Exhibit
10.2


 


EMPLOYMENT
AGREEMENT


 


THIS
EMPLOYMENT AGREEMENT (the “Agreement”) entered into as of August 29th, 2014 (the “Effective Date”), between
Vaporin, Inc., a Delaware corporation (the “Company”), and Steve Cantrell (the “Executive”).


 


WHEREAS,
the Company desires to employ the Executive and to ensure the continued availability to the Company of the Executive’s services,
and the Executive is willing to accept such employment and render such services, all upon and subject to the terms and conditions
contained in this Agreement.


 


NOW,
THEREFORE, in consideration of the premises and the mutual covenants set forth in this Agreement, and intending to be legally
bound, the Company and the Executive agree as follows:


 


1.
Representations and Warranties. The Executive hereby represents and warrants to the Company that he (i) is not subject
to any non-solicitation or non-competition agreement affecting his employment with the Company (other than any prior agreement
with the Company), (ii) is not subject to any confidentiality or nonuse/nondisclosure agreement affecting his employment with
the Company (other than any prior agreement with the Company), and (iii) has brought to the Company no trade secrets, confidential
business information, documents, or other personal property of a prior employer.


 


2.
Term of Employment.


 


(a)
Term. The Company hereby employs the Executive, and the Executive hereby accepts employment with the Company for a period
of two years commencing as of the Effective Date (such period, as it may be extended or renewed, the “Term”), unless
sooner terminated in accordance with the provisions of Section 6. The Term shall be automatically renewed for successive one-year
terms unless notice of non-renewal is given by either party at least 30 days before the end of the Term.


 


(b)
Continuing Effect. Notwithstanding any termination of this Agreement, at the end of the Term or otherwise, the provisions
of Sections 6(e), 7, 8, 9, 11 14, 17, 18, and 22 shall remain in full force and effect and the provisions of Section 8 shall be
binding upon the legal representatives, successors and assigns of the Executive.


 


3.
Duties.


 


(a)
General Duties. The Executive shall serve as Director and Vice President of the Company, with duties and responsibilities
that are customary for such an executive and which include supervision of the Company’s vape stores. The Executive shall
report to the Company’s Chief Executive Officer. The Executive shall also perform services for such subsidiaries of the
Company as may be necessary. The Executive shall use his best efforts to perform his duties and discharge his responsibilities
pursuant to this Agreement competently, carefully and faithfully.


 




    	 



    	 



    

 


(b)
Devotion of Time. Subject to the last two sentences of this Section 3(b), Executive shall devote substantially all of his
business time, attention and energies to the affairs of the Company and its subsidiaries and affiliates as are necessary to perform
his duties and responsibilities pursuant to this Agreement. The Executive shall not enter the employ of or serve as a consultant
to, or in any way perform any services with or without compensation to, any other persons, business, or organization, without
the prior consent of the Board of Directors of the Company (the “Board”). Notwithstanding the above, the Executive
shall be permitted to devote a limited amount of his time, to professional, charitable or similar organizations, including serving
as a non-executive director or an advisor to a board of directors, committee of any company or organization provided that such
activities do not interfere with the Executive’s performance of his duties and responsibilities as provided hereunder. Notwithstanding
the above, the Executive shall be permitted to devote a modest amount of his time to Cantrell’s Flooring, Inc. and Cantrell’s
Flooring Services, Inc., provided that such activities do not interfere with the Executive’s performance of his duties and
responsibilities as provided hereunder.


 


(c)
Location of Office. The Executive’s principal business office shall be in the Company’s offices in Lee County,
Florida.


 


(d)
Adherence to Inside Information Policies. The Executive acknowledges that the Company is publicly-held and, as a result,
has implemented inside information policies designed to preclude its executives and those of its subsidiaries from violating the
federal securities laws by trading on material, non-public information or passing such information on to others in breach of any
duty owed to the Company, or any third party. The Executive shall promptly execute any agreements generally distributed by the
Company to its employees requiring such employees to abide by its inside information policies.


 


4.
Compensation and Expenses.


 


(a)
Salary. For the services of the Executive to be rendered under this Agreement, the Company shall pay the Executive an annual
salary of $200,000 (the “Base Salary”), less such deductions as shall be required to be withheld by applicable
law and regulations payable in accordance with the Company’s customary payroll practices.


 


(b)
Expenses. In addition to any compensation received pursuant to this Section 4, the Company will reimburse or advance funds
to the Executive for all reasonable documented travel, entertainment and miscellaneous expenses incurred in connection with the
performance of his duties under this Agreement, provided that the Executive properly provides a written accounting of such
expenses to the Company in accordance with the Company’s practices. Such reimbursement or advances will be made in
accordance with policies and procedures of the Company in effect from time to time relating to reimbursement of, or advances to,
its executive officers.


 




    	2



    	 



    

  


5.
Benefits.


 


(a)
Paid Time Off. As an executive, time off will not be governed or restricted. The Executive shall take reasonable amounts
of time off according to his discretion and with the full consent and approval of the board, provided
that such activities do not interfere with the Executive’s performance of his duties and responsibilities as provided hereunder.
Executive is well aware that he will be available to the Company while on time off (by cell phone and e-mail whenever logistically
possible) and will be willing to prematurely end time off as the needs of the Company may dictate (whenever logistically possible).



 


(b)
Employee Benefit Programs. The Executive is entitled to participate
in any pension, 401(k), insurance or other employee benefit plan that is maintained by the Company for its executives, including
programs of life insurance and reimbursement of membership fees in professional organizations. The Company will also provide health
insurance covering the Executive and family dependents. 


 


6.
Termination.


 


(a)
In the event of termination of employment by the Company without
Cause or Abandonment, as defined below, or termination by the Executive for Good Reason, the Executive shall be immediately entitled
to severance equal to $400,000 less all salary previously received under this Agreement. Such severance shall be paid by the Company
at the same times as it pays its executives.


 


(b)
Cause or Abandonment by the Executive. In the event of abandonment
or an act of Cause by Executive, the Company may terminate this Agreement, and the Executive shall have no right to compensation,
or reimbursement under Section 4, or to participate in any Executive benefit programs under Section 5, except as may otherwise
be provided for by law, for any period subsequent to the effective date of termination. For purposes of this Agreement, “Cause”
shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere to, a felony related to the business of the
Company; (ii) the Executive, in carrying out his duties hereunder, has acted with gross negligence or intentional misconduct resulting,
in any case, in harm to the Company; (iii) the Executive misappropriates Company funds or otherwise defrauds the Company; (iv)
the Executive breaches his fiduciary duty to the Company resulting in profit to him, directly or indirectly; (v) the Executive
materially breaches any agreement with the Company; (vi) the Executive breaches any provision of Section 7 or Section 8; (vii)
the Executive becomes subject to a preliminary or permanent injunction issued by a United States District Court enjoining the
Executive from violating any securities law administered or regulated by the Securities and Exchange Commission; (viii) the Executive
becomes subject to a cease and desist order or other order issued by the Securities and Exchange Commission after an opportunity
for a hearing; (ix) the Executive refuses to carry out a resolution adopted by the Company’s Board at a meeting in which
the Executive was offered a reasonable opportunity to argue that the resolution should not be adopted; or (x) the Executive abuses
alcohol or drugs in a manner that interferes with the successful performance of his duties.


 




    	3



    	 



    

  


For
purposes of this Agreement, “Abandonment” shall mean: (i) failure to perform his duties under the Agreement by the
Executive for any reason other than Section 6(c) of this Agreement or (ii) termination of the Agreement without Good Reason (defined
in Section 6(d)).


 


(c)
Death or Disability. Except as otherwise provided in this Agreement, this Agreement shall automatically terminate upon
the death or disability of the Executive. For purposes of this Section 6(a), “disability” shall mean (i) the Executive
is unable to engage in his customary duties by reason of any medically determinable physical or mental impairment that can be
expected to result in death, or last for a continuous period of not less than 12 months; (ii) the Executive is, by reason of any
medically determinable physical or mental impairment that can be expected to result in death, or last for continuous period of
not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and
health plan covering employees of the Company; or (iii) the Executive is determined to be totally disabled by the Social Security
Administration. Any question as to the existence of a disability shall be determined by the written opinion of the Executive’s
regularly attending physician (or his guardian) (or the Social Security Administration, where applicable). In the event that the
Executive’s employment is terminated by reason of Executive’s death or disability, the Company shall pay the following
to the Executive or his personal representative: (i) any accrued but unpaid Base Salary for services rendered to the date of termination
and (ii) any accrued but unpaid expenses required to be reimbursed under this Agreement.


 


(d)
Other Termination. 


 


(1)
This Agreement may be terminated: (i) by the Executive for Good Reason (as defined below and subject to Section 6(b) of this Agreement),
(ii) by the Company without Cause, or (iii) at the end of a Term after the Company provides the Executive with notice of non-renewal.


 


(2)
In the event this Agreement is terminated by the Company without Cause, or at the end of a Term after the Company provides the
Executive with notice of non-renewal and the Executive remains employed until the end of the Term, the Executive shall be entitled
to only the following:


 


(A)
any accrued but unpaid Base Salary for services rendered to the date of termination;


 


(B)
Amounts specified in 6(a) of this Agreement but only if terminated without Cause;


 


(C)
any accrued but unpaid expenses required to be reimbursed under this Agreement; and


 




    	4



    	 



    

  


(D)
any benefits (except perquisites) to which the Executive was entitled pursuant to Section 5(b) hereof shall continue to be paid
or provided by the Company, as the case may be, for three months, subject to the terms of any applicable plan or insurance contract
and applicable law provided that such benefits are exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5)
or otherwise. In the event all or a portion of the benefits to which the Executive was entitled pursuant to Section 5(b) hereof
are subject to 409A of the Code, the Executive shall not be entitled to the benefits that are subject to Section 409A of the Code
subsequent to the “applicable 2 1⁄2 month period” (as such term is defined under
Treasury Regulation Section 1.409A-1(b)(4)(i)(A)). 


 


(3)
In the event of a Change of Control during the Term, the Executive shall be entitled to receive each of the provisions of Section
6(e)(2)(A) – (D) above except the benefits under Section 6(e)(2)(D) shall continue for a three month period provided that
such benefits are exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5) or otherwise. In the event
all or a portion of the benefits under Section 6(e)(2)(D) are subject to 409A of the Code, the Executive shall not be entitled
to the benefits that are subject to Section 409A of the Code subsequent to the “applicable 2 1⁄2 month period”
(as such term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)). 


 


The
term “Good Reason” shall mean: (i) a material diminution in the Executive’s authority, duties or responsibilities
due to no fault of the Executive (unless the Executive has agreed to such diminution); or (ii) any other action or inaction that
constitutes a material breach by the Company under this Agreement. Prior to the Executive terminating his employment with the
Company for Good Reason, the Executive must provide written notice to the Company, within 30 days following the Executive’s
initial awareness of the existence of such condition, that such Good Reason exists and setting forth in detail the grounds the
Executive believes constitutes Good Reason. If the Company does not cure the condition(s) constituting Good Reason within 30 days
following receipt of such notice, then the Executive’s employment shall be deemed terminated for Good Reason.


 


(e)
Any termination made by the Company under this Agreement shall be
approved by the Board.


 


(f)
Upon (1) voluntary or involuntary termination of the Executive’s
employment or (2) the Company’s request at any time during the Executive's employment, the Executive shall (i) provide or
return to the Company any and all Company property, including keys, key cards, access cards, security devices, employer credit
cards, network access devices, computers, cell phones, smartphones, manuals, work product, thumb drives or other removable information
storage devices, and hard drives, and all Company documents and materials belonging to the Company and stored in any fashion,
including but not limited to those that constitute or contain any Confidential Information or work product, that are in the possession
or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created
by the Executive in connection with his employment by the Company; and (ii) delete or destroy all copies of any such documents
and materials not returned to the Company that remain in the Executive’s possession or control, including those stored on
any non-Company devices, networks, storage locations and media in the Executive’s possession or control.


 




    	5



    	 



    

 


7.
Non-Competition Agreement.


 


(a)
Competition with the Company. Until termination of his employment and for a period of one year commencing on the date of
termination, the Executive (individually or in association with, or as a shareholder, director, officer, consultant, employee,
partner, joint venturer, member, or otherwise, of or through any person, firm, corporation, partnership, association or other
entity) shall not, directly or indirectly, compete with the Company (which for the purpose of this Agreement also includes any
of its subsidiaries or affiliates) by acting as an employee or officer (or comparable position) of, owning an interest in, or
providing services substantially similar to those services the Executive provided to the Company to any entity within any metropolitan
area in the United States or other country in which the Company was actually engaged in business as of the time of termination
of employment or where the Company reasonably expected to engage in business within three months of the date of termination of
employment. For purposes of this Agreement, the term “compete with the Company” shall refer to any business activity
in which the Company was engaged as of the termination of the Executive’s employment or reasonably expected to engage in
within three months of termination of employment; provided, however, the foregoing shall not prevent the Executive
from (i) accepting employment with an enterprise engaged in two or more lines of business, one of which is the same or similar
to the Company’s business (the “Prohibited Business”) if the Executive’s employment is totally unrelated
to the Prohibited Business, (ii) competing in a country where as of the time of the alleged violation the Company has ceased engaging
in business, or (iii) competing in a line of business which as of the time of the alleged violation the Company has either ceased
engaging in or publicly announced or disclosed that it intends to cease engaging in; provided, further, the foregoing
shall not prohibit the Executive from owning up to 5% of the securities of any publicly-traded enterprise provided that the Executive
is not a director, officer, consultant, employee, partner, joint venturer, manager, or member of, or to such enterprise, or otherwise
compensated for services rendered thereby.


 


(b)
Solicitation of Customers. During the periods in which the provisions of Section 7(a) shall be in effect, the Executive,
directly or indirectly, will not seek nor accept Prohibited Business from any customers on behalf of himself or any enterprise
or business other than the Company, refer Prohibited Business from any customer to any enterprise or business other than the Company
or receive commissions based on sales or otherwise relating to the Prohibited Business from any customer, or any enterprise or
business other than the Company.


 






    	6



    	 



    

 


(c)
Solicitation of Employees. During the period in which the provisions of Section 7(a) and (b) shall be in effect, the Executive
agrees that he shall not, directly or indirectly, request, recommend or advise any employee of the Company to terminate his or
her employment with the Company, for the purposes of providing services for a Prohibited Business, or solicit for employment or
recommend to any third party the solicitation for employment of any individual who was employed by the Company or any of its subsidiaries
and affiliates at any time during the one year period preceding the Executive’s termination of employment.


 


(d)
Non-disparagement. The Executive agrees that, after the end of his employment, he will refrain from making, in writing
or orally, any unfavorable comments about the Company, its operations, policies, or procedures that would be likely to injure
the Company’s reputation or business prospects; provided, however, that nothing herein shall preclude the
Executive from responding truthfully to a lawful subpoena or other compulsory legal process or from providing truthful information
otherwise required by law.


 


(e)
No Payment. The Executive acknowledges and agrees that no separate or additional payment will be required to be made to
him in consideration of his undertakings in this Section 7, and confirms he has received adequate consideration for such undertakings.


 


(f)
References. References to the Company in this Section 7 shall include the Company’s subsidiaries and affiliates.


 


8.
Non-Disclosure of Confidential Information.


 


(a)
Confidential Information. For purposes of this Agreement, “Confidential Information” includes, but is not limited
to, trade secrets, processes, policies, procedures, techniques, designs, drawings, know-how, show-how, technical information,
specifications, computer software and source code, information and data relating to the Company, the Company’s budgets and
strategic plans, and the identity of customers, vendors, and suppliers, subjects and databases, data, and all technology relating
to the Company’s businesses, systems, methods of operation, and customer lists, customer information, solicitation leads,
marketing and advertising materials, methods and manuals and forms, all of which pertain to the activities or operations of the
Company, the names, home addresses and all telephone numbers and e-mail addresses of the Company’s directors, employees,
officers, executives, former executives, customers and former customers. Confidential Information also includes, without limitation,
Confidential Information received from the Company’s subsidiaries and affiliates. For purposes of this Agreement, the following
will not constitute Confidential Information (i) information which is or subsequently becomes generally available to the public
through no act or fault of the Executive, (ii) information set forth in the written records of the Executive prior to disclosure
to the Executive by or on behalf of the Company which information is given to the Company in writing as of or prior to the date
of this Agreement, and (iii) information which is lawfully obtained by the Executive in writing from a third party (excluding
any affiliates of the Executive) who lawfully acquired the confidential information and who did not acquire such confidential
information or trade secret, directly or indirectly, from the Executive or the Company or its subsidiaries or affiliates and who
has not breached any duty of confidentiality.


 




    	7



    	 



    

 


 


(b)
Legitimate Business Interests. The Executive recognizes that the Company has legitimate business interests to protect and
as a consequence, the Executive agrees to the restrictions contained in this Agreement because they further the Company’s
legitimate business interests. These legitimate business interests include, but are not limited to (i) trade secrets; (ii) valuable
confidential business, technical, and/or professional information that otherwise may not qualify as trade secrets, including,
but not limited to, all Confidential Information; (iii) substantial, significant, or key relationships with specific prospective
or existing customers, vendors or suppliers; (iv) goodwill associated with the Company’s business; and (v) specialized training
relating to the Company’s technology, Services, methods, operations and procedures. Notwithstanding the foregoing, nothing
in this Section 8(b) shall be construed to impose restrictions greater than those imposed by other provisions of this Agreement.


 


(c)
Confidentiality. During the Term of this Agreement and following termination of employment, for any reason, the Confidential
Information shall be held by the Executive in the strictest confidence and shall not, without the prior express written consent
of the Company, be disclosed to any person other than in connection with the Executive’s employment by the Company. The
Executive further acknowledges that such Confidential Information as is acquired and used by the Company or its subsidiaries or
affiliates is a special, valuable and unique asset. The Executive shall exercise all due and diligent precautions to protect the
integrity of the Company’s Confidential Information and to keep it confidential whether it is in written form, on electronic
media, oral, or otherwise. The Executive shall not copy any Confidential Information except to the extent necessary to his employment
nor remove any Confidential Information or copies thereof from the Company’s premises except to the extent necessary to
his employment. All records, files, materials and other Confidential Information obtained by the Executive in the course of his
employment with the Company are confidential and proprietary and shall remain the exclusive property of the Company, its customers,
or subjects, as the case may be. The Executive shall not, except in connection with and as required by his performance of his
duties under this Agreement, for any reason use for his own benefit or the benefit of any person or entity other than the Company
or disclose any such Confidential Information to any person, firm, corporation, association or other entity for any reason or
purpose whatsoever without the prior express written consent of an executive officer of the Company (excluding the Executive).


 


(d)
References. References to the Company in this Section 8 shall include the Company’s subsidiaries and affiliates.


 


9.
Equitable Relief.


 


(a)
The Company and the Executive recognize that the services to be rendered under this Agreement by the Executive are special, unique
and of extraordinary character, and that in the event of the breach by the Executive of the terms and conditions of this Agreement
or if the Executive, without the prior express consent of the Board, shall leave his employment for any reason and/or take any
action in violation of Section 7 and/or Section 8, the Company shall be entitled to institute and prosecute proceedings in any
court of competent jurisdiction referred to in Section 9(b) below, to enjoin the Executive from breaching the provisions of Section
7 and/or Section 8.


 




    	8



    	 



    

 


(b)
Any action must be commenced only in the appropriate state or federal court located in Miami, Florida. The Executive and the Company
irrevocably and unconditionally submit to the exclusive jurisdiction of such courts and agree to take any and all future action
necessary to submit to the jurisdiction of such courts. The Executive and the Company irrevocably waive any objection that they
now have or hereafter may have to the laying of venue of any suit, action or proceeding brought in any such court and further
irrevocably waive any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. Final judgment against the Executive or the Company in any such suit shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment, a certified or true copy of which shall be conclusive evidence of the fact and the amount of any liability
of the Executive or the Company therein described, or by appropriate proceedings under any applicable treaty or otherwise.


 


10.
Conflicts of Interest. While employed by the Company, the Executive shall not, unless approved by the Board of Directors
of the Company, directly or indirectly:


 


(a)
participate as an individual in any way in the benefits of transactions with any of the Company’s suppliers, vendors, customers,
or subjects, including, without limitation, having a financial interest in the Company’s suppliers, vendors, customers,
or subjects, or making loans to, or receiving loans, from, the Company’s suppliers, vendors, customers, or subjects;


 


(b)
realize a personal gain or advantage from a transaction in which the Company has an interest or use information obtained in connection
with the Executive’s employment with the Company for the Executive’s personal advantage or gain; or


 


(c)
accept any offer to serve as an officer, director, partner, consultant, manager with, or to be employed in a professional, medical,
technical, or managerial capacity by, a person or entity which does business with the Company.


 


11.
Inventions, Ideas, Processes, and Designs. All inventions, ideas, processes, programs, software, and designs (including
all improvements) (i) conceived or made by the Executive during the course of his employment with the Company (whether or not
actually conceived during regular business hours) and for a period of two years subsequent to the termination (whether by expiration
of the Term or otherwise) of such employment with the Company, and (ii) related to the business of the Company, shall be disclosed
in writing promptly to the Company and shall be the sole and exclusive property of the Company, and the Executive hereby assigns
any such inventions to the Company. An invention, idea, process, program, software, or design (including an improvement) shall
be deemed related to the business of the Company if (a) it was made with the Company’s funds, personnel, equipment, supplies,
facilities, or Confidential Information, (b) results from work performed by the Executive for the Company, or (c) pertains to
the current business or demonstrably anticipated research or development work of the Company. The Executive shall cooperate with
the Company and its attorneys in the preparation of patent and copyright applications for such developments and, upon request,
shall promptly assign all such inventions, ideas, processes, and designs to the Company. The decision to file for patent or copyright
protection or to maintain such development as a trade secret, or otherwise, shall be in the sole discretion of the Company, and
the Executive shall be bound by such decision. The Executive hereby irrevocably assigns to the Company, for no additional consideration,
the Executive’s entire right, title and interest in and to all work product and intellectual property rights, including
the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof,
and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or
limit the Company's rights, title or interest in any work product or intellectual property rights so as to be less in any respect
than the Company would have had in the absence of this Agreement. If applicable, the Executive shall provide as a schedule to
this Agreement, a complete list of all inventions, ideas, processes, and designs, if any, patented or unpatented, copyrighted
or otherwise, or non-copyrighted, including a brief description, which he made or conceived prior to his employment with the Company
and which therefore are excluded from the scope of this Agreement. References to the Company in this Section 11 shall include
the Company, its subsidiaries and affiliates.


 




    	9



    	 



    

 


12.
Indebtedness. If, during the course of the Executive’s employment under this Agreement, the Executive becomes indebted
to the Company for any reason, the Company may, if it so elects, and if permitted by applicable law, set off any sum due to the
Company from the Executive and collect any remaining balance from the Executive unless the Executive has entered into a written
agreement with the Company.


 


13.
Assignability. The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all
of the securities or assets and business of the Company. The Executive’s obligations hereunder may not be assigned or alienated
and any attempt to do so by the Executive will be void.


 


14.
Severability.


 


(a)
The Executive expressly agrees that the character, duration and geographical scope of the non-competition provisions set forth
in this Agreement are reasonable in light of the circumstances as they exist on the date hereof. Should a decision, however, be
made at a later date by a court of competent jurisdiction that the character, duration or geographical scope of such provisions
is unreasonable, then it is the intention and the agreement of the Executive and the Company that this Agreement shall be construed
by the court in such a manner as to impose only those restrictions on the Executive’s conduct that are reasonable in the
light of the circumstances and as are necessary to assure to the Company the benefits of this Agreement. If, in any judicial proceeding,
a court shall refuse to enforce all of the separate covenants deemed included herein because taken together they are more extensive
than necessary to assure to the Company the intended benefits of this Agreement, it is expressly understood and agreed by the
parties hereto that the provisions of this Agreement that, if eliminated, would permit the remaining separate provisions to be
enforced in such proceeding shall be deemed eliminated, for the purposes of such proceeding, from this Agreement.


 




    	10



    	 



    

 


(b)
If any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state
or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision
shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties
to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provisions
were not included.


 


15.
Notices and Addresses. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be
in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar receipted delivery,
or next business day delivery to the addresses detailed below (or to such other address, as either of them, by notice to the other
may designate from time to time), or by e-mail delivery (in which event a copy shall immediately be sent by FedEx or similar receipted
delivery), as follows:


 


	 	To
    the Company:	Scott
    Frohman
	 	 	Chief
Executive Officer

	 	 	Vaporin,
    Inc.
	 	 	4400
    Biscayne Boulevard, Suite 850
	 	 	Miami,
    Florida 33137
	 	 	Email:
    scott@vaporin.com
	 	 	 
	 	With
    a copy to:	Nason,
    Yeager, Gerson White & Lioce, P.A.
	 	 	Attn:
    Michael D. Harris, Esq.
	 	 	1645
    Palm Beach Lakes Blvd., Suite 1200
	 	 	West
    Palm Beach, Florida 33410
	 	 	Email:
    mharris@nasonyeager.com
	 	 	 
	 	To
    the Executive:	 
	 	Steve
    Cantrell	 
	 	 	847
    SE 9TH TER
	 	 	CAPE
    CORAL, FL 33990
	 	 	Email:
    thecarpetman4u@embarqmail.com


 


16.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual or facsimile
signature.


 


17.
Attorneys’ Fees. In the event that there is any controversy or claim arising out of or relating to this Agreement,
or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of
this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses (including such
fees and costs on appeal).


 




    	11



    	 



    

 


18.
Governing Law. This Agreement shall be governed or interpreted according to the internal laws of the State of Florida without
regard to choice of law considerations and all claims relating to or arising out of this Agreement, or the breach thereof, whether
sounding in contract, tort, or otherwise, shall also be governed by the laws of the State of Florida without regard to choice
of law considerations.


 


19.
Entire Agreement. This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and
written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties
against which enforcement or the change, waiver discharge or termination is sought.


 


20.
Section and Paragraph Headings. The section and paragraph headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.


 


21.
Arbitration. Except for an action
seeking an injunction, any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation,
application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled
by submission by either party of the controversy, claim or dispute to binding arbitration in Lee County, Florida (unless the parties
agree in writing to a different location), before three arbitrators in accordance with the rules of the American Arbitration Association
then in effect. In any such arbitration proceeding the parties agree to provide all discovery deemed necessary by the arbitrators.
The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and
judgment may be entered thereon in any court having jurisdiction thereof.


 


22.
Section 409A Compliance.


 


(a)
This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”),
or an exemption thereunder. This Agreement shall be construed and administered in accordance with Section 409A. Notwithstanding
any other provision of this Agreement to the contrary, payments provided under this Agreement may only be made upon an event and
in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded
from Section 409A either as separation pay due to an involuntary separation from service (including a voluntary separation from
service for good reason that is considered an involuntary separation for purposes of the separation pay exception under Treasury
Regulation 1.409A-1(n)(2)) or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For
purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments
to be made under this Agreement upon a termination of employment shall only be made if such termination of employment constitutes
a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations
that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable
for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of
non-compliance with Section 409A.


 




    	12



    	 



    

 


(b)
Notwithstanding any other provision of this Agreement, if at the time of the Executive's termination of employment, the Executive
is a "specified employee", determined in accordance with Section 409A, any payments and benefits provided under this
Agreement that constitute "nonqualified deferred compensation" subject to Section 409A (e.g., payments and benefits
that do not qualify as a short-term deferral or as a separation pay exception) that are provided to the Executive on account of
the Executive’s separation from service shall not be paid until the first payroll date to occur following the six-month
anniversary of the Executive's termination date ("Specified Employee Payment Date").
The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump
sum on the Specified Employee Payment Date without interest and thereafter, any remaining payments shall be paid without delay
in accordance with their original schedule. If the Executive dies during the six-month period, any delayed payments shall be paid
to the Executive's estate in a lump sum upon the Executive's death.


 


(c)
To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided
in accordance with the following:


 


(i)
the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;


 


(ii)
any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following
the calendar year in which the expense was incurred; and


 


(iii)
any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another
benefit.


 


(d)
In the event the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i)
of the Code at the time of the Executive’s separation from service, then to the extent any payment or benefit that the Executive
becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred
compensation subject to Section 409A as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall
not be payable and such benefit shall not be provided until the date that is the earlier of (i) six months and one day after the
Executive’s separation from service, or (ii) the Executive’s death (the “Six Month Delay Rule”).


 


(i)
For purposes of this subparagraph, amounts payable under the Agreement should not provide for a deferral of compensation subject
to Section 409A to the extent provided in Treasury Regulation Section 1.409A-1(b)(4) (e.g., short-term deferrals), Treasury Regulation
Section 1.409A-1(b)(9) (e.g., separation pay plans, including the exception under subparagraph (iii)), and other applicable provisions
of the Treasury Regulations.


 




    	13



    	 



    

 


(ii)
To the extent that the Six Month Delay Rule applies to payments otherwise payable on an installment basis, the first payment shall
include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application
of the Six Month Delay Rule, and the balance of the installments shall be payable in accordance with their original schedule.


 


(iii)
To the extent that the Six Month Delay Rule applies to the provision of benefits (including, but not limited to, life insurance
and medical insurance), such benefit coverage shall nonetheless be provided to the Executive during the first six months following
his separation from service (the “Six Month Period”), provided that, during such Six-Month Period, the Executive pays
to the Company, on a monthly basis in advance, an amount equal to the Monthly Cost (as defined below) of such benefit coverage.
The Company shall reimburse the Executive for any such payments made by the Executive in a lump sum not later than 30 days following
the sixth month anniversary of the Executive’s separation from service. For purposes of this subparagraph, “Monthly
Cost” means the minimum dollar amount which, if paid by the Executive on a monthly basis in advance, results in the Executive
not being required to recognize any federal income tax on receipt of the benefit coverage during the Six Month Period.


 


(e)
The parties intend that this Agreement will be administered in accordance with Section 409A. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all
payments hereunder comply with Section 409A. The parties agree that this Agreement may be amended, as reasonably requested by
either party, and as may be necessary to fully comply with Section 409A and all related rules and regulations in order to preserve
the payments and benefits provided hereunder without additional cost to either party.


 


(f)
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from,
or the conditions of, such Section.


 


[Signature
Page To Follow]


 




    	14



    	 



    

 


IN
WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.


 


	 	Vaporin,
    Inc.
	 	 
	 	By:	/s/
    Scott Frohman
	 	 	Scott
    Frohman,
	 	 	Chief
    Executive Officer
	 	 	 
	 	Executive
	 	 	 
	 	By:	/s/
    Steve Cantrell
	 	 	Steve
    Cantrell