Document:

Blueprint

 

Exhibit
10.71

 

ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT (the
“Agreement”)
is made this 8th day of March 2018 (the “Effective
Date”) by and between LEVEL BRANDS, INC., a North Carolina
corporation (the “Company”)
with its principal place of business located at 4521 Sharon Road,
Suite 470, Charlotte, NC 28211 and STEPHEN ROSEBERRY, an individual (the
“Advisor”),
with his principal offices located in care of P.O. Box 1410, Rancho
Mirage, CA 92270.

 

R E C I T A L S

 

WHEREAS, the Company is a branding and
marketing company.

 

WHEREAS, the Advisor is President of
kathy ireland® Worldwide ("kiWW").

 

WHEREAS, affiliates of kiWW are owners
of two of the Company's subsidiaries, I'M1, LLC, a California
limited liability company ("I’M1"),
and Encore Endeavor 1, LLC, a California limited liability
("EE1).

 

WHEREAS, the Company desires to retain
the Advisor to provide certain advisory services as hereinafter set
forth.

 

WHEREAS, the Advisor desires to provide
certain advisory and consulting services to the Company in
accordance with the terms and conditions contained
hereinafter.

 

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

 

1. Advisory
Services. During the
Term of this Agreement, the Advisor is hereby retained by the
Company on a non-exclusive basis to provide advisory and consulting
services to the Company and in connection therewith to serve as
Managing Director of Level H&W LLC (“H&W”) and
Co-Managing Director of I’M 1 and EE1 (the
“Services”).
In providing these Services he will have responsibility to develop
and facilitate sales and business strategies while coordinating day
to day business activities for each of I'M1, EE1 and H&W, under
the direction of the Chief Executive Officer of the Company. The
Advisor shall provide such Services as reasonably requested by the
Company during the Term of this Agreement; provided, however, that the Advisor
shall not be required to devote any minimum number of hours per
week to the provision of the Services hereunder. Unless otherwise
agreed to by the Advisor, all Services hereunder shall be performed
by the Advisor, in his sole discretion, at his principal place of
business. The Advisor represents and warrants to the Company that
the provision of the Services contemplated hereunder will not
conflict with any agreement or understanding to which he is a party
and that kiWW has consented to the engagement of the Advisor by the
Company as herein contemplated.

 

 

1

 

 

2. Term;
Termination. The Term of this Agreement shall commence on
the Effective Date as set forth above and end on February 28, 2019
(the “Expiration
Date”). Commencing on the Expiration Date, the term of
this Agreement shall automatically be extended on a month to month
basis. Either party may terminate this Agreement upon 30 days
written notice to the other party.

 

3. Compensation;
Independent Contractor.

 

(a) For
all services rendered by the Advisor in any capacity required
hereunder during the Term, including, without limitation, services
as Managing Director of I'M1, EE1 and H&W, the Advisor shall be
entitled to receive $1.00 per month payable in accordance with the
customary accounts payable practices of the Company (the
"Compensation").

 

(b) The Advisor
acknowledges and agrees that he shall be an independent contractor
and the Advisor shall not be considered an “employee”
of the Company, I'M1, EE1, and/or H&W for any purpose. The
Advisor shall be solely responsible for the payment of all foreign,
federal, state and local sales taxes, use taxes, value added tax,
withholding taxes, income tax, unemployment and workers’
compensation insurance premiums, and similar taxes and charges of
any kind with respect to his compensation and the Services provided
under this Agreement.

 

4. Expenses.
The Advisor shall be reimbursed for all out of pocket costs and
expenses incurred by him in the performance of the Services
hereunder subject to preapproval by the Company.

 

5. Return of
Documents. On termination of this Agreement or at any time
upon the request of Company in writing, Advisor shall return to
Company all documents, including all copies thereof, and all other
property relating to the business of Company and/or its
subsidiaries, including without limitation, the Confidential
Information (as hereinafter defined), in its possession or
control.

 

6. Amendment or
Assignment. No
modification, waiver, amendment, discharge or change of this
Agreement shall be valid unless the same is evidenced by a written
instrument, executed by the party against which such modification,
waiver, amendment, discharge or change is sought. This Agreement is
not assignable by the Advisor without the prior written consent of
the Company, which such consent may not be forthcoming; provided,
that for the avoidance of doubt, assignment by Advisor of one or
more advisory services to its employees or affiliates shall not
constitute a violation of this Agreement.

 

7. Confidentiality.

 

(a) In connection with
the performance of the Services contemplated by this Agreement, the
Advisor and his affiliates may gain access to Confidential
Information (as hereinafter defined) of the Company. Confidential
Information includes information communicated orally, in writing,
by electronic or magnetic media, by visual observation, or by other
means, and may be marked confidential or proprietary, or bear a
marking of like import, or which the Company states to be
confidential or proprietary, or which would logically be considered
confidential or proprietary under circumstances of its disclosure
known to Advisor. No rights or licenses to trademarks, inventions,
copyrights, patents or any other intellectual property rights are
implied or granted under this Agreement or by the conveying of
Confidential Information to Advisor.

 

 

2

 

 

(b) The Advisor
acknowledges and understands that: (i) Confidential Information
provides the Company with a competitive advantage (or that could be
used to the disadvantage of the Company by a competitor); (ii) the
Company has a continuing interest in maintaining the
confidentiality of Confidential Information; and (iii) the Company
has a compelling business interest in preventing unfair competition
stemming from the use or disclosure of Confidential
Information.

 

(c) For purposes
hereof, “Confidential
Information” includes, but is not limited to,
information pertaining to business plans, joint venture agreements,
licensing agreements, financial information, contracts, customers,
products, trade secrets, specifications, designs, plans, drawings,
software, data, prototypes, processes, methods, research,
development or other information relating to the business
activities and operations of the Company.

 

(d) The Advisor agrees,
and shall use reasonable efforts, to cause his controlled
affiliates to agree, to keep Confidential Information confidential
and, except as authorized by the Company, Advisor shall not,
directly or indirectly, use Confidential Information for any reason
except in a manner Advisor believes reasonable or appropriate to
perform the Services under this Agreement. The Advisor acknowledges
that such Confidential Information could be deemed to be material
non-public information that is not generally available to the
public. The Advisor further acknowledges his understanding that
federal securities laws strictly prohibit any individual or entity
who obtains inside information, and has a duty not to disclose it
such as the Advisor, from using the information in connection with
the purchase or sale of securities, and Company shall advise
Advisor whether information disclosed to him constitutes material,
nonpublic information.

 

(e) The restrictions in
subsection (d) of this Section shall not apply to any Confidential
Information that: (i) is or becomes available to the public through
no breach of this Agreement by Advisor; (ii) was previously known
by Advisor or his affiliates; (iii) is received from a third party
free to disclose such information without restriction; (iv) is
independently developed by Advisor or his affiliates without the
use of the Confidential Information; (v) is approved for release by
written authorization of the Company or its affiliates; (vi) is
required by law or regulation to be disclosed, but only to the
extent and for the purposes of such required disclosure; or (vii)
is disclosed in response to an order or request of a governmental
agency, provided that Advisor notifies the Company of the order or
request ten (10) days prior to disclosure and permits the Company
to seek an appropriate protective order.

 

8. Indemnity;
Insurance.

 

(a) Indemnity: The Company shall
indemnify, defend, and hold Advisor and his affiliates harmless, at
Company’s own expense, from and against any and all losses,
liability, obligations, damages, third-party claims, demands,
causes of action, costs and expenses of whatever form or nature
(each a “Claim”
and collectively, “Claims”),
including reasonable outside attorney’s fees and other costs
of legal defense, arising out of or related to: (i) the
Advisor’s rendering of Services under this Agreement; (ii) an
actual or alleged breach of any of the representations, warranties
or covenants of this Agreement by the Company; (iii)
Company’s negligence, willful misconduct, or willful
misrepresentation; or (iv) any other act or omission by or
attributable to Company in connection with this Agreement except to
extent such indemnity is prohibited by law. Company shall give
prompt written notice to the Advisor of any proposed settlement of
any Claim. Company may not, without the Advisor’s prior
written consent, which the Advisor shall not unreasonably withhold,
condition or delay, settle or compromise any claim or consent to
the entry of any judgment regarding which indemnification is being
sought hereunder unless such settlement, compromise or consent: (X)
includes an unconditional release of the Advisor from all liability
arising out of such claim; (Y) does not contain any admission or
statement suggesting any wrongdoing or liability on behalf of the
Advisor; and (Z) does not contain any equitable order, judgment or
term (other than the fact of payment or the amount of such payment)
that in any manner affects, restrains or interferes with the
business of the Advisor. Provided, however, that the indemnity
agreement contained in this Section 9(a) shall not apply to any
such losses, claims, related expenses, damages or liabilities
arising out of gross negligence, willful misconduct or fraud of the
Advisor, or a material breach of the Advisor’s
representations and warranties hereunder.

 

 

3

 

 

(b) Exculpation: Notwithstanding
anything to the contrary herein, the Advisor shall, to the greatest
extent permitted by law at the time this clause is construed, be
exculpated from any liability whatsoever for any alleged abuse of
discretion, tort, breach of fiduciary duty and/or breach of trust
caused by any act or omission in connection with this Agreement. As
a consequence, the Advisor shall under no circumstances ever be
held personally liable to any other person, firm or corporation for
any damages directly or indirectly arising out of any act or
omission committed in connection with this Agreement. This
exculpation shall not, however, protect the Advisor from any
liability for a breach of trust committed intentionally or in bad
faith. Even if this Section 9(b) shall not protect the Advisor due
to the foregoing sentence, in no event shall the Advisor ever be
liable for any punitive or exemplary damages for any act or
omission committed in connection with this Agreement hereunder
regardless of whether such act or omission constituted an act
committed intentionally or in bad faith.

 

(c) Insurance: The Company has
procured, and shall continue to maintain, policies of director and
officer insurance that provides to the same coverage to Advisor as
is provided to any officer and director of the
Company.

 

9. Waiver.
Unless agreed in writing, the failure of either party, at any time,
to require performance by the other of any provisions hereunder
shall not affect its right thereafter to enforce the same, nor
shall a waiver by either party of any breach of any provision
hereof be taken or held to be a waiver of any other preceding or
succeeding breach of any term or provision of this Agreement. No
extension of time for the performance of any obligation or act
shall be deemed to be an extension of time for the performance of
any other obligation or act hereunder.

 

10. Notices.
All notices, demands or other communications given hereunder shall
be in writing and shall be deemed to have been duly given on the
day when delivered in person or transmitted by confirmed facsimile
transmission or on the third (3rd) calendar day after being mailed
by United States registered or certified mail, return receipt
requested, postage prepaid, to the addresses hereinabove first
mentioned or to such other address as any party hereto shall
designate to the other for such purpose in the manner herein set
forth.

 

11. Entire
Agreement. This
Agreement contains all of the understandings and agreements of the
parties with respect to the subject matter discussed herein. All
prior agreements, whether written or oral, are merged herein and
shall be of no force or effect.

 

12. Survival.
Any termination of this Agreement shall not, however, affect the
ongoing provisions of this Agreement which shall survive such
termination in accordance with their terms.

 

13. Severability.
The invalidity, illegality or unenforceability of any provision or
provisions of this Agreement will not affect any other provision of
this Agreement, which will remain in full force and effect, nor
will the invalidity, illegality or unenforceability of a portion of
any provision of this Agreement affect the balance of such
provision. In the event that any one or more of the provisions
contained in this Agreement or any portion thereof shall for any
reason be held to be invalid, illegal or unenforceable in any
respect, this Agreement shall be reformed, construed and enforced
as if such invalid, illegal or unenforceable provision had never
been contained herein.

 

 

4

 

 

14. Governing
Law. This Agreement shall become valid when executed and
accepted by Company. This Agreement shall be construed in
accordance with the laws of the State of California, without an
application of the principles of conflicts of laws. Anything in
this Agreement to the contrary notwithstanding, the Advisor shall
conduct the Advisor's business in a lawful manner and faithfully
comply with applicable laws or regulations of the state, city or
other political subdivision in which the Advisor is
located.

 

15. Enforcement.
Any suit, action or proceeding with respect to this Agreement shall
be brought in the state or federal courts located in Los Angeles
County in the State of California. The parties hereto hereby accept
the exclusive jurisdiction and venue of those courts for the
purpose of any such suit, action or proceeding. The parties hereto
hereby irrevocably waive, to the fullest extent permitted by law,
any objection that any of them may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any judgment entered by any court in
respect thereof brought in Los Angeles County, California, and
hereby further irrevocably waive any claim that any suit, action or
proceeding brought in Los Angeles County, California has been
brought in an inconvenient form.

 

16. Binding Nature, No
Third Party Beneficiary. The terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the
parties, and their respective successors and assigns.

 

17. Counterparts.
This Agreement may be executed in any number of counterparts,
including facsimile signatures which shall be deemed as original
signatures. All executed counterparts shall constitute one
agreement, notwithstanding that all signatories are not signatories
to the original or the same counterpart.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first above
written.

 

 

THE
COMPANY

 

LEVEL
BRANDS, INC.

 

By:
/s/ Mark S.
Elliott

           
Mark S.
Elliott, Chief Financial Officer

 

/s/ Stephen Roseberry

           
Stephen
Roseberry

 

 

 

 

5Blueprint

 

Exhibit 10.72

 

STATE
OF NORTH CAROLINA

SUBLEASE

COUNTY
OF MECKLENBURG

 

 

THIS
SUBLEASE is made and entered into this 11th day of April, 2018, by
and between 4th Floor Properties, LLC, hereinafter referred to as
“Sublessor” and Level Brands, Inc., a North Carolina
corporation, hereinafter referred to as
“Sublessee”.

 

W I T N E S S E T H:

 

WHEREAS, Sublessor
is presently leasing certain premises from Bissell Porter Siskey,
LLC (“Landlord”) under a lease (the
“Lease”) dated December 1, 2014, such premises being
known as Suite 400 at 4521 Sharon Road, Charlotte, North Carolina
(the “Premises”). The building and the land on which is
it located, and the other improvements thereto are referred to as
the “Property”; and

 

WHEREAS, Sublessor
has agreed to sublease to Sublessee the portion of the Premises
which includes the offices and space currently being used by
Sublessee: 7 offices 100% used, 2 offices partially used, as well
as use of the common areas (the “Sublet
Premises”);

 

NOW
THEREFORE, in consideration of the foregoing recitals, the mutual
covenants hereinafter contained, and other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

 

1. Sublease.
Sublessor leases to Sublessee and Sublessee subleases from
Sublessor the Sublet Premises effective May 1, 2018
(“Beginning Date”).

 

2. Term.
The term of this Sublease shall begin on the Beginning Date, and
extend through December 31, 2019 (the “Ending Date”);
provided, that it is understood and agreed that subject to
repayment of rent as set forth in Section 3 below, Sublessor may
terminate this sublease at any time.

 

3. Rental.
Sublessee shall pay rent to Sublessor for the Sublet Premises, up
front, in one lump sum within ten (10) days of the Beginning Date
in an amount equal to $240,000 as rent for the Sublet Premises, for
the period beginning on the Beginning Date and ending on the Ending
Date; provided, however, if Sublessor terminates this sublease
prior to the Ending Date, Sublessor agrees to pay Sublessee a
refund for each full month prior to the Ending Date in an amount
equal to $12,000 per month (prorated for any partial
month).

 

4. Condition
of Sublet Premises and Furniture. Sublessee agrees to accept
the Sublet Premises in “as is,” broom clean condition,
and Sublessor shall have no responsibility to upfit or otherwise
improve, maintain or repair the Sublet Premises. Sublessee shall
maintain the Sublet Premises in good condition and repair, ordinary
wear and tear and casualties excepted. All Furniture shall stay in
the space throughout the Lease Term.

 

 

1

 

 

5. Sublessor
Warranty. Sublessor warrants that the Lease is in full force
and effect and that to the best knowledge of Sublessor there exists
no current defaults on the part of Landlord or Sublessor thereunder
and covenants that it will not amend the Lease in any way which may
have an adverse impact on Sublessee’s use or occupancy of the
Sublet Premises without Sublessee’s prior written consent.
Sublessor warrants that during the term of this Sublease it will
comply with the Lease (except to the extent Sublessee is required
to do so hereunder) and make all payments to Landlord required
thereunder (unless Sublessee is required make such payments
hereunder), and Sublessor shall indemnify Sublessee and hold
Sublessee harmless from any liability, loss, cost or expense
incurred by Sublessee resulting from Sublessor’s breach of
the terms of the Lease or any of the foregoing
warranties.

 

6. Security
Deposit. No security deposit is required.

 

7. Address
of Sublessor and Sublessee.

 

Sublessor: 
4th Floor
Properties, LLC

4521
Sharon Road, Suite 450

Charlotte, NC
28211

 

Sublessee: 
Level Brands, Inc

4521
Sharon Road, Suite 450

Charlotte, NC
28211

 

8. Quiet
Enjoyment. Sublessee, upon performing its obligations
hereunder, shall hold and enjoy the Sublet Premises for the term
aforesaid, subject, however, to the terms of this Sublease and the
Lease.

 

9. Services.
Sublessor shall provide the Sublet Premises with such utilities and
other services as are provided by Landlord to Sublessor under the
Lease, provided that if Sublessor uses extra services that require
Sublessor to pay additional compensation to Landlord under the
Lease, Sublessee shall reimburse such cost to Sublessor upon
submission of invoice.

 

10. Sublessee’s
Services and Maintenance. Sublessee shall make arrangements
directly with the telephone company serving the Building for all
telephone service required by Sublessee in the Sublet Premises and
shall pay for all telephone service used or consumed in the Sublet
Premises. Sublessee shall be responsible for all other services,
maintenance and repairs not specifically delegated to Sublessor
hereunder or to Landlord under the Lease which are required to keep
the interior of the Sublet Premises in good condition and repair or
are required by Sublessee to conduct business in the Sublet
Premises, provided however, Sublessee must obtain Sublessor’s
prior written consent before obtaining or contracting for any
service not specifically provided for in this Sublease. Sublessee
will not place heat generating machines or equipment in the Sublet
Premises which affect the temperature otherwise maintained by the
Building heating and air conditioning system.

 

11. Alterations.
Sublessee shall make no alterations, additions or improvements
(collectively “Improvements”) to the Sublet Premises,
without the prior written consent of Sublessor, which may be
withheld in Sublessor’s sole discretion; provided, however,
Sublessee may elect to make interior, non-structural alterations
which do not impact any building systems without Sublessor’s
consent provided Sublessee removes such alterations at the end of
the Sublease term and restores the Sublet Premises to the condition
in which it existed immediately prior to the installation of such
items, ordinary wear and tear and casualties excepted.

 

 

2

 

 

12. Right
of Entry. Sublessor shall have the right to enter and grant
licenses to enter the Sublet Premises for any reasonable purpose at
any time upon reasonable advance verbal notice (except in
emergencies and normal and customary janitorial and maintenance
services when no notice is required).

 

13. Sublessee’s
Care of Sublet Premises.  Sublessee shall be responsible
for all maintenance obligations of Sublandlord as tenant under the
Lease, to the extent such repair or replacements relate to the
Sublet Premises, employing materials and labor of a kind and
quality equal to the original installations.

 

14. Surrendering
the Sublet Premises. Sublessee shall surrender the Sublet
Premises to Sublessor in the same broom clean condition that the
Sublet Premises were in on the Beginning Date except for ordinary
wear and tear and damage by the elements, fire, and other casualty.
On surrender, Sublessee shall remove from the Sublet Premises its
personal property and trade fixtures installed by Sublessee, and
repair any damage to the Sublet Premises caused by such removal.
Any items installed by Sublessee and not removed by Sublessee as
required above shall be considered abandoned and Sublessor may
dispose of abandoned items as Sublessor chooses and bill Sublessee
for the cost of their disposal, minus any revenues received by
Sublessor for their disposal.

 

15. Use
and Occupancy. Sublessee shall use the Sublet Premises for
the purposes permitted under the Lease, and shall make no unlawful
use of the Sublet Premises.

 

16. Sublessee’s
Personal Property. Sublessor shall not be liable for any
damage to, or loss of Sublessee’s personal property or trade
fixtures arising from fire or the leaking of the roof, or from the
bursting, leaking, or overflowing of water, sewer or steam pipes or
from any other cause whatsoever, unless due to the negligence or
willful misconduct of Sublessor.

 

17. Waiver.
The waiver of the breach of any agreement herein by either party in
any one instance shall not be deemed to be a waiver of such
agreement or any subsequent breach of the same or any other
agreement herein contained, and the acceptance of rent hereunder by
Sublessor subsequent to the breach of this Sublease by Sublessee
shall not be deemed to be a waiver of such breach, other than the
failure of Sublessee to pay the particular rental so accepted,
regardless of Sublessor’s knowledge of such breach at the
time of acceptance of such rent.

 

18. Sublessor’s
Default. Sublessor shall not be in default for failure to
perform any of its Sublease obligations until after a period of
thirty (30) days or the additional time, if any, that is reasonably
necessary to promptly and diligently cure the failure after
receiving notice from Sublessee, in writing and giving in
reasonable detail the nature and extent of the failure and
identifying the Sublease provisions(s) containing the
obligations(s).

 

19. Survival.
Any provision of this Sublease which by its nature would require
the survival of the ending of this Sublease, shall survive the
ending of this Lease.

 

20. Assignment
and Subletting. 
Sublessee shall not transfer, mortgage, grant a security interest
in, encumber, or assign this Sublease, or any interest therein, or
sublease all or part of the Sublet Premises, without
Sublessor’s advance written consent, which Sublessor may
withhold in its sole discretion.

 

 

3

 

 

21. Subordination.
This Sublease, and Sublessee’s rights hereunder shall at all
times be subordinate to the Lease and all mortgages and deeds of
trust now existing or hereafter placed on the Building or Property.
Sublessee will, upon request by Sublessor, execute and deliver to
Sublessor, or to any other person designated by Sublessor, any
instrument or instruments, including but not limited to such
subordination, attornment and nondisturbance agreements, or
estoppel letters, as may be required by Sublessor, Landlord or any
secured lender, to give effect to the provisions of this
paragraph.

 

22. General
Provisions.  All
pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural, as the identity of
the person(s), firm(s), or corporation(s) may require. This
Sublease may be executed in counterparts, all of which taken
together, shall be deemed one original. This Sublease embodies the
full agreement of the parties and supersedes all prior
understandings concerning the subject matter of this Sublease, and
any amendment or modification must be in writing and signed by both
parties. This Sublease shall be construed and enforced in
accordance with the law of the State of North Carolina. In the
event that any provision of this Sublease shall be determined to be
invalid or unenforceable, the remaining provisions thereof which
can be separated from the invalid, unenforceable provision shall
continue in full force and effect. The section titles, numbers and
captions contained in this Sublease are only for convenience and
reference, and in no way define, limit, extend, modify or describe
the scope or intent of this Sublease nor any provision herein.
Except as otherwise provided in this Sublease, time is of the
essence in the performance of the provisions of this
Sublease.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Sublease as
of the day and year first above written.

 

 

SUBLESSOR:

4th Floor Properties,
LLC

 

 

By:
/s/ Al
Longtin________________________

Alfred
Longtin, Manager

 

 

SUBLESSEE:

Level
Brands, Inc.

 

 

By:
/s/ Mark
Elliott__________________

Mark
Elliott, CFO

 

 

4

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