AGRITEK HOLDINGS INC.
EMPLOYMENT AND
BOARD OF DIRECTORSAGREEMENT
THIS EMPLOYMENT ANDBOARD OF DIRECTORSAGREEMENTismadeeffectiveasofMarch20th,2015,(the"EffectiveDate")byandbetween Agritek HoldingsInc.a DelawareCorporation and publically traded Company(the"Company") under the symbol “AGTK”andJustine Braune(the "Employee" or “Director”).
RECITALS
A.CompanydesirestoobtaintheservicesofEmployeetoserveontheCompany’sBoardofDirectors (“BOD”) and as Chief Executive Officer (“CEO”) and President of the CompanyandtheEmployeedesirestoserveontheBOD and fulfill the duties as CEO and Presidentuponthefollowingtermsandconditions.
B.Companyhasspentsignificanttime,effort,andmoneytodevelopcertainProprietaryInformation(asdefinedbelow),whichCompanyconsidersvitaltoitsbusinessandgoodwill.
C.TheProprietaryInformationmaynecessarilybecommunicatedtoorreceivedbyDirectorinthecourseofservingon theBODfortheCompany or in the course of serving as CEO and President of the Company,andCompanydesirestoobtainthe services ofDirector,onlyif,indoingso,itcanprotectitsProprietaryInformationandgoodwill.
D.Companydoesnot,however,desire toreceivefromDirector,orforDirectortoeitherinducetheuseoforuseinconnectionwiththeperformanceof his duties as the CEO and President of the Company or as a member of the Company’s BOD,anyinformationwhichisconfidentialtoorownershipofwhichresidesin athirdparty,whetheracquiredeitherpriortoorsubsequenttoDirector'sretentionhereunder.
AGREEMENT
NOW,THEREFORE,thepartiesheretoherebyagreeasfollows:
1.BoardMember, CEO and President.Company herebyretainsDirectortoserveon itsBoard of Directors and to serve as the CEO and President of the Company.ThetermofthisAgreement(the“Term”)shallbetheperiodcommencingontheEffectiveDateandterminatinguponninety(90)dayspriorwrittennoticedeliveredbyeitherpartytotheotherforanyreason, subject to the By-Laws of the Corporation.Uponanyterminationof theServicesasprovidedinthis Section 1,thisAgreementshallterminateexceptthattheprovisionssetforthinSection 2.b andSection4ofthisAgreementshallsurvivesuchtermination.
2.Position,Duties,Responsibilities.
a.Duties.Directorshallhave the authority and duty to manage and conduct the business of the Company and such other duties and responsibilitiesasreasonablyrequestedbytheCompany,includingbutnotlimitedtotheServicesdescribedinExhibit Aattachedhereto (“Services”).DirectorshalldevoteDirector’scommerciallyreasonableeffortsandattentiontotheperformanceoftheServicesfortheCompanyonatimelybasis.Directorshallalsomakehimselfavailableto answerquestions,speak with shareholders,provideadviceandprovideServicestotheCompanyuponreasonablerequestandnoticefromtheCompany. Director shall perform his duties faithfully and diligently and shall abide by the policies of the Company and any changes to them that may be adopted by the Company, except to the extent inconsistent with the terms of this Agreement.
b.NoConflict.Itisunderstoodandagreed,anditistheintentionof thepartieshereto,that Directorisanofficer and employee of the Company andnot anagent,jointventurer,orpartnerof theCompanyforanypurposeswhatsoever.Directorisskilledinprovidingtheservices identified in this Agreement.Totheextentnecessary,Directorshallbesolelyresponsibleforanyandalltaxesrelatedtothereceiptofany equitycompensationunder thisAgreement.Director herebyrepresents,warrantsandcovenants thatDirector has theright,powerandauthoritytoenterintothisAgreementandthatneithertheexecutionnordeliveryofthisAgreement,northeperformanceoftheServicesbyDirector willconflictwithorresultin abreachoftheterms,conditionsor provisionsof, or constitute adefaultunder,anycontract,covenantorinstrumentunderwhichDirectorisnoworhereinafterbecomesobligated.
Director agrees to deliversuchfurtheragreementsandotherinstrumentsasCompanymayreasonablyrequesttogiveeffecttothisSection4.
3.Compensation,Benefits,Expenses.
a.Compensation.AsfullandcompleteconsiderationoftheServicestoberenderedhereunder,theCompanyshallpayDirectortheCompensationdescribedonExhibitAattachedto and incorporated in this Agreement.
b.ReimbursementofExpenses.CompanyshallpromptlyreimburseDirectorforanyreasonablecostsandexpensesincurredbyDirectorinconnectionwithanyServicesspecificallyrequestedbyCompanyandactuallyperformedbyDirectorpursuanttothetermsofthisAgreement.Eachsuchexpenditureorcost shall bereimbursedonlyif:(i)withrespecttocostsinexcessof$2,500,individually,DirectorreceivespriorapprovalfromtheCompany’sChief Financial Officerorotherexecutiveforsuchexpenditureorcost,and (ii)withrespect tocostslessthan$100,individually,providedDirectorfurnishestoCompanyadequaterecordsandotherdocumentsreasonablyacceptabletoCompanyevidencingsuchexpenditureorcost.
4.ProprietaryInformation;WorkProduct;Non-Disclosure.
a.Defined.Companyhasconceived,developedandowns,andcontinuestoconceiveanddevelop,certainpropertyrightsandinformation,includingbutnotlimitedtoitsbusinessplansandobjectives,clientandcustomerinformation,financialprojections,marketingplans,marketingmaterials,logos,anddesigns,andtechnicaldata,inventions,processes,know-how,algorithms,formulae,franchises,databases,computerprograms,computersoftware,userinterfaces,sourcecodes,objectcodes,architectures and structures,display screens, layouts,development tools and instructions, templates, andother trade secrets,intangibleassetsandindustrialorproprietarypropertyrightswhichmayormaynotberelateddirectlyorindirectlytoCompany'sbusinessandalldocumentation,mediaorothertangibleembodimentoforrelatingtoanyoftheforegoingandallproprietaryrightsthereinofCompany(allofwhicharehereinafterreferredtoasthe"ProprietaryInformation").Furthermore,thefactthatvariousfragmentsofinformationordatamaybegenerallyknownintherelevantindustrydoesnotmeanthatthemannerinwhichCompanycombinesthem,andtheresultsobtainedthereby,areknown.Insuchinstance,thatwouldalsocompriseProprietaryInformation.
b.GeneralRestrictionsonUse.Directoragrees toholdallProprietary Information inconfidenceandnotto,directlyorindirectly,disclose,use,copy,publish,summarize,orremovefromCompany'spremisesany ProprietaryInformation(orremovefromthepremisesany otherpropertyofCompany),except(i)totheextentauthorizedandnecessarytocarryoutDirector'sresponsibilitiesunderthisAgreement,and(ii)afterterminationofthis Agreement,onlyasspecificallyauthorizedinwritingbyCompany.Notwithstandingtheforegoing, suchrestrictionsshallnot applyto:(i)informationwhichDirectorcanshowwasrightfullyinhispossessionatthetimeofdisclosurebyCompany;(ii)informationwhichDirectorcanshowwasreceivedfrom athirdpartywholawfullydevelopedtheinformationindependentlyofCompanyorobtainedsuchinformationfromCompanyunderconditionswhichdidnotrequirethatitbe heldinconfidence;or(iii)informationwhich,atthetimeof disclosure,isgenerallyavailabletothepublic.
c.OwnershipofWorkProduct.AllWorkProduct, as that term is defined in this Section 4.c.,shallbeconsideredwork(s)madebyDirectorforhireforCompanyandshallbelongexclusivelytoCompanyanditsdesignees.Ifbyoperation oflaw,anyoftheWorkProduct,includingallrelatedintellectualpropertyrights,isnotownedinitsentiretybyCompanyautomaticallyuponcreationthereof,thenDirectoragreestoassign,andherebyassigns,toCompanyanditsdesigneesthe ownershipofsuchWorkProduct,includingall relatedintellectualpropertyrights."WorkProduct"shallmeananywritings(includingexcel,powerpoint,emails,etc.),programming,documentation,datacompilations, software, manufacturing of products,reports,andanyothermedia,materials,orotherobjectsproducedas aresultofDirector'sworkordeliveredbyDirectorinthecourseofperformingthatwork.
d.Return ofProprietary Information.Upontermination ofthisAgreement,Directorshallupon writtenrequestbytheCompanypromptlydelivertoCompanyatCompany’ssolecostandexpense,all drawings,blueprints,manuals,specification documents, documentation,source orobjectcodes, tape discs andanyotherstoragemedia, letters,notes,notebooks, reports, flowcharts,andallothermaterials in itspossessionorunderitscontrolrelatingtotheProprietaryInformationand/orServices,aswellasallotherpropertybelongingtoCompanywhichistheninDirector'spossessionorunderitscontrol.Notwithstandingthe foregoing,DirectorshallretainownershipofallworksownedbyDirectorpriortocommencingworkforCompanyhereunder,subjecttoCompany'snonexclusive,perpetual,paiduprightandlicensetousesuchworksinconnectionwithitsuseoftheServicesandany WorkProduct.
e.Remedies/AdditionalConfidentialityAgreements.NothinginthisSection4is intendedtolimitanyremedyofCompany or Directorunderapplicablestateorfederallaw. AttherequestofCompany,Directorshall also execute Company's standard"ConfidentialityAgreement"or similarlynamed agreementassuchagreementiscurrentlyappliedtoandenteredintobyCompany'smostrecentemployees.
5.Miscellaneous.
a.Notices.All notices given under this Agreement shall be in writing and shall be deemed to have been duly given: (a) when delivered personally; (b) three business days after being mailed by first class certified mail, return receipt requested, postage prepaid; (c) one business day after being sent by a reputable overnight delivery service, postage or delivery charges prepaid; or (d) on the date on which a facsimile is transmitted to the parties at their respective addresses stated below. Any party may change its address for notice and the address to which copies must be sent by giving notice of the new addresses to the other parties in accordance with this Paragraph 5.a., except that any such change of address notice shall not be effective unless and until received.
If to the Company:
Agritek Holdings Inc.
319 Clematis Street, Suite 1080
West Palm Beach, FL. 33401
If to Director, to Director’s address as maintained by Company in Director’s personnel file.
b.EntireAgreement.ThisAgreementandanydocumentsattachedheretoasExhibits, including but not limited to Exhibit A, constitutetheentireagreementandunderstandingbetweenthepartieswithrespect tothesubjectmatterhereinandtherein,andsupersedeandreplaceanyandallprioragreementsandunderstandings, whetheroralor written withrespecttosuchmatters.TheprovisionsofthisAgreement maybewaived,altered,amendedorreplacedin wholeorinpartonlyuponthe writtenconsentofbothpartiestothis Agreement.
c.Severability,Enforcement.If,foranyreason,anyprovisionofthisAgreementshallbedeterminedtobe invalidorinoperative,the validityandeffectofthe otherprovisionshereinshallnotbe affectedthereby,providedthat no suchseverabilityshallbeeffectiveifitcauses amaterialdetrimenttoanyparty.
d.GoverningLaw.Thevalidity,interpretation,enforceability,andperformanceofthisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateof Florida.VenueforanyandalldisputesarisingoutofthisAgreementshallbetheCityof Palm Beach,Stateof Florida.
e.InjunctiveRelief.Thepartiesagreethatintheeventofanybreachorthreatenedbreach ofanyofthecovenantsinSection4,thedamageorimminentdamagetothevalueandthegoodwillofCompany'sbusinesswillbe irreparableandextremelydifficulttoestimate,makinganyremedyatlaworindamagesinadequate.Accordingly, thepartiesagree thatCompany shallbeentitledto injunctive reliefagainstDirectorintheeventofanybreach orthreatenedbreach ofanysuchprovisionsbyDirector,inadditiontoanyotherrelief(includingdamages)availabletoCompanyunderthisAgreementorunderapplicablestate andfederallaw.
IN WITNESS WHEREOF, the Company and Director have executed this Agreement as of the date first above written.
| COMPANY: | DIRECTOR: | |
| Agritek Holdings Inc. a Delaware Corporation | ||
| By: __________________________________ | Signature: ______________________ | |
| Name: ________________________________ | Name: Justin Braune | |
ExhibitAtoBoard and EmploymentAgreement
AsamemberoftheBoard of Directors,youshall:
| · | Participate in the daily operations of the Company as CEO and President; |
| · | Participateinmonthlycalls,whichwilllastnomorethan1hour; |
| · | Participatein oneannualfulldayretreat per calendar year; and |
| · | Be accessible to Company to provide guidance on business and technology strategy issues, including patents, business strategy, business alliances, advice and business development. |
Compensation.
1. Base Salary. The Company shall pay to Director base salary compensation at an annual rate of not less than One-hundred Thousand Dollars ($100,000.00). Following the end of the Company’s fiscal year 2015, and annually thereafter, the BOD shall review Director’s base salary in light of the performance of Director and the Company, and may, in its sole discretion, maintain or increase (but not decrease) such base salary by an amount it determines to be appropriate. Director’s annual base salary payable hereunder, as it may be maintained or increased from time to time, is referred to herein as “Base Salary.” Base Salary shall be paid in equal installments in accordance with the Company’s payroll practices in effect from time to time for executive officers, but in no event less frequently than bi-weekly.
2. Commission and Bonus Plan.In addition to Director’s Base Salary (as set forth in Section 1 above), Director shall be paid a monthly bonus equal to at least five percent (5%) of the monthly net sales of the Company (the “Monthly Bonus Payment”) for the immediately preceding month. The Monthly Bonus Payment shall be paid to Director within seven (7) calendar days of the end of each month for which Director has earned the Monthly Bonus Payment. Director shall have the option to receive the Monthly Bonus Payment in the form of a cash payment or Company stock equal in value to the amount of the Monthly Bonus Payment earned under this Section 2. The price of Company stock for purposes of this Section 2 shall be calculated based on the average fair market value of the Company stock for the month during which the Bonus Payment was earned. Director shall receive the Monthly Bonus Payment in the form of a cash payment under this Section 2 unless Director provides Company with written notice that the Monthly Bonus Payment should be paid in the form of Company stock. Such notice must be provided to Company no later than five (5) calendar days before the Monthly Bonus Payment is due and payable under this Section 2. If such notice is provided less than five (5) calendar days before the Monthly Bonus Payment is due, the Company shall pay the Monthly Bonus Payment in cash.
3. Issuance of Company Stock. In addition to Director’s Base Salary (as set forth in Section 1 above) and the Monthly Bonus Payments (as set forth in Section 2 above), the Company will grant to Director fifteen million (15,000,000) shares of the Company’s common stock in Director’s name to be held in escrow for the benefit of Director (the “Company Common Stock”). The Company Common Stock will vest, and the Company will release the Company Common Stock to Director, in accordance with the following vesting schedule:
| a. | Company shall release to Director five million (5,000,000) shares of Company’s Common Stock, and such shares shall immediately vest in favor of Director, on the six-month anniversary of this Agreement (e.g., September 15, 2015); and |
| b. | Company shall release to Director the remaining ten million (10,000,000) shares of the Company’s common stock, and such shares shall immediately vest in favor of the Director, on the 12-month anniversary of this Agreement (e.g., March 15, 2016). |
4. Participation in Company Stock Option Plan. In addition to Director’s Base Salary (as set forth in Section 1 above), the Monthly Bonus Payments (as set forth in Section 2 above) and the Issuance of Company Stock (as set forth in Section 3 above), Director shall be eligible to participate in any stock option plan maintained by the Company and available to other Company employees. Any stock options granted to Director under this Section 4 will be subject to the terms and conditions applicable to stock options granted under the Company’s stock option plan, as described in that stock option plan and the applicable stock option agreement.