Document:

nate_ex101.htm

EXHIBIT 10.1

 

INTELLECTUAL PROPERTY

LICENSE AGREEMENT

This INTELLECTUAL PROPERTY LICENSE AGREEMENT (this "Agreement"), made and entered into this 12th day of May, 2013 (the "Effective Date"), by and between Innovative Product Consulting, Inc. ("Licensor"), and Nate’s Pancakes, Inc. ("Company") (each, a "Party", and collectively the "Parties"),

WITNESSETH:

WHEREAS, Licensor is the exclusive owner of all right, title and interest in and to (i) the trademark of Nate’s Pancakes (Serial Number 86096722), (ii) all rights in and to the name Nate’s Pancakes, and (iii) designs of pre-made pancake mix, and (iv) all common law and statutory rights in the foregoing (collectively, the "Property");

WHEREAS, Company desires to obtain an exclusive license to use such intellectual property and Licensor desires to grant to Company such a license under the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual premises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

ARTICLE I

DEFINITIONS

"Agreement" shall have the meaning set forth in the preamble.

"Effective Date" shall have the meaning set forth in the preamble.

"Intellectual Property" shall mean all intellectual property rights, including United States and foreign patents and patent applications, divisions, continuations, continuations-in-part, reissues, or extensions thereof, trade secrets, know-how and copyrights, trademarks and trademark related rights.

"Licensed Patents" shall mean (a) the patents and patent applications listed on Schedule A hereto, together with any continuations, continuations-in-part, reissues, reexaminations, and foreign counterparts thereof, and (b) any other patents or patent applications that are now owned or controlled by, or licensed to (with the right to grant sublicenses), Licensor, or that become owned or controlled by or licensed to (with the right to grant sublicenses) Licensor prior to the Expiration Event, in each case relating to the sport of tennis.

  

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"Licensed Trademarks" shall mean (a) the trademarks and service marks set forth on Schedule B, all registrations and applications thereof, including, without limitation, the registrations and applications set forth on Schedule B, and any foreign counterparts thereof and (b) any other trademarks and service marks, domain names, trade dress, logos and other source identifiers, including registrations thereof, that are now owned or controlled by, or licensed to (with the right to grant sublicenses), Priceline, or that become owned or controlled by or licensed to (with the right to grant sublicenses) Licensor prior to the Expiration Event, in each case relating to the sport of tennis.

“Net revenue” shall mean revenues (sales), minus returns, discounts, shipping, sales taxes and allowances.

"Other Licensed Intellectual Property" shall mean all patents, know-how, trade secrets, copyrights and other intellectual property including that is now owned or controlled by, or licensed to (with the right to grant sublicenses), Licensor, or that becomes owned or controlled by or licensed to (with the right to grant sublicenses) Licensor, in each case relating to the sport of tennis.

"Party" shall have the meaning set forth in the preamble.

"Person" shall mean an individual, corporation, partnership, Limited Liability Company, trust, business trust, association, joint stock company, joint venture, pool, syndicate, sole proprietorship, incorporated organization, governmental authority or any other form of entity.

"Term" shall have the meaning set forth in Section 12.01.

ARTICLE II

LICENSE GRANT

SECTION 2.01. Patent License. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Company an exclusive license within the United States under the Licensed Patents to make, have made, offer for sale, sell, use, import and export products and services.

SECTION 2.02. Trademark License. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Company a worldwide exclusive license to use the Licensed Trademarks (Registration Number: 86096722) on or in connection with goods and services related to the food service industry.

 

SECTION 2.03. Other Intellectual Property License. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Company a worldwide exclusive license to use the Other Licensed Intellectual Property, including but not limited to the right to reproduce, distribute, offer for sale, sell, display and prepare derivative works of copyrights in the Other Licensed Intellectual Property, on or in connection with the manufacture, marketing, distribution and sale of products and services.

SECTION 2.04. Fees. Company agrees to pay required fees associated to the protection of the Intellectual Property licensed under this Agreement including, but not limited to, patent and trademark fees.

 

SECTION 2.05. Reservation of Rights. All rights not expressly granted to a Party hereunder shall remain the exclusive property of the other Party.

 

  

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ARTICLE III

 

ROYALTIES

SECTION 3.01. Royalties. During the Term of this Agreement, Company shall pay Licensor a royalty equal to 7.5% of monthly Net Revenues. Such royalties shall be paid within 30 calendar days from the end of each month.

SECTION 3.02. Minimum Royalties. Beginning 12 months from the execution of this agreement, in order to maintain its exclusive license Company must pay a minimum royalty equal as follows:

 

Year 2: $3,500

Year 3: $4,500

Year 4: $5,500

Year 5: $6,500

Year 6: $7,500

Year 7: $8,500

Year 8: $9,500

Year 9+:12,000

If the required minimum royalty is not paid, Licensor shall have the right to terminate the exclusive nature of this Agreement.

 

SECTION 3.03. Product Orders. Company shall purchase the following products from Licensor in accordance with Schedule D.

SECTION 3.04. Reports and Payments. Company shall furnish to Licensor, within 30 days of the end of each a written report setting forth the monthly Net Revenues of Company during the preceding calendar month and the royalties payable to Licensor with respect thereto, which report shall be accompanied by the royalties then due.

SECTION 3.05. Overdue Payments. Unless Licensor is a member, shareholder or partner, or the equivalent, of Company then, any payments that are not timely paid as provided hereunder shall bear interest at the annual rate of the lower of ten percent (10%) or the maximum rate allowed by law, accruing as of the first day such payment became overdue. Any failure of Company to make timely payment to Licensor of royalties due hereunder shall be deemed to constitute a breach of this Agreement.

SECTION 3.06. Records. Company shall maintain accurate records and books of account showing all revenue of Company in sufficient detail to enable the royalties payable by Company hereunder to be accurately determined. Unless Licensor is a member, shareholder or partner, or the equivalent, of Company then, upon reasonable notice to Company, Licensor shall have the right to conduct an audit (not more than twice per calendar year), either itself or through an independent accounting firm, of any royalties payable hereunder at any time up to three (3) years after payment of such royalties, and to examine the records and books of account of Company in connection therewith to verify the accuracy of reports and payments required to be delivered to Licensor hereunder. Licensor shall bear the full cost and expense of such audit, unless a discrepancy in excess of twenty percent (20%) in favor of Licensor is discovered, in which event Company shall bear the full cost and expense of such audit. Regardless of the amount of discrepancy, all discrepancies shall be immediately due and payable. Any discrepancy due shall bear interest at the annual rate of the lower of ten percent (10%) or the maximum rate allowed by law, accruing as of the first day such payment became overdue.

 

  

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ARTICLE IV

OWNERSHIP OF TRADEMARKS AND JOINT INTELLECTUAL PROPERTY

SECTION 4.01. Ownership. Company acknowledges that Licensor owns all right, title and interest in and to the Licensed Patents, Licensed Trademarks and Other Licensed Intellectual Property. Company shall not take any action that is inconsistent with the ownership of the Licensed Trademarks by Licensor. Company agrees that nothing in this Agreement, and no use of the Licensed Trademarks by Company pursuant to this Agreement, shall vest in Company, or shall be construed to vest in Company, any right of ownership in or to the Licensed Trademarks other than the right to use the Licensed Trademarks in accordance with this Agreement.

SECTION 4.02. Goodwill. All goodwill and improved reputation in respect of the Licensed Trademarks generated by Company's use of the Licensed Trademarks shall inure to the benefit of Licensor. Company shall not by any act or omission use the Licensed Trademarks in any manner that tarnishes, degrades, disparages or reflects adversely on Licensor or its business or reputation. Nothing in this Agreement shall be deemed to (a) give Licensor any right, title or interest in or to Company's trade names, trademarks, or service marks with which Company uses the Licensed Trademarks, (b) give Company any right, title or interest in or to Licensor's trade names, trademarks, or service marks with which Licensor uses the Licensed Trademarks, or (c) give either Party the right to use any trademarks or service marks of the other Party other than the Licensed Trademarks.

ARTICLE V

MAINTENANCE OF SERVICE STANDARDS AND INSPECTION

SECTION 5.01. Service Standards. In order to preserve the inherent value of the Licensed Trademarks, Company shall ensure that all services and product provided by Company under the Licensed Trademarks shall be of the highest possible quality. Company shall use and display the Licensed Trademarks only in such form and manner as shall be approved by Licensor, which approval shall not be unreasonably withheld or delayed.

SECTION 5.02. Exact Usage. Company shall not use any Licensed Trademark without the prior written approval of Licensor, which approval shall not be unreasonably withheld or delayed.

SECTION 5.03. Legal Compliance. Company agrees that the business operated by it in connection with the Licensed Trademarks shall, in all material respects, comply with all laws, rules, regulations and requirements of any governmental body as may be applicable to the operation, advertising and promotion of such business.

SECTION 5.04. Right to Inspect. Unless Licensor is a member, shareholder or partner, or the equivalent, of Company then, Licensor shall have the right to inspect, upon reasonable notice and during normal business hours, the premises of Company to the extent reasonably necessary in order to ensure that the quality of goods and services distributed, marketed, or sold under the Licensed Trademarks meet the Service Standards, and solely to the extent that such inspection cannot reasonably be made using information or materials publicly available. Should Licensor notify Company that any of its business activities do not comply with the Service Standards, Company shall promptly make commercially reasonable efforts to correct such defects.

  

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ARTICLE VI

ADVERTISING AND PROMOTIONAL MATERIALS

SECTION 6.01. Advertising and Promotional Materials. Company shall submit all sales, promotional and advertising materials to be used by Company in connection with products or services bearing Licensed Trademarks, including, but not limited to, web site content (including web site advertising), newspaper, and radio and television advertising, to Licensor for prior approval thereof, which approval shall not be unreasonably withheld. In the event Licensor's approval or rejection of such sales, promotional, or advertising materials is not received by Company within fifteen (15) days of submission of such materials to Licensor for approval, such materials shall be deemed approved by Licensor; provided, however, that Licensor may, at its discretion and upon written notice to Company, terminate this provision pursuant to which such materials are deemed approved if approval or rejection is not received by Company within fifteen (15) days of submission.

SECTION 6.02. No Other Control. The submission of sales, advertising and promotional materials to Licensor for approval thereof under the terms of Section 6.01 shall be solely for the purpose of ensuring compliance with the standards, and Licensor shall have no right with respect to approval of pricing, selection of specific products and services, or any other aspect of the business of Company.

ARTICLE VII

PROTECTION OF LICENSED INTELLECTUAL PROPERTY

SECTION 7.01. Notification of Infringement. Each Party shall immediately notify the other Party and provide to the other Party all relevant background facts upon becoming aware of (i) any registrations of, or applications for registration of, marks that do or may conflict with any Licensed Trademark, and (ii) any infringement, misappropriation, imitation, dilution, illegal use or misuse of the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property.

SECTION 7.02. Action Against Infringer. Licensor shall have the first right, but not the obligation, to take action against others in the courts, administrative agencies or otherwise, at Licensor's cost and expense, to prevent or terminate infringement, misappropriation, imitation, illegal use or misuse of the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property, and to oppose or cancel applications or registrations of trademarks, service marks, trade dress, characters and designs that do or may conflict with any of the Licensed Trademarks. Company agrees to cooperate with Licensor in any litigation or other enforcement action that Licensor may undertake to enforce or protect the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property and, upon Licensor's request, to execute, file and deliver all documents and proof necessary for such purpose, including being named as a party to such litigation as required by law. All reasonable out-of-pocket expenses incurred by Company in connection therewith shall be reimbursed by Licensor. Company shall have the right to participate and be represented in any such action, suit or proceeding by its own counsel at its own expense. Company shall have no claim of any kind against Licensor based on or arising out of Licensor's handling of or decisions concerning any such action, suit, proceeding, settlement, or compromise, and Company hereby irrevocably releases Licensor from any such claim, provided, however, that Licensor shall not enter into any settlement or compromise of such action, suit or proceeding that affects or concerns the validity, enforceability, or ownership of any Licensed Trademarks, Licensed Patents, or the Other Licensed Intellectual Property without the prior written consent of Company, which consent shall not be unreasonably withheld.

  

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SECTION 7.03. Enforcement by Company. Licensor shall promptly notify Company in the event it elects not to take action under the terms of Section 7.02. Company shall thereafter have the option to commence any such action against others in the under its own direction and control, and at its cost and expense. Licensor shall reasonably assist Company in such action if so requested, and shall be named a party to such action if requested by Company or required by law. Licensor shall have the right to participate and be represented in any such action, suit or proceeding by its own counsel at its own expense. Licensor shall have no claim of any kind against Company based on or arising out of Company's handling of or decisions concerning any such action, suit, proceeding, settlement, or compromise, and Licensor hereby irrevocably releases Company from any such claim, provided that Company shall not enter into any settlement or compromise of such action, suit or proceeding that affects or concerns the validity, enforceability (except in respect of granting immunity from suit in connection with such settlement or compromise) or ownership of any Licensed Trademarks, Licensed Patents or Other Licensed Property in the Licensor Field or the New Merchandise Field without the prior written consent of Licensor, which consent shall be at Licensor's sole discretion. Company may discontinue such action, suit or proceeding if in its sole discretion it determines that such action, suit or proceeding is not advantageous to Company.

SECTION 7.04. Withdrawal of Enforcement. If either Party brings an action under this Article VII and subsequently ceases to pursue or withdraws from such action, it shall promptly notify the other Party and the other Party may substitute itself for the withdrawing Party under the terms of this Article VII.

SECTION 7.05. Recoveries. All damages or other compensation of any kind recovered in such action, suit, or proceeding or from any settlement or compromise brought under this Article VII shall be for the benefit of the Party that brought such action, suit, or proceeding, or in the event of a withdrawal by a Party under Section 7.04 hereof, shall be apportioned between the Parties in an amount proportional to the amount paid by each such Party with respect to its costs and expenses in bringing such action, suit, or proceeding; provided, however, that to the extent that damages or compensation recovered by one Party are based on revenues or profits lost by the other Party, such other Party shall be entitled to its pro rata share of such damages or compensation.

ARTICLE VIII

MAINTENANCE OF LICENSED INTELLECTUAL PROPERTY

SECTION 8.01. Licensor to Control. Except as otherwise provided in this Article VIII, Company shall prosecute and maintain all Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property in the name of Licensor at the cost and expense of Company. Licensor shall provide reasonable cooperation to Company in connection with such prosecution or maintenance, and shall make available to Company or its authorized attorneys, agents or representatives such of its employees as Licensor in its reasonable judgment deems necessary in order to assist Company with the prosecution or maintenance of registrations and applications.

ARTICLE IX

RESERVED

ARTICLE X

REPRESENTATIONS AND WARRANTIES

  

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SECTION 10.01. Representations and Warranties of Licensor. Licensor represents and warrants that as of the date hereof:

(a) Organization and Authority. Licensor is a corporation duly organized, validly existing and in good standing and has all necessary power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. Licensor is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing or qualification necessary, except to the extent that the failure to be so licensed or qualified would not materially and adversely affect Licensor's assets, liabilities or results of operations or prevent or materially delay the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Licensor, the performance by it of its obligations hereunder and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite action on its part. This Agreement has been duly executed and delivered by Licensor, and (assuming due authorization, execution and delivery by the other Person signatory hereto) this Agreement constitutes a legal, valid and binding obligation of Licensor enforceable against it in accordance with its terms.

(b) No Conflict. The execution, delivery and performance of this Agreement by Licensor do not and will not (i) violate, conflict with or result in the breach of any provision of its Certificate of Incorporation or By-laws, (ii) conflict with or violate any law, governmental regulation or governmental order applicable to Licensor or any of its assets, properties or businesses or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights pursuant to, any contract, agreement or arrangement by which Licensor is bound; except to the extent that any conflict under (ii) or (iii) above would not prevent or materially delay the consummation of the transactions contemplated by this Agreement.

(c) Ownership. To the knowledge of Licensor, Licensor is either (i) the owner of the entire right, title and interest in and to the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property or (ii) has been granted a license thereunder and has the right to grant to Company the rights granted herein.

(d) Enforceability. To the knowledge of Licensor, the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property have not been adjudged invalid or unenforceable in whole or part.

(e) Actions. Except as listed on Schedule C hereto, no actions have been asserted or are pending, nor, to the knowledge of Licensor, has any such action been threatened, against Licensor either (i) challenging or seeking to deny or restrict the use by Licensor of any of the Licensed Trademarks, Licensed Patents, or Other Licensed Intellectual Property, or (ii) alleging that the use of the Licensed Trademarks, Licensed Patents, or Other Licensed Intellectual Property by Licensor does or may conflict with, misappropriate or infringe the intellectual property rights of any third party.

(f) No Infringement. To Licensor's knowledge, the use of the Licensed Trademarks, Licensed Patents, and Other Licensed Intellectual Property in connection with the business of Company as contemplated herein does not conflict with, misappropriate, or infringe the intellectual property rights of any third party.

(g) Conduct of Business. To Licensor's knowledge, the rights licensed hereunder are sufficient for Company to operate its business as currently anticipated.

(h) Exclusive Rights. To Licensor's knowledge, none of the rights licensed hereunder conflict with any license or covenant not to sue granted by Licensor to any third party.

  

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SECTION 10.02. Representations and Warranties of Company. Company represents and warrants that as of the date hereof:

(a) Organization and Authority. Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Indiana and has all necessary power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing or qualification necessary, except to the extent that the failure to be so licensed or qualified would not materially and adversely affect Company's assets, liabilities or results of operations or prevent or materially delay the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Company, the performance by it of its obligations hereunder and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite action on its part. This Agreement has been duly executed and delivered by Company, and (assuming due authorization, execution and delivery by the other Person signatory hereto) this Agreement constitutes a legal, valid and binding obligation of Company enforceable against it in accordance with its terms.

(b) No Conflict. The execution, delivery and performance of this Agreement by Company do not and will not (i) violate, conflict with or result in the breach of any provision of its Certificate of Incorporation or By-laws, (ii) conflict with or violate any law, governmental regulation or governmental order applicable to Company or any of its assets, properties or businesses or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights pursuant to, any contract, agreement or arrangement by which Licensor is bound; except to the extent that any conflict under (ii) or (iii) above would not prevent or materially delay the consummation of the transactions contemplated by this Agreement.

ARTICLE XI

INDEMNIFICATION

SECTION 11.01. Indemnification by Company. Company agrees to defend, indemnify, and hold Licensor and its Affiliates and the respective directors, officers, employees, and agents of Licensor harmless from and against any and all losses, debts, liabilities, claims, demands, causes of action and expenses (including attorney's fees and deposition and discovery expenses) arising out of or resulting from (a) the breach by Company of any of its representations, warranties, covenants and agreements contained within this Agreement, or (b) the carrying on of Company's business other than those losses that would constitute a breach of Licensor's representations and warranties set forth herein.

SECTION 11.02. Indemnification by Licensor. Licensor agrees to defend, indemnify, and hold Company and its Affiliates and the respective directors, officers, employees, and agents of Company harmless from and against any and all losses arising out of or resulting from (a) the breach by Licensor of any of its representations, warranties, covenants and agreements contained within this Agreement, (b) the carrying on of Licensor's business and (c) actions brought against Company by third parties to the extent that Licensor is indemnified by others for such third-party liabilities.

  

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SECTION 11.03. Indemnification Process. In respect of any claim, suit or demand by any third party ("Third Party Claim") arising from or relating to unauthorized acts or breaches of the terms of this Agreement, Company and Licensor (each, an "Indemnified Party") shall give the Party hereto from whom indemnification is sought (the "Indemnifying Party") prompt written notice of any Third Party Claim of which such Indemnified Party has knowledge concerning any losses as to which such Indemnified Party may request indemnification hereunder. If the Indemnifying Party acknowledges in writing its obligation to indemnify the Indemnified Party hereunder against any losses that may result from such Third Party Claim, then the Indemnifying Party shall be entitled to assume and control the defense of such Third Party Claim at its expense and through counsel of its choice if it gives notice of its intention to do so to the Indemnified Party within five (5) days of the receipt of such notice from the Indemnified Party; provided that if there exists or is reasonably likely to exist a conflict or interest that would make it inappropriate in the judgment of the Indemnified Party, in its sole and absolute discretion, for the same counsel to represent both the Indemnified Party and the Indemnifying Party, then the Indemnified Party shall be entitled to retain its own counsel, at the expense of the Indemnifying Party. In the event the Indemnifying Party exercises the right to undertake any such defense against any such Third Party Claim as provided above, the Indemnified Party shall cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party's expense, all witnesses, pertinent records, materials and information in the Indemnified Party's possession or under the Indemnified Party's control relating thereto as is reasonably required by the Indemnifying Party. Similarly, in the event the Indemnified Party is, directly or indirectly, conducting the defense against any such Third Party Claim, the Indemnifying Party shall cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnified Party's expense, all such witnesses, records, materials and information in the Indemnifying Party's possession or under the Indemnifying Party's control relating thereto as is reasonably required by the Indemnified Party. No such Third Party Claim may be settled by the Indemnifying Party without the prior written consent of the Indemnified Party.

ARTICLE XII

TERM AND TERMINATION

SECTION 12.01. Term of Agreement. This license shall commence on the Effective Date of this Agreement and, unless terminated by mutual consent or pursuant to Section 12.05 below, shall continue for a period of 20 years. This Agreement may be extended for additional 10 year terms at the mutual consent of both parties.

 

SECTION 12.02. Buy-Out Provision. Company may purchase at any time, all of the Intellectual Property covered by this License agreement for a purchase price equal to Net Revenues for the preceding 12 calendar months but such amount shall not be less than $5,000,000.

For example, if the Net Revenues from the Intellectual Property covered by this License was $7,500,000 then the buy-out amount would be $7,500,000; however, if the Net Revenues from the Intellectual Property covered by this License was $2,500,000 then the buy-out amount would be $5,000,000

SECTION 12.03. Reserved.

 

SECTION 12.04. Reserved.

SECTION 12.05. Termination for Breach. In addition to any other rights of termination provided for in this Agreement, if either Party commits a material breach of any of the material provisions of this Agreement and/or the Operating Agreement, and such breach is not cured within thirty (30) days after the date on which notice of breach is sent by the non-breaching Party to the breaching Party, the breaching Party shall have the right to terminate the Agreement upon a further fifteen (15) days written notice to the breaching Party.

  

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SECTION 12.06. Upon Termination of Trademark Licenses. Upon termination of this Agreement or the trademark licenses granted under Section 2.02, Company shall immediately cease and desist all uses of the Licensed Trademarks, and will promptly, at its option, either destroy all materials and signage bearing any Licensed Trademarks or will deliver to Licensor all such materials and signage. Company shall thereafter make no reference in its advertising or promotional materials as having been formerly associated with or licensed by Licensor. Company will not subsequently adopt or use any trademark, service mark, trade name, domain name, trade dress, logo or other source identifier which is derived from or confusingly similar to any Licensed Trademark. Licensor shall thereafter make no reference in its advertising or promotional materials as having been formerly associated with or licensed by Company. Licensor will not subsequently adopt or use any trademark, service mark, trade name, domain name, trade dress, logo or other source identifier which is derived from or confusingly similar to any trademark, service mark, domain name, trade dress, logos or other source identifier owned or controlled by Company.

SECTION 12.07. Upon Termination of Agreement. Except as provided in Section 12.09, upon termination of this Agreement (i) all licenses granted hereunder pursuant to Article 2 shall immediately terminate, and (ii) Company shall within fifteen (15) days thereafter generate a final written report of the revenues of Company through the termination date, and pay Licensor the royalties due through the termination date.

SECTION 12.08. Payment of Royalties upon Termination. Termination of this Agreement for any reason shall not affect any obligation of Company to pay Licensor any royalties accrued as of the date of termination.

SECTION 12.09. Survival. The provisions of Articles 9, 11, 12 and 13 and Section 3.05 shall survive termination of this Agreement in accordance with their terms. In the event of termination of this Agreement by Company under Section 12.05 for a breach of this Agreement by Licensor, the provisions of Section 2.01 and 2.03 shall additionally survive termination of this Agreement.

 

ARTICLE XIII

GENERAL

SECTION 13.01. Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.

SECTION 13.02. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by courier service, by telecopy or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 13.02):

(a) if to Company:

Telecopy No.:

Attention:

 

(b) if to Licensor:

Telecopy No.:

Attention:

  

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SECTION 13.03. Public Announcements. Except as required by law, by governmental regulation or by the requirements of any securities exchange on which the securities of a Party hereto are listed, no Party to this Agreement shall make, or cause to be made, any press release or public announcement in respect of this Agreement or otherwise communicate with any news media without the prior written consent of the other Party, and the Parties shall cooperate as to the timing and contents of any such press release or public announcement.

 

SECTION 13.04. Headings. The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

 

SECTION 13.05. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

SECTION 13.06. Entire Agreement. This Agreement constitutes the entire agreement of the Parties hereto with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, with respect to the subject matter hereof.

 

SECTION 13.07. Assignment and Sublicense. This Agreement may not be assigned nor any license granted hereunder sublicensed by either Party without the express written consent of the other Party (which consent may be granted or withheld in the sole discretion of any Party), except that (i) this Agreement may be assigned, without consent, in connection with the sale of a Party's business whether such is a sale of all or substantially all of such Party's assets, a merger or a stock sale and (ii) Licensor may assign or sublicense its rights hereunder to an Affiliate thereof; provided that any such assignment shall not relieve Licensor of its obligations hereunder. This Agreement shall inure to the benefit of, and be binding upon, the successors of the Parties hereto, provided such assignment was in compliance with the terms hereof.

 

SECTION 13.08. No Third Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the Parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

SECTION 13.09. Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by, or on behalf of, each of the Parties.

 

SECTION 13.10. Governing Law. This Agreement shall be governed by the laws of the State of California. All actions and proceedings arising out of or relating to this Agreement may be heard and determined in any state or federal court sitting in the County of Orange, and the Parties hereto hereby irrevocably submit to the nonexclusive jurisdiction of such courts in any such action or proceeding and irrevocably waive any defense of an inconvenient forum to the maintenance of any such action or proceeding.

 

SECTION 13.11. Counterparts. This Agreement may be executed in one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 13.11; provided that receipt of copies of such counterparts is confirmed.

 

  

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SECTION 13.12. Specific Performance. The Parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or equity.

 

SECTION 13.13. RESERVED

 

SECTION 13.14. Execution of Documents. Consistent with the terms of this Agreement, each Party shall perform all lawful acts and execute such instruments as the other Party may reasonably request to confirm, evidence, maintain or protect such Party's rights to or under any of the intellectual property licensed hereunder. If a Party refuses or fails to perform such acts or execute such instruments, the other Party may do so as attorney-in-fact for such purpose.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective authorized signatories thereunto duly authorized as of the date first above written.

 

 

	 	Nate’s Pancakes, Inc.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name: 	 	 
	 	Title: 	 	 

 

	 	Innovative Products Consulting, Inc.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 

  

Page 12 of 16

  

Schedule A

 

None.

  

Page 13 of 16

  

 

Schedule B

 

Trademark No: 86096722: Nate’s Pancakes

Domain: www.natespancakes.com

 

  

Page 14 of 16

  

Schedule C

 

 

 

 

 

 

  

Page 15 of 16

  

 

Schedule D

 

 

 

Page 16 of 16EXHIBIT 10.1

                            SHARE PURCHASE AGREEMENT

                                  BY AND AMONG

               GOLDEN DRAGON HOLDING CO., a Delaware corporation,
                                 DAVID J. CUTLER
                                       and
                   CANNAPHARMARX, INC., a Colorado corporation

                               dated May 9, 2014

<PAGE>

                            SHARE PURCHASE AGREEMENT

     This Share Purchase Agreement ("Agreement"), dated as of May 9, 2014, among
Golden Dragon Holding Co., ("GDHC") a Delaware corporation, David J. Cutler (the
"Seller"), and CannaPharmaRX, Inc., a Colorado corporation (the "Buyer").

                              W I T N E S S E T H:

     A. WHEREAS,  the Seller owns 1,421,120 restricted shares of common stock of
Golden Dragon Holding Co. ("GDHC") in the aggregate.

     B.  WHEREAS,  Buyer wish to purchase an aggregate  of 1,421,120  restricted
shares of common stock (the "Purchase  Shares"),  and the Seller desires to sell
the Purchase Shares to Buyer.

     C. WHEREAS,  the Buyer wishes to purchase  additional  shares from GDHC, in
consideration of a capital contribution to pay the outstanding payables as shown
at Day of Closing in the amount of  $296,000  for  9,000,000  restricted  common
shares (new shares).

     D. GDHC is joining this Agreement to provide certain covenants, agreements,
warranties, and representations.

     NOW, THEREFORE, it is agreed among the parties as follows:

                                   ARTICLE I

                                THE CONSIDERATION

     1.1 Subject to the conditions set forth herein,  Seller shall sell to Buyer
and Buyer shall purchase an aggregate of 1,421,120  restricted  shares of common
stock of GDHC  from  Seller  ("Purchase  Shares").  The  purchase  price for the
Purchase Shares to be paid by Buyer to Seller is $54,000 (the  "Consideration"),
paid herewith subject to the conditions hereof, and the new share purchase price
of  $296,000  shall be paid in the form of cash  herewith  for the  purchase  of
9,000,000  restricted common shares of GDHC, the proceeds of which shall be used
to pay the  outstanding  payables  of the  company,  through a  designated  bank
account.

                                   ARTICLE II

                        CLOSING AND CONVEYANCE OF SHARES

     2.1 The  Purchase  Shares  shall be  conveyed  by Seller to Buyer with duly
executed stock powers by depositing all of the Purchase shares with Escrow Agent
for  delivery  to Buyer,  upon  receipt  of the  Consideration  by  Seller,  and
satisfaction of: (a) the conditions  precedent in Article VI; and (b) procedures
in Article V.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -1-
<PAGE>

     2.2 Closing  hereunder  shall be completed by delivery to escrow to Michael
A. Littman,  Esq. ("Escrow  Account") of the requisite closing  documents,  cash
consideration  and share  certificates on or before May 9, 2014 at 5:00 p.m. MST
("Closing  Date") subject to  satisfaction of the terms and conditions set forth
herein. Consideration may be delivered by Federal Express or wire transfers, and
any closing  documents may be delivered by facsimile,  Federal  Express or other
appropriate means.

     2.3 All parties  agree that time is of the  essence and agree that  Closing
Date  shall  occur  upon  the  earlier  of (a)  May 9,  2014  or  that  (b)  the
satisfaction of (i) the conditions  precedent in Article VI; and (ii) procedures
in  Article  V have  been met and  delivery  of the  Purchase  Shares  have been
delivered to the Escrow Agent.

                                  ARTICLE III

         REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER AS TO GDHC

     Seller and GDHC each hereby  represent,  warrant  and  covenant to Buyer as
follows:

     3.1 GDHC is a corporation  duly  organized and validly  existing  under the
laws of the State of  Delaware.  The  Articles of  Incorporation  and the minute
books of GDHC,  copies of which  have been made  available  to Buyer,  contain a
record,  which  is  complete  and  accurate  in all  material  respects,  of all
meetings,  and all corporate  actions of the shareholders and Board of Directors
of GDHC, from the date of inception in Delaware.

     3.2  (a) The  authorized  capital  stock of GDHC  consists  of  100,000,000
shares of common stock, of which 2,384,407 shares of common stock are issued and
outstanding,  and 10,000,000  shares of preferred  stock, no shares of which are
issued and  outstanding.  During  period  from  inception,  Seller has issued no
options,  warrants,  or other  rights to  purchase,  or  subscribe  to, or other
securities  convertible  into or exchangeable for any shares of capital stock of
GDHC, or contracts or arrangements of any kind relating to the issuance, sale or
transfer  of any  capital  stock  or other  equity  securities  of GDHC.  Seller
warrants that there are no options, warrants, rights, securities, convertible or
exchangeable   for  any  shares  of  capital  stock  of  GDHC  or  contracts  or
arrangements  of any kind  relating  to the  issuance  sale or  transfer  of any
capital stock or other equity securities of GDHC.

          (b) The Seller owns the  Purchase  Shares that the Seller is conveying
pursuant to this  Agreement  beneficially  and of record,  free and clear of any
lien, pledge, security interest or other encumbrance,  and, upon payment for the
Purchase Shares as provided in this  Agreement,  the Buyer will acquire good and
valid title to the Purchase Shares, free and clear of any lien, pledge, security
interest or other  encumbrance.  None of the Purchase  Shares are the subject of
any voting trust agreement or other agreement  relating to the voting thereof or
restricting in any way the sale or transfer  thereof except for this  Agreement.
The  Seller  has full right and  authority  to  transfer  such  Purchase  Shares
pursuant to the terms of this Agreement.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -2-
<PAGE>

     3.3 Except for the divestiture of CCAPS Co, a prior subsidiary which merged
with CCVG,  Inc. a subsidiary in 2010,  GDHC does not now own, nor has it owned,
during the term of Seller's  ownership of GDHC shares, any outstanding shares of
capital  stock or other equity  interests  of any  partnership,  joint  venture,
trust,  corporation,  limited liability company or other entity and, to the best
of Seller's knowledge, there are no obligations of GDHC to repurchase, redeem or
otherwise acquire any capital stock or equity interest of another entity,  which
have arisen or been contractually  agreed upon during the term of inception,  to
present date.

     3.4 This Agreement has been duly authorized, validly executed and delivered
on  behalf  of the  Seller  and GDHC and is a valid and  binding  agreement  and
obligation of GDHC and Seller enforceable against the parties in accordance with
its terms, subject to limitations on enforcement by general principles of equity
and by bankruptcy or other laws affecting the  enforcement of creditors'  rights
generally,  and Seller and GDHC have  complete and  unrestricted  power to enter
into and, upon the  appropriate  approvals as required by law, to consummate the
transactions contemplated by this Agreement.

     3.5 Neither the making of nor the compliance  with the terms and provisions
of this Agreement and  consummation of the transactions  contemplated  herein by
Seller or GDHC will conflict with or result in a breach or violation of any law,
statute, rule, regulation,  or any existing applicable decree, judgment or order
by any court, federal or state regulatory body,  administrative agency, or other
governmental body having jurisdiction over GDHC or Seller.

     3.6 The representations and warranties of GDHC shall be true and correct as
of the date hereof.  Other than as contained in this Agreement,  Seller makes no
representations  or warranties  whatsoever to Buyer as to any matter relating to
GDHC finances, stock, debts, or any other obligations.

     3.7 No  representation or warranty by GDHC or the Seller in this Agreement,
or any certificate  delivered pursuant hereto contains any untrue statement of a
material  fact or  omits to state  any  material  fact  necessary  to make  such
representation or warranty not misleading.

     3.8 The  Buyer  have not  received  any  general  solicitation  or  general
advertising regarding the shares of Seller's common stock.

                                   ARTICLE IV

             REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE BUYER

     4.1 The Buyer  understand  that the  Purchase  Shares  comprise  restricted
stock,   which  has  not  been  registered  with  the  Securities  and  Exchange
Commission,  any state securities agency or any foreign  securities  agency, and
further,  which has not been  approved  or  disapproved  by the  Securities  and
Exchange  Commission,  any state  securities  agency or any  foreign  securities
agency.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -3-
<PAGE>

     4.2 The Buyer are acquiring the Purchase  Shares solely for  investment for
his or her own account and not with a view to, or for, resale in connection with
any  distribution  within  the  meaning of any  federal  securities  act,  state
securities act or any other applicable federal or state laws.

     4.3 The Buyer  understand the  speculative  nature and risks of investments
associated with the Purchase  Shares,  and confirms that the Purchase Shares are
suitable  for and  consistent  with  Buyer's  investment  program;  that Buyer's
financial position enables Buyer to bear the risks of this investment;  and that
there is no guarantee  Buyer will be able to sell the Purchase Shares to another
subsequent buyer.

     4.4 Buyer affirm that Buyer will not transfer, encumber, sell, hypothecate,
or  otherwise  dispose of the  Purchase  Shares in any way that will violate any
federal and/or state  securities  laws. 4.5 Buyer have sufficient  knowledge and
experience in financial  matters to evaluate the risks  associated  with Buyer's
willing purchase of the Purchase Shares.

     4.6 Buyer are not a member of, or an  associate or affiliate of a member of
the Financial Industry Regulatory Authority.

                                   ARTICLE V

                              PROCEDURE FOR CLOSING

     5.1 At the Closing Date, the purchase and sale shall be  consummated  after
satisfaction  of all  conditions  precedent set forth in Article VI, by Seller's
restricted  common stock  certificates  for the Purchase Shares being delivered,
duly executed,  for 1,421,120  restricted  shares of common stock, and the newly
issued 9,000,000 restricted common shares of GDHC, upon the delivery of the Cash
Consideration  for Share Purchase to Escrow Agent from the Buyer,  together with
delivery  of  all  other  items,  agreements,   stock  powers,  warranties,  and
representations set forth in this Agreement.

     5.2 Escrow Agent is Michael A. Littman, Esq.

                                   ARTICLE VI

                           CONDITIONS PRECEDENT TO THE
                          CONSUMMATION OF THE PURCHASE

     The following are conditions precedent to the consummation of the Agreement
on execution hereof or before the Closing Date, as may be applicable:

     6.1 Seller and GDHC shall have  performed  and  complied  with all of their
respective  obligations  hereunder which are to be complied with or performed on
or before the Closing Date.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -4-
<PAGE>

     6.2  GDHC's  Board of  Directors  shall  have  adopted  and  approved  this
Agreement and the actions herein required.

     6.3 No action,  suit or proceeding shall have been instituted or shall have
been  threatened  before any court or other  governmental  body or by any public
authority to restrain,  enjoin or prohibit the transactions contemplated herein,
or which might subject any of the parties hereto or their  directors or officers
to any material liability,  fine,  forfeiture or penalty on the grounds that the
transactions  contemplated  hereby,  the parties  hereto or their  directors  or
officers, have violated any applicable law or regulation or have otherwise acted
improperly in connection  with the  transactions  contemplated  hereby,  and the
parties  hereto  have been  advised  by  counsel  that,  in the  opinion of such
counsel,  such action, suit or proceeding raises substantial questions of law or
fact which could  reasonably  be decided  adversely  to any party  hereto or its
directors or officers.

     6.4 The  representations  and  warranties  made by Seller  and GDHC in this
Agreement shall be true as though such  representations  and warranties had been
made or given on and as of the  Closing  Date,  except to the  extent  that such
representations  and  warranties  may be  untrue on and as of the  Closing  Date
because of changes  caused by  transactions  suggested or approved in writing by
the Buyer.

     6.5 GDHC shall file a Current Report on Form 8K referencing  this Agreement
on or before 4 days after the execution hereof.

     6.6 GDHC shall maintain its OTCQB listing in good standing during all times
prior to the Closing Date.

     6.7 GDHC has remained approved for electronic transfer of shares by DTC.

                                   ARTICLE VII

                           TERMINATION AND ABANDONMENT

     7.1 Anything  contained in this Agreement to the contrary  notwithstanding,
the Agreement may be terminated at any time prior to or on the Closing Date:

          (a)  By mutual consent of parties;

          (b)  If  within  ten days  hereafter,  Buyer  determines,  in its sole
               discretion, that Due Diligence is unsatisfactory;

          (c)  By Buyer,  if any  condition  set forth in Article VI relating to
               the Seller or GDHC has not been met,  however  Buyer  reserve the
               right to recover their payments from Seller and GDHC hereunder;

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -5-
<PAGE>

          (c)  By Seller or Buyer,  if any  suit,  action,  or other  proceeding
               shall  be  pending  or  threatened  by  the  federal  or a  state
               government  before any court or governmental  agency, in which it
               is  sought  to  restrain,   prohibit,  or  otherwise  affect  the
               consummation of the  transactions  contemplated  hereby;  however
               Buyer  reserve the right to recover its payments  from Seller and
               GDHC hereunder.

          (d)  By Buyer, if there is discovered any material error, misstatement
               or  omission in the  representations  and  warranties  of Seller;
               however  Buyer  reserve  the right to recover its  payments  from
               Seller and GDHC hereunder.

          (e)  By the Seller, if the Closing does not occur,  through no failure
               to perform or act by Seller,  on May 9, 2014,  unless extended in
               writing.

                                  ARTICLE VIII

                         CONTINUING REPRESENTATIONS AND
                            WARRANTIES AND COVENANTS

     8.1  The  respective  representations,  warranties,  and  covenants  of the
parties  hereto and the  covenants and  agreements  of the parties  hereto shall
survive  after the closing  under this  Agreement in  accordance  with the terms
thereof.

     8.2 There are no  representations  whatsoever  about any matter relating to
GDHC, Seller or any item contained in this Agreement,  except as is contained in
the express language of this Agreement.

     8.3 Seller and its agents and attorneys shall have no liability  whatsoever
for any matter,  omission or representation  not specifically  disclosed herein,
and Buyer,  as a specific  inducement to Seller hereby  releases  Seller and his
agents and attorneys and covenants not to sue Seller,  his agents and attorneys,
under  any   circumstances   for  any  matter  not  specifically  and  expressly
represented within this document.

                                   ARTICLE IX

                                  MISCELLANEOUS

     9.1 This Agreement  embodies the entire agreement between the parties,  and
there have been and are no agreements,  representations  or warranties among the
parties other than those set forth herein or those provided for herein.

     9.2  To  facilitate  the  execution  of  this  Agreement,   any  number  of
counterparts  hereof may be executed,  and each such counterpart shall be deemed
to  be  an  original  instrument,  but  all  such  counterparts  together  shall
constitute but one instrument.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -6-
<PAGE>

     9.3 All parties to this  Agreement  agree that if it becomes  necessary  or
desirable to execute further instruments or to make such other assurances as are
deemed  necessary,  the party  requested  to do so will use its best  efforts to
provide such executed  instruments or do all things necessary or proper to carry
out the purpose of this Agreement.

     9.4 This  Agreement  may not be amended  except by written  consent of both
parties.

     9.5 Any notices,  requests,  or other communications  required or permitted
hereunder shall be delivered  personally or sent by overnight  courier  service,
prepaid, addressed as follows:

To Seller:                 David J. Cutler
                           2460 W. 26th Ave.
                           Suite 380-C
                           Denver, CO 80211

To Buyer:                  CannaPharmaRX, Inc.
                           c/o 7609 Ralston Road
                           Arvada, CO 80211

With a copy to:            Michael A. Littman
                           Attorney at Law
                           7609 Ralston Road
                           Arvada, CO 80002
                           Fax: 303-431-1567
                           e-mail: malattyco@aol.com

or such other  addresses as shall be furnished in writing by any party,  and any
such notice or  communication  shall be deemed to have been given as of the date
received.

     9.6 No press  release or public  statement  will be issued  relating to the
transactions  contemplated by this Agreement without prior approval of the Buyer
and  Seller.  However,  GDHC may  issue at any time any press  release  or other
public  statement  it believes on the advice of its counsel it is  obligated  to
issue to avoid liability  under the law relating to  disclosures,  but the party
issuing such press release or public statement shall make a reasonable effort to
give the other party prior  notice of and  opportunity  to  participate  in such
release or statement.

     9.7 This  Agreement  shall be governed by and construed in accordance  with
and  enforced  under  the  laws  of the  state  of  Colorado  applicable  to all
agreements  made  hereunder.  Venue  and  jurisdiction  for  any  legal  actions
hereunder shall be District Court in and for Jefferson County, Colorado.

     9.8 In connection with this Agreement the parties have appointed the Escrow
Agent, Michael A. Littman, Esq., who shall be authorized by this agreement to do
the following:

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -7-
<PAGE>

          1)   Accept  the  $54,205  (total  balance of  Purchase  Price for the
               Purchase Shares) from Buyer pursuant to the contract.

          2)   Accept the common stock certificates of GDHC being sold by Seller
               with duly signed and guaranteed  signatures on stock powers,  and
               accept the newly  issued  certificate  of GDHC for the  9,000,000
               restricted  common shares in the name of Buyer,  duly authorized,
               fully paid and nonassessable.  Upon receipt of the payment as set
               forth in 1) above,  deliver the cashier's  checks at closing from
               the escrow in accordance with separate written  instructions from
               Seller,  to pay all of the payables for $296,000,  according to a
               separate list, with $54,000 to Seller.

          3)   Upon final  payment  hereunder,  transmit by Federal  Express the
               stock certificates to Buyer.

          4)   In the event of default in delivery of cash or  certificates by a
               party under this  agreement,  any cash or  certificates  received
               from the other party shall be  returned  to the  remitting  party
               three (3) business days after default,  and the transaction shall
               terminate  with Seller  retaining  the deposit,  if Seller is the
               non-defaulting   party.   If  Seller   defaults  in  delivery  of
               certificates,  then the  initial  deposit  shall be  returned  to
               Buyer.

          5)   Escrow Agent is specifically indemnified and held harmless hereby
               for his actions or inactions in following these instructions.  In
               the event of a dispute  involving the escrow  instructions or the
               consideration  to be  delivered  in escrow,  the Escrow  Agent is
               authorized  to  implead  the  consideration   received  into  the
               District  Court  of  Jefferson  County,  Colorado  upon  ten days
               written  notice,  and be relieved of any  further  escrow  duties
               thereupon. Any and all costs of attorney's fees and legal actions
               of Escrow Agent for any dispute  resolution  or impleader  action
               shall be paid in equal shares by the parties to this agreement.

     9.9 At Closing,  the officers shall resign, and the directors shall appoint
two new  directors  and officers of Buyer's  choice,  with such prior  directors
resigning  effective ten (10) days after  compliance  with the written notice to
shareholders by Section 14f of the Securities and Exchange Act of 1934.

     9.10 GDHC has certain payables to its selling shareholder,  transfer agent,
and attorney from the new share  purchase  proceeds  herein at Closing as of the
execution  hereof,  which  amounts are shown on Exhibit A and shall be paid from
and satisfied upon payment of the disbursement.

     9.11 Legal fees to Michael A. Littman for past services and relating to the
closing under this Agreement shall be included in the payables paid at Closing.

     9.12 Buyer  shall pay for all of the costs and legal fees  required to keep
the company current in its SEC filings until closing, upon invoice.

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:
                                      -8-
<PAGE>

     9.13 Except as set forth in 9.10 above, Seller shall pay all other payables
of GDHC  incurred  to  closing,  at or prior to  closing,  and  shall  waive and
release, at closing, any payable to Seller.

     9.14 Buyer shall reimburse Seller for advances paid for the 10-Q.

     IN WITNESS  WHEREOF,  the parties have executed this Agreement this 9th day
of May, 2014.

                                               BUYER

GOLDEN DRAGON HOLDING CO.,                     CANNAPHARMARX, INC.,
A Delaware Corporation                         a Colorado Corporation

By:/s/ David J. Cutler                         By: /s/ Gary Herick
 ____________________________                  _____________________________
 David J. Cutler, President                    Gary Herick, CEO

SELLER

/s/ David J. Cutler
________________________________
David J. Cutler, Individually

                                                                Initials GDHC:
                                                                         Seller:
                                                                         Buyer:

                                      -9-

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