Document:

aena_ex104.htm

Exhibit 10.4

 

September 14, 2012

 

Rudford Hamon

 

ID Perfumes

 

1250 E. Hallandale Beach Blvd. STE#402

 

Hallandale Beach, FL 33009

 

Via E-mail: rudford@giganticparfums.com

 

Dear Rudford,

 

Re: Warehousing & Distribution Agreement Terms Proposal —Revised 9.14.12 Business assumptions estimate annual sales potential of $20 to $25M.

 

1. Order Fulfillment: Wholesale — (Domestic / International — Loose / Full Case)

 

Individual Shipping Orders                                                     Gross Sales * 2.25 %

 

Individual Order Min. Charge                                                     $3.00

 

All shipments are FOB South Brunswick or prepaid by the Customer.

 

Shipping containers, specialty packaging, pallet corner protectors, strapping, and taping, pallet bonnets, and pallets are additional costs. Normal stretch wrapping to secure cartons to pallet for shipment is included in above percentage of sales.

 

Service percentages are based on actual invoice dollar amount and will be taken against retail less applicable discount but before deductions and allowances.

 

Order fulfillment is defined as pick / pack both loose and full case pack shipments. All standard shipping materials are included with the exception of shipping cartons. Average order turnaround processing for carrier notification of pick-up is three business days for domestic and five business days for international. International orders that require additional handling such as coding will require an additional three business days.

 

2. Order Fulfillment: E-Commerce Sales / Catalog Sales- $3.00 per order. (Not selected at this time)

 

This includes the acceptance of an automated electronic order file that will be loaded into Suite-K's computer system. Simple tile modifications will be included. Major programming changes / requirements will be quoted upon discovery. Suggested file layouts will he provided upon acceptance of this proposal. The order fulfillment charge does not include the cost of shippers and / or freight.

 

 

  

  

  

 

 

	3.	
No Charge Orders: Retail / Wholesale - 

	$ .85 per carton: Minimum of $3.00 per order
	 	Pallet Transfers-	

$25.00 plus $7.50 per pallet

	 	 	 

Individual Pick / Case Pack Orders with no dollar value will be billed at $ .85 per carton with a minimum of $3.00 per order. Any no-charge materials shipped within the individual retail chargeable orders, the percentage billing from #1 above will prevail. Transfers of large volumes or wholesale orders will be billed at $7.50 per pallet plus a $25.00 flat fee for pallet processing.

	 	 	 
	4.	

Order Fulfillment Monthly Minimum Charge: 

	

Waived at this time

	 	 	 

Suite-K will invoice a monthly minimum for maintaining "specified” service level order fulfillment services. Any overages for order fulfillment services will be billed at the end of the month.

	 	 	 
	5.	
Warehouse Storage Charges

	

$6.50 per pallet - (6) Months Non-Movement

	 

Normal pallet storage will be included with the exception of pallet storage with no-movement in excess of 6 months. Each month, pallet storage capacities will be reviewed and reported to the Client.

	 	 	 
	6.	

Container Receiving Charges:

	

(Floor Loaded) $550 per container (40')

$475 per container (20')

	 

It is expected that all materials will be received palletized and in compliance with SK receiving guidelines. In the event inbound freight is received floor loaded as such with inbound shipping containers, the charges above will apply. The cost to receive in palletized finished goods will be included in the order fulfillment charges in # 1 above. However, all shipments must comply with Suite-K receiving guidelines. Copy of the guidelines will be provided upon acceptance of this proposal.

	 	 	 
	7.	

Returns / Refurbish:$ .38 per piece - loose

	

$ .38 per piece - loose

S .85 per case - full case

$3.00 minimum per customer return

	 

	 	 	 
	8.	

Assembly

	

Quoted upon receipt of specifications

	 

Suite-K will provide set assembly, rework, labeling, and kitting based on sample and specifications provided by the Client. Each job will be quoted based on requirements. Expeditious assemblies will be performed at applicable time and material billing rates.

	 	 	 
	9.	
Inventory:

	

Annual PI - (1)included Cycle counting - Cost TBD

	 

Suite-K will perform (1) annual physical inventory of all Client owned inventory under the control of this agreement. The actual date(s) of the PI will be selected by the Client with Suite-K making its best effort to accommodate. The inventory will be conducted during normal business hours. In terms of inventory accuracy, Suite-K guarantees the Client inventory accuracy of 99% of booked inventory at landed cost. The 1% allowed shrinkage is to be calculated by applying 1% to the average of the month end inventory value for the months between the prior and current physical inventory.

 

Periodic cycle counts will be conducted for challenges on individual items. This service will be included, however, if a full cycle count program is requested, that service will be chargeable. Costs for that service will be negotiated.

 

 

  

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	9.	
1T Services, Systems, & Support:

	

$1,000 / Month — 6 Months

$2,000 / Month — Months 7 and Forward

System user license(s)$4.500 per user with $1,000 annual renewal.

(1) User License to be provided at no-charge

Set-Up — $65.00 Hourly Labor Rates Apply

	 

IT services, systems and support includes all necessary labor to provide customer access to software systems, along with daily, weekly, monthly and annual reporting. V PN software will be provided for access to Suite-K's IBS Enterprise system.

	 	 	 
	10.	

EDI Service & Support:

	
Partnership Set-up - $700 each

Document Set-up- $200 per document

Monthly Van / Mail Box / Testing Fees- N/C

(transactions = # of records exchanged — PO(s). ASNs, etc.)

	 

Set-up of EDI Partnerships will be handled at costs detailed above. Please note that there may be special equipment requirements for specific accounts such as Wal-Mart. (AS2 Connection), provided at additional costs. Also, any catalog costs I set-up fees, if utilized, will be additional costs.

	 	 	 
	11.	

Account Management Fee

	

$2500 Monthly

	 

The Suite-K customer service team will process all customer orders through the suite-K software system. They will provide the following services; order entry. EDI processing, order status, confirmation of ship-dates, order tracking and provide POD(s). This tee includes the generation or daily reporting of all shipment related activities. Quick, knowledgeable, and accurate transfer of information from sales to operations are handled effectively without delays especially when expediting critical timing of shipments and inbound receipts.

 

Note: Postage Mailing Fees are additional charges and will be invoiced based upon usage.

	 	 	 
	12.	

Traffic Routing / Charge Backs:

	

**

	 

** Suite-K will handle all traffic routing and customer compliance based on Client supplied routing guides. New and unusual compliance requirements will be reviewed and potential implementation costs presented back to Client. Once established and accepted by Suite-K, failure of compliance resulting in shipping charge-backs will be the responsibility of Suite-K. Other than gross negligence, any “expedited / time critical" shipments will release Suite-K from all compliance liabilities. However, Suite-K will make all commercially reasonable attempts to cornply.

	 	 	 
	13.	

Payment Terms: 

	

Net 45; (6) Months; Net 30; Months (7) & Forward

	 

Payment terms are net 45 / 30 days. However, please note that Suite-K reserves the right to discontinue services in the event payment is not received within 60 / 45 days.

 

 

 

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	14.	

Insurance: 

	

**

	 

** Suite-K will be responsible for maintaining fire and hazard insurance, workman's compensation, and general liability. Suite-K will be responsible for maintaining risk property insurance covering the full value of their respective inventory. The Client shall also be responsible for maintaining at its own cost all risk property insurance covering the full value of any loss to its products and property located on or in the Suite-K Facilities. 

	 	 	 
	15.	

Additional Services:

	

 

	 

Suite-K Transportation — Suite-K maintains the opportunity to operate and deliver customer shipments. In addition, Suite-K can provide truckload pricing from current fulfillment provider to Suite-K.

 

Overtime Services — Suite-K DC operates on a Monday through Friday schedule with normal work hours o18:00 am to 4:30 PM. Additional work hours may be requested at applicable hourly differential rate. Picker/ Packer base rate of $23.75 * 1.5=$11.88 OT Rate. Overtime hours will be invoiced at differential rate. Weekend work will require building opening costs billed at $175 per hour with (4) hour minimums.

 

Material Purchases- Suite-K purchased materials for Order Fulfillment; shippers, coded carton sealing tape. CHEP pallets, & necessary packing materials for return goods rework is billable at cost plus 15% / Maximum of $150.00 on any one purchase.

	 	 	 
	16.	

Agreement Terms; Annual Pricing Review:

	

24 months with renewable 12 month extensions

	 

Each extension period will be subject to review by both parties to verify all business and pricing model assumptions are current and applicable.

 

 

Sincerely.

Bruce Owsiak

Vice President

Suite-K; Value Added Services, LLC.

Corporate Office:

120 Herrod Blvd.

South Brunswick, NJ 08810

609.655.6890 Ext 205

609.655.6895 Fax

732.371,4720 Cell

 

4aena_ex106.htm

Exhibit 10.6

 

Givaudan0

 

January 31, 2013

 

Adrenalina, Inc.

1250 E. Hallandale Beach Blvd 

Suite 402

Hallandale Beach, FL 33009

 

	Attention:	Ilia Lekach
	 	President and Chief Executive Officer

 

2013 REBATE AND EXCLUSIVE SUPPLIER AGREEMENT

 

Dear Mr. Lekach,

 

As you are aware, Givaudan Fragrances Corporation ('Givaudan"), Adrenalina, Inc. ("Adrenalina") and yourself (as individual) ("Mr. Lekach") are parties to a certain Rebate and Exclusive Supplier Agreement, dated July 1, 2011 ("2011 Supplier Agreement"), wherein Adrenalina appointed Givaudan as its exclusive fragrance supplier.

 

Whereas. Adrenalina recently transferred its licensing rights to market and sell Katy Perry branded fragrances to Coty, Inc., and such fragrances were developed and are currently manufactured by Givaudan.

 

Whereas, a result of such sale, Givaudan, Adrenalina and Mr. Lekach wish to update and revise the commercial terms of their exclusive relationship and thereby replace the 2011 Supplier Agreement.

 

This letter sets forth the provisions of the 2013 Rebate and Exclusive Supplier Agreement (-2013 Supplier Agreement") between, Adrenalina, Ilia Lekach and Givaudan.

 

Each party has reviewed this 2013 Supplier Agreement and indicates its acceptance of its terms and conditions by the signature of its authorized representative, below.

 

	TERM OF	 
	AGREEMENT:	January 1, 2013 (-Effective Date") through December 31. 2016 ("Term").
	 	 
	DEFINITIONS:	
The following terms used in this letter shall have the following meanings:

 

-Contract Year" means the period beginning on the Effective Date and ending twelve months later; and each individual twelve month period thereafter during the Term: and

 

"Sales" means the sale of Fragrance by Givaudan that has been invoiced to Adrenalina. The value of a "Sale" is the actual amount invoiced to Adrenalina for a Fragrance, excluding all other costs and charges, for example, transportation, freight, demurrage. duty, insurance, and/or sales or value added tax; and

 

"Fragrance" means a fragrance developed and manufactured by Givaudan.

 

  

1

  

 

	
Adrenalina — Givaudan

2013 Rebate and Supplier Agreement 

Confidential Informal .=

 

	 	
 Adrenalina Group" means Adrenalina and any third-party companies that directly or indirectly Controls, is Controlled by or under common Control with Adrenalina. including, but not limited to, Gigantic Parfums LI-C. For purposes of this Agreement. Control means (i) the ownership of at least fifty percent (50%) of the equity interests in the entity in question; or (ii) the legal power to direct or cause the direction of the general management and policies of the entity in question.

 

"Lekach Group" means, in addition to the Adrenalina Group, any other companies that Mr. Lekach currently owns, Controls or acquires majority ownership or Controlling interest during the Term.

	 	 
	SUPPLIER	 
	STATUS: 	
Givaudan will be the exclusive fragrance supplier to the Adrenalina Group during the Term for all Adrenalina Group's new fragrance requirements.

	 	 
	 	Givaudan's exclusive supplier status will be governed by the following:
	 	 
	 	1.	Exclusive Brief Adrenalina Group will exclusively brief Givaudan on all new Adrenalina Group fragrance requirements, including all requirements from brands licensed by Adrenalina.
	 	 	 
	 	 	Common Ownership Group. Mr. Lekach, by his signature hereto. agrees that this Agreement, including, without limitation, the exclusive briefing obligation described above, extends to all companies that are part of the Lekach Group.
	 	 	 
	 	3.	Sale of Brand Licensing Rights. In the event that Adrenalina or any member of the Adrenalina Group sells or transfers its licensing rights ("Licensing Rights") relating to the marketing, distribution and sale of a Fragrance or Fragrances bra brand or celebrity equity ("Brand"), Adrenalina agrees that it will cause to be included in the formal written agreement for the sale of such Licensing Rights: (i) a requirement that the purchaser of the Brand's Licensing Rights continue to exclusively purchase existing Fragrances for the Brand from Givaudan; and (ii) a requirement that, after the sale of the Licensing Rights, fragrances developed for the Brand will he exclusively developed and manufactured by Givaudan.
	 	 
	NEW FRAGRANCE	 
	PRICING:	Unless otherwise agreed by the parties, selling prices and mark-ups for all new Fragrances will be consistent with past Fragrances sold to Adrenalina. and be of equal or similarly perceived quality, and priced at the following $69.40 / kg for oil and $14.78 /kilo for solution (based on an 18% use level). Fragrances will be priced and sold on an ex-works cost per pound or kilogram basis, EXW (INCOTERMS 2010) Givaudan's manufacturing facility, freight collect, exclusive of all applicable duties. and sales, use, value added or similar taxes, and exclusive of non-standard order surcharges.

 

  

2

  

 

	
Adrenalina— Givaudan

2D13 Rebate and Supplier 

Agreement Confidential information

 

	CUMULATIVE	
 

	SALES	 
	REBATE:	Givaudan will provide a rebate to Adrenalina in the form of credit against future purchases as follows.
	 	 
	 	1.	

Over $3.2- Million in Cumulative Sales. When Sales of Fragrance exceed $3,212,747. an 18% rebate on all Sales over such amount will be paid quarterly to Adrenalina in the form of a credit against future purchases.

	 	 	 
	 	2.	

Cumulative Sales. As used herein, cumulative Sales are calculated commencing from January 1,2013.

	 	 	 
	EXCLUSIVE	 	 
	FRAGRANCES:	Fragrances purchased by Adrenalina will be exclusively sold to Adrenalina or as otherwise directed by Adrenalina.
	 	 
	REBATE	 
	CALCULATIONS:	Rebate values will be calculated in US dollars. For calculation purposes. Sales invoiced in non-US currency will be converted on a monthly basis using the average conversion rate for the applicable month.
	 	 
	MISCELLANEOUS:	a.	Nothing herein shall be deemed to obligate Adrenalina to commercialize any Fragrance or purchase any particular volume of Fragrance.
	 	 	 
	 	b.	To the extent not inconsistent with the terms provided herein, Givaudan's General Conditions of Sale shall apply to each Sale of Fragrance to Adrenalina.
	 	 	 
	 	 	Givaudan reserves the right to set-off the value of any rebate or other amounts payable by it hereunder against any outstanding undisputed invoice amounts that are not timely paid by Adrenalina or any member of the Adrenalina Group or their respective third-party manufacturers.
	 	 	 
	 	d.	The parties agree that the terms of this Agreement shall be maintained in strict confidence and they shall not disclose or make available any information contained herein to any third party.
	 	 	 
	 	e.	This Agreement represents the entire understanding of the parties and may be modified only by a writing signed by all parties. This Agreement shall be governed by and construed in accordance with New Jersey law, without regard to its conflicts of law principles. If any provision of this Agreement is held by a court of law to be illegal, invalid or unenforceable, (a) that provision shall be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and (b) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.
	 	 	 
	 	f.	At the end of the Tenn. this Agreement shall automatically renew for subsequent one (1) year periods unless either party notifies the other in wiling 30 days prior to the end of the initial Term or any subsequent renewal of its intention not to renew,
	 	 	 

 

  

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Adrenalina — Givaudan

2013 Rebate and Supplier Agreement 

Confidential Information

 

	 	g.	
This Agreement is not assignable. in whole or in part, except upon the express written consent of the other Party hereto. For the avoidance of doubt, the rebate and pricing provisions of this Agreement are not assignable to any third party that acquires from Adrenalina Licensing Rights relating to any Brand.

	 	 	 
	 	h.	This 2013 Supplier Agreement replaces and supersedes the 2011 Supplier Agreement.

 

In Witness Whereof, the parties hereto have caused this Agreement to be executed as of the date(s) indicated below and effective as of the Effective Date.

 

 

 

 

 

 

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