EX1A-6 MAT CTRCT 8 ex3_3.htm

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (this Agreement) is made as of the 1st

day of July 2020 (the “Effective Date) between Emerging Growth Advisors, Inc., a

New York corporation, with its principal address at 147 Kathryn Rd, Bellefonte, PA

16823 (Emerging Growthor the “Consultant”) and Cannagistics, Inc. to be known as

NOVI BioScience, Inc., a Nevada corporation, doing business at 1200 Veterans

Highway, Suite 310, Hauppauge, Ny 11788 (the Company).

 

Background

 

WHEREAS, there is an Employment Agreement between the Company (then

known as Global3pl, Inc.) and James W. Zimbler, dated October 1,2018, whereby James

W. Zimbler was employed as the President/CEO and Sole Director of the Company;

 

WHEREAS, The Company has contracted with an individual to become the

President/CEO and Chairman of the Company, and

 

WHEREAS, James W. Zimbler is the sole owner of Emerging Growth Advisors,

Inc. (Emerging Growth) and the Company desires to continue to retain the services of

James W. Zimbler and to have Emerging Growth provide management consulting

services, and

 

WHEREAS, Emerging Growth has the requisite skills and experience to provide

the required management consulting services to the Company for the activities desired by

the Company, and are desirous of providing such services,

 

NOW THEREFORE, the parties intending to be legally bound agree as follows:

 

1. Appointment. The Company hereby agrees to engage as the Management

Consultants of the Company, and Emerging Growth accepts the engagement subject

to the Compensation approved by the Company herein. The previous Employment

Agreement, as aforementioned, is hereby transferred and superseded into this

Consulting Agreement.

 

2. Services.

 

2.1 During the Term and any Renewal Term, the Consultant will, upon request,

provide to the Company the Services on an “as neededbasis, including, but

not limited to, those described below.

a. Assist and advise the Company and Senior Management in market itself to

the capital markets;

b. Assist and advise the Company and Senior Management with any

implementation and financial issues and/or merger activity;

c. Assist and advise the Company and Senior Management in the creation,

development and update of its balance sheet, working with its

creditors/shareholders;

 

  

 

 

d. Assist and advise the Company and Senior Management with all

legal/accounting and corporate governance and OTC Markets compliance,

for the Company; and

e. Assist and advise the Company and Senior Management in handling the

legal, accounting and audit preparation of the Company for the duration of

this agreement, with the express understanding that the Company and its

management are expressly required to make and be responsible for all

representations and that consultant is not a legal or accounting

professional;

 

2.2 Staffing. The Consultant will maintain in its employ, or otherwise have

available to it, personnel sufficient in number and adequate in ability to

perform the Services in accordance with this Agreement. The Consultant will

have the exclusive right to direct and control its personnel and/or third parties

providing the Services, other than in respect of the Company's right, as the

recipient of the Services, to supervise the performance of the Consultant under

this Agreement.

 

2.3 Non-Exclusivity. The Company expressly understands and agrees that the

relationship with the Consultant is on a non-exclusive independent contractor

basis for the Services and that the Consultant shall not be prevented, barred or

limited from rendering consulting services of the same nature or of a similar

nature to those described in this Agreement, or of any nature whatsoever, for

or on behalf of any person, firm, corporation, or entity other than the

Company during the Term and any Renewal Term.

 

2.4 Place of Performance. In connection with the Services performed by the

Consultant, the Consultant's activities shall be principally based in its own

offices, except for required and approved travel on the Company' s behalf.

 

3. Term and Termination.

 

3.1 Term. Unless terminated earlier under Section 6.b., below, the term of this

Agreement will 36 months (the Term”) commencing on the Effective Date

(that being July 1, 2020). The Term shall automatically be renewed for an

additional twelve (12) month period (the Renewal Term), upon the same

terms and conditions, upon mutual consent of both parties, in writing.

 

3.2 Termination.

(a) This Agreement may be terminated prior to the expiration of the Term or

any Renewal Term by (i) either party if a material breach to this

Agreement by the other party is not effectively cured within 10 days (the

“Cure Period) from receipt of written notice of the breach from the nonbreaching

party;

 

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(b) The date of termination (the “Termination Date”) shall be defined to

mean; (i) with regard to Section 3.2 (a) (i), the date upon which the Cure

Period expires and there has been no cure, or with regard to Section 3.2 (a)

(ii), the sixtieth day as referred to therein and (ii) with regard to Section

3.1, the last day of the Term, or any Renewal Term.

3.3 Effect of Termination.

(a) Termination under Section 3.2 will not affect any other remedy or

damages available to either of the parties. Upon termination of this

Agreement, no party will have any further obligation to fulfill

commitments under this Agreement, except for those obligations set forth

in this Section 3 and in Sections 4, 5, 6, and 7, each of which expressly

survives the termination of this Agreement.

(b) On the Termination Date, the Company shall pay to the Consultants any

remaining compensation accrued or un-accrued, as which would have

been paid during the term then in effect, any unreimbursed expenses up

through the appropriate date, and shall issue and deliver securities due and

issuable in accordance with Section 4.1 below.

 

4. Compensation

 

4.1 Fees. Consultants shall receive from the Company, upon the execution of this

Agreement, compensation as follows;

a) Payment of an amount of USD$15,000 per month for the first year of this

Agreement, USD$17,500 per month for the second year of this Agreement

and USD$20,000 per month for the third year of this. Such compensation

shall be payable in accordance with the regular payroll practices of the

Company; and

b) Consultant at its option also be paid a Health Insurance Allowance of up

to $1,500 per month, commencing July 1, 2020 for the term of this

Agreement and any extensions thereto.

 

4.2 Expenses. The Consultant shall be promptly reimbursed for all reasonable

out-of-pocket expenses (including travel, entertainment, etc.) incurred by it in

its performance under this Agreement, upon submission of documentation

supporting such expense( s), on a monthly basis. Any reimbursable expenses

in excess of $1 ,500.00, individually, shall be approved in advance by the

Company prior to be incurred by the Consultant.

 

5. Indemnification.

 

5.1 Indemnification by the Company. If in connection with any services or

matters that are the subject of or arise out of this Agreement or the

Consultant's engagement hereunder, the Consultant or any of its directors,

officers, stockholders, employees or agents (collectively, the Consultant

Indemnitees) becomes involved (whether or not as a named party) in any

action, claim, investigation or legal proceeding, the Company, will indemnify

and save harmless such Consultant Indemnitees from and against any and all

 

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claims, liabilities, damages, losses, costs and expenses (including amounts

paid in satisfaction of judgments in compromises and defending against any

claims or alleged claims) of any nature whatsoever, liquidated or unliquidated,

that are incurred by any Consultant Indemnitees' obligations under this

Agreement unless the claim or alleged claim resulted from willful misconduct,

negligence or fraud of the Consultant Indemnitees. The Company agrees that,

without the Consultant Indemnitees' prior written consent, it will not settle,

compromise or consent to the entry of any judgment in any pending or

threatened claim, action or proceeding in respect of which indemnification

could be sought under this Section 5 (whether or not the Consultant

Indemnitees are actual or potential parties to such claim, action or

proceeding), unless such settlement, compromise or consent includes an

unconditional release of each Consultant Indemnitee from all liability arising

out of such claim, action or proceeding.

 

5.2 Indemnification by the Consultant. If in connection with any services or

matters that are the subject of or arise out of this Agreement or the

Consultant's engagement hereunder, the Company or any of its directors,

officers, stockholders, employees or agents (collectively, the Company

Indemnitees) becomes involved (whether or not as a named party) in any

action, claim, investigation or legal proceeding, the Consultant, will

indemnify and save harmless such Company Indemnitees from and against

any and all claims, liabilities, damages, losses, costs and expenses (including

amounts paid in satisfaction of judgments in compromises and defending

against any claims or alleged claims) of any nature whatsoever, liquidated or

unliquidated, that are incurred by any Company Indemnitees' obligations

under this Agreement unless the claim or alleged claim resulted from willful

misconduct, negligence or fraud of the Company Indemnitees. The

Consultant agrees that, without the Company Indemnitees' prior written

consent, it will not settle, compromise or consent to the entry of any judgment

in any pending or threatened claim, action or proceeding in respect of which

indemnification could be sought under this Section 5 (whether or not the

Company Indemnitees are actual or potential parties to such claim, action or

proceeding), unless such settlement, compromise or consent includes an

unconditional release of each Company Indemnitee from all liability arising

out of such claim, action or proceeding.

 

5.3 Procedures. As to any claim or lawsuit with respect to which party seeks

indemnification hereunder (the Indemnified Party), it shall provide prompt

notice thereof to the other party (the Indemnifying Party), and the

Indemnifying Party shall have the right to control the defense of said lawsuit,

including the selection of attorneys, and any settlement thereof, provided that

no settlement which impairs the rights of the Indemnified Party shall be made

without its prior written consent, which consent shall not be unreasonably

withheld.

 

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6. Covenants

 

6.1 Confidentiality. With respect to information of the Company, which is

clearly marked Confidential”, whatever its nature and form and whether

from Graphic Materials (as defined below) or otherwise (except such as is

generally available through publication or is previously known to the

Consultant, or is lawfully obtained by the Consultant through a third-party),

obtained by the Consultant during or as a result of its consultancy with the

Company and relating to any invention, improvement, enhancement, product,

know-how, formula, software, process, design, or other creation, or to any use

of any of them, costs (including, without limitation, manufacturing costs),

prices, or to any plans of the Company, or to any other trade secret or

proprietary information of the Company, the Consultant agrees:

a) to hold all such information, inventions and discoveries which have not

otherwise become public knowledge in strict confidence and not to publish

or otherwise disclose any thereof to any person or entity other than the

Company except with the prior written consent of an officer of the

Company, or as may be required by law.

b) to take all reasonable precautions to assure that all such information,

inventions and discoveries are properly protected from access by

unauthorized persons.

c) to make no use of nor exploit in any way any such information, invention

or discovery except as required in the performance of its consultancy for

the Company.

 

For the purposes of this Agreement, the term “Graphic Materials” includes, without

limitation, letters, memoranda, reports, notes, notebooks, books of account, drawings,

prints, specifications, formulae, software, data print-outs, microfilms, magnetic tapes

and disks and other documents and recordings, together with all copies, excerpts and

summaries thereof.

 

6.2 Further Assurances. The Company and Consultant will use their best efforts

to implement the provisions of this Agreement, and for such purpose neither

party shall represent to the other any material facts concerning itself during

the Term and any Renewal Term which are false, misleading or untrue in any

material respect and neither party shall intentionally fail to provide the other

with material facts concerning itself or will in any material manner prevent the

Services from being performed under this Agreement.

 

7. Miscellaneous.

 

7.1 Limitation of Liability. IT IS UNDERSTOOD BETWEEN THE PARTIES

THAT NEITHER THE CONSULTANT NOR ANY OF THEIR PARTNERS,

EMPLOYEES, AGENTS, OR PRINCIPALS ARE PROVIDING LEGAL

SERVICES, ACCOUNTING SERVICES, OR BROKERAGE SERVICES,

AND SUCH SERVICES MUST BE RETAINED BY THE COMPANY AT

 

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ITS OWN COST AND EXPENSE. IT IS EXPRESSLY ACKNOWLEDGED

THAT THE CONSULTANT WILL UTILIZE ITS BEST EFFORTS IN

PERFORMING THE SERVICES CONTEMPLATED HEREBY BUT NO

REPRESENTATIONS ARE MADE OR GUARANTEE GIVEN BY THE

CONSULTANT AS TO THE AMOUNT OF TIME IT WILL SPEND IN

PROVIDING THE SERVICES NOR TO THE ULTIMATE SUCCESS OF

ANY TRANSACTION OR OTHER ACTION UNDERTAKEN BY THE

COMPANY. IN NO EVENT WILL THE AGGREGATE DAMAGES

CLAIMED BY THE COMPANY UNDER THIS AGREEMENT EXCEED

THE TOTAL CASH FEES RECEIVED BY THE CONSULTANT, EXCEPT

IN THE CASE OF WILLFUL MISCONDUCT, GROSS NEGLIGENCE OR

ACTUAL FRAUD.

 

7.2 Notices. All notices and other communications provided for or permitted in

this Agreement will be made in writing by hand-delivery, registered first-class

mail, or courier guaranteeing overnight delivery, to the addresses maintained

by each party.

 

All notices and communications will be deemed to have been duly given; at

the time delivered by hand, if personally delivered; three business days after

being deposited in the mail, postage prepaid, if mailed; when receipt

acknowledged, and on the next business day if timely delivered to a courier

guaranteeing overnight delivery; provided, however, that the inability to

deliver any notice or other communication because of the changed address of

which no notice was given, or rejection or refusal to accept any notice or other

communication as of the date if such inability to deliver or rejection or refusal

to accept delivery.

 

7.3 Waivers. The failure of a party to this Agreement to insist upon strict

adherence to any of the terms of this Agreement on any occasion will not be

considered a waiver or deprive that party of the right thereafter to insist upon

strict adherence to that term or other term of this Agreement. Any waiver must

be in writing.

 

7.4 Force Majeure. The Consultant will not be responsible for any failure or

delay in performance of its obligations under this Agreement because of

circumstances beyond its reasonable control including acts of God, fires,

floods, wars, civil disturbances, sabotage, accidents, labor disputes (whether

or not the employees' demands are reasonable and within the party's power to

satisfy), governmental actions or transportation delays.

 

7.5 Governing Law. This Agreement, the rights of the parties in, under and to

this Agreement and any dispute or action relating to this Agreement (whether

in contract, tort or otherwise) will be governed by, construed and enforced in

accordance with the laws of New York applicable to the agreements made and

performed entirely in that State. Any legal actions, suits or proceeding arising

 

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out of this Agreement (whether arising in contract, tort or otherwise), will be

brought exclusively in a federal or state court located in the State of New

York having jurisdiction of those courts with respect to any legal actions, suits

or proceeding (whether arising in contract, tort or otherwise) arising out of

this Agreement. In the event of any legal action, suit or proceeding, the parties

waive their right to a jury trial.

 

7.6 Entire Agreement; Amendments. This Agreement represents the entire

understanding of the parties and supersedes and cancels any and all prior

negotiations, undertakings and agreements between the parties, whether

written or oral, with respect to the subject matter of the Agreement. This

Agreement may be amended, modified, waived or terminated only by a

written instrument signed by both parties to this Agreement.

 

7.7 Binding Effect. This Agreement will insure to be the benefit of and will be

binding upon the parties their respective successors, permitted transferees and

assigns.

 

7.8 Assignment and Benefits of Agreement. This Agreement may not be

assigned by any party to this Agreement without the written consent of the

other party, except that Consultant may assign this Agreement to an entity

wholly owned by the sole shareholder of Consultant. Nothing in this

Agreement, express or implied, is intended to confer upon any person other

that the parties hereto, and their said successors and assigns, any rights under

or by reason of this Agreement.

 

7.9 Independent Contractor. Each of the Company and the Consultant certifies

that neither party has any authority to act for or bind the other party except as

expressly provided for in this Agreement, that the Consultant may work for

others, and that any persons provided by the Consultant under this Agreement

will be solely the employees or agents of the Consultant under its sole and

exclusive direction and control.

 

7.10 Severability. To the extent that any provision of this Agreement or the

application thereof is determined by a court of competent jurisdiction to be

invalid or unenforceable, the remainder of this Agreement, or the application

of such a provision under other circumstances, will be unaffected and will

continue in full force and effect unless the invalid or unenforceable provision

is of such essential importance for this Agreement that it is to be reasonably

assumed that the parties would not have concluded this Agreement without

the invalid or unenforceable provision.

 

7.11 Consents. Any consent or approval to be given under this Agreement may be

delegated by the party to give such consent or approval to any agent or

representative as such party may, from time to time, authorize in writing.

 

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7.12 Counterparts. This Agreement may be executed in any number of

counterparts, and each of the parties on separate counterparts, each of which,

when so executed, will be deemed an original, not all of which will constitute

but one and the same original.

 

7.13 Third Parties. Nothing in this Agreement, expressed or implied, is intended

or will be construed to confer upon or give any person other than parties to

this Agreement, their permitted successors or assigns and (to the extent

indicated herein) any rights or reminded under or by reason of this

Agreement.

 

7.14 Further Assurances. Each party will take or perform such actions as

reasonable requested by the other party, including the execution of any

additional documents, in order to carry out the intent of, and to facilitate and

effectuate the actions contemplated by this Agreement.

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date

first above written.

 

Emerging Growth Advisors, Inc.

 

By: /s/ James W. Zimbler

Name. James W. Zimbler

Title: President

 

 

Cannagistics, Inc. to be known as

NOVI Bioscience, Inc.

 

By: /s/ Rob Gietl

Name: Rob Gietl

Title: President

 

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