Document:

EMPLOYMENT AGREEMENT

 

This Employment
Agreement (the “Agreement”) is made and entered into as of November 1, 2014 by and between GreeneStone Healthcare
Corporation (the “Company”), and William L. Sklar (“Executive”).

 

RECITALS

 

The Company currently has developed and
is operating addiction treatment clinics in the Province of Ontario, but is expanding to other Canadian Provinces and into the
continental United States. (the “Territory”). The Company desires to employ Executive, and the Executive desires to
accept such employment, on the terms and subject to the conditions set forth in this Agreement.

 

In consideration of the mutual promises
set forth in this Agreement the parties hereto agree as follows:

 

ARTICLE I

Term of Employment

 

1.01Subject to the provisions
of Article V, and upon the terms and subject to the conditions set forth in this Agreement, the Company will employ Executive for
the period beginning on the date first written above (the “Commencement Date”) and continuing until either party sends
notice to the other party of such party’s desire to terminate the Agreement.

 

ARTICLE II

Duties

 

2.01(a)  During the term of employment,
Executive will:

 

(i)Promote the interests, within
the scope of his duties, of the Company and devote his efforts to the Company’s business and affairs;

 

(ii)Executive will be employed as
the Chief Financial Officer of each of The GreeneStone Healtcare Corporation and each of its subsidiaries, trusts and related entities.
Executive's responsibilities, duties, prerogatives and authority in such executive offices, and the clerical, administrative and
other support staff and office facilities provided to him, shall be those customary for the chief financial officer of publicly
held corporations generally and of holding companies and financial institutions that are a part of the financial institutions industry
specifically. In his executive capacities Executive shall report to the President and Chief Executive Officer of GreeneStone Healthcare
Corporation; and

 

(iii)Perform the duties and services
consistent with the title and function of such office, including without limitation, those, if any, set forth in the bylaws of
the Company or as specifically set forth from time to time by the Company’s Board of Directors (the “Board”).

 

(b)Notwithstanding anything contained in clause 2.01(a) (i)
above to the contrary, nothing contained herein or under law shall be construed as preventing Executive from (i) investing
Executive’s personal assets in such form or manner as will not require any services on the part of Executive in the
operation or the affairs of the companies in which such investments are made and in which his participation is solely that of
a passive investor (provided that he, collectively with his family and affiliated interests (or persons constituting a
“group” under the United States Federal securities laws) will not exceed 5% of any company’s voting
securities); and (ii) engaging (not during normal business hours) in any other professional, civic, or philanthropic
activities, provided that Executive’s investments or engagement does not result in a violation of his covenants under
this Section or Article VI hereof and are otherwise disclosed to and approved by the Board in its sole discretion.

 

2.02 The Executive will provide, at his
own expense a remote office, telecommunication expenses, office equipment and furniture, and office supplies. The Executive’s
normal place of business will be the remote office, although, as needed or upon reasonable request by the Company President, the
Executive shall attend at the Company’s main office.

    	 

    	 

    

ARTICLE III

Base Compensation

 

3.01The Company will compensate Executive
for the duties performed by him hereunder by payment of a base salary at the rate of

 

(a)Eighteen Thousand Dollars ($18,000.00)
per annum (the “Base”), payable in equal weekly installments, or in conformity with payroll practices of other executives
of the company, subject to customary withholding for federal, state, and local taxes and other normal and customary withholding
items.

 

(b) Additional compensation as previously
agreed between the parties should the scope of the Executive’s activities increase beyond that anticipated by this agreement.

 

ARTICLE IV

Reimbursement and Employment Benefits

 

4.01Health and Other Medical.
Executive shall NOT be eligible to participate in all health, medical, dental, and life insurance employee benefits as are available
from time to time to other key executive employees (and their families) of the Company, including a Life Insurance Plan, Medical
and Dental Insurance Plan, and a Long Term Disability Plan (the “Plans”). The Company shall pay 0.0 % of all premiums
with respect to such Plans.

 

4.02intentionally left blank

 

4.03Performance Enhancing Items.
Executive shall NOT be entitled to receive from the Company an annual car allowance up to NIL Dollars ($0.00) per annum.

 

4.04Reimbursable Expenses.
The Company shall in accordance with its standard policies in effect from time to time reimburse Executive for all reasonable out-of-pocket
expenses actually incurred by him in the conduct of the business of the Company provided that Executive submits all substantiation
of such expenses to the Company on a timely basis in accordance with such standard policies and further provided that Executive
receives prior approval for all individual expenditures in excess of $500.00.

 

4.05Savings Plan. Executive
will be eligible to enroll and participate, and be immediately vested in, all Company savings and retirement plans, including any
401(k) plans, as are available from time to time to other key executive employees.

 

4.06Common Stock Purchase Options,
The Compensation Committee of the Board of Directors will grant to the Employee non-qualified options to acquire 480,000 shares
of Stock as soon as practicable after the Employee joins the Company based upon the market value of the stock, as reported by the
Electronic Bulletin Board, on the date the agreement is executed, determined to be $0.12. The stock option award shall be subject
to and governed by the terms and conditions of the terms of the 2013 Stock Option Plan (“2013 Stock Option Plan”) and
the award document. The options will expire October 31, 2019.

    	 

    	 

    

ARTICLE V

Termination

 

5.01General Provisions. Except
as otherwise provided in this Article V, at such time as Executive’s employment is terminated by the Executive or the Company,
any and all of the Company’s obligations under this Agreement shall terminate, other than the Company’s obligation
to pay Executive, within thirty (30) days of Executive’s termination of employment, the full amount of any unpaid Base and
accrued but unpaid benefits, including any vacation pay, earned by Executive pursuant to this Agreement through and including the
date of termination and to observe the terms and conditions of any plan or benefit arrangement which, by its terms, survives such
termination of Executive’s employment. The payments to be made under this Section 5.01 shall be made to Executive, or in
the event of Executive’s death, to such beneficiary as Executive may designate in writing to the Company for that purpose,
or if Executive has not so designated, then to the spouse of Executive, or if none is surviving, then to the personal representative
of the estate of Executive. Notwithstanding the foregoing, termination of employment shall not affect the obligations of Executive
under Article VI hereof that, pursuant to the express provisions of this Agreement, continue in full force and effect. Upon termination
of employment with the Company for any reason, Executive shall promptly deliver to the Company all Company property including without
limitation all writings, records, data, memoranda, contracts, orders, sales literature, price lists, client lists, data processing
materials, and other documents, whether or not obtained from the Company or any Affiliate, which pertain to or were used by Executive
in connection with his employment by the Company or which pertain to any Affiliate, including, but not limited to, Confidential
Information, as well as any automobiles, computers or other furniture, fixtures or equipment which were purchased by the Company
for Executive or otherwise in Executive’s possession or control.

 

5.02Consequences of Termination.
Upon any termination of Executive’s employment with the Company, except for a termination by the Company for Cause (as defined
herein) or the Executive’s resignation, the Executive shall be entitled to a payment equal to one (1) months’ compensation.
Executive expressly acknowledges and agrees that the payment of Severance to Executive hereunder shall be liquidated damages for
and in full satisfaction of any and all claims Executive may have relating to or arising out of Executive’s employment or
termination of Executive’s employment by the Company or relating to or arising out of this Agreement and the termination
thereof, including, without limitation, those causes of action arising under the Age Discrimination in Employment Act of 1967,
as amended, 29 U.S.C. §621 et seq., Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et
seq., the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §12101 et seq., the Fair Labor Standards
Act of 1938, as amended, 29 U.S.C. §201 et seq., the Civil Rights Act of April 9, 1866.1 42 U.S.C. §1981 et
seq., the National Labor Management Relations Act, 29 U.S.C. §141 et seq., the Occupational Safety and Health Act,
29 U.S.C. §651 et seq., and the Family Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. Notwithstanding
the foregoing, Executive’s right to receive Severance Pay is contingent upon Executive not violating any of his on-going
obligations under this Agreement.

 

5.06Cause. The term “Cause” shall
mean the following:

 

(a)Any violation by Executive of any
material provision of this Agreement (including without limitation any violation of any provision of Sections 6.01, 6.02 or 6.03
hereof any and all of which are material in all respects), upon notice of same by the Company describing in detail the breach asserted
and stating that it constitutes notice pursuant to this Section 5.03(a), which breach, if capable of being cured, has not been
cured to the Company’s sole and absolute satisfaction within 30 days after such notice (except for breaches of any provisions
of sections 6.01, 6.02 or 6.03 which are not subject to cure or any notice);

 

(b)Embezzlement by Executive of funds
or property of the Company;

 

(c)Habitual absenteeism, bad faith,
fraud, refusal to perform his duties, gross negligence or willful misconduct on the part of Executive in the performance of his
duties as an employee of the Company, provided that the Company has given written notice of and an opportunity of not less than
30 days to cure such breach, which notice describes in detail the breach asserted and stating that it constitutes notice pursuant
to this Section 5.06(c), provided that no such notice or opportunity needs to be given if (x) in the judgment of the Company’s
Board of Directors, such conduct is habitual or would unnecessarily or unreasonably expose the Company to undue risk or harm or
(y) one previous notice had already been given under this section or under section (i) above; or

    	 

    	 

    

(d)A felonious act, conviction, or
plea of nolo contendere of Executive under the laws of the United States or any state (except for any conviction or plea
based on a vicarious liability theory and not the actual conduct of the Executive).

 

5.07Representations. Executive
represents, warrants, and covenants to Company that (a) there is no other agreement or relationship which is binding on him which
prevents him from entering into or fully performing under the terms hereof and (b) the Company may contact any past, present, or
future entity with whom he has a business relationship and inform such entity of the existence of this Agreement and the terms
and conditions set forth herein.

 

ARTICLE VI

Covenants

 

6.01Competition/Solicitation.
(a) During the period in which Executive performs services for the Company and for a period of twenty-four (24) months after termination
of Executive’s employment with the Company, regardless of the reason, Executive hereby covenants and agrees that he shall
not, directly or indirectly, except in connection with his duties hereunder or otherwise for the sole account and benefit of the
Company, whether as a sole proprietor, partner, member, shareholder, employee, director, officer, guarantor, consultant, independent
contractor, or in any other capacity as principal or agent, or through any person, subsidiary, affiliate, or employee acting as
nominee or agent, except with the consent of the Company:

 

(i)Conduct or engage in, or be interested
in or associated with, any person or entity anywhere in North America (plus any such additional geographical markets to which the
Company may have expanded during the course of Executive ‘s employment) other than the Company and its affiliates which conducts
or engages in the Business (plus any such additional product or service markets to which the Company may have expanded during the
course of Executive ‘s employment);

 

(ii)Solicit, attempt to solicit, or accept business from,
or cause to be solicited or have business accepted from, any then-current customers of Company, any persons or entities who
were customers of the Company within the 180 days preceding the Termination Date, or any prospective customers of the Company
for whom bids were being prepared or had been submitted as of the Termination Date; or

 

(iii)Induce, or attempt to induce,
hire or attempt to hire, or cause to be induced or hired, any employee of the Company, or persons who were employees of the Company
within the 180 days preceding the Termination Date, to leave or terminate his or her employment with the Company, or hire or engage
as an independent contractor any such employee of the Company.

 

(b)Notwithstanding the foregoing, Executive
shall not be prevented from (i) investing in or owning up to two percent (2%) of the outstanding stock of any corporation engaged
in any business provided that such shares are regularly traded on a national securities exchange or in any over-the-counter market
or (ii) retaining any shares of stock in any corporation which Executive owned before the date of his employment with the Company.

 

6.02Confidential Information.
Executive acknowledges that in his employment he is or will be making use of, acquiring, or adding to the Company’s confidential
information which includes, but is not limited to, memoranda and other materials or records of a proprietary nature; technical
information regarding the operations of the Company; and records and policy matters relating to finance, personnel, market research,
strategic planning, current and potential customers, lease arrangements, service contracts, management, and operations. Therefore,
to protect the Company’s confidential information and to protect other employees who depend on the Company for regular employment,
Executive agrees that he will not in any way use any of said confidential information except in connection with his employment
by the Company, and except in connection with the business of the Company he will not copy, reproduce, or take with him the original
or any copies of said confidential information and will not directly or indirectly divulge any of said confidential information
to anyone without the prior written consent of the Company.

    	 

    	 

    

6.03Inventions. All discoveries,
designs, improvements, ideas, and inventions, whether patentable or not, relating to (or suggested by or resulting from) products,
services, or other technology of the Company or any Affiliate or relating to (or suggested by or resulting from) methods or processes
used or usable in connection with the business of the Company or any Affiliate that may be conceived, developed, or made by Executive
during employment with the Company (hereinafter “Inventions”), either solely or jointly with others, shall automatically
become the sole property of the Company or an Affiliate. Executive shall immediately disclose to the Company all such Inventions
and shall, without additional compensation, execute all assignments and other documents deemed necessary to perfect the property
rights of the Company or any Affiliate therein. These obligations shall continue beyond the termination of Executive’s employment
with respect to Inventions conceived, developed, or made by Executive during employment with the Company. The provisions of this
Section 6 shall not apply to any Invention for which no equipment, supplies, facility, or trade secret information of the Company
or any Affiliate is used by Executive and which is developed entirely on Executive’s own time, unless (a) such Invention
relates (i) to the business of the Company or an Affiliate or (ii) to the actual or demonstrably anticipated research or development
of the Company or an Affiliate, or (b) such Invention results from work performed by Executive for the Company.

 

6.04Non-Disparagement. For
a period commencing on the date hereof and continuing indefinitely, Executive hereby covenants and agrees that he shall not, directly
or indirectly, defame, disparage, create false impressions, or otherwise put in a false or bad light the Company, its products
or services, its business, reputation, conduct, practices, past or present employees, financial condition or otherwise.

 

6.05Blue Penciling. If at
the time of enforcement of any provision of this Agreement, a court shall hold that the duration, scope, or area restriction of
any provision hereof is unreasonable under circumstances now or then existing, the parties hereto agree that the maximum duration,
scope or area reasonable under the circumstances shall be substituted by the court for the stated duration, scope, or area.

 

6.06Remedies. Executive acknowledges
that any breach by him of the provisions of this Article VI of this Agreement shall cause irreparable harm to the Company and that
a remedy at law for any breach or attempted breach of Article VI of this Agreement will be inadequate, and agrees that, notwithstanding
section 9.01 hereof, the Company shall be entitled to exercise all remedies available to it, including specific performance and
injunctive and other equitable relief, without the necessity of posting any bond, in the case of any such breach or attempted breach.

 

ARTICLE VII

Assignment

 

7.01Assignment. This Agreement
shall be binding upon and inure to the benefit of the successors and assigns of the Company and shall relieve the Company of its
obligations hereunder if the assignment is pursuant to a Change in Control (as defined herein). Neither this Agreement nor any
rights hereunder shall be assignable by Executive and any such purported assignment by him shall be void.

 

7.02Change of Control. The
term “Change in Control” shall be deemed to have occurred at such time as (i) any person or entity (or person or entities
which are affiliated or acting as a group or otherwise in concert) is or becomes the beneficial owner, directly or indirectly,
of securities representing 50% or more of the combined voting power for election of directors of the then outstanding securities
of the Company (other than stockholders which own greater than fifty percent (50%) of the stock of the Company as of the effective
date of this Agreement); (ii) the shareholders of the Company approve any merger or consolidation as a result of which its equity
interests shall be changed, converted, or exchanged (other than a merger with a wholly-owned subsidiary of the Company) or any
liquidation of the Company or any sale or other disposition of all or substantially all of the assets or earning power of the Company;
or (iii) the shareholders of the Company approve any merger or consolidation to which the Company is a party as a result of which
the persons who were shareholders of the Company immediately before the effective date of the merger or consolidation shall have
beneficial ownership of less than 50% of the combined voting power for election of directors or the equivalent of the surviving
corporation following the effective date of such merger or consolidation; provided, however, that no Change in Control shall be
deemed to have occurred as a result of the sale or transfer of equity interests of the Company to an employee benefit plan sponsored
by the Company or an affiliate thereof or if the new employer offers to employ the Executive on substantially the same terms and
conditions as set forth in this Agreement (except that the Base shall not be reduced below the then-existing Base).

    	 

    	 

    

ARTICLE VIII

Entire Agreement

 

This Agreement constitutes
the entire understanding between the Company and Executive concerning his employment by the Company or subsidiaries and supersedes
any and all previous agreements between Executive and the Company or any of its affiliates or subsidiaries concerning such employment,
and/or any compensation, bonuses or incentives. Each party hereto shall pay its own costs and expenses (including legal fees) except
as otherwise expressly provided herein incurred in connection with the preparation, negotiation, and execution of this Agreement.
This Agreement may not be changed orally, but only in a written instrument signed by both parties hereto.

 

ARTICLE IX

Applicable Law; Miscellaneous

 

9.01Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. All actions brought to interpret
or enforce this Agreement shall be brought in courts located in Toronto, Ontario. Notwithstanding the foregoing, at the sole option
of the Company, all controversies under this Agreement may be subject to resolution by arbitration. Without limiting the generality
of the foregoing, the following shall be considered controversies for this purpose: (i) all questions relating to the interpretation
or breach of this Agreement; (ii) all questions relating to any representations, negotiations, and other proceedings leading to
the execution of this Agreement; and (iii) all questions as to whether the right to arbitrate any such question exists. Any party
may, without inconsistency with this Agreement, seek from a court any interim or provisional relief that may be necessary to protect
the rights or property of that party, pending the establishment of the arbitral tribunal (or pending the tribunal’s determination
of the merits of the controversy). The tribunal shall have authority to make the final determination of the rights of the parties,
including authority to make permanent, modify, or dissolve any judicial order granting such provisional relief. The Company, if
it desires arbitration, shall so notify the other parties, identifying in reasonable detail the matters to be arbitrated and the
relief sought. Arbitration shall be before a three-person tribunal of neutral arbitrators, consisting of attorneys with at least
ten (10) years’ experience in commercial law.. The arbitrators shall conduct a hearing no later than sixty (60) days after
designation of the tribunal, and a decision shall be rendered by the arbitrators within thirty (30) days after the hearing. At
the hearing, the parties shall present such evidence and witnesses as they may choose, with or without counsel. Adherence to formal
rules of evidence shall not be required but the arbitration panel shall consider any evidence and testimony that it determines
to be relevant, in accordance with procedures that it determines to be appropriate. Any award entered shall be made by a written
opinion stating the reasons for the award made. The arbitrators may award legal or equitable relief, including but not limited
to specific performance. The arbitrators are not empowered to award damages in excess of compensatory damages, and each party irrevocably
waives any right to recover such damages with respect to any dispute resolved by arbitration. This submission and agreement to
arbitrate shall be specifically enforceable. Arbitration may proceed in the absence of any party if notice of the proceedings has
been given to such party. The parties agree to abide by all awards rendered in such proceedings. Such awards shall be final and
binding on all parties. Each party shall continue to perform its obligations under this Agreement pending conclusion of the arbitration.
No party shall be considered in default hereunder during the pendency of arbitration proceedings relating to such default. The
arbitrators’ fees and other costs of the arbitration shall be borne by the party against which the award is rendered, except
as the arbitration panel may otherwise provide in its written opinion.

 

9.02Attorneys’ Fees.
In addition to all other rights and benefits under this Agreement, each party agrees to reimburse the other for, and indemnify
and hold harmless such party against, all costs and expenses (including attorney’s fees) incurred by such party (whether
or not during the term of this Agreement or otherwise), if and to the extent that such party prevails on or is otherwise successful
on the merits with respect to any action, claim or dispute relating in any manner to this Agreement or to any termination of this
Agreement or in seeking to obtain or enforce any right or benefit provided by or claimed under this Agreement, taking into account
the relative fault of each of the parties and any other relevant considerations.

    	 

    	 

    

9.03Indemnification of Executive.
The Company shall indemnify and hold harmless Executive to the full extent authorized or permitted by law with respect to any claim,
liability, action, or proceeding instituted or threatened against or incurred by Executive or his legal representatives and arising
in connection with Executive’s conduct or position at any time as a director, officer, employee, or agent of the Company
or any subsidiary thereof. The Company shall not change, modify, alter, or in any way limit the existing indemnification and reimbursement
provisions relating to and for the benefit of its directors and officers without the prior written consent of the Executive, including
any modification or limitation of any directors and officers’ liability insurance policy.

 

9.04Waiver. No waiver
by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a continuing waiver or a waiver of any similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either party hereto which are not set forth expressly in
this Agreement.

 

9.05Unenforceability.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect.

 

9.06Counterparts. This
Agreement may be executed in several counterparts, each of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

 

9.07Section Headings.
The section headings contained in this Agreement are inserted for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.

 

 

GreeneStone Healthcare Corporation

 

 

	By:		/s/Shawn Leon

Shawn Leon, President

 

 

			/s/ William L. Sklar

William L. Sklar, Executiveex10-32.htm

Exhibit 10.32

 

Equipment Lease Agreement

“Mini Melts” Vending Machines

This Equipment Lease Agreement (“Agreement”) is made and entered into effective as of October 21, 2014 (the “Effective Date”) by and between:

PERKIN INDUSTRIES, LLC, a Louisiana limited liability company having its principal place of business at 342 Walnut Street, New Orleans, Louisiana, 70118 (“Lessor”); and

U-VEND, INC. (OTC: UVND), a Delaware corporation, with its principal place of business located at: 1507 7th Street, Unit 425, Santa Monica, CA 90401 (“Lessee”).

WHEREAS, the Lessor is the sole owner of the Equipment described in Exhibit A hereto; and

WHEREAS, the Lessee wishes to lease the Equipment from Lessor in accordance with the terms and conditions of this Agreement; and

WHEREAS, the Lessor wants to lease the Equipment to the Lessee in accordance with the terms and conditions of this Agreement; and

WHEREAS, each Lessor and Lessee each acknowledges and agrees that it is duly authorized to enter into this Agreement;

NOW, THEREFORE, in consideration of the above premises and the mutual covenants set forth in this Agreement, the sufficiency of which the Parties acknowledge, the Parties agree as follows:

1.           Definitions:

Lessor – the Party who grants a lease.

Lessee – the Party to whom a lease is made.

Equipment – equipment to be leased as defined in Exhibit A.

Party – Lessor or Lessee.

Parties – Lessor and lessee.

2.           Lease and Lease Term:

2.1           Lessor agrees to lease the Equipment to the Lessee and the Lessee agrees to lease the Equipment from the Lessor in accordance with the terms and conditions of this Agreement.

  

 

  

2.2           The term of this Lease shall be twenty-four (24) months commencing on October 17, 2014 and ending at midnight on October 17, 2016 (the “Lease Term”).

3.           Equipment Use:

3.1           Lessee shall be solely responsible for all use, operation, service, maintenance and repair of the Equipment during the Lease Term.  Lessee shall cause the Equipment to be operated, serviced, maintained and repaired by only competent and qualified personnel in a safe and proper manner.

3.2           During the Lease Term Lessee shall transport, handle, store, operate and use the Equipment in a safe manner as required by any instructions provided by Lessor, as well as in accordance with any applicable governmental laws, standards, rules and regulatory requirements relating to the use of the Equipment.

3.3           Lessee shall be responsible for obtaining any required governmental or regulatory licenses and/or permits required to use, operate and maintain the Equipment, at any location.

3.4           Lessee shall be solely responsible for transporting all Equipment to any location for use, operation, service, maintenance and/or repair.  Lessee shall transport Equipment using qualified, insured and properly-licensed transportation services and shall demonstrate same to Lessor upon request.

3.5           Lessee shall not grant, create, incur, assume consent to or permit the continued existence any contractual or judicially imposed lien(s) or encumbrance(s) on, part with possession of, or sublease the Equipment without Lessor’s prior written consent.

3.6           Lessor may, at any time, enter Lessee’s premises where any Equipment may be used or stored for purposes of inspecting and/or examining the Equipment

3.8           The Equipment shall remain the property of the Lessor at all times during the period of the lease.

3.9           Lessee shall keep Lessor advised of any changes in the location of any Equipment during the Lease Term.

3.10           Lessee shall maintain insurance on loss of or damage to the Equipment and provide proof of this insurance as specified in Article 10, below.  The loss, destruction, theft, or damage of or to any Equipment shall not relieve Lessee from its obligation to pay the full purchase price or total monthly lease charges hereunder.

4.           Lease Charges:

4.1           As a material inducement and incentive for Lessor to acquire the Equipment and enter into this Lease with Lessee, Lessee shall transfer and assign to Lessor warrants to purchase two hundred thousand (200,000) shares in U-Vend, Inc. (OTC:  UVND), which warrants shall have a term of three (3) years, and an exercise price of $0.35 (the “Warrants”).  Notwithstanding any other provision of this Lease, this Lease shall not become effective until the Warrants have been transferred, in full, to Lessor.  Notwithstanding any termination or default of this Lease by Lessee, Lessor shall be entitled to keep and retain the Warrants and/or exercise any rights incumbent in the Warrants.

  

 

  

4.2           In addition to assignment and transfer of the Warrants as stated in Section 4.1 above, Lessee shall pay a monthly rental to Lessor for the Equipment (“Rent”).  Rent shall be THREE THOUSAND ONE HUNDRED TWENTY-FIVE DOLLARS and NO/100 ($3,125.00), Rent shall be payable monthly in advance, with the first payment due on the Effective Date, and thereafter on or before the 17th  day of each month thereafter.  All payments of Rent and any applicable late charges shall be made to:

Perkin Industries, LLC

342 Walnut Street

New Orleans, LA 70118

4.3           If Lessee fails to make any payment of Rent within five (5) days of the date then due, Lessee shall pay to Lessor a late charge in the sum of THREE HUNDRED DOLLARS and NO/100 ($300.00).  Acceptance of any such late charge or penalty by Lessor shall not be construed as a waiver of Lessor’s rights to enforce any other remedies with respect to any other provisions of this Lease.

4.4           Lessee further agrees to pay fifty percent (50%) of Lessor’s attorney fees incurred in connection with the negotiation, drafting and execution of this Lease.

5.           Delivery of Equipment:

 

5.1           Lessee acknowledges that all Equipment has been delivered to Lessee, and is within the control, custody and care of Lessee as of the Effective Date.

6.           Acceptance of Equipment, and Maintenance and Repair:

6.1           Lessee accepts all Equipment in its condition as of the Effective Date.

6.2           Lessee is responsible for all required periodic maintenance, reconditioning and refurbishment of the Equipment during the Lease Term.

6.3           Lessee shall be responsible for the repair of any Equipment damaged during the Lease Term, whether resulting from use, misuse, storage or transit and shall also be responsible to notify Lessor, in writing, within five working days of said Equipment damage.

6.4           If during the Lease Period the Equipment is lost, destroyed or damaged beyond repair, the Lessee shall be liable for the cost of replacing the Equipment.  Lessee shall not be entitled to any remission of Rent as a result of any loss, destruction or damages to any Equipment, unless said loss, destruction or damages is attributable solely to a negligent or intentional act of Lessor.

  

 

  

7.           Put/Call Option:

7.1           Commencing on September 21, 2015 and ending on October 21, 2015 (the “Year One Option Period”), Lessor shall have thirty (30) days to exercise its option to “put” fifty percent (50%) of the Equipment back to Lessee for purchase (the “Year One Put”).  Likewise, Lessee shall have the option to call fifty percent (50%) of the Equipment from Lessor for purchase during the Year One Option Period (the “Year One Call”).  In the event that the Year One Put and/or the Year One Call is timely exercised, in writing, Lessee shall pay to Lessor the sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS and NO/100 ($125,000.00) on or before November 21, 2015.  Further, if the Year One Put and/or the Year One Call is timely exercised, monthly Rent due under this Agreement shall be reduced by fifty percent (50%).

7.2           Commencing on September 21, 2016 and ending on October 21, 2016 (the “Year Two Option Period”), Lessor shall have thirty (30) days to exercise its option to put the remaining fifty percent (50%), or, if the Year One Put or Year One Call has not been exercised, Lessor shall be permitted to put one hundred percent (100%), of the Equipment back to Lessee for purchase (the “Year Two Put”).  Likewise, Lessee shall have the option to call fifty percent (50%), or, if the Year One Put or Year One Call has not been exercised, Lessee shall be permitted to call one hundred percent (100%), of the Equipment from Lessor for purchase during the Year One Option Period (the “Year Two Call”).  In the event that the Year Two Put and/or the Year Two Call is timely exercised, in writing, Lessee shall pay to Lessor the sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS and NO/100 ($125,000.00) on or before November 17, 2016, provided that 50% of the Equipment is put or called in Year 2.  In the event that 100% of the Equipment is put or called in Year 2, the purchase price to be paid by Lessee to Lessor is TWO HUNDRED FIFTY THOUSAND DOLLARS and NO/100 ($250,000.00).

7.3.           In the event of Lessee’s purchase of Equipment as described in Sections 7.1, 7.2, or 8.2, Lessor shall provide Lessee clean title to the Equipment, free and clear of all liens.

7.4           Lessee shall not be entitled to any reduction of the purchase price of any Put/Call Option (whether contained in Section 7.1 or 7.2, above, or Section 8.2, below) as a result of any loss, damage or destruction to any Equipment.

8.           Limited Option to Renew:

8.1           Provided that all Equipment has not been put or called for purchase by Lessee at the conclusion of Lease Year 2, and subject to Lessor’s prior written consent, Lessee shall have the option to renew the Credit Facility for an additional one (1) year period pursuant to the same terms stated in this Lease (the “Renewal Year”). This renewal will be granted solely at the discretion of Lessor, based upon the Lessee’s performance under the Lease as well as other factors.  Monthly Rent paid during the renewal term shall be proportionate to the amount of Equipment owned by Lessor (i.e., full monthly Rent will be owed if Lessor retains ownership of 100% of the Equipment at the conclusion of Year 2; 50% of the monthly Rent will be owed if Lessor retains ownership of 50% of the Equipment at the conclusion of Year 2.).

  

 

  

8.2           Within thirty (30) days of the conclusion of the Renewal Year, Lessor shall have the option to put all remaining Equipment back to Lessee (the “Year Three Put”).  Likewise,  Lessee shall have the option to call all remaining Equipment from Lessor within thirty (30) days of the conclusion of the Renewal Year (the “Year Three Call”).  If Lessor or Lessee has timely put or called, in writing, 50% of the Equipment during Year 1 or 2, and 50% of the Equipment remains under lease during the Renewal Year, the purchase price paid by Lessee for the Equipment put or called during the Renewal Year shall be ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS and NO/100 ($125,000.00).  If none of the Equipment has been put or called prior to the Renewal Year (i.e., in Year 1 or Year 2), the purchase price paid by Lessee for the Equipment put or called during the Renewal Year shall be TWO HUNDRED FIFTY THOUSAND DOLLARS and NO/100 ($250,000.00).

9.           Early Termination by Lessor:

9.1           In the event of:

	
  

	
(a.)

	
Lessee going into bankruptcy;

	
  

	
(b.)

	
A Receiver or Manager of the property of the Lessee shall be appointed;

	
  

	
(c.)

	
Distress or execution being levied or threatened upon any of the Lessees property;

	
  

	
(d.)

	
The Lessee shall abandon the Equipment; or

	
  

	
(e.)

	
The Lessee shall fail to remedy any breach of this Agreement within fifteen (15) days of written notice provided by Lessor to Lessee specifying such default.

Lessor shall be entitled to immediately terminate this Agreement, including the rental of the Equipment and the associated Rent, by notice to Lessee. Upon such termination Lessor shall direct Lessee to  either: (1) immediately assign to Lessor all of Lessee’s operating agreements with any third party(ies) related to the operation, placement and use of the Equipment, which are identified on Exhibit B; or (2) deliver the Equipment to Lessor at the address to be advised by Lessor.  If the Lessee fails to comply with the foregoing within fourteen (14) days of notice being received, Lessor or its agents may without further notice retake possession of the Equipment.  All costs, including attorney’s fees, incurred by Lessor in connection with the enforcement of this Lease, including but not limited to any action taken by Lessor in connection with the repossession and/or return of Equipment to Lessor, shall be at the cost of the Lessee.

  

 

  

9.2           During any term of this Lease and upon five (5) days written notice from Lessor, Lessee shall provide to Lessor an updated Exhibit B, which shall identify all then current operator and/or operating agreements with any third parties related to the operation, placement and use of the Equipment.

10.           Indemnity and Insurance:

10.1           Lessee shall indemnify and hold harmless Lessor from and against any and all claims arising from this Agreement, the Equipment and/or the conduct of Lessee’s business, and shall further indemnify and hold harmless Lessor from and against any and all claims arising from arising from this Agreement, the Equipment and/or the conduct of Lessee’s business.  Such indemnity shall indemnify Lessor against costs, attorney’s fees, expenses, and liabilities incurred in the defense of any such claim, action or proceeding brought thereon and in any case, action or proceeding brought thereon and in any case, action or proceeding brought thereon and in any case, action, or proceeding to be brought against Lessor by reason of such claim.  Lessee, upon notice of Lessor, shall defend the same at Lessee’s expense by counsel satisfactory to Lessor.  Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in or about the premises arising from any cause and Lessee hereby waives all claims and respect thereto against Lessor.  This indemnity agreement shall arise and be effective even if the cause of any such loss or damage, death, bodily injury, or personal injury, shall be caused or contributed to by Lessor or those for whom Lessor may be responsible, or by the condition of the premises.  In connection with this clause, Lessee shall maintain liability insurance to limits of at least $1,000,000.00 and obtain an endorsement naming Lessor as an additional insured.  Notwithstanding the provision of this Section, Lessee shall not be required to indemnify Lessor if it be proved that any loss or damage has been caused solely by Lessor’s negligence, gross negligence or intentional act.

10.2           The Lessee shall also take out and maintain insurance coverage on the Equipment to protect against loss, destruction or damage to the Equipment by burglary, theft, misuse, mischief, malicious damages, flood, fire, storm, earthquake, other water damage, sprinkler leakage, act of god, tempest, explosion, aircraft or other aerial devices (including any articles dropped there from), strikes, riots, civil commotion and such other risk as Lessor may consider necessary from time to time.  Lessee shall ensure that the interests of Lessor in the Equipment is noted in all insurance coverages required by this Agreement.

10.3           The Lessee covenants and agrees that it shall notify its insurer or all the provisions of this Agreement, and in particular draw its insurer’s attention to this Article 10, and shall produce copies of any current certificates of insurance required by this Agreement to Lessor upon request.

  

 

  

11.           Failure and Delay by Lessor’s Suppliers and Force Majeure:

11.1           Lessor shall not be liable for any failure to fulfill any terms of this Agreement if fulfillment is prevented, hindered or delayed in whole or in part directly or indirectly by:

	
  

	
(a.)

	
Any failure to supply, delay in supply, by the supplier and/or seller of the Equipment or any part thereof to Lessor; and

	
  

	
(b.)

	
Government intervention, war, rebellion, insurrection, political or labor disturbances, riot, civil commotion, strikes, lock outs, fire, floods, breakdown of machinery, Act of God, or any cause comprehended in the term force majeure.

12.           Assignment:

12.1           The Lessor may assign any rights under this Agreement without the consent of Lessee.  In the event of Lessor’s assignment of this Agreement, Lessor must provide Lessee 30 days written notice of Lessor’s intent to assign.

12.2           Lessee may only assign its rights under this Agreement with written approval of Lessor.  Any party to whom the Lessee proposes to assign its rights under this Agreement must be of a reputable standing and proof of credit worthiness must be provided to Lessor on request.  Lessor shall not unreasonably withhold consent.

13.           Warranties and Representations by Lessee:

13.1           Lessee expressly warrants and represents to Lessor that:

	
  

	
(a.)

	
Within ninety (90) days of the Effective Date, U-Vend, Inc., Lessee, will procure “key man” insurance coverage on the life of Raymond Meyers and/or any successor chief executive officer of U-Vend, Inc., which shall remain in place throughout the duration of this Agreement and any renewal thereof.

	
  

	
(b.)

	
All financial records provided by or on behalf of Lessee to Lessor pertaining to Mini Melts, Inc. and Mini Melts USA, Inc. and/or any of their respective subsidiary or affiliated entities, attached hereto as Exhibit C, accurately represent the then current financial condition of said companies.

	
  

	
(c.)

	
Raymond Meyers has entered into a legally enforceable non-competition agreement with U-Vend, Inc., which shall remain in place throughout the duration of this Agreement and any renewal thereof.

14.           Governing Law and Jurisdiction:

14.1           This Agreement shall be exclusively governed by and interpreted in accordance with the laws of Louisiana and will not change unless mutually agreed to between the Parties in writing.  The Parties submit to the non-exclusive jurisdiction of the federal and state courts of Louisiana.

  

 

  

15.           Severability:

15.1           If any law or court of competent jurisdiction invalidates, voids or amends any provision of this Agreement, said provision will be deemed as deleted or modified to comply with such law or court but this Agreement including any such modified provision and all its other provisions shall continue with full force and effect for the term hereof.

16.           Agreement Organization:

16.1           The titles of articles, sections and other headings or formatting of this Agreement are for organizational and administrative convenience only and their use or arrangement shall not under any circumstance govern or affect the intent, interpretation, or construction hereof.

17.           Entirety of Agreement:

17.1           This Agreement constitutes the entire and complete Agreement between the Parties, supersedes and replaces any and all prior understandings, promises, representations, and agreements, oral or written, which may have been made by or on behalf of the Parties in connection herewith.  No modification, change, or waiver of this Agreement shall be valid unless agreed to as provided herein or otherwise agreed to in writing by duly authorized representatives of the Parties.

[Signature page follows]

 

 

 

 

 

 

 

 

 

  

 

  

IN WITNESS WHEREOF, the parties hereto have executed this Equipment Lease Agreement effective as of the date first set forth above.

	  	
FOR LESSOR:

 

PERKIN INDUSTRIES, LLC.

 

 

By: /s/ Nicolas R. Perkin

Name: Nicolas R. Perkin

Title: Manager

Telephone:(504) 388-3169

Fax: [Insert]

Email: nicolas@perkinindustries.com

 

 

 

	  	
FOR LESSEE:

 

U-VEND, INC.

 

 

By: /s/ Raymond Meyers

Name: Raymond Meyers

Title: Chief Executive Officer

Telephone: 323-855-1107

 

Email: rmeyers@u-vend.com

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