Document:

CITRUS EXTRACTS TRANSPORT SERVICES,
LLC

 

WARRANTY BILL OF SALE

 

This Bill of Sale
is entered into as of June 29, 2015 by Acacia Transport Services, Inc., a Florida corporation (“Seller”), in
favor of Citrus Extracts Transport Services, LLC, a Florida limited liability company (“Buyer”). This Bill of
Sale is made pursuant to the Asset Purchase Agreement (the “Agreement”) dated as of the date hereof by and between
Seller, Buyer, and certain other parties, to transfer the CETS Assets, as fully defined in the Agreement. Any capitalized term
used but not defined in this Bill of Sale shall have the meaning, if any, set forth in the Agreement.

 

1.                 
Conveyance. For good and valuable consideration described under Section 1.04 of the
Agreement, the receipt and adequacy of which Seller hereby acknowledges, Seller hereby irrevocably sells, assigns, transfers, conveys,
grants, bargains and delivers to Buyer, all of its right, title and interest in and to the CETS Assets.

 

2.                 
Representations and Warranties. Seller represents and warrants that (1) Seller is conveying
good and valid title to all CETS Assets, free and clear of all Encumbrances; and (2) Seller has the right to sell the CETS Assets
to Buyer and shall warrant and defend the right against the lawful claims and demands of all persons in accordance with the terms
and conditions of the Agreement.

 

3.                 
Further Assurances. Seller for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time on Buyer’s written request, Seller will do, execute, acknowledge and deliver
or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers
of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm
unto and vest in Buyer, its successors and assigns, title to the assets sold, conveyed and transferred by this Bill of Sale.

 

4.                 
Governing Law. This Bill of Sale is governed by, and construed in accordance with,
the laws of the State of Florida, United States of America, without regard to the conflict of laws provisions thereof to the extent
such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State
of Florida.

 

5.                 
Incorporation of Agreement. This Bill of Sale incorporates by reference all of the
terms of the Agreement, including but not limited to Seller’s representations, warranties, covenants and agreements relating
to the CETS Assets, as if each term was fully set forth herein. In the event of conflict between the terms of the Agreement and
the terms of this Bill of Sale, the terms of the Agreement govern and control.

 

6.                 
Counterparts. This Bill of Sale may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Bill of
Sale delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as
delivery of an original signed copy of this Bill of Sale.

 

IN WITNESS WHEREOF, Seller and
Buyer have each duly executed and delivered this Bill of Sale as of the date first written above.

	
         

        SELLER:

         

        Acacia Transport Services,
        Inc.

         

         
	 
	
        By_____/s/ Steven L. Sample________

         

        Name: Steven L. Sample

        Title: Chief Executive Officer
	 

 

	
         

        BUYER:

         

        Citrus Extracts Transport
        Services, LLC

         

        By: Citrus Extracts II,
        LLC, its Managing Member

         

	
        By____/s/
        Alan Koch___________

         

        Name:
        Alan Koch

        Title:
        Co-ManagerCITRUS EXTRACTS II, LLC

 

WARRANTY BILL OF SALE

 

This Bill of Sale
is entered into as of June 29, 2015 by Acacia Diversified Holdings, Inc., a Texas corporation, and its wholly-owned subsidiary,
Citrus Extracts, Inc., a Florida corporation (together with Acacia Diversified Holdings, Inc., “Seller”), in
favor of Citrus Extracts II, LLC, a Florida limited liability company (“Buyer”). This Bill of Sale is made pursuant
to the Asset Purchase Agreement (the “Agreement”) dated as of the date hereof by and between Seller, Buyer,
and certain other parties, to transfer the Purchased Assets, as defined in the Agreement. Any capitalized term used but not defined
in this Bill of Sale shall have the meaning, if any, set forth in the Agreement.

 

1.                 
Conveyance. For good and valuable consideration described under Section 1.04 of the
Agreement, the receipt and adequacy of which Seller hereby acknowledges, Seller hereby irrevocably sells, assigns, transfers, conveys,
grants, bargains and delivers to Buyer, all of its right, title and interest in and to the Purchased Assets, except for the CETS
Assets (the “CEL Assets”).

 

2.                 
Representations and Warranties. Seller represents and warrants that (1) Seller is conveying
good and valid title to all CEL Assets, free and clear of all Encumbrances; and (2) Seller has the right to sell the CEL Assets
to Buyer and shall warrant and defend the right against the lawful claims and demands of all persons in accordance with the terms
and conditions of the Agreement.

 

3.                 
Further Assurances. Seller for itself, its successors and assigns, hereby covenants
and agrees that, at any time and from time to time on Buyer’s written request, Seller will do, execute, acknowledge and deliver
or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers
of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm
unto and vest in Buyer, its successors and assigns, title to the assets sold, conveyed and transferred by this Bill of Sale.

 

4.                 
Governing Law. This Bill of Sale is governed by, and construed in accordance with,
the laws of the State of Florida, United States of America, without regard to the conflict of laws provisions thereof to the extent
such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State
of Florida.

 

5.                 
Incorporation of Agreement. This Bill of Sale incorporates by reference all of the
terms of the Agreement, including but not limited to Seller’s representations, warranties, covenants and agreements relating
to the CEL Assets, as if each term was fully set forth herein. In the event of conflict between the terms of the Agreement and
the terms of this Bill of Sale, the terms of the Agreement govern and control.

 

6.                 
Counterparts. This Bill of Sale may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Bill of
Sale delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as
delivery of an original signed copy of this Bill of Sale.

 

IN WITNESS WHEREOF, Seller and
Buyer have each duly executed and delivered this Bill of Sale as of the date first written above.

	
         

        BUYER:

         

        Citrus Extracts II, LLC

         

         
	 
	
        By____/s/ Alan Koch___________

         

        Name: Alan Koch

        Title: Co-Manager
	 

 

 

	
        SELLER:

         

        Citrus Extracts, Inc.

         

         

	
        By___/s/ Steven L. Sample________

         

        Name: Steven L. Sample

        Title: Chief Executive Officer

         

         

        Acacia Diversified Holdings,
        Inc.

         

         

        By ____/s/ Steven L. Sample______

	
         

        Name: Steven L. Sample

        Title: Chief Executive OfficerNon-COMPETITION
AND RESTRICTIVE COVENANT AGREEMENT

 

This NON-COMPETITION
AND RESTRICTIVE COVENANT AGREEMENT (this “Agreement”), is made and entered into as of June 29, 2015, between Citrus
Extracts II, LLC, a Florida limited liability company (together with its subsidiaries and affiliates, the “Company”),
and Steven L. Sample, a Florida resident (“Sample”).

 

WHEREAS, the
execution and delivery of this Agreement by the Company and Sample is a condition to the closing of the transaction contemplated
by the Asset Purchase Agreement dated as of the date hereof, by and among the Company, Citrus Extracts Transport Services, LLC,
Citrus Extracts, Inc. (“CEI”), Acacia Transport Services, Inc. (“ATS”) and Acacia Diversified
Holdings, Inc. (“ADH”) (the “Purchase Agreement”).

 

WHEREAS, Sample
has acquired, through his ownership of ADH (the parent company of ATS and CEI) and his relationship as a director, officer and/or
employee of ADH, CEI and CTS, intimate knowledge regarding the business, customers, suppliers, information and processes of or
relating to the Company.

 

WHEREAS, Sample
will benefit from the closing of the transactions contemplated in the Purchase Agreement, which benefits constitute adequate and
sufficient consideration for the covenants and obligations made in this Agreement.

 

WHEREAS, Sample and the Company desire
to enter into this Agreement on the terms and conditions hereafter set forth.

 

NOW THEREFORE, in
consideration of the covenants and promises contained herein, and given pursuant to the Purchase Agreement, the parties hereto
agree as follows:

 

1.     
ACKNOWLEDGEMENT; INCORPORATION OF RECITALS. Sample hereby acknowledges
receipt of adequate and sufficient consideration from the Company for the covenants and agreements made in this Agreement. The
recitals set forth above are, by this reference, incorporated into and deemed a part of this Agreement.

2.     
NON-COMPETE AND NON-SOLICITATION

(a)   
Non-Competition. During the Restricted Term, Sample agrees that neither he nor
any of his Related Persons will, in any manner, anywhere in the Restricted Territory, directly or indirectly, on behalf of himself
or any other Person other than the Company, invest in, own, manage, operate, finance, control, advise, render services to or guarantee
the obligations of any Person engaged in or planning to become engaged in the Business; provided, however, that Sample’s
ownership of, investment in, management, control or operation of, financing of, employment with or rendering of services to Persons
engaged in the production of products directly produced as a result of the systems and methods claimed in US Patent No. 8,017,171
and US Patent No. 8,383,186 and/or the claims of US Patent Application No. 13/765,310 as of the date hereof (the “Excluded
Activities”), or the transportation by truck of raw citrus peel to be used for such Excluded Activities, shall not be
deemed a violation of the restrictions set forth in this Section 2(a).

(b)  
Non-Solicitation. During the Restricted Term, Sample agrees that neither he
nor his Related Persons, in any manner, anywhere in the Restricted Territory, directly or indirectly, on behalf of himself or any
other Person will (i) solicit the business of any Person who is a customer or potential customer of the Company for the products
or services then sold by the Company in any manner that could be likely to result in such Person curtailing or canceling any business
or contracts that such Person has with the Company or in any way interfere with the relationship between the Company and such Person;
(ii) cause, induce or attempt to cause or induce any actual or potential customer, supplier, employee, consultant or other business
relation of the Company to cease doing business with the Company, to deal with any competitor of the Company, or in any way interfere
with its relationship with the Company; or (iii) hire, employ, engage, retain or attempt to hire, employ, engage or retain any
employee or independent contractor of the Company or in any way interfere with the relationship between the Company and any of
its employees or independent contractors.

3.     
CONFIDENTIAL INFORMATION.

(a)   
Confidential Information; Restriction. Sample recognizes and acknowledges that
certain assets of the Company, including without limitation information regarding customers, pricing policies, methods of operation,
proprietary computer programs, sales, products, profits, costs, markets, key personnel, formulae, product applications, technical
processes, potential acquisition or joint venture candidates and trade secrets which may have been made available to Sample, whether
in writing, in computer form, reduced to a tangible form in any medium, or conveyed orally, and which gives the Company a competitive
advantage over other individuals or companies which do not have access to this information (hereinafter called “Confidential
Information”) are valuable, special, and unique assets of the Company. Sample acknowledges that the Company is the owner
of the Confidential Information and agrees not to dispute, contest or deny any such ownership rights of the Company. Sample shall
not use, divulge, reproduce, distribute, reverse engineer or disclose (in any way or in any manner) any Confidential Information
to any person, firm, corporation, association, or any other entity for any reason or purpose whatsoever, directly or indirectly,
except as may be required by law, unless and until such Confidential Information becomes publicly available other than as a consequence
of the breach by Sample of his confidentiality obligations hereunder. Sample agrees to take all reasonable precautions to prevent
the inadvertent disclosure of the Confidential Information to any unauthorized person; agrees not to transport or cause to be transported
the Confidential Information outside the premises of the Company, except as necessary or desired to carry out Sample’s duties
as prescribed by the Company; agrees not, without the Company’s express authorization, to participate directly or indirectly
in the development, marketing, sale, licensing or other exploitation of software or other products or services which embody or
are derived from Confidential Information; and agrees that in the event Sample becomes aware that any Person is taking or threatens
to take any action which would compromise the Confidential Information or violate any of the foregoing provisions were that Person
subject to the provisions of this Section 3, promptly advise the Company of all facts concerning such action or threatened
action. Sample expressly agrees that the disclosures prohibited hereby include disclosure of similarities or possible similarities
between the Confidential Information and the work product of another person or company.

(b)  
Protective Order. In the event that Sample is required to disclose any Confidential
Information pursuant to an order, regulation, ruling, governmental request, summons or subpoena, Sample shall promptly notify the
Company of such pending disclosure and reasonably cooperate in assisting the Company (at the Company’s expense) in seeking
a protective order or in objecting to such request, summons or subpoena with regard to the Confidential Information.

(c)   
Cooperation. Sample agrees to reasonably cooperate with the Company in the prosecution
or defense of all threatened claims or actual litigation in which the Company is or may become a party, whether now pending or
hereafter brought, in which Sample has knowledge of relevant facts or issues. Sample shall be promptly reimbursed reasonable out-of-pocket
expenses incurred by him due to his cooperating with the prosecution or defense of any litigation for the Company as applicable,
including but not limited to reasonable attorney’s fees incurred in the furtherance
of those actions, provided that he provides the Company with reasonable documentation of such
expenses. 

4.     
ASSIGNMENT. Sample hereby assigns
and transfers to the Company any right, title or interest in any inventions, designs, discoveries, works of authorship, creations,
ideas, developments, improvements, trade secrets (including, without limitation, trade secrets relating to the Emulsion System
or CitraBlend Peel Proceeding System) or software relating to the Business (collectively, “Inventions”), that
Sample may have as of the date hereof or may have acquired on or before the date hereof, in whole or in part. This obligation is
limited to any Inventions that relate to the Company’s Business or demonstrably anticipated business, whether or not the
Inventions were created, originated, developed or conceived of by Sample solely or jointly with others and whether or not the Inventions
are protected or protectable under applicable patent, trademark, service mark, copyright or trade secret laws. Sample hereby transfers
Sample’s rights in such Inventions free of all encumbrances and restrictions, and will promptly take any action, including
executing and delivering any documentation, deemed necessary by the Company to effectuate the transfer or prosecution of ownership
rights in the United States and any other country as the Company may request. Sample acknowledges and agrees that the Inventions
will be considered part of the Confidential Information.

5.     
INJUNCTIVE RELIEF; REMEDIES. Sample
acknowledges and agrees that any breach or threatened breach by Sample of Section 2, Section 3 or Section 4 of this Agreement
will cause irreparable harm and continuing damages to the Company and that the remedy at law for any such breach or threatened
breach will be inadequate. Accordingly, in addition to any other remedies that may be available to the Company at law or in equity
in such event, the Company shall be entitled to seek and obtain, from any court of competent jurisdiction, an injunction or injunctions,
without bond or other security and without having to show that money damages will be inadequate or impossible to determine, enjoining
and restricting the breach or threatened breach. Sample acknowledges, however, that no specification in this Agreement of a specific
legal or equitable remedy may be construed as a waiver of or prohibition against pursuing other legal or equitable remedies in
the event of a breach of this Agreement by Sample.

6.     
SEVERABILITY AND JUDICIAL MODIFICATION.
If any clause, term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent
be held invalid or unenforceable, the remainder of this Agreement and the application of such clause, term or provision to persons
or circumstances other than those to which it is invalid and unenforceable, shall not be affected thereby, and each clause, term
and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. If any court of competent
jurisdiction refuses to enforce any clause, term, or provision of this Agreement as written, the other clauses, terms, and provisions
shall stand, and the court shall modify the clause, term, or provision at issue to the minimum extent necessary to make it enforceable
under applicable law, and shall enforce it as so modified.

7.     
GENERAL.

(a)   
Waivers. No delay or omission by either party hereto in exercising any right,
power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such
right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege. No waiver
of any provision of this Agreement shall in any event be effective unless the same shall be in writing, executed by the party against
whom enforcement of such waiver is sought, and any waiver so given shall be effective only in the specific instance and for the
specific purpose for which given.

(b)  
Counterparts. This Agreement may be executed in multiple counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same instrument. The parties may deliver
an executed copy of this Agreement or any other document contemplated by this Agreement by facsimile or other electronic transmission
to the other parties, and such delivery will have the same force and effect as the delivery of an original signed copy of this
Agreement or such other document. 

(c)   
Governing Law; Waiver of Jury Trial. This Agreement shall be construed in accordance
with and governed by the laws of the State of Florida applicable to agreements made and to be performed wholly within such jurisdiction,
without regard to principles of conflicts of laws. Each of the parties hereto hereby irrevocably and unconditionally waives any
and all right to trial by jury of any claim or cause of action in any suit arising out of or related to this Agreement or the transactions
or events contemplated hereby or any course of conduct, course of dealing, statements (whether verbal or written) or actions of
any party hereto. The parties hereto each agree that any and all such claims and causes of action shall be tried by the court without
a jury. Each of the parties hereto further waives any right to seek to consolidate any such lawsuit in which a jury trial has been
waived with any other lawsuit in which a jury trial cannot or has not been waived.

(d)  
No Strict Construction. The language used in this Agreement will be deemed to
be the language chosen by Sample and the Company to express their mutual intent, and no rule of strict construction will be applied
against Sample or the Company.

(e)   
Headings. The section and subsection heading of this Agreement are included
for purposes of convenience only, and shall not affect the construction or interpretation of any of its provisions.

8.     
DEFINITIONS. For purposes of this Agreement, the following definitions
shall apply:

“Business”
means the business of acquiring and processing raw citrus peel into dehydrated citrus ingredients products, milling dehydrated
citrus ingredient products, and/or transporting raw citrus peel by truck, including all processes, systems and technology.
 

“Control”
of an entity includes service as a director, officer, partner, manager, executor or trustee (or in a similar capacity) or beneficial
ownership of 10% or more of the outstanding equity (or the right to vote or receive profits, dividends or distributions).

“Person”
means an individual, partnership, corporation, business trust, limited liability company, limited liability partnership, joint
stock company, trust, unincorporated organization, association, joint venture or other entity or a governmental body.

“Related
Person” –

(a)            
in the case of a natural person, each member of such Person’s immediate family, by blood or by marriage, including
spouses, parents, step-parents, siblings, children, and step-children;

(b)           
any Person that, directly or indirectly Controls, is Controlled by or is under common Control with, a Person.

“Restricted
Term” means the period commencing on the date hereof and ending five (5) years thereafter.

“Restricted
Territory” means anywhere in the United States.

    	 

    	 

    

 

IN WITNESS WHEREOF, and intending to
be legally bound hereby, the parties hereto have caused this Non-Compete and Restrictive Covenant Agreement to be duly executed
as of the date and year first above written.

 

 

CITRUS EXTRACTS II, LLC

By:/s/ Alan Koch

Name: Alan Koch

Its: Co-Manager

STEVEN L. SAMPLE

/s/ Steven L. Sample

Steven L. Sample

 

Address:

Ocala, Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Non-Competition and Restrictive Covenant Agreement]

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