Exhibit 10.6
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EmploymentAgreement
CathrynJ. Kennedy
Partyseekingtobeindemnifiedinconnectionwithanyproceeding,demandforpaymentor litigation.Thisindemnificationshallbebinding ontheheirs,personal representatives,successorsandassignsofthePartiesandshallcontinueindefinitely.
17.Attorney'sFees.Shouldanylitigationbecommencedbyanythird-partyagainstthe executivetheCompanywillshallbeobligatedtopayall legalfeesincurredbytheExecutive forher defense.
18.JurisdictionandServiceofProcess.TheCompanyandExecutivefurtheragreethatserviceofprocessonthemmaybemadebypersonalserviceorbycertifiedorregisteredmaiI,return receiptrequestedinaccordancewiththenoticeprovisionsetforthinSection9.Serviceofprocessshallbedeemedeffectiveupon receipt.
19.ModificationandWaiver.ThisAgreementmaybeamended,modified,supersededorcanceled,andthetermsorcovenantshereofmaybe waived,onlyby awritteninstrumentexecutedbybothof thePartieshereto,orinthe caseofawaiver,bythePartywaivingcompliance.ThefailureofeitherPartyatanytimeortimestorequireperformance of anyprovisionhereofshallinnomanner affecttherightofsuchPartyatalater timeto enforcethesame.No waiverbyeither Party ofthebreachofanytermorcovenantcontained inthis Agreement,whetherbyconductorotherwise,inanyoneormoreinstances,shallbedeemedtobe,orconstruedas,afurtherorcontinuingwaiverof any suchbreachorawaiverofthebreachof any othertermorcovenantcontained in thisAgreement.
20.EntireAgreement.ThisAgreementconstitutestheentireAgreementofthePartieswithrespecttothesubjectmatterhereofandsupersedesany andallagreements,understandings,statements,or representationseitheroralor inwriting.
INWITNESSWHEREOF,theundersignedhave executedthisAgreementasofthedatefirst abovewritten.
COMPANY: | EXECUTIVE: | ||
GROWBOXSCIENCES | CATHRYNJ.KENNEDY | ||
/s/ Craig Ellins | /s/ CathrynJ.Kennedy | ||
Signature | Signature | ||
CEO | CFO | ||
Title | Tile |
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EmploymentAgreement
CathrynJ.Kennedy
12.Waivers.Thewaiverbyeitherpartyheretoofabreachorviolationofanytermor provision of this Agreement shallnot operatenor be construed asa waiverof anysubsequent breach orviolation.
13.Damages.Nothingcontainedherein shallbe construedtopreventtheCompanyorthe Executivefromseekingandrecoveringfromtheotherdamages sustainedby either orbothof them as a result of its or her breachof any term or provisionof thisAgreement.
14.NoThird-PartvBeneficiarv.NothingexpressedorimpliedinthisAgreementisintended orshallbeconstruedtoconferuponorgiveany person(otherthantheParties hereto, and,inthe caseof Executive,herheirs,personal representative(s) and/or legal representative) any rights or remedies underor byreasonof thisAgreement.
15.ConflictswithCertainExistingArrangements.TheCompanyagreesthatifshallnot hereafteracquirea"ConflictingOrganization"orotherwiseexpand itspresent business activities suchthat Executive couldreasonably expectedtobedeemedin breachorviolation ofsuchnon competitioncovenants,and it shall indemnify and hold harmless theExecutive from any and all damages that Executive mayhereafter suffer or incur byreason ofany suchCompanyacquisition orexpansionof business afterthedate hereof.
16.Indemnification.TheCompanyfullyreleases,acquitsandforeverdischargesExecutive ofandfrom anyandallknownandunknownclaimsfordamages,costs, expenses,liabilities, causesofaction, claims forreliefandsuits fordamagesarisingoutof anystate orfederal action concerning thevalidity and legality ofthe Company oritsBoard'sday-to-dayoperations inthe dispensing of medicalmarijuanaand the further research anddevelopment ofmedicalmarijuana anditsvaried uses.ThePartiesfurtheragree to indemnity oneanother from any andallclaims or actionsofthird parties arisingoutofor relatedto the matterssetforth inthe Recitals that are due to negligenceormisconduct of aParty assertedagainstthe other Party unless such otherParty is alsoguilty of negligenceor misconduct. Thisindemnification provision shallapply to any actions oromissions (regardlessofthe date of anysuch actionoromission),to the extent permittedby law,againstall expense,liability andloss reasonably incurred orsufferedby the
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EmploymentAgreement
CathrynJ. Kennedy
If to the Company: | GrowbloxSciences,Inc. |
6450CameronSt. Suite110A
LasVegas,NV89118
If to the Executive: | CathrynKennedy |
1123ScenicCrestDr.
Henderson,NV89052
With a Copy to: | Gerald F.Neal,Esq. |
1125ShadowLane
LasVegas,NV89102
ortosuchotheraddressesaseitherpartyheretomayfromtimetotimegivenoticeof tothe other in the aforesaidmanner.
10.Successors.
10.1ThisAgreementispersonaltotheExecutiveandwithoutthe priorwrittenconsent oftheCompanyshallnotbeassignablebytheExecutiveotherwisethanby will or thelaws of descent anddistribution. ThisAgreement shallinure tothe benefitofandbe enforceable bythe Executive's legal representatives.
10.2This AgreementshallinuretothebenefitofandbebindingupontheCompany anditssuccessorsandassigns.
10.3TheCompanywilluseitsbesteffortstorequireanysuccessor(whetherdirector indirect,bypurchase,merger,consolidationorotherwise)toallor substantially allof the businessand/or assets ofthe Companyto expresslyassumeandagree to perform thisAgreement in the same manner and tothe sameextent thatthe Company would berequiredtoperformitif no suchsuccession had takenplace.Asused in this Agreement, "Company" shallmean the Company ashereinbefore definedandany successorto its businessand/orassets whichassumes and agreestoperform this Agreementbyoperation oflaworotherwise.
11.Severabilitv.Theinvalidityofanyoneormoreofthewordsphrases,sentences,clauses orsectionscontainedinthisAgreement shall not affect the enforceability of theremaining portions ofthis Agreementor any part thereof, all ofwhichareinserted conditionally on their beingvalid in law,and,in the event that anyoneormore ofthewords, phrases, sentences, clauses orsections contained in thisAgreement shall be declared invalid, this Agreement shall be construedasif such invalidword orwords, phraseorphrases,sentence or sentences, clauseor clauses, or section or sections had not been inserted. If such validityis caused by lengthoftime orsize ofareaorboth, theotherwiseinvalid provisionwill be considered tobe reducedto a period or areawhich would cure such invalidity.
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EmploymentAgreement
CathrynJ. Kennedy
confidenceandasafiduciaryandExecutiveshallremainafiduciarytotheCompanywithrespect toallofsuchinformation.ForpurposesofthisAgreement,"ConfidentialInformation" means all material information about the Company's business disclosedto the Executiveorknown by the Executiveasa consequence of or throughhis employmentby the Company (including information conceived,originated,discovered ordevelopedbythe Executive) after the date hereof,and not generally known. This restrictive covenant does notapply toany positions performed outside the limitedscopeof the medical marijuana business.
6.2NonsolicitationofEmployees.WhileemployedbytheCompanyandforaperiod ofsix(6)monthsthereafter,Executiveshall not directly or indirectly,forherself or foranyother person, firmcorporation, partnership, association orother entity,attemptto employ or enterinto anycontractual arrangementwith any employee orformeremployee ofthe Company,unless such employee or formeremployeehas not been employedby theCompany for a period inexcess of six(6)months.
6.3Injunction.ItisrecognizedandherebyacknowledgedbythePartieshereto thata breachbytheExecutiveof any of thecovenantscontained in Sections 6.1, 6.2or 6.3of this Agreement will cause irreparable harm anddamageto the Company, themonetary amount of whichmaybe virtually impossible toascertain. Asaresult, theExecutiverecognizesandhereby acknowledgesthat theCompany shallbe entitledtoan injunction fromanycourt ofcompetent jurisdiction enjoining andrestrainingany violation of any or all of thecovenantscontainedin this Section 6 by theExecutive orany ofher affiliates, associates, partnersoragents, either directly or indirectly, and that such right to injunctionshall be cumulativeand in additionto whatever other remedies theCompany maypossess.
7.OtherMatters,
7.1ElectionofExecutiveasDirector.Contemporaneouslyherewith,the Boardis appointingExecutivetofillthepositionofaDirector.Forsolong as the Executive continuesto serveas the Company's Chief FinancialOfficer, the Companyshall causethe nominationof the Executive as aDirectorateach stockholder meetingatwhichelection ofdirectors is considered andotherwise us its best efforts tocause theelectionof the Executive asaDirector of the Company.
8.GoverningLaw.ThisAgreementshallbe governedbyand construedinaccordancewiththelawsoftheStateofNevada.
9.Notices.AnynoticerequiredorpermittedtobegivenunderthisAgreementshallbein writingandshallbedeemedto have beengivenwhen deliveredby hand or whendepositedin the UnitedStates mail,by registered or certified mail, return receiptrequested, postage prepaid, addressedas follows:
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EmploymentAgreement
CathrynJ. Kennedy
5.ChangeinControl.ForpurposesofthisAgreement,a"ChangeinControl" shallmean:
(a)Theacquisition,otherthanby orfromtheCompany,atanytimeafterthe datehereof,by anyperson,entity orgroup within the meaningof Section 13(d)(3) or 14(d)(2)of the Securities ExchangeAct of 1934 (the"Exchange Act") ofbeneficial ownership, within the meaning ofRule 13d-3promulgated underthe ExchangeAct,of 50% ormoreofeither thethen outstanding shares ofcommon stockorthe combinedvoting power ofthe Company's then outstanding votingsecuritiesentitled tovote generallyin the election ofdirectors;
(b)All oranyoftheindividualswho,asofthe datehereof,constitutetheBoard (as ofthedatehereofthe "incumbent board")ceasefor any reasontoconstituteat leasta majorityoftheBoard,provided that any person becoming a director subsequentto thedate hereofwhose election ornomination for election by the Company'sshareholders, was approved by a vote by at leasta majority of thedirectorsthen comprising theincumbent board (other than an election ornomination ofan individualwhoseinitial assumption of officeis inconnection with an actual or threatened election contest relating to theelection of thedirectorsofthe Company,assuch terms areused in Rule 14a-l1 ofRegulation 14Apromulgated under the ExchangeAct) shallbe, for purposes of thisAgreement, consideredas thoughsuchpersonwere a memberoftheincumbentboard; or
(c) ApprovedbythestockholdersoftheCompanyof(1),areorganization, mergerorconsolidationwith respecttowhichpersonswhoweretheshareholders ofthe Companyimmediatelyprior tosuch reorganization, mergerorconsolidation donot,immediately thereafter, own more than 50% ofthecombinedvoting power entitled tovote generally inthe election of directorsof the reorganized,merged orconsolidated Company's then outstanding voting securities, (2)a liquidation ordissolutionof theCompany,or (3) thesale ofall or substantiallyall ofthe assets ofthe Company,unlesstheapprovedreorganization, merger, consolidation,liquidation, dissolution or sale issubsequently abandoned.
(d)Theapprovalbythe Boardofthesale,distribution and/orothertransferor action(and/orseriesofsales,distributionsand/orothertransfersor actionsfromtimetotime or overaperiod of time),then resultsin the Company'sownershipoflessthan 50% ofthe Company'sassets.
6.RestrictiveCovenants.
6.1Nondisclosure.Duringheremploymentandforsix(6)monthsthereafter, Executiveshallnot divulge,communicate,usetothedetrimentoftheCompany orforthebenefit ofany other person orpersons, ormisuse in anyway, any ConfidentialInformation (as hereinafterdefined) pertaining tothe businessof theCompany. Any confidential information now orhereafter acquiredby theExecutive with respect to the business oftheCompany shall be deemed a valuable, special and uniqueassetoftheCompany that is received by the Executive in months ofExecutive'sbase salary.
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EmploymentAgreement
CathrynJ. Kennedy
4.4TerminationWithoutCause.AtanytimetheCompanyshallhavetherightto terminateExecutive'semployment hereunderbywrittennoticeto Executive; provided,however, that theCompany shallpay to Executive ina lump sumwithin thirty(30) daysanamount equal to six (6) months salary calculatedat thecurrent pay rate. The Companyshallbedeemedto haveterminated the Executive's employment pursuanttothis Section ifsuch employment is terminated by the Company without cause or by theExecutivevoluntarily for "good reason". For purposes of this Agreement, "good reason"means thefollowing:
(a)TheassignmenttotheExecutiveofanydutiessignificantlyinconsistentin anyrespectwiththeExecutive'sposition(includingstatus,offices,titlesandreporting requirements), authority,duties or responsibilities ascontemplated by Section 1.2 of this Agreement,oranyother actionby theCompany whichresultsinasignificantdiminution insuch position, authority, dutiesor responsibilities, excludingforthispurpose an isolated, insubstantial and inadvertentactionnottaken in bad faithand which is remedied by theCompany promptly afterreceipt of notice thereofgiven by the Executive;
(b)AnyfailurebytheCompanytocomplywithanyoftheprovisionsofSection
2,Section3,Section7orSection17ofthisAgreement,otherthananisolated,insubstantialand inadvertentfailurenot occurring in bad faith andwhich is remediedby the Company promptly after receiptof noticethereofgivenby the Executive;
(c)Anypurportedtermination bytheCompanyoftheExecutive'semployment otherwisethanasexpresslypermittedbythisAgreement;
(d)AnyfailurebytheCompanytocomplywithandsatisfySection10ofthis Agreement; or
(e)AnyterminationbytheExecutiveforanyreasonduringthethree-month periodfollowing theeffectivedateofany"change in control".
Inaddition tootherrightstheExecutivehaspursuanttothisSection4.4,iftheExecutive isterminatedbytheCompanypursuanttothis Section 4.4,orif theExecutive terminates her own employment for "good reason" pursuantto Section 4.4(e) withregard to "change in control", if on thedate of terminationthe Executivehas worked for theCompany less thanthree years from thedateof this Agreement, the Executive shall be entitledtoreceive thesharesofstock she would havereceived under Section 2.2 ifshe had been employed fora full three years from the date of this Agreement.
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EmploymentAgreement
CathrynJ. Kennedy
andbenefits.Youwillbeentitledtowhateverbenefitsmaybeprovidedtoyouinaccordance withthetermsoftheseplansandbenefitsasamendedfromtimetotime.
3.4MandatoryLeaveofAbsence.IntheeventExecutiveisplacedonleaveof absence,Executiveshallcontinuetobe paidhersalaryandstock asdescribed in 2.1 and2.2 of thisAgreement.
4.Termination.
4.1TerminationforCause.Notwithstandinganythingcontained tothecontraryinthis Agreement,thisAgreementmaybeterminatedbytheCompanyforCause.Asused inthis Agreement, "Cause" shallonlymean anactoracts of personal dishonesty takenbythe Executive andintended toresult in substantial personalenrichmentof theExecutiveattheexpenseof the Company.Repeatedviolation by the Executiveof the Executive's material obligations underthis Agreementwhich are demonstrably willful anddeliberate ontheExecutive's part andwhichare not remediedin a reasonable periodof timeafter receipt of written notice from the Company or theconvictionof theExecutiveforany criminalactwhichisa felonymay because for termination. For purposeof the preceding sentences, criminal acts shallnotincludeany acts that violateanyU.S. Federal laws or statelaws that arerelated in anyway to cannabis.Upon avalid determinationbythe Company's Boardof Directorsofanystate that causeexistsunderthe preceding sentences,the Companyshallcause a special meeting of theBoard to becalledand held at a time mutuallyconvenient to theBoardandExecutive, butin noeventlater thanten(l0) businessdays afterExecutive's receipt ofadequatenotice. TheExecutiveshallhave the rightto appear before such specialmeetingof the Boardwithlegal counselof her choosing to refuteany determinationofcausespecifiedin such noticeand any termination of Executive's employment by reasonofsuch cause. Determination shall not beineffect until Executiveis afforded such opportunityto appear.Any termination forcause shall be madein writing toExecutive.The noticeshallsetforthin detailall acts or omissionsupon whichthe Company is relyingfor suchtermination. Upon anytermination pursuanttothis Section, theExecutiveshallbeentitledtobe paid her base salary to the date of termination.
4.2Disability.NotwithstandinganythingcontainedinthisAgreementtothecontrary, theCompany,bywrittennoticetotheExecutive,shallatalltimeshavetherighttoterminatethis Agreement, and theExecutive'semployment hereunder,if the Executiveshall,as theresultof mentalor physical incapacity, illness ordisability,fails toperformher dutiesandresponsibilities provided forherein fora period of more than sixty (60) consecutivedaysinany 12-monthperiod. Uponany termination pursuanttothis Section, 4.2,the Executive shallbeentitledtobe paidher basesalary tothedateof termination, plus six(6)months of Executive's base salary.
4.3Death.IntheeventofthedeathoftheExecutiveduringthetermofher employmenthereunder,theCompanyshallpaytotheestateofthedeceased Executive anamount equal tothesum of(1) any unpaidamountsofher base salarytothedate ofher death,plus six (6) personal investments, solong as suchactivities do notsignificantlyinterferewiththe performanceoftheExecutive's responsibilitiesas anemployeeofthe Companyin accordance withthis Agreement.
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EmploymentAgreement
CathrynJ. Kennedy
1.3PlaceofPerformance.InconnectionwithheremploymentbytheCompany,the Executiveshallbebasedatthe Company'sprincipal executive officesin LasVegas, NVexcept for travelreasonably necessary inconnection with the Company'sbusiness, orasotherwise agreed bythe parties.
2.Compensation.
2.1BaseSalary.CommencingontheeffectivedateofthisAgreement,theExecutive shallreceiveabasesalaryof$8,500 for three (3) months ending02/18/15;$10,000 for the next three(3) monthsto05/15115;thereafter, $13,333 until Executive'snext annualraise at06/15/16.Executive'sannual salary willbe raised on06/15/16to $170,000per year andon06/15117to $180,000 peryear.
2.2Restricted StockGrant. AscompensationforenteringintothisAgreement,the CompanyherebygrantstotheExecutive100,000sharesofthecommonstock oftheCompany that is currently tradedon theOver-the-Counter Bulletin Board under thesymbol, "GBLX". Certificatesrepresenting 100,000 sharesofthe stock shall transfertotheExecutiveuponsigning of thisAgreement. 100,000 shares ofthe stock shall transfer to the Executiveon thefirst anniversary oftheexecutionofthisAgreementand300,000sharesofstockshall transferto the Executive on the second anniversary of the executionof this Agreement. Thestockis restricted asdefinedby theRulesandRegulations promulgatedunder the Securities Actof 1933, as amended.
3.Expenses.ReimbursementandotherBenefits.
3.1ExpenseReimbursement.DuringthetermExecutive'semploymenthereunder,the Companyuponthesubmissionofreasonablesupportingdocumentation by the Executive, shall reimburse the Executiveforallreasonable expensesactually paid orincurred by theExecutivein the course of andpursuantto the business of theCompany, includingexpensesfortraveland entertainment.
3.2Vacation.Duringtheinitialtermofoneyear,theExecutiveshallbeentitledto paidvacationinaccordancewiththemost favorable plans, policies,programs andpractices of the Company asineffectat anytimehereafterwithrespecttootherkeyexecutives of the Company provided,however,that in no event shallExecutive beentitledto fewerthanthree weeks paidvacationperyear.
3.3BenefitPlans.TheCompanyprovidesits executivescertainemployeebenefitplans andfringebenefits.Companyreservestherighttoamend,modifyor terminate anyoftheseplans
EMPLOYMENTAGREEMENT
ThisEmploymentAgreementisenteredintoonthis18dayofNovember,2014,byand between GROWBLOXSCIENCES,INC.,aDelaware corporation,(hereinafter "Company") and CATHRYNJ.KENNEDY, (hereinafter ''Executive''), allof whomare collectively referred to herein as''theParties" .
RECITALS
WHEREAS,theBoardofDirectorsoftheCompany,(hereinafter"Board"),desirestoassurethe Companyof theExecutive'scontinuedemploymentinanexecutivecapacityand to compensate her therefore.
WHEREAS,theBoardhasdeterminedthatthisAgreementwillenforceandencouragethe
Executive'scontinuedattentionanddedicationtotheCompany.
WHEREAS, theExecutiveiswillingtomakeherservicesavailabletotheCompanyontheterms andconditionshereinaftersetforth.
AGREEMENT
NOWTHEREFORE,inconsiderationofthemutualpremisesandmutualcovenantsherein,the
Partiesheretoagreeasfollows:
1.Employment.
1.1EmploymentandTerm.TheCompanyherebyagreestoemploytheExecutivewith astartdateofNovember 18, 2014.TheExecutive was promotedto Chief FinancialOfficer on December 06, 2014, and in such capacity,Executive agrees toprovide servicesto the Corporation for the employment period beginning on November 18, 2014 and ending December 06,2017,thetermination date,or suchlater date as may beagreed to by theParties within 120 days prior to the termination date.
1.2DutiesofExecutive.TheExecutiveshallserveasthe ChiefFinancialOfficerof theCompany,subjecttotheprecedingsentence,duringthetermofemployment, the Executive shall diligently perform allservices as may be reasonably assigned toher by theBoard and shall exercise such power and authority as may fromtimetotimebedelegated toher by theBoard. TheExecutiveshall berequired toreport solely to,and shall besubject solely tothesupervision and direction of the Board and noother person orgroupshallbegivenauthority tosupervise or direct Executive in theperformance of her duties. Inaddition, theExecutive shall regularly consult withtheBoard withrespect totheCompany'sbusinessand affairs. TheExecutive shall devoteher workingtime and attention as she deems appropriate tothebusiness and affairs of the Company,render such servicestothebestofher ability and use her reasonable besteffortsto promote the interests of theCompany. Itshall not be a violationof this Agreement forthe Executive to (A) serveon corporate,civicor charitable boards orcommittees, (B) deliver lectures, fulfill speaking engagements orteach at educational institutions, and (C)manage