Document:

ex_124119.htm

 

Exhibit 10.2

 

JOINT VENTURE CONTRACT

 

THIS JOINT VENTURE AGREEMENT (the “Agreement”), made and entered into as of this 10th day of January 2018, by and between International Spirits & Beverage Group, Inc. of 700 Louisiana Street, STE 3950, Houston, Texas 77092 (hereinafter “ISBG”) and Paradigm Home Health/Paradigm HH/MGT OF 10500 Northwest Freeway, STE 194, Houston, Texas 77092 (hereinafter “PHH”).

 

ARTICLE I - GENERAL PROVISIONS

 

1.01 Business Purpose. The business of the Joint Venture shall be as follows: The consulting of business services for general operations for 8 months.

 

1.02 Term of the Agreement. This Joint Venture shall commence on the date first above written and will terminate 8 months later unless in writing to extend.

 

ARTICLE II - GENERAL DEFINITIONS

 

The following comprise the general definitions of terms utilized in this Agreement:

 

2.01 Affiliate. An Affiliate of an entity is a person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control of such entity.

 

2.02 Capital Contribution(s). The capital contribution to the Joint Venture actually made by the parties, including property, cash and any additional capital contributions made.

 

2.03 Profits and Losses. Any income or loss of the Joint Venture for federal income tax and business tax purposes shall be the sole responsibility of the individual parties hereto and in accordance with all applicable federal and state laws.

 

ARTICLE III - OBLIGATIONS OF THE JOINT VENTURERS

 

3.01 ISBG is responsible for the financial decisions of the Joint Venture and will be compensated for providing various services. PHH is responsible for the operational decisions of the Joint Venture and will be compensated for providing various services.

 

ARTICLE IV - ALLOCATIONS

 

4.01 Profits and Losses. Commencing on the date hereof and ending on the termination of the business of the Joint Venture, all profits, losses and other allocations to the Joint Venture shall be allocated as follows:

 

	 	
			•

				
			50 percent allocated to ISBG

			

	 	
			•

				
			50 percent allocated to PHH

			

 

1

 

 

4.02 Equity Ownership. ISBG shall retain the following equity in PHH for the duration of this agreement or and until the agreement is terminated under the provisions of dissolution under Article IX: 

 

	 	
			•

				
			0 percent equity allocated to ISBG

			

 

ARTICLE V - RIGHTS AND DUTIES OF THE JOINT VENTURERS

 

5.01 Business of the Joint Venture. COO (Alonzo V. Pierce) shall have full, exclusive and complete authority and discretion in the management and control of the business of the Joint Venture for the purposes herein stated and shall make all decisions affecting the business of the Joint Venture. As such, any action taken shall constitute the act of, and serve to bind, the Joint Venture. ISBG shall manage and control the affairs of the Joint Venture to the best of its ability and shall use its best efforts to carry out the business of the Joint Venture for 8 months the PHH will control its operations apart from ISBG.

 

ARTICLE VI - AGREEMENTS WITH THIRD PARTIES AND WITH AFFILIATES OF

THE JOINT VENTURERS

 

6.01 Validity of Transactions. Affiliates of the parties to this Agreement may be engaged to perform services for the Joint Venture. The validity of any transaction, agreement or payment involving the Joint Venture and any Affiliates of the parties to this Agreement otherwise permitted by the terms of this Agreement shall not be affected by reason of the relationship between them and such Affiliates or the approval of said transactions, agreement or payment.

 

6.02 Other Business of the Parties to this Agreement. The parties to this Agreement and their respective Affiliates may have interests in businesses other than the Joint Venture business. The Joint Venture shall not have the right to the income or proceeds derived from such other business interests and, even if they are competitive with the Joint Venture business, such business interests shall not be deemed wrongful or improper.

 

ARTICLE VII - PAYMENT OF EXPENSES

 

7.01 All expenses of the Joint Venture shall be paid by ISBG for 8 months and shall be reimbursed by the Joint Venture.

 

ARTICLE VIII - INDEMNIFICATION OF THE JOINT VENTURERS

 

8.01 The parties to this Agreement shall have no liability to the other for any loss suffered which arises out of any action or inaction if, in good faith, it is determined that such course of conduct was in the best interests of the Joint Venture and such course of conduct did not constitute negligence or misconduct. The parties to this Agreement shall each be indemnified by the other against losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by it in connection with the Joint Venture.

 

2

 

 

 

 

ARTICLE IX - DISSOLUTION

 

9.01 Events of the Joint Venture. The Joint Venture shall be dissolved upon the happening of any of the following events:

 

(a) The adjudication of bankruptcy, filing of a petition pursuant to a Chapter of the Federal Bankruptcy Act, withdrawal, removal or insolvency of either of the parties. (b) The sale or other disposition, not including an exchange of all, or substantially all, of the Joint Venture assets. (c) Mutual agreement of the parties.

 

ARTICLE X - MISCELLANEOUS PROVISIONS

 

10.01 Books and Records. The Joint Venture shall keep adequate books and records at its place of business, setting forth a true and accurate account of all business transactions arising out of and in connection with the conduct of the Joint Venture.

 

10.02 Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement.

 

10.03 Integrated Agreement. This Agreement constitutes the entire understanding and agreement among the parties hereto with respect to the subject matter hereof, and there are no agreements, understandings, restrictions or warranties among the parties other than those set forth herein provided for.

 

10.04 Headings. The headings, titles and subtitles used in this Agreement are for ease of reference only and shall not control or affect the meaning or construction of any provision hereof.

 

10.05 Notices. Except as may be otherwise specifically provided in this Agreement, all notices required or permitted hereunder shall be in writing and shall be deemed to be delivered when deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, addressed to the parties at their respective addresses set forth in this Agreement or at such other addresses as may be subsequently specified by written notice.

 

10.06 Applicable Law and Venue. This Agreement shall be construed and enforced under the laws of the Harris County, Texas.

 

10.07 Other Instruments. The parties hereto covenant and agree that they will execute each such other and further instruments and documents as are or may become reasonably necessary or convenient to effectuate and carry out the purposes of this Agreement.

 

3

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

 

	
			

				 
	 	 
	
			International Spirits & Beverage Group, Inc. 

				 
	
			Alonzo V. Pierce, CEO.

				 
	 	 
	 	 
	 	 
	 	 
	
			Paradigm Home Health 

				 
	
			Shedrick Howard, Managing Partner

				 

 

 

 

4ex_124120.htm

 

Exhibit 10.3

 

 

October 2, 2015

 

Via Electronic Mail

 

International Spirit & Beverage Group, Inc.

Attn: Alonzo Pierce

700 Louisiana Street, Suite 3950

Houston, TX 77002

Email: apierce@isbg.global

 

Re: Back-Office Services

 

Dear Alonzo:

 

This Services Agreement (the “Agreement”) shall be effective as of October 2, 2015 (the “Effective Date”) and shall confirm our agreement concerning certain administrative and logistical services (the “Services”) to be rendered by Park Street Imports, LLC, a Florida limited liability company having its principal place of business at 1000 Brickell Avenue, Suite 915, Miami, FL 33131, USA (“Park Street”), to International Spirit & Beverage Group, Inc., a Texas corporation having its principal place of business at 700 Louisiana Street, Suite 3950, Houston, TX 77002 (“CLIENT”) with respect to Park Street’s importation and/or sale in the US, as applicable, of CLIENT’S beverage alcohol brands (individually and collectively, the “Product”). Park Street and CLIENT may hereinafter be referred to individually as a “Party” and collectively as the “Parties.”

 

As part of this Agreement, Park Street will perform the services as described in Addendum 1 (“Services”). Park Street will purchase and hold title to Product on payment terms, which payment terms shall be agreed upon in writing by the Parties. Park Street acknowledges that CLIENT will have certain rights, as beneficial owner of the Product inventory, until Park Street pays for the Product or makes sales in the ordinary course of its business. Based upon such sales and related items, Park Street will settle its accounts with CLIENT on terms to be agreed upon in writing by Park Street and CLIENT, and remit “Funds Due” to CLIENT as and when directed by CLIENT. For each such remittance, “Funds Due” shall mean CLIENT’S gross sale proceeds net of all applicable shipping and handling expenses, including, but not limited, to expenses such as ocean freight, warehousing, domestic freight, local delivery, insurance, federal and state taxes/duties, license and registration fees, administrative fees, legal fees, bank fees, and/or finance fees (the “Shipping and Handling Fees”), and the Service Fee (as defined below).

 

In consideration of the Services provided by Park Street hereunder, Park Street shall receive a “Service Fee” which shall mean the greater of the following: (i) two thousand five hundred dollars ($2,500) per month (“Minimum Fee”) or (ii) a per case fee (“Case Fee”) for each case (any size) of Product delivered from or picked up from a Park Street contracted warehouse (or other location, as the case may be) pursuant to this Agreement, which Case Fee shall be calculated as follows based on annual sales volume:

 

Warehouse Orders (orders placed by wholesalers in the US and fulfilled by Park Street in the US)

$3.50 per case for the first 15,000 cases, then

$3.00 per case for 15,001 cases to 29,999 cases, then

$2.50 per case for 30,000 cases to 59,999 cases, then

$2.00 per case for 60,000 cases to 99,999 cases, then

$1.50 per case for 100,000 cases to 149,999 cases, then

$1.00 per case for over 150,000 cases

 

 

 

park street imports, llc | 1000 Brickell Avenue, Suite 915 Miami, FL 33131 | tel: +1 30S 967 7440 | fax:+1 30S 397 2809

 

 

 

 

 

Direct Import Orders (orders placed by wholesalers in the US, processed by Park Street, and shipped by the supplier directly - minimum order size one (1) container); Direct Import/Direct Producer Orders less than one (1) container will be billed at the Warehouse Order rate

$2.25 per case for the first 15,000 cases, then

$1.75 per case for 15,001 cases to 29,999 cases, then

$1.50 per case for 30,000 cases to 59,999 cases, then

$1.25 per case for 60,000 cases to 99,999 cases, then

$1.00 per case for 100,000 cases to 149,999 cases, then

$0.75 per case for over 150,000 cases

 

Retail Orders - in the event you request Park Street to serve as wholesaler (orders placed by retailers in the US and fulfilled by Park Street directly - available in Florida, New York, New Jersey, and California at this time)

$7.50 per case for the first 15,000 cases, then

$7.00 per case for 15,001 cases to 29,999 cases, then

$6.50 per case for 30,000 cases to 59,999 cases, then

$6.00 per case for 60,000 cases to 99,999 cases, then

$5.75 per case for 100,000 cases to 149,999 cases, then

$5.50 per case for over 150,000 cases

 

In consideration of CLIENT’S development stage, referral from Ross Graham, and Park Street’s strong desire to work with CLIENT, Park Street shall reduce its standard minimum fee from two thousand five hundred dollars ($2,500) per month. The monthly minimum fee hereunder shall be calculated as follows (the “Minimum Fee”):

 

	 	
			•

				
			One thousand dollars ($1,000) per month for the first three (3) months following the Effective Date (“Entry Period”)

			

	 	
			•

				
			Two thousand five hundred dollars ($2,500) per month for the time between the end of the Entry Period and the termination of the Agreement

			

 

The above rates cover a portfolio for up to ten (10) Active SKUs (as defined herein). Each additional Active SKU will increase the Minimum Fee by two hundred fifty dollars ($250). An “Active SKU” shall mean any SKU that has been in Park Street’s inventory during the previous two (2) months.

 

Upon execution of this Agreement, CLIENT shall wire transfer an initial deposit to Park Street in the amount of one thousand dollars ($1,000.00), which deposit shall be credited to the Managed Account and applied to initial Shipping and Handling Fees.

 

On a periodic basis, CLIENT shall advance funds necessary to cover costs and expenses noted above, which funds will be credited to CLIENT’S Managed Account.

 

If CLIENT is a US entity, upon signing, CLIENT must provide to Park Street a copy of its TTB Basic Import and/or Wholesale Permit. In the alternative, CLIENT shall provide notice that an application for a permit has not yet been submitted or notice that the permit has been applied for, but has not yet been received. If CLIENT does not yet have a Federal Basic Import and/or Wholesale Permit, Park Street will, at the instruction of CLIENT, assist CLIENT in applying for and obtaining the applicable permit and CLIENT will cooperate with Park Street in procuring the aforementioned permit. Park Street will not be responsible for any of CLIENT’S corporate registrations, taxes, or other similar matters relating to CLIENT’S own internal operations.

 

 

	
			Park Street Services Agreement

				
			Initials

				
			Page 2 of 8

			

 

 

 

 

If a wholesaler or retailer fails to pay for an order sold, Park Street will not be liable to CLIENT for the corresponding amount of Product payment. However, Park Street will take reasonable action to seek payment from the account. In the event CLIENT instructs Park Street to institute legal proceedings to collect, Park Street will prosecute such action fully, in consultation with, but at the sole expense of CLIENT. Park Street reserves the right to assign any Product receivable in default to CLIENT as an offset to Funds Due CLIENT.

 

In consideration of the Services to be performed by Park Street, CLIENT hereby indemnifies and holds harmless Park Street, and its shareholders, officers, directors and employees, from and against any claims, actions, demands, liabilities, damages, losses, costs and expenses (including reasonable attorney’s fees) arising out of or from Park Street’s performance of its obligations pursuant to this Agreement, including, without limitation, claims actions, demands, liabilities, damages, losses, costs and expenses brought by third parties for product liability, infringement of intellectual property rights, receivable defaults, and CLIENT’S non-compliance with regulatory requirements, including, but not limited to, CLIENT’S (or its US designee’s) compliance with federal, state, and local regulations concerning advertising, sales and marketing activities, Product labeling and content, use of samples, any required solicitor permits, FDA/Bio terrorism Act prior notice and facility registration requirements, and use of non-conforming wood packaging material. Any abandoned Product may be liquidated to pay warehouse charges or amounts due Park Street.

 

This indemnification does not cover any third party claims or actions against Park Street arising through the gross negligence or willful misconduct of Park Street, its officers, directors, employees, servants or agents in bad faith.

 

Park Street hereby indemnifies and holds harmless CLIENT, and its shareholders, officers, directors and employees, from and against any claims, actions, demands, liabilities, damages, losses, costs and expenses (including reasonable attorney’s fees) arising out of or from Park Street’s gross negligence or willful misconduct in connection with this Agreement.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY SHALL, UNDER ANY CIRCUMSTANCES EXCLUDING INTENTIONAL MISCONDUCT, BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY OR SPECIAL DAMAGES OF ANY NATURE WHATSOEVER, OR FOR ANY DAMAGES ARISING OUT OF OR IN CONNECTION WITH ANY MALFUNCTIONS, DELAYS, LOSS OF DATA, LOSS OF PROFIT, INTERRUPTION OF SERVICE OR LOSS OF BUSINESS OR ANTICIPATORY PROFITS, EVEN IF THE OTHER PARTY WAS APPRISED OF THE LIKELIHOOD OF SUCH DAMAGES OCCURRING. No action, regardless of form, arising hereunder may be brought by either Party more than one (1) year after the cause of action has accrued and each party expressly waives any statute of limitations which might apply by operation of law or otherwise.

 

Park Street hereby represents and warrants to CLIENT that it has the legal capacity to apply and receive U.S. regulatory approval for the importation of Product into the U.S. and its distribution therein.

 

The Parties to this Agreement recognize that CLIENT and Park Street are separate juridical entities and agree that nothing in this Agreement shall be construed to establish in any manner a partnership or joint venture between the Parties or render either Party the agent of the other Party. The Parties agree that Park Street is acting as an independent contractor.

 

Park Street will retain sole and absolute discretion over the manner and means of carrying out the Services described herein.

 

 

 

	
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			Initials

				
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Nothing in this Agreement shall be construed to grant any power to Park Street to enter into contracts on behalf of or otherwise binding on CLIENT, unless so directed by CLIENT in writing.

 

Nothing in this Agreement shall be construed to prevent or otherwise prohibit Park Street from providing services same or similar to the Services described herein to any other party, at Park Street’s sole discretion.

 

In order to guarantee the Case Fees set forth herein, the term of this Agreement shall be twelve (12) months commencing as of the Effective Date and shall renew automatically for subsequent additional twelve (12) month periods (the “Renewal Terms”), provided, however, either Party may terminate the Agreement at any time in its sole discretion upon six (6) months written notice. Notwithstanding anything contained to the contrary in the foregoing, CLIENT specifically agrees that it shall not have the authority to terminate this Agreement unless it has fully satisfied its obligations, if any, under any borrowing or factoring agreement between CLIENT and Park Street or Park Street Financial Services, LLC, which such agreement shall be evidenced by separate written agreement.

 

Upon termination of this Agreement, CLIENT (or its US designee) must repurchase the entirety of Park Street’s remaining inventory of the Products at Park Street’s laid-in cost. With respect to repurchased inventory, Park Street shall, in not more than one transaction, make such inventory available for pick up at Park Street’s warehouse or coordinate transfer to CLIENT’S designee, provided CLIENT shall pay all logistics costs associated with transfer. CLIENT, after crediting Park Street’s account for repurchased and other pick up or transfer Products, shall pay the balance due, if any, to Park Street on or before Park Street makes such Products available for pick up or transfer.

 

This Agreement is intended to bind and inure to the benefit of and be enforceable by the Parties and their respective successors and assigns, except that without the prior written consent of the other party, neither party may assign, transfer or convey any of its rights, duties or interest under this Agreement.

 

This Agreement contains the entire agreement among the Parties hereto with respect to the matters herein contained and supersedes and preempts any prior understandings, agreements or representations by or among the Parties, written or oral, which may have related to the subject matter hereof in any way. The provisions of this Agreement may be amended only with the prior written consent of CLIENT and Park Street.

 

This Agreement will be governed and construed in accordance with the internal laws of the State of Florida without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Florida. In the event of any suit, action or proceeding between the parties arising out of, or with respect to, this Agreement, the non-prevailing Party shall pay all fees and costs, including all reasonable attorneys’ fees, of the prevailing Party.

 

The Parties to this Agreement agree that any suit, action or proceeding arising out of, or with respect to, this Agreement or any judgment entered by any court in respect thereof shall be brought exclusively in the courts of the State of Florida, County of Miami-Dade, or in the U.S. District Court for the Southern District of Florida (the “Designated Courts”), and hereby irrevocably accept the exclusive personal jurisdiction of those courts for the purposes of any suit, action or proceeding. In addition, each Party hereby irrevocably waives, to the fullest extent permitted by law, any objection which such party 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 in the Designated Courts, and hereby further irrevocably waives any claim that any suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any proceeding referred to in the first sentence of this section may be served on any party anywhere in the world, and the Parties hereby expressly agree to accept service via electronic mail and waive any argument of improper or invalid service.

 

 

 

 

 

	
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If the foregoing correctly sets forth your understanding of our agreement, please so indicate by signing in the space provided below.

 

Sincerely,

 

Harald Kohlmann, Ph.D.

CEO

Park Street Imports, LLC

 

ACCEPTED and AGREED to this on the __ day of ____________ 2015

 

International Spirit & Beverage Group, Inc.

 

	
			By:

				
			

				 
	
			Name: Alonzo Pierce

				 
	
			Title: President

				 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
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			Initials

				
			Page 5 of 8

			

 

 

 

Addendum 1: Park Street Service Schedule - Regular Services, as applicable

 

	
			I.

				
			State Compliance

			

 

As part of the Services, Park Street will manage all aspects of the state specific compliance requirements, including as applicable:

 

	 	
			a)

				
			Register the Product in all applicable Control States under Park Street’s licenses

			

 

	 	
			b)

				
			Register the Product in all applicable Open States under Park Street’s licenses

			

 

	 	
			c)

				
			Create and file price postings in applicable Open States

			

 

	 	
			d)

				
			Manage State Bonding

			

 

	 	
			e)

				
			File all required beverage reports with the applicable state agencies

			

 

	 	
			f)

				
			Register CLIENT appointed sales brokers in the applicable states

			

 

	
			II.

				
			Logistics Planning and Management

			

 

As part of the Services, Park Street will manage all aspects of the logistics chain for the Product, including as applicable:

 

	 	
			a)

				
			Arrange for pick-up of Product at the place of production

			

 

	 	
			b)

				
			Arrange transportation of Product from the place of production to a Park Street qualified warehouse

			

 

	 	
			i)

				
			Domestic and international ground freight

			

 

	 	
			ii)

				
			International ocean freight

			

 

	 	
			iii)

				
			Domestic and international expedited air freight

			

 

	 	
			c)

				
			Warehouse the Product at one or more qualified warehouses selected by Park Street

			

 

	 	
			i)

				
			Bonded warehouse

			

 

	 	
			ii)

				
			Climate controlled warehouse

			

 

	 	
			iii)

				
			Tax-paid warehouse

			

 

	 	
			d)

				
			Manage bailment warehouse inventory

			

 

	
			III.

				
			Insurance

			

 

As part of the Services, Park Street will manage all aspects of the insurance for the Product, including, as applicable and subject to applicable pass through fees, including but not limited to premiums:

 

	 	
			a)

				
			Obtain insurance of Product against loss during transportation from production to a Park Street qualified warehouse (subject to the requested protection by CLIENT)

			

 

	 	
			b)

				
			Insure against loss of Product inventory while in storage in a Park Street qualified warehouse (subject to the terms, conditions, and exclusions of its insurance policy then in force)

			

 

	 	
			c)

				
			Insure against loss of Product during transportation from a qualified warehouse to a customer (subject to the requested terms by CLIENT and customer as well as to the terms, conditions, and exclusions of Park Street’s insurance policy then in force)

			

 

	
			IV.

				
			Order Processing and Customer Service

			

 

As part of the Services, Park Street will dedicate an Account Manager to CLIENT. The Account Manager will manage all aspects of the order processing and customer service for the Product, including as applicable:

 

	 	
			a)

				
			Receive orders from

			

 

	 	
			i)

				
			CLIENT authorized wholesalers

			

 

	 	
			ii)

				
			Control state authorities

			

 

	 	
			iii)

				
			CLIENT authorized retailers

			

 

	 	
			iv)

				
			CLIENT authorized independent sales agents/brokers

			

 

	 	
			b)

				
			Check the received orders against prices suggested by CLIENT and properly filed with state agencies (in states that require such filings)

			

 

	 	
			c)

				
			Transfer title to Product to fill the order

			

 

	 	
			d)

				
			Coordinate pick-up or delivery from the warehouse (or the foreign supplier in the case of Direct Import sales)

			

	 	
			e)

				
			Administer samples to licensed distributors and retailers in accordance with state specific alcoholic beverage control laws

			

 

	
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			f)

				
			Administer the support of CLIENT sponsored charity events in accordance with state specific alcoholic beverage control laws g) Manage customer inquiries with regards to logistics and back-office operations on behalf of the CLIENT

			

 

	
			V.

				
			Cash Cycle Management

			

 

As part of the Services, Park Street will manage all aspects of the CLIENT cash cycle management through Park Street, including as applicable:

 

	 	
			a)

				
			Invoice the purchaser(s) at the prices suggested by CLIENT and properly filed with state agencies (in states that require such filings)

			

 

	 	
			b)

				
			Manage accounts receivables and collect funds

			

 

	 	
			c)

				
			Follow-up with customers on overdue accounts monthly

			

 

	 	
			d)

				
			Open and maintain a dedicated and segregated Park Street bank account for the sole purpose of managing CLIENT designated activity (the “Managed Account”)

			

 

	 	
			e)

				
			Deposit CLIENT remittances into the Managed Account

			

 

	 	
			f)

				
			Pay all relevant beverage excise taxes out of CLIENT’S funds in the Managed Account

			

 

	 	
			g)

				
			Pay all relevant pass-through expenses according to the published Park Street Rate Card for Third Party Expenses (“Park Street Rate Card”) out of CLIENT’S funds in the Managed Account

			

 

	 	
			h)

				
			Pay other applicable third party expenses out of CLIENT’S funds in the Managed Account (e.g., distributor chargebacks)

			

 

	 	
			i)

				
			Provide overdraft protection on the Managed Account with rates outlined in the Park Street Rate Card

			

 

	
			VI.

				
			Distributor Chargeback and Bill-back Support Management

			

 

As part of the services, Park Street will support distributor chargeback and billback procedures, including as applicable:

 

	 	
			a)

				
			Receive distributor chargeback and billback invoices

			

 

	 	
			b)

				
			Provide CLIENT with electronic copies of distributor chargeback and billback invoices

			

 

	 	
			c)

				
			After receiving written approval by CLIENT, pay distributor chargeback and billback invoices out of CLIENT’S funds in the Managed Account

			

 

	 	
			d)

				
			Support the conflict and dispute resolution process to reconcile the CLIENT accounts at distributors

			

 

	
			VII.

				
			Accounting

			

 

As part of the Services, Park Street will manage all aspects of the CLIENT activity accounting, including as applicable:

 

	 	
			a)

				
			Record all payments made and received in the CLIENT’S Managed Account

			

 

	 	
			b)

				
			Conduct a monthly reconciliation of the CLIENT’S Managed Account

			

 

	 	
			c)

				
			Prepare a monthly account closing statement by the end of the following month

			

 

VIII.      Reporting

 

As part of the services, Park Street will provide reporting on several aspects of the CLIENT’S activities at Park Street, including as applicable:

 

	 	
			a)

				
			Provide access to a password protected online reporting platform which is available 24/7, subject

			to maintenance periods, and updated throughout the business day to track:

			

 

	 	
			i)

				
			Sales

			

 

	 	
			ii)

				
			Customer balances / Accounts Receivables

			

 

	 	
			iii)

				
			Cash receipts

			

 

	 	
			iv)

				
			Inventory

			

 

	 	
			(1)

				
			Park Street qualified warehouses

			

 

	 	
			(2)

				
			Control state bailment warehouses

			

 

	 	
			v)

				
			Expenses

			

 

	 	
			vi)

				
			Cash account balance

			

 

	 	
			b)

				
			Prepare a monthly closing report including itemized schedules of all monthly activities and balances by the end of the following month

			

 

 

 

	
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			Page 7 of 8

			

 

 

 

 

 

	 	
			i)

				
			Account activity

			

 

	 	
			ii)

				
			Accounts receivables aging

			

 

	 	
			iii)

				
			Inventory

			

 

	 	
			iv)

				
			Sales

			

 

	 	
			v)

				
			Cash receipts

			

 

	 	
			vi)

				
			Expenses

			

 

	 	
			c)

				
			Prepare an annual closing report including schedules of all annual activities and balances by the end of January of the following year

			

 

	 	
			i)

				
			Account activity

			

 

	 	
			ii)

				
			Accounts receivables aging

			

 

	 	
			iii)

				
			Inventory

			

 

	 	
			iv)

				
			Sales

			

 

	 	
			v)

				
			Cash receipts

			

 

	 	
			vi)

				
			Expenses

			

 

 

 

 

 

 

	
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