Exhibit 10.1
AGRITEKHOLDINGS INC.EMPLOYMENTAND
BOARD OF DIRECTORSAGREEMENT
THIS EMPLOYMENTAND BOARD OF DIRECTORSAGREEMENTis madeeffectiveas of December 11th, 2018,(the "EffectiveDate")by and between AgritekHoldings Inc.aDelaware Corporation and publicly tradedCompany(the "Company") under thesymbol"AGTK"andSuneil Singh Mundie(the"Employee"or"Director").
RECITALS
A.Companydesiresto obtain theservicesofEmployeetoserveon the Company's Board of Directors("BOD")and as Interim Chief Executive Officer("CEO")andPresidentoftheCompanyand theEmployeedesiresto serve on the BOD and fulfill the duties as CEO andPresidentuponthefollowingterms andconditions.
B.Company has spentsignificanttime, effort,andmoneyto developcertainProprietary Information(asdefinedbelow),which Companyconsidersvitalto its business andgoodwill.
C. The Proprietary Information may necessarilybe communicated to orreceivedby Director in thecourse of serving on the BOD for theCompany orinthecourseof serving as CEO andPresident of theCompany,andCompany desirestoobtain theservices ofDirector,only if,indoingso,itcanprotectitsProprietary Informationand goodwill.
D.Companydoesnot,however,desiretoreceive from Director,orforDirector toeither inducethe useof orusein connectionwith the performance ofhisdutiesastheCEO andPresidentof the Company or as amember ofthe Company's BOD, any informationwhichisconfidentialto orownership of whichresides ina thirdparty,whether acquired either priorto orsubsequent toDirector's retention hereunder.
AGREEMENT
NOW, THEREFORE,thepartiesheretoherebyagree asfollows:
1.BoardMember,CEO and President.Companyhereby retains Director toserveon its Boardof Directorsand toserve as the InterimCEOand President ofthe Company. Theterm ofthisAgreement(the "Term") shall be the period commencing ontheEffectiveDate for six (6) monthsand terminatingupon ninety(90)days priorwritten noticedeliveredbyeither partytotheother foranyreason,subject tothe By-Laws of theCorporation. Uponanytermination oftheServicesasprovidedin thisSection1,thisAgreementshallterminateexceptthattheprovisionssetforthinSection2band Section4 ofthisAgreementshall survive suchtermination.
2. | Position, Duties, Responsibilities. |
a. Directorshallhavetheauthorityand duty to manageand conductthe business of theCompany and such other dutiesandresponsibilitiesasreasonably requested bytheCompany,including but not limited to theServicesdescribed in Exhibit A attachedhereto("Services").Directorshalldevote Director'scommerciallyreasonableeffortsand attentionto the performanceof theServices for theCompany on atimelybasis.Directorshallalsomakehimselfavailableto answer questions,speakwithshareholders,provideadviceandprovide ServicestotheCompanyupon reasonable requestandnotice from theCompany. Director shallperform hisdutiesfaithfully anddiligently andshall abideby the policiesof the Company andanychanges tothemthat maybeadopted by the Company, exceptto theextentinconsistentwith theterms ofthisAgreement.
b. NoConflict.Itis understoodandagreed, and it istheintention of the parties hereto, that Director is an officerandemployeeof theCompanyandnot an agent,jointventurer,or partner of the Company forany purposes whatsoever.Director isskilled in providing the services identified in this Agreement.To theextent necessary,Directorshall besolely responsiblefor anyandall taxes related to the receipt ofanyequitycompensation under thisAgreement.Director hereby represents,warrants and covenantsthatDirectorhastheright, powerandauthoritytoenterinto this Agreement and that neither the executionnordeliveryof thisAgreement,northeperformance oftheServices by Directorwillconflictwithor resultina breach of theterms,conditionsorprovisions of, orconstitutea defaultunder,any contract,covenantorinstrumentunderwhich Directorisnow or hereinafter becomes obligated.
Director agrees todeliver such furtheragreements andotherinstrumentsas Companymay reasonably request togive effecttothisSection 4.
3. | Compensation, Benefits,Expenses. |
a. Compensation.Asfullandcompleteconsiderationofthe Services to be renderedhereunder,theCompanyshall payEmployeetheCompensationdescribedonExhibit A attached to and incorporated inthisAgreement.
b. ReimbursementofExpenses.Companyshallpromptly reimburseDirectorfor any reasonablecosts and expensesincurredbyDirectorinconnection withany Servicesspecificallyrequested byCompanyandactuallyperformedby Director pursuantto the terms of this Agreement. Eachsuchexpenditure or costshallbe reimbursedonly if:(i)withrespectto costs inexcess of$2,500,individually, Director receives prior approvalfrom theCompany'sChiefFinancial Officer or other executive forsuchexpenditure or cost,and(ii)with respect to costs less than$I00,individually,provided Director furnishes to Company adequate recordsandotherdocumentsreasonably acceptabletoCompanyevidencingsuch expenditure or cost.
4. | ProprietaryInformation;WorkProduct; Non-Disclosure. |
a. Defined.Companyhas conceived,developedandowns,andcontinuestoconceive anddevelop,certain propertyrightsandinformation,includingbut notlimitedtoits businessplansandobjectives,client andcustomerinformation,financialprojections,marketingplans,marketingmaterials,logos,anddesigns, andtechnicaldata,inventions,processes,know-how,algorithms,formulae,franchises,databases,computer programs,computersoftware,user interfaces,source codes,objectcodes, architecturesandstructures,displayscreens,layouts,developmenttoolsand instructions,templates,and other tradesecrets,intangibleassetsandindustrialor proprietary propertyrightswhichmayormaynotberelateddirectlyor indirectlytoCompany'sbusinessandalldocumentation,mediaorothertangibleembodimentof orrelatingtoany of the foregoingand all proprietaryrights thereinofCompany(allof whicharehereinafter referred toasthe"ProprietaryInformation").Furthermore,the factthatvariousfragmentsofinformationordatamaybegenerallyknownintherelevantindustrydoesnotmean that the mannerinwhichCompanycombines them,and theresultsobtainedthereby,areknown.Insuchinstance,that would alsocompriseProprietaryInformation.
b. GeneralRestrictionson Use.Director agreestoholdallProprietary Informationinconfidence andnot to,directlyorindirectly,disclose,use,copy,publish,summarize,orremovefromCompany'spremises anyProprietaryInformation (orremove from thepremisesany otherproperty ofCompany),except(i)totheextentauthorizedandnecessarytocarry out Director'sresponsibilitiesunderthisAgreement,and(ii)after termination of thisAgreement,onlyas specificallyauthorizedinwritingbyCompany. Notwithstanding theforegoing,suchrestrictionsshall notapplyto:(i)informationwhichDirectorcanshow wasrightfullyinhispossessionatthetimeof disclosure byCompany;(ii)informationwhichDirectorcanshowwas received froma thirdpartywholawfullydeveloped the information independently of Companyorobtainedsuchinformation fromCompanyunderconditionswhich didnot requirethatitbeheldinconfidence; or(iii)information which,atthetimeofdisclosure,isgenerallyavailableto thepublic.
c. OwnershipofWorkProduct.AllWork Product,asthattermisdefinedin thisSection4.c.,shallbe consideredwork(s) madebyDirectorforhireforCompanyandshall belongexclusivelytoCompanyanditsdesignees.Ifbyoperation oflaw, any oftheWorkProduct,including all relatedintellectualproperty rights,isnotowned in itsentiretybyCompany automaticallyupon creationthereof,thenDirectoragreesto assign,andherebyassigns,toCompany anditsdesigneestheownershipof suchWorkProduct,including all relatedintellectualpropertyrights."Work Product"shallmeananywritings (includingexcel,powerpoint,emails,etc.),programming,documentation,data compilations,software,manufacturing o f p r o d u cts,reports,andany othermedia,materials,orotherobjectsproducedas aresultofDirector'sworkordeliveredbyDirectorin thecourseofperformingthatwork.
d. Return ofProprietary Information.Upon termination ofthisAgreement,Directorshalluponwrittenrequest by theCompanypromptlydelivertoCompanyatCompany'ssolecostand expense, alldrawings,blueprints,manuals,specificationdocuments,documentation,source orobjectcodes,tapediscs and anyotherstoragemedia,letters,notes,notebooks,reports,flowcharts,andallothermaterialsin itspossessionorunderitscontrolrelatingto the ProprietaryInformationand/orServices,aswellas allotherpropertybelongingtoCompanywhichistheninDirector'spossessionorunderits control.Notwithstandingtheforegoing,Directorshall retain ownershipof allworksowned byDirectorpriortocommencingworkforCompanyhereunder,subject to Company’s nonexclusive, perpetual,paiduprightand licensetouse such worksinconnection withitsuse oftheServicesandanyWorkProduct.
e. Remedies/AdditionalConfidentiality Agreements.NothinginthisSection 4isintendedtolimitany remedyofCompanyorDirector underapplicablestateor federallaw.AttherequestofCompany,Directorshallalso executeCompany'sstandard"ConfidentialityAgreement"orsimilarlynamedagreementas suchagreementiscurrentlyapplied toandenteredintobyCompany'smostrecentemployees.
s. | Miscellaneous. |
a. Notices.All noticesgivenunderthisAgreementshallbeinwritingandshallbedeemed tohavebeendulygiven:(a)whendeliveredpersonally;(b)threebusinessdaysafterbeingmailedbyfirst classcertifiedmail, returnreceiptrequested,postageprepaid;(c)onebusinessdayafter being sentbyareputableovernightdeliveryservice,postageor deliverychargesprepaid;or(d)onthedateonwhichafacsimileistransmittedtothepartiesattheirrespectiveaddresses statedbelow.Anyparty may changeits addressfornotice andtheaddress towhichcopiesmustbesentbygivingnoticeof thenewaddressestotheotherpartiesinaccordancewiththisParagraph5.a.,exceptthat anysuchchangeof addressnoticeshallnot beeffective unless and u until received.
If to the Company:
AgritekHoldingsInc.
777 Brickell Avenue
Suite 500
Miami, Florida 33131
If to Director,toDirector'saddressasmaintained by Companyin Director's personnelfile.
b. EntireAgreement.ThisAgreementand anydocumentsattachedhereto asExhibits,includingbut notlimitedtoExhibitA,constitutetheentireagreementandunderstandingbetween thepartieswith respect to thesubject matterhereinandtherein,andsupersedeandreplaceanyandallprioragreementsandunderstandings,whetheroralorwrittenwithrespecttosuch matters.Theprovisionsofthis Agreementmaybewaived,altered,amendedorreplacedinwholeor in part onlyuponthewrittenconsent of bothpartiestothisAgreement.
c. Severability,Enforcement.If,for anyreason,anyprovisionofthisAgreementshallbedeterminedtobe invalidorinoperative,thevalidityandeffect oftheotherprovisionshereinshallnotbe affected thereby,providedthat nosuchseverabilityshallbeeffectiveifitcausesa materialdetrimenttoanyparty.
d. GoverningLaw.The validity,interpretation,enforceability,andperformance of thisAgreementshallbegovernedbyand construed in accordance with thelaws of the Stateof Florida. Venue for any and all disputesarisingoutofthis Agreement shallbethe City ofMiami, Stateof Florida.
e. InjunctiveRelief.Theparties agreethat in the eventofanybreach or threatened breach ofany ofthecovenants in Section4, thedamageorimminent damage to thevalue and the goodwillofCompany's businesswillbeirreparableandextremelydifficulttoestimate, making any remedyatlaw or in damagesinadequate.Accordingly,thepartiesagree thatCompanyshall beentitled toinjunctive relief against Director intheeventofanybreachor threatenedbreach of anysuchprovisionsby Director,in addition toanyotherrelief(includingdamages)availabletoCompany underthis Agreementor underapplicablestateand federallaw.
IN WITNESSWHEREOF,theCompanyand Directorhaveexecuted thisAgreement as ofthe date firstabovewritten.
COMPANY:
AgritekHoldingsInc. aDelaware Corporation
By: B. Michael Friedman__
EMPLOYEE/DIRECTOR:
By: Suneil Singh Mundie
Signature:_____Signature:___________________________________
Exhibit A to Board and EmploymentAgreement
As the Chief Executive Officer, President and asamemberof the Board of Directors,youshall:
• | Participate in the daily operations oftheCompanyas CEOandPresident; |
• | Participatein monthly calls,whichwilllastno morethan1hour; |
• | Participate inone annual full day retreat per calendar year; and |
• | Be accessible toCompanytoprovide guidance on business andtechnologystrategyissues, includingpatents,businessstrategy,businessalliances, advice and business development. |
Compensation.
1. | Base Salary.The Company shall pay to Employee base salary compensation at an annual rate of not less than Ninety Thousand Dollars ($90,000.00US). Following the end of the Company's fiscal year 2018, and semi-annually thereafter, the BOD shall review Employee's base salary in light of the performance of Employee 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. Employee'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.Commissionand BonusPlan.In addition toEmployee'sBase Salary(asset forthinSection1 above),Employeeshallbepaidamonthlybonusequal to atleastfivepercent(5%) ofthemonthlynetsalesof theCompany (the"Monthly BonusPayment")for theimmediately precedingmonth.The Monthly Bonus Paymentshallbe paidtoEmployeewithinseven (7) calendar days of the end ofeach month for which Employee has earnedthe MonthlyBonus Payment.Employeeshall havethe option toreceive the Monthly BonusPaymentin theform of a cash paymentorCompanystock equal in valueto theamountof the MonthlyBonusPayment earned underthis Section2. Theprice ofCompanystockforpurposesofthisSection2shallbe calculated basedontheaverage fair marketvalueofthe Companystockforthe monthduringwhichtheBonus Paymentwasearned. Employee shall receive theMonthlyBonusPayment in theform of acash payment under this Section2unlessEmployeeprovidesCompanywith written noticethat theMonthly BonusPayment shouldbepaid inthe form ofCompanystock. Suchnoticemustbeprovidedto Company nolaterthanfive (5) calendar days beforethe MonthlyBonus Paymentis due andpayableunderthis Section2. Ifsuchnotice is not provided less than five(5) calendar daysbeforethe Monthly Bonus Paymentis due,theCompany shall pay the MonthlyBonusPayment in cash.
3. | IssuanceofCompany Stock.In addition to Employee's Base Salary (as set forthinSection 1 above)andthe Monthly BonusPayments(asset forthin Section 2 above), the Company will grantto Employeefifteenmillion(15,000,000) sharesof theCompany's common stockin Employee'snameto be held in escrow forthebenefitofEmployee(the"CompanyCommonStock"). TheCompanyCommon Stockwillvest, andtheCompany willreleasetheCompanyCommonStock to Employee,inaccordancewiththe following vesting schedule: |
a. | Companyshallrelease to Employeefivemillion(5,000,000) shares of Company's Common Stock, andsuch shares shallimmediately vest in favor of Employee, onthesix-monthanniversaryof thisAgreement(e.g.,June12,2019); and |
Companyshallreleaseto Employeetheremaining ten million (10,000,000)sharesof theCompany’s commonstock, andsuchsharesshall immediately vest in favor of the Employee, if the Employee is the Interim CEO or CEO of the Company on December 15, 2019.
4. Participation inCompany Stock Option Plan.InadditiontoEmployee's Base Salary (assetforth in Section 1above), the MonthlyBonusPayments(as set forth in Section2above) and the issuance ofCompanyStock(as setforthin Section 3above), Employee shallbeeligibleto participate inanystock option plan maintainedbytheCompanyand availableto other Companyemployees. Any stock options granted to Employeeunderthis Section 4willbe subject to theterms and conditions applicable to stock options granted under theCompany'sstock option plan,asdescribedin thatstockoption planand theapplicable stock option agreement.