Terms

Step 1.

Buyer sends Letter of Intent on company letterhead, which should include minimally the following information:

• Purchaser information – who is buying the product. (This should also be the individual funding the purchase and should match the proof of funds (POF). LOI’s listed in a broker’s name will not be accepted. LOI’s have to include the actual buyer’s name and contact information and has to be signed by the actual buyer.)
• Volume of product to be purchased (ex. 1000 kg)
• Frequency of plans to purchase (one time spot, weekly, monthly)
• Term of commitment based on weekly or monthly requirements
• Required date of pick-up
• Product potency requirements (%CBD, %THC)
• Identify how the product is being used (i.e. isolate resale, beverage, tincture, etc.)
• Target price ($)

Step 2.

Buyer provides proof of funds (POF)

• Proof of funds verifies that the buyer has the funds ready for the level of purchase based on inquiry.
• POF must have a date ranging no less than 30 days from inquiry

o If it is a certified letter of funds from a Bank, it must be on bank letterhead

in the name of the company listed on the LOI or an affiliate thereof

o Attorney representation letter or attorney-to-attorney is also an option

Step 3.

After receipt of LOI and POF, deal terms can be discussed.

(Note: Due to the deep chains of brokers shopping around and aiming to spend time negotiating terms, it has become imperative for us to vet legitimate buyers.)

Step 4.

Agreed upon terms are documented via a contract or purchase order (PO). Terms are submitted to seller via a contract or purchase order executed by buyer.

Step 5.

Buyer is required to open escrow and deposit one (1) full month of funds to cover cost of full month of product no matter what the pickup frequency is. A minimum deposit may be required and collected for larger orders due to contract value and cost of biomass to create product, which could equate up to 120% deposit required to initiate order and quarantine of product for buyer. Buyer must understand that they have to share in the risk since we are buying biomass and funding the manufacturing in order to fulfill their order.

Step 6.

Shipping/Transport (FOB) must be arranged at buyers cost.

Please keep in mind that product must be shipped in compliance with producers requirements.

(Note: Products do have a shelf life and must be shipped and stored under temperature- controlled conditions to keep product from being damaged)

Step 7.

Upon final notification of product ready for pickup, buyer has 5 business days to complete sample testing and to validate product meets specifications.

Step 8.

Buyer releases full value of product and product is released for shipping.

Step 9.

Broker’s commission paid net 30 days for the first delivery and net 15 days for all remaining deliveries for each individual contract after buyer accepts and funds full order. (Net 30 days is required to allow for product returns or other unknown issues that could occur.)