severable, this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement; and, the remaining provisions of this Agreement shall remain in full force and effect.

15.  Limitation of Liability.  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION, BUSINESS INTERRUPTION, LOSS OF OR UNAUTHORIZED ACCESS TO INFORMATION, DAMAGES FOR LOSS OF PROFITS, INCURRED BY THE OTHER PARTY ARISING OUT OF THE SERVICES PROVIDED UNDER THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL PURCHASER'S LIABILITY ON ANY CLAIM, LOSS OR LIABILITY ARISING OUT OF OR CONNECTED WITH THIS AGREEMENT SHALL EXCEED THE AMOUNTS PAID BY PURCHASER TO SELLER DURING THE ONE (1) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM OR ACTION.

16.  Indemnification.  Each Party shall at its own expense indemnify and hold harmless, and at the other Party's request defend such Party its affiliates, subsidiaries, successors and assigns officers, directors, employees, sublicenses, and agents from and against any and all claims, losses, liabilities, damages, demand, settlements, loss, expenses and costs (including court costs) which arise directly or indirectly out of or relate to (a) any breach of this Agreement, or (b) the gross negligence or willful misconduct of a Party's employees or agents.

17.  Umbrella/Excess Liability insurance is acceptable to meet the above defined requirements. Supplier shall cause each insurance Purchaser to provide the insurance on an umbrella basis in excess over and no less broad than the liability coverages required herein (including as to Purchaser's additional insured status), with the same inception and expiration dates as Commercial General Liability insurance, and with coverage that "drops down" for exhausted underlying aggregate limits of liability coverage.

Each insurance policy should be occurrence based.  If the policy is claims-made, the following additional requirements shall apply and must be noted on the Certificate of Insurance:  1. Retroactive Date must not be later than the commencement date of Supplier's relationship with Purchaser or cancellation date of Seller's most recent occurrence based policy which such claims-made policy is to replace, whichever is later; 2. Policy must contain "An option to purchase an extended reporting period of 24 months."

Each Certificate of Insurance shall (1) show Seller as the Named Insured; (3) provide information as is standard on the ACORD 25 Certificate of Liability Insurance; (3) show the following as Certificate Holder and Additional Insured: Rapid Fire Marketing, its subsidiaries and its Affiliates, 1530 Jamacha Rd Suite D, El Cajon, CA 92019

	
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All insurance coverages are to be placed with insurers which (1) have a Best's rating of no less than A: VII, and (2) are admitted insurance companies in the State of California. All other insurers require the prior approval of Purchaser. Such insurance coverage shall be maintained during the term of this Agreement.  Purchaser shall be name as an additional insured on all policies of insurance required by this Agreement.

18.  Entire Agreement; Amendment.  This Agreement is the final, complete and exclusive agreement of the Parties with respect to the subject matter hereof and supersedes and merges all prior or contemporaneous representations, discussions, proposals, negotiations, conditions, communications and agreements, whether written or oral, between the Parties relating to the subject matter hereof and all past courses of dealing or industry custom. No modification of or amendment to this Agreement shall be effective unless in writing and signed by each of the Parties.

19.  Waiver.  The waiver by either Party of a breach of or a default under any provision of this Agreement shall not be effective unless in writing and shall not be construed as a waiver of any subsequent breach of or default under the same or any other provision of this Agreement, nor shall any delay or omission on the part of either Party to exercise or avail itself of any right or remedy that it has or may have hereunder operate as a waiver of any right or remedy.

20.  Headings.  The headings used in this Agreement are for convenience only and shall not be used to limit or construe the contents of any of the sections of this Agreement.

21.  Non-Compete.  It is understood and acknowledged by the Parties that both Parties will be marketing and selling the same Goods. This Agreement does not imply any non-compete obligation on the part of either Party.  Purchaser is not obligated to disclose any information about Purchaser's buyers. As such, Seller will not have knowledge or information regarding Purchaser's customer base.

22.  Non-Disparagement.  The Parties agree that they will not engage in any action or make any public or private comments that disparage the other Parties, the Parties' employees or Parties' business practices; or that disrupt or impair the Parties' normal operations or harm the reputation of the Parties with its customers, suppliers, shareholders or the public; or that interfere with existing contractual relationships with customers, suppliers or the Parties' associates.  The Parties' obligations under this Section shall survive the execution of this Agreement, and shall continue in perpetuity.

23.  Confidentially.  This existence of this Agreement, the Parties to this Agreement, and all terms and conditions of this Agreement shall remain strictly confidential between the Parties, unless agreed upon in writing.

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date first set forth above.  Note that this PO is only considered binding when Mr. Osachi is named President of Rapid Fire Inc. On June 24th 2016.

	
SELLER

EWSD 1

 

 

 

JEFF GOH

	
PURCHASER

Rapid Fire

 

 

 

ZIYAD OSACHI

	
By:  Jeff Goh

Its:  President

	
By: Ziyad Osachi

Its:  President

	
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Exhibit A

Pricing and Terms

Goods:  All Goods provided under this Agreement shall be manufactured and processed under CGMP compliance.  All Goods provided under this Agreement shall be derived from industrial hemp that is legal for distribution in the United States.

Quarantine:  All Goods received by Purchaser shall be quarantined for such amount of time as is required to be analyzed by Purchaser.

Certificate of Analysis.  Seller shall provide a Certificate of Analysis (COA) for all Goods.  The COA delivered by Seller to Purchaser shall:  (i) be true, correct and authentic in all respects, and represent accurately the percentage of Cannabinoids contained in the Goods; (ii) reflect that the Goods contain below 0.3% THC; (iii) reflect that the Goods contain no harmful toxins or contaminants, or that such levels of toxins or contaminants are at acceptable levels pursuant to regulations established by the applicable governmental agency or regulatory body. In the event that there are any discrepancies between the Seller and Purchaser's COA's, then that product batch shall be put on hold and not sold until both parties agree in writing to final numbers and pricing. (iv) CBD oil shall test at 93% Cannabinoids of total volume.

Minimum Pricing:  Not to exceed 1 cent per milligram. In the event that Seller is not able to achieve Minimum pricing, Seller shall request in writing from Purchaser a price change. Purchaser may agree in writing to receive Goods at the new price.

Quantity:  Purchaser shall commit to buy 200 kgs from now through February 28, 2017.  Total purchase price is $2,000,000. Purchaser shall buy in minimum quantities of 10 kg per order.  Delivery of product shall commence on or around October 1, 2016.  Delivery may commence earlier at the written approval of both parties. Delivery of product needs to be delivered in 14 days from order being placed.

Payments Terms:  Purchaser shall make the following payments:

	
A.

	
50% of the product price at the time of order

	
B.

	
50% of the product price 15 days after delivery

	
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Seller Initials

	 	
Purchaser InitialsExhibit 10.1

 

	
 
    	

    
	
 
    	
 
    
	
 
    	
207 Goode Avenue
    
	
 
    	
Glendale, California   91203
    
	
 
    	
Phone 626-304-2000
    
	
 
    	
Fax 626-792-7312
    
	
 
    	
www.averydennison.com
    

 

April 28, 2016

 

Georges Gravanis

[Address]

[Address]

 

Dear Georges,

 

Localization Addendum of Dutch Employment

 

In connection with your employment with Avery Dennison, Materials Group in the Netherlands this letter details your compensation and benefits package as well as relocation/repatriation support.

 

Your Hong Kong assignment will end effective June 30, 2016. Your effective transfer date from the French payroll to the Dutch payroll will be on July 1, 2016.  Your employment in the Netherlands will commence on July 1, 2016.  Unless as otherwise provided herein, all current applicable assignment-related benefits and/or allowances will cease on June 30, 2016.

 

Base Salary

€510,000 per annum effective July 1, 2016.  Your next salary review will be April 2017. That and subsequent salary reviews will be conducted in accordance with the Netherlands’ budget guidelines.

 

Bonus opportunity

You will continue to be eligible under Avery Dennison’s annual incentive plan (“AIP”) to participate at a 75% of base salary opportunity level, subject to applicable withholdings.  The AIP, including eligibility criteria, may change at any time, with or without notice, in accordance with applicable law or, if permissible under the law, at the discretion of the Company.

 

Long-term incentive compensation program

Under the Company’s executive incentive compensation program, you will continue to be eligible to be considered for an annualized long-term incentive award with a target opportunity equivalent to approximately 180% of your base salary. The long-term incentive program, including eligibility criteria, may be amended, suspended or terminated at any time, with or without notice, in accordance with applicable law and the applicable plan terms.

 

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Benefits

Since you will be localized in the Netherlands, all applicable Dutch benefits in accordance with local practice will be provided to you. This includes participation in the Dutch National Insurance Scheme as well as any supplemental plans, and you will cease to participate in the French scheme, with the exception of the Voluntary French Pension described below.

 

·                 Dutch Benefits Scheme

 

Dutch National and Employee Insurance

This includes unemployment, state pension, long term disability and basic health. Applicable employer and employee contributions to this scheme will be implemented per local practices.

 

Dutch Supplemental Pension Plan

Participation in this plan is mandatory under Dutch pension legislation and implied by signing the Dutch employment agreement required by law. You will contribute to the Dutch supplemental pension plan in accordance to local law and practice. The applicable employee and employer deductions for the contributions will be made via payroll.

 

Dutch Health Plan

Under Dutch legislation, you must enroll in a basic health coverage plan. Avery Dennison offers you the option of taking part at a discounted rate in the healthcare insurance selected by the Company. You may opt to enroll yourself and your eligible family members in this plan. Should you opt for the Avery Dennison selected plan, the applicable premium(s) will be deducted via payroll. The plan does not cover any family members living outside of The Netherlands.

 

The options and details of Dutch benefits, including health and pension plans, will be presented to you by the Netherlands HR team.

 

·                 French Benefits Scheme

The company will cover the employer and employee contributions to the French Pension Voluntary Scheme under the National Insurance. The estimated cost, combining employee and employer contributions, is €65,000 per annum. These contributions may be subject to applicable taxes in the Netherlands. Tax obligations that may result from this benefit will be your responsibility.

 

The contributions and eligibility to other components of the benefits scheme such as Caisse des Français de l’Etranger (CFE), health care, supplemental pension plan (Axa), and A&D will cease.

 

·                 Aetna Global Benefits (AGB)

Your AGB coverage will continue for 30 days after July 1, 2016, to ensure there is no lapse in coverage during this period.  The AGB coverage will cease following this 30 day period.

 

·                 Personal Holiday/Vacation Time Off

You will be in the Dutch leave plan which consists of a total of 39 days per year, including statutory as well as Avery Dennison additionally granted days due to standard working hours and years of service. The holiday year runs from January to December. Additional details of the plan will be provided to you by the HR team in the Netherlands

 

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Dependent Children Education Support

Avery Dennison will pay tuition support for your daughter for the school years of 2016/2017 and 2017/2018 up to €25,000 per annum. We will pay the school directly. Tax obligations that may result from this benefit will be your responsibility.

 

Housing and Utilities Expenses in Europe

You will be responsible for housing related expenses in the Netherlands and in any country in which your family sets residency.

 

Company Car

You will receive a monthly car allowance of up to €1,648. Details of the car program will be presented to you by the HR team in the Netherlands. Tax obligations that may result from this benefit will be your responsibility.

 

Tax Compliance

After localizing in the Netherlands, you shall be responsible for income tax liability on all items of compensation mentioned in this letter, unless otherwise specified.

 

Income and social tax obligations resulting from trailing liabilities such as bonus and equity compensation that was earned before or during your assignment to Hong Kong will be tax protected.  In other words, you will be responsible for the lower of 1) the actual Dutch, French and Hong Kong taxes, plus any other country which is a result of your Avery Dennison employment, or 2) your French Hypothetical tax obligation.  If applicable, the company will be responsible for the difference if your French Hypothetical is greater than the actual.  Any additional tax burdens outside of these countries not resulting from Company employment obligations will be your sole responsibility.

 

You will be required to comply with the income tax filing obligations in the current and new home countries.  The Company will pay the cost of Deloitte to assist in preparing the individual income tax return(s) in both the current and new home countries for 2016 and up to two (2) more tax filing years after localization.  This cost will not be covered by the Company should you choose to use a different provider than the one designated by the Company.  Tax returns for anyone other than you (your spouse, children, etc.) will not be covered by the Company.  The Company will pay any applicable income tax due on this benefit.

 

Tax Orientation

The Company’s tax provider will conduct a tax orientation. The tax orientation is typically conducted via telephone and takes approximately one hour.  Deloitte will review and discuss a Company pre-approved list of items such as tax filing obligations, withholding obligations, etc.  Please note that the tax provider is not authorized to provide any tax planning assistance or consulting.  The Company will pay any applicable income taxes due on this benefit.  The company will reimburse you for up to USD15,000 paid in Euros per year for financial planning.  Any additional service may be provided at your own expense.

 

Severance

You will be covered by the Company’s Executive Severance Plan, which includes a year’s base salary, the highest AIP bonus payment received within prior three years, and the cash equivalent of twelve months benefit premiums (employee and employer portion), the sum of which are subject to a 1X multiplier, per the plan.  In addition, you will be covered under the Company’s Key Executive Change Of Control Plan, which includes a year’s base salary, the highest AIP bonus payment received within prior three years, a prorated AIP bonus for year in

 

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which COC occurs, and the cash equivalent of twelve months benefit premiums (employees and employer portion), the sum of which is subject to a 2X multiplier, per the plan. This information provided to you in summary form for your reference only, and all policies, rules and guidelines are subject to the terms and conditions of the applicable plans.

 

Relocation Support

Below is a summary of the relocation support you will receive. Details of the relocation will be provided in a separate document.

 

·                 Relocation allowance equivalent of USD25,000 paid in Euros

·                 60 days temporary housing, 30 days temporary transportation

·                 Destination services assistance to include house hunting and school search if required.

·                 Relocation airfare for you and your family

·                 Shipping of household goods

·                 Hong Kong Departure Services

 

Localization Process and Administration

Avery Dennison will pay for the services of TheMIGroup to administer all aspects of your localization and you will be contacted by your Relocation Manager of TheMIGroup for a localization briefing call.  The Company will pay any applicable income tax due on this benefit.

 

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Anne Hill
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Anne   Hill
    	
 
    
	
Sr   VP and Chief HR Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Georges Gravanis
    	
6/2/16
    
	
Georges   Gravanis
    	
Date
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Cc :
    	
Mark   Alders
    	
 
    
	
 
    	
LeeAnn   Prussak
    	
 
    
	
 
    	
Jessica   Del Rio
    	
 
    

 

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