Document:

Exhibit
10.3

 

AGREEMENT

 

THIS
AGREEMENT entered into as of this 15th day of August, 2018, by and between COATES
INTERNATIONAL, LTD, a Nevada Corporation, having an address of 2100 Route 34, Wall Township,
NJ 07719 (the “Seller”), and W & S INVESTMENTS, L.L.C., A New Jersey Limited Liability Company, AND/OR ITS ASSIGNS, having an address
of P.O. Box 496, Allenwood, NJ 08720 (the “Purchaser or Buyer”).

 

W
I T N E S S E T H:

 

WHEREAS,
Seller is the owner of 3.6 acres of real property in the Township of Wall, located
at 2100 Route 34 and being the rear portion of Lot 4 in Block 806 as shown on the tax map of the Township of Wall, Monmouth County,
New Jersey (“Subject Premises”). The Subject Premises is currently unimproved. The Subject Premises is part of a larger
currently undivided parcel of real estate (the “Overall Parcel”). Purchaser is subdividing the Overall Parcel
and Seller is retaining a portion. The portion of the Overall Parcel excluding the Subject Premises is referred to herein as the
“Retained Property”. Exhibit A depicts the line dividing the
Subject Premises from the Retained Property; and

 

WHEREAS,
it is the intention of Buyer to acquire the Subject Premises for the purpose of constructing
a self-storage facility that is operated by the Buyer (“Intended Purpose”).

   

WHEREAS,
Seller wishes to sell to Purchaser, and Purchaser
wishes to acquire from Seller, the Subject
Premises consisting of the 3.6 acres located at 2100 Route 34 and being the rear portion of Lot 4 in Block 806 as shown on the
tax map of the Township of Wall, Monmouth County, New Jersey, and as further depicted on Exhibit A attached
hereto and made a part hereof all upon and subject to the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, IN CONSIDERATION OF THE FOREGOING, AND OF THE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS HEREINAFTER CONTAINED,
THE PARTIES HERETO DO HEREBY MUTUALLY AGREE AS FOLLOWS:

 

1.
Purchase and Sale of
Subject Premises. Subject to the terms and conditions set forth in this
Agreement, Seller agrees to sell, convey, transfer, assign and deliver to Purchaser, and Purchaser agrees
to purchase from Seller the Subject Premises which is the 3.6 acres of real property known as a rear portion of Lot 4 in
Block 806 as shown on the tax map of the Township of Wall, and as further described on Exhibit A attached hereto and made
a part hereof.

 

2. Purchase
Price. The total Purchase Price for the Subject Premises that will be
paid by the Buyer to the Seller shall be the sum of ONE MILLION THREE HUNDRED THOUSAND AND 00/100 ($1,300,000.00) DOLLARS
and shall be payable as follows:

 

A.
The initial deposit in the amount of FIFTY THOUSAND ($50,000.00) DOLLARS which sum has been released to Seller
pursuant to the contract terms.

  

    1

     

    

 

B. The
sum of ONE HUNDRED FIFTY THOUSAND ($150,000.00) DOLLARS shall be paid upon execution of this Agreement also to be released to
Seller pursuant to the contract terms and the terms of the Escrow Agreement attached hereto as Exhibit B. Inasmuch as Purchaser
shall be applying to the Township of Wall for the approval of its Intended Purpose, and given that real estate taxes (taxes) to
the Township of Wall on the Overall Parcel must be current, any arrears in taxes for the years 2017 and 2018 through the fourth
quarter of 2018 shall first be disbursed to the Township of Wall by Purchaser for said taxes prior to the release of any monies
under this subparagraph B to Seller.

 

C. The
balance of ONE MILLION
ONE HUNDRED THOUSAND AND 00/100 ($1,100,000.00) DOLLARS to be paid on the date of closing
in cash by title company escrow check, bank check or wired monies.

 

3.
Mortgage securing released
deposit monies.

 

Upon
execution of the within Agreement and prior to the release of the remainder of the deposit monies indicated in 2 B., Seller shall
execute a note and mortgage (to be prepared by Purchaser’s attorney) in favor of Purchaser in the amount of TWO
HUNDRED THOUSAND AND 00/100 ($200,000.00) DOLLARS and placed upon the Overall Parcel located
at 2100 Route 34 and being known as lot 4 in block 806 as shown on the tax map of the Township of Wall, County of Monmouth, State
of New Jersey. The mortgage shall be held in escrow subject to the terms of the Escrow Agreement attached hereto as Exhibit
B. The Note shall be reduced by $1,000. For each extension requested by Purchaser up to
a total of $4,000. Said Note shall be interest-free from the date of execution until closing of title between the parties hereof
upon Purchaser’s successful subdivision and approval for development as contained herein. Should closing not occur between the
parties for any reason, then in that event, the principal amount of the Note shall be called and become due and payable to Purchaser.
Failing to repay the Note: (a) the mortgage shall be released from escrow and delivered to the Buyer’s attorney at which point
the Buyer may record the mortgage with the Clerk of Monmouth County; and (b) the repayment of principal and interest shall commence
and accrue at the rate of seven and one/half (7 1/2%) percent per annum on the principal balance thereof and shall be repaid by
Seller in quarterly payments utilizing a five year amortization schedule.

   

4.
Due
Diligence Review. Buyer, its agents, representatives and employees may, during
reasonable business hours and on notice to Seller, during a period commencing on the date hereof and expiring ninety (90) days
after the date Seller’s Deliveries pursuant to Article 5 A(v) are received by Buyer (the “Inspection Period”),
inspect, audit and copy the Seller’s Deliveries. Provided that if Buyer has not obtained all final (not subject to challenge
or appeal and recorded if applicable) necessary governmental approvals and permits (including site plan approval, zoning approval
and building permits) satisfactory to Buyer for Buyer’s subdivision of the Overall Parcel and its anticipated development
of the Subject Premises for the Intended Purpose by the end of the Inspection Period (the “Approvals”), Buyer
may extend the Inspection Period up to four (4) times for thirty (30) days each by giving written notice to Seller on or before
the last day of the then existing Inspection Period and pay Seller $1,000. Per extension. If Buyer elects to extend the Inspection
Period, $1,000 per extension shall be subtracted from the principal amount of the Note and mortgage and treated
in accordance with the terms contained therein. Seller shall notify Buyer when Seller believes Seller has made all of Seller’s
Deliveries, and within two business days thereafter Buyer shall either verify in writing that Buyer has received all of Seller’s
Deliveries or notify Seller in writing as to which of Seller’s Deliveries Buyer believes Buyer has not received. Once all
Seller’s Deliveries have been received by Buyer, Buyer shall acknowledge such to Seller. In addition, Buyer, its agents,
representatives and employees (including an independent engineer/surveyor) shall have access to the Subject Premises during normal
business hours and on notice to Seller for purposes of obtaining a survey (the “Survey”) of the Subject Premises,
a physical inspection of the Subject Premises, including one or more reports from other engineering companies (the “Engineering
Reports”), and a Phase I environmental report, the scope and level of detail of which shall be satisfactory to Buyer,
prepared by a qualified environmental consultant acceptable to Buyer and addressed to Buyer (the “Environmental Report”),
as well as any other inspections called for by such Environmental Report or Engineering Reports. Buyer’s review of the Seller’s
Deliveries and other inspections and items referred to in this Article is referred to as Buyer’s “Due Diligence
Review.” and shall be at Buyer’s sole expense. Buyer shall indemnify and hold Seller harmless from any and all
damage caused by Buyer or its independent contractors, agents, representatives or employees in conducting such Due Diligence Review;
provided that Buyer shall have no obligation for any pre-existing conditions or the discovery thereof. Buyer shall restore the
Real Estate to the condition in which it existed as of the date of this Agreement. Before entry onto the Subject Premises Buyer
shall provide a certificate of insurance acceptable
to Seller from an insurance company authorized to do business in the State of New Jersey having a rating of AAA.

  

    2

     

    

 

Buyer
shall, at Buyer’s sole expense, take all such actions as are necessary to legally subdivide the Subject Premises from the Retained
Property such that the Subject Premises shall be a separate legal parcel that is taxed as of the next assessment date and is in
compliance with all subdivision and other applicable laws and ordinances as an independent real estate parcel and shall provide
Seller with evidence thereof (collectively, the “Subdivision”). It shall be a condition to Seller’s and Buyer’s
obligation to close that such Subdivision has been effectuated and that the Title Policy shall at Buyer’s expense include subdivision
and separate tax parcel endorsements. Buyer shall also, at Buyer’s sole expense, obtain final site plan approval and all variances
desired by Buyer for the Intended Purpose. Buyer shall also be responsible, at its sole expense, to fulfill each of the conditions
contained in the subdivision and site plan approvals and to obtain all other government permits and approvals desired by Buyer,
or required, for the Intended Purpose.

 

Seller
hereby agrees to cooperate with Purchaser, its agents, representatives and employees, including but not limited to executing forms
or applications required in furtherance of the subdivision and approval for the Intended Purpose.

 

If
the Purchaser does not close title within thirty (30) days of the end of the Due Diligence Period, Seller shall have the right
to terminate this Agreement in which event the $200,000. deposit shall be promptly returned to Purchaser minus $1,000 for each
extension
received by the Purchaser. Failing to immediately return the deposit monies to the Seller, the terms of the Note and mortgage
shall commence. In addition, each Party shall have recourse to all remedies available to it at law and in equity.

   

5.
Conditions Precedent
to Closing.

 

A.
Purchaser shall
not be required to proceed on the closing date with the transaction contemplated by this Agreement unless
each of the following conditions precedent shall have been fulfilled and satisfied:

 

i.
Each of the warranties, representations and covenants of Seller
contained herein shall be true, valid and correct.

 

ii.
Seller shall
have complied with the covenants herein.

 

iii.
There shall have been delivered by Seller
to Purchaser all of the items in Seller’s
possession required to be delivered to Purchaser pursuant subparagraph v below.

 

iv.
Upon execution of the within Agreement,
Purchaser, at its sole expense, shall obtain an Environmental Report, commonly known as a
Phase 1, for the Subject Premises and, based upon said Environmental Report, may declare this Agreement,
within the Inspection Period, null and void if said Report shall be unsatisfactory to Purchaser in
Purchaser’s sole and absolute discretion.

 

v.
Upon execution of this Agreement, Seller
shall furnish Purchaser with a copy of all
engineering and site plans, surveys, resolutions and any and all governmental approvals and permits with respect to the property
that are in Seller’s possession.

  

    3

     

    

 

vi.
Purchaser, in
Purchaser’s sole and absolute discretion, shall satisfy itself as to the
zoning and other ordinances of the Township of Wall with respect to the Intended Purpose indicated hereinabove within the
initial ninety (90) days and any extension thereof after execution of the within Agreement, the
due diligence period.

 

Notwithstanding
what is contained in Paragraph 5A, the ninety (90) day due diligence time period for i through vi shall commence on that date
upon which all of those items to be delivered to Purchaser
by Seller in subparagraph 5A(v) shall have
been delivered to Purchaser at its offices in Wall Township, New Jersey, and evidenced
by an acknowledgment by Purchaser that it has received all of those items requested,
in Purchaser’s sole and absolute discretion.

 

In
the event that, after due diligence by the Purchaser,
one or more conditions, (1) through (vi) above, are not fulfilled, or waived, within the time periods set forth, then the Purchaser
may, at any time thereafter, elect, by written notice to the Seller,
to cancel this Agreement, and the $200,000 deposit shall be promptly returned
to Purchaser minus $1,000 for each extension received by the Purchaser. Failing to immediately return the deposit monies to the
Seller, the terms of the Note and mortgage shall commence. This Agreement shall
then be deemed to be null and void, and of no further force and effect.

 

B. Seller shall
not be required to proceed on the closing date with the transaction contemplated by this Agreement unless
each of the following conditions precedent shall have been fulfilled and satisfied.

 

i.
Each of the warranties, representations and covenants of Purchaser
contained herein shall be true, valid and correct.

   

ii.
There shall be delivered by Purchaser
to Seller all of the items to be delivered
to Seller hereunder at or prior to the closing.

 

In
the event that one or more of the foregoing conditions is not fulfilled, or waived, within the time periods set forth, then the
Seller may,
at any time thereafter, elect, by written notice to the Purchaser, to cancel this
Agreement, and the $200,000. deposit shall be promptly returned to Purchaser minus
$1,000 for each extension received by the Purchaser. Failing to immediately return the deposit monies to the Seller, the terms
of the note and mortgage shall commence. This Agreement shall then be deemed to
be null and void, and of no further force and effect.

 

Each
party shall have recourse to all remedies available to it at law or in equity.

 

6.
Warranties, Representation
and Covenants of Seller. Seller warrants,
represents to and covenants with Purchaser as follows:

 

A. It
is the owner of the Subject Premises.

 

B.
The execution and delivery of this Agreement
and the consummation of the transaction contemplated with the exception, perhaps, of the
existing mortgage(s) on the Overall Parcel, hereby will not violate any agreement of
Seller, or result in the breach of any term or provision of, or, with or without
the passage of time or the giving of notice, or both, constitute a default under, or permit the acceleration of maturity under
any loan agreement, note, debenture, mortgage, deed of trust or other agreement
to which Seller is a party or by which Seller
is bound.

 

C.
To the best of Seller’s knowledge and belief, there are no encroachments on the Subject Premises, except other than as may
appear of record. Seller
agrees that any such recorded encroachments will not prevent, limit or restrict the Intended
Purpose.

  

    4

     

    

 

D.
Seller represents
and warrants, to the best of its knowledge, that the Subject Premises does not contain nor has ever contained any hazardous wastes
or substances, including but not limited to, petroleum based products, paints and solvents, lead, cyanide, DDT, printing inks,
acids, pesticides, ammonium compounds, asbestos, PCB’s and other chemical products, or any underground storage tanks; nor
are any governmental cleanup or any other response actions contemplated, proposed, or initiated for the subject premises. Seller
further agrees to provide Purchaser with
any Environmental Approvals and/or representations which may be necessary as a result of the condition of the subject Premises
at no cost and expense to Purchaser pursuant to paragraph 9D. Seller’s
representations as to this sub-paragraph D shall be contained in a separate affidavit pursuant
to paragraph 9E. Seller, however, shall have no obligation to remediate the Subject Premises, the Overall Parcel or the Retained
Property but Purchaser shall have the right, as its sole remedy to cancel this Agreement in which event the $200,000. deposit
shall be promptly returned to Purchaser minus $1,000 for each extension received by the Purchaser. Failing to immediately return
the deposit monies to the Seller, the terms of the Note and mortgage shall commence.

 

E.
Seller shall
convey the Subject Premises to Purchaser free of all tenancies. Also, the Subject
Premises shall be conveyed free of all surface debris, as determined by Purchaser in its sole and absolute discretion, provided
Seller shall not be required to incur any cost for environmental remediation of the Subject Premises, Overall Parcel or Retained
Property.

   

F.
In addition to being true as of the date of this Agreement,
each of the warranties, representations and covenants of Seller contained in this
Agreement shall be true on and as of the closing date with the same force and
effect as though made on such date.

 

7.
Warranties, Representations
and Covenants of Purchaser. Purchaser represents
and warrants to Seller that the following are true and correct to the best of its knowledge without independent investigation
on the date hereof, which representations and warranties where the context so indicates, shall also be true on the date of each
closing of title hereunder.

 

A.
Purchaser is
a limited liability company duly organized and validly existing under the laws of the State of New Jersey and has full power and
authority and has taken all action required by law to execute, deliver, and perform this Agreement and
the transactions contemplated hereby and thereby and had taken all action required by law, its Certificate of Formation, Operating
Agreement or otherwise to authorize the execution and delivery of the Agreement and
the transactions contemplated hereby.

 

B.
Neither the authorization, execution and delivery of this Agreement
nor the consummation of the transactions contemplated hereby or thereby will conflict with
or result in the breach of any terms or provisions of Purchaser’s Certificate
of Formation and Operating Agreement or any applicable statutes, laws, rules or regulations of any governmental body having jurisdiction
in the premises.

 

8.
Right to Terminate.
If, prior to the expiration of the Inspection/Due Diligence Period, Buyer determines for any or no reason in its sole discretion
that the Subject Premises is not a suitable for the Intended Purpose, Buyer may terminate this Agreement by giving Seller written
notice of such determination upon or before the expiration of the Inspection Period, in which case the $200,000. deposit shall
be promptly returned to Purchaser minus $1,000 for each extension received by the Purchaser. Failing to immediately return the
deposit monies to the Seller, the terms of the Note and mortgage shall commence.

 

9.
The Closing.
The closing with respect to the transactions contemplated hereby (herein referred to as the “Closing”) shall take
place at the office of Robert J. Saxton, Esquire., 1540 State Highway 138, Wall Township, NJ 07719, thirty (30) days after Purchaser
has satisfied all of the conditions precedent set forth in Paragraphs 4 and 5A.; but in
no event any later than thirty (30) days after completion of the Due Diligence Period.

 

At
the closing, Seller
shall deliver to Purchaser each of the following:

 

A.
Certificates signed by the appropriate signatories of Seller
and to the effect that, as of the closing date, Seller has
complied with its warranties, representations and covenants hereunder, and that the warranties, representations and covenants
made by Seller hereunder are true, valid and correct as of the closing date with
the same force and effect as if such warranties, representations and covenants had been made on the closing date.

 

B. Bargain
and Sale Deed with Covenants against Grantor’s Acts.

 

C. Appropriate
affidavits of title and corporate resolutions.

 

D.
If required for the sale of the Subject Premises by any regulatory agency: (i) a non-applicability letter; (ii) a de minimus quantity
exemption; and/or (iii) approval of Seller’s
negative declaration; for which Seller shall
promptly apply pursuant to
the Environmental cleanup Responsibility Act, (ECRA) and/or the Industrial Site Remedial Act, (ISRA) the regulations promulgated
thereunder and any successor legislation and regulations, or any other environmental approvals that may be necessary as a result
of Seller’s
business and/or the real property at no cost and expense to Purchaser.

  

    5

     

    

 

E.
Affidavits indicating that the Subject Premises, to the best of Seller’s
knowledge, has no Environmental problems as same is defined in paragraph 6D. provided, however,
Seller shall have no obligation to remediate the Subject Premises, Overall Parcel or Retained Property.

 

F.
Assignment of all engineering, plans, resolutions permits and approvals in Seller’s possession from Seller
to Purchaser.

 

10.
Tax Clearance.
Buyer shall have received appropriate notice under the New Jersey Bulk Sales Act as to the amount of taxes to be withheld from
Seller, if any, at the time of Closing and paid to the State. To that end, Seller agrees to make all appropriate submissions to
the NJ Division of Taxation, Bulk Sales Division.

   

11.
Adjustments at Closing.
The Purchaser shall require that any person with a claim or right affecting the
Subject Premises shall be paid off from the proceeds of this sale. The Purchaser and
Seller agree to adjust the municipal water and sewer charges (save for special
assessments) as of the closing date. There shall be no proration of real estate taxes at Closing. With respect to any real estate
tax bills that cover both the Subject Premises and all or any other part of the balance of the Overall Parcel (i.e. prior to the
time that the subdivision of the Subject Premises from the balance of the Overall Parcel has taken effect and the Subject Premises
has its own separate tax bill) and that relate to a year in which (for all or part of such year)
Buyer owns the Subject Premises, Seller shall pay such tax bills when due and Buyer shall pay to Seller Buyer’s prorated
(based upon Buyer’s period of ownership) share of the portion of such bill allocable to the Subject Premises. For such purpose,
the portion of a bill allocable to the Land shall be 75% of the actual bill multiplied by percentage obtained by dividing the
square footage of the Subject Premises by the square footage of the Overall Parcel. For example, if the annual bill for the Overall
Parcel were $10,000 and the area of the Subject Premises comprised 40% of the area of the Overall Parcel, then the portion of
such bill deemed allocable to the Subject Premises would be 75% times $10,000 times 40% = $3,000. Seller shall provide Buyer with
copies of each such applicable bill, and Buyer shall pay to Seller the amount owed by Buyer with respect thereto within thirty
days after receipt of each such bill. Seller shall provide Buyer with evidence of payment of each such bill when made. The terms
of this Section shall survive Closing.

 

12.
Real Estate Brokers.
Both parties hereby warrant and represent that the within transaction was not brought about by the efforts of any broker, agent
or the like, and both parties hereby agree to indemnify and hold the other harmless from any and all claims made by any broker
claiming to have acted on behalf of either party.

 

13.
Accessibility.
Purchaser and Purchaser’s agents and employees are granted the right, during normal business hours
and on notice to Seller, of ingress and egress upon and across the Subject Premises for the purposes contained herein Purchaser
agrees to indemnify the Seller from liability resulting from ingress and egress and the acts performed, and Purchaser
further agrees to reimburse Seller for any
damage to the property caused by the acts performed under the terms of this Agreement,
and if requested by the Seller, provide Seller with
a Certificate of Insurance. Before entry on the Subject Premises Buyer shall provide a certificate of insurance acceptable to
Seller from an insurance company authorized to do business in the State of New Jersey having a rating of AAA.

 

14.
Additional Documents
and Acts. Each of the parties hereto agrees that they will at any time and from time
to time do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further
acts, assignments, applications, transfers, conveyances and assurances as may reasonably be required by the other party hereto
in order to carry out fully and to effectuate the transaction herein contemplated in accordance with the provisions of this Agreement.

 

15.
Notices.
All notices required to be given under the terms of this Agreement or which any
of the parties desires to give hereunder shall be in writing and delivered personally or sent by registered or certified mail,
postage prepaid, return receipt requested, each addressed as follows:

 

	As
    to Seller:	 	 
	 	 	 
	Coates
    International, LTD

    2100 Route 34

    Wall, NJ 07719	&	William Wolf, Esq

Bathgate, Wegner
& Wolf

One Airport
Rd

Lakewood, NJ
08701
	 	 	 
	As
    to Purchaser:	 	 
	 	 	 
	W
    & S Investments, L.L.C.

    P.O. Box 496

    Allenwood, NJ 08720	&	Robert
J. Saxton, Esq

1540 State
Highway 138

P.O. Box 1141

Wall, NJ 07719

  

    6

     

    

 

or
to such other address and to the attention or of such other person as the party to whom such notice is to be given may have theretofore
designated in a notice to the other party hereto. Any notice given in accordance with the foregoing shall be deemed to have been
given when delivered in person or, if mailed, on the second business day next following the date on which it shall have been deposited
in the mail.

 

16.
Assignment.
This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns; provided, however, that no party hereto may assign this Agreement,
in whole or in part without the prior written consent of each other party except that Purchaser may
assign the within Agreement to another corporate entity or partnership provided
that Messrs. WESHNAK and SMITH are majority principals thereof without the prior consent of the Seller.

 

17.
Risk of Loss.
The Seller is responsible for any damage to the Subject Premises, except for normal
wear and tear, until the closing or for damage or loss caused by the Purchaser. If there is damage, the Purchaser
can proceed with the closing and either require that the Seller repair
the damage not caused by Purchaser before the closing, or deduct from the purchase price a fair and reasonable estimate of the
cost to repair the property. Nonetheless, Seller shall only be responsible for
up to the sum of TEN THOUSAND ($10,000.00) DOLLARS. Above said sum, Purchaser shall
have the option of canceling the within Agreement, or be responsible for any sum
greater than TEN THOUSAND ($10,000.00) DOLLARS.

 

18.
Captions.
The captions of this Agreement are for convenience only and shall not affect the
construction or interpretation of any term or provision hereof.

  

19.
Governing Law.
This Agreement shall be governed by and construed in accordance with the laws
of the State of New Jersey.

 

20.
Arbitration of Disputes.
Except as otherwise provided herein, any controversy or claim between the Purchaser and
the Seller arising out of or relating to this Agreement,
will, upon notice by either party, be submitted to and be settled by arbitration held in Monmouth County, New Jersey. Such arbitration
shall be conducted in accordance with the New Jersey Statutes then in effect, and judgment upon the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. The parties hereby submit to the jurisdiction of the courts of the State
of New Jersey for the purpose of confirming any such award and entering judgment thereon.

 

21.
Completeness of Agreement.
This Agreement and the attachments hereto and the Agreements and
other documents referred to or provided for herein represent the entire contract between the parties with respect to the subject
matter hereof and thereof, and the same shall not be modified or affected by any offer, proposal, statement or representation,
oral or written, made by or for any party in connection with the negotiation of the terms hereof.

 

22.
Amendment.
This Agreement shall not be amended or modified except by an instrument in writing
signed by each of the parties hereto.

 

23.
Counterparts.
This Agreement may be executed in counterparts, each of which need not contain
the signatures of more than one party, but such counterparts taken together will constitute one and the same Agreement.

  

    7

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

 

	WITNESS:	 	 	COATES INTERNATIONAL, LTD
	 	 	 	A Nevada Corporation
	 	 	 	 
	 	 	BY:	/s/ GEORGE J. COATES
	 	 	 	GEORGE J. COATES, PRESIDENT

 

	WITNESS:	 	 	W & S INVESTMENTS,
    L.L.C.
	 	 	 	A New Jersey
	 	 	 	Limited Liability Company
	 	 	 	 
	 	 	BY:	/s/ BARRY
    WESHNAK
	 	 	 	BARRY WESHNAK
	 	 	 	Managing Member
	 	 	 	 
	 	 	BY:	/s/ THOMAS W. SMITH
	 	 	 	THOMAS W. SMITH
	 	 	 	Managing Member

 

    8

     

    

 

EXHIBIT
A

 

  

    9Employment Agreement

 

EXHIBIT 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (“Agreement”) is dated for reference November 6, 2018 (the “Reference Date”).

BETWEEN:

EPHS Holdings, Inc., a Corporation having an office at 7694 Colony Palm Drive Boynton Beach, Florida 33436  (the “Company”)

AND:

Stevan Perry, of 401-1419 Beach Avenue Vancouver British Columbia Canada V6G-1Y3  (the “Executive”) 

WHEREAS: 

A.

the Company desires to employ the Executive on the terms and conditions set forth in this Agreement; and

B.

the Executive desires to be employed by the Company on such terms and conditions.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and obligations set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Company and the Executive (collectively, the “Parties”) agree as follows:

1.

Term: The Executive’s employment with the Company shall commence on November 6, 2018, or such other date as agreed-to between the Executive and the Company, and shall continue indefinitely until terminated in accordance with the terms of this Agreement (the “Term”). 

2.

Employment:

a.

Position, Duties and Responsibilities. During the Term, the Executive shall serve as the President of the Company, reporting to the Board of Directors of the Company (the “Board”).  The Executive shall have such authority and responsibilities as are consistent with the Executive’s position and shall perform the duties commensurate with the Executive’s position and other such duties as the Company may reasonably request from time to time.

b.

Service. During the Term, the Executive shall devote the whole of his working time and attention to the performance of the Executive’s duties and responsibilities, and will not engage in any activities, businesses, professions, or occupations for compensation or otherwise which would conflict or interfere with the performance of such services, or which would have the potential to so conflict or interfere, without the prior written consent of the Board.  The Executive will, in the course of carrying out the Executive’s duties and responsibilities, comply with all applicable laws, statutes, regulations, ordinances and other applicable legal requirements and with all 

1

 

Company policies and procedures as may be developed and amended by the Company from time to time.

c.

Place of Performance. The principal place of Executive’s employment shall be the Company’s office in British Columbia, Canada; provided that the Executive may be required to travel on Company business during the Term.

3.

Compensation & Benefits:

a.

Base Salary. During the Term, and as full compensation for all hours of work and all services provided, the Company shall pay the Executive an annualized base salary equivalent to $100,000.00 USD less applicable statutory withholdings (the “Base Salary”).  Except as modified in section 3(b) below, the Base Salary shall be payable on a semi-monthly basis and in accordance with the Company’s customary payroll practices and applicable legislation.  The Executive’s Base Salary shall be reviewed at least annually by the Board and the Board may increase or decrease the Executive’s Base Salary during the Term.

b.

Attainment of Profit Threshold.  The Parties expressly agree and acknowledge that the Base Salary shall accrue to the Executive, but shall not be paid out to the Executive in the manner detailed above until such time the Company receives revenue of at least $100,000.00 USD per month in a fiscal quarter (“Profit Threshold”).  Within sixty (60) days of reaching the Profit Threshold, the Company will pay the Executive all accrued but unpaid Base Salary owing to him up to the date the Company reaches the Profit Threshold. 

c.

Employee Benefits. During the Term, the Executive shall be eligible to participate in all employee benefit plans, practices, and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”) in accordance with applicable law and the terms of the applicable Employee Benefit Plans. The Company’s obligation to the Executive in respect of any such benefit plan shall be limited to the payment of the Company’s share of any premiums.  The Company reserves the right to unilaterally revise or change the benefits plans available to its employees, including the content thereof and any cost sharing in relation thereto.

d.

Vacation and Paid Time Off. During the Term, the Executive shall be entitled to twenty-one (21) days of vacation time per calendar year (prorated for partial years). Vacation time is to be taken at times mutually convenient to the Executive and the Company.  

e.

Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties in this Agreement in accordance with the Company’s expense reimbursement policies and procedures.

2

 

4.

Termination of Employment:

a.

Resignation by the Executive.  The Executive may terminate his employment with the Company by providing at least sixty (60) days’ written notice to the Company (the “Resignation Notice Period”) in accordance with Section 7(h) of this Agreement.  Upon receipt of such notice, the Company may elect to terminate the Executive’s employment at any time during the Resignation Notice Period by paying the Executive the Base Salary that he would have received for any part of the Resignation Notice Period remaining.

b.

Termination without Just Cause. The Company may terminate the Executive’s employment at any time without cause by providing the Executive with written notice of termination, or pay in lieu of notice, or a combination of notice and pay equivalent to the Executive’s minimum entitlements pursuant to the British Columbia Employment Standards Act, as amended.  The Executive understands and agrees that by providing such notice, or pay in lieu of notice, the Company  will have satisfied its entire obligation pursuant to statute and common law to provide the Executive with notice or pay in lieu of notice if the Executive’s employment is ended, including any obligation to provide the Executive with reasonable notice of termination.

c.

Termination for Cause. Notwithstanding any other paragraph of this Agreement, the Company may end the Executive’s employment at any time for just cause, without notice or pay in lieu of notice.

d.

Resignation of All Other Positions. Upon termination of the Executive’s employment for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or any of its affiliates.

e.

Cooperation. The Parties agree that certain matters in which the Executive will be involved during the Term may necessitate the Executive’s cooperation in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities.

5.

Confidentiality:

a.

Acknowledgements & Obligations of Confidentiality.  The Executive understands and acknowledges that during the Term, he will have access to and learn about Confidential Information, as defined below.  The Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of hydroponic cannabis production. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create, Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace. 

3

 

Accordingly, the Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the Board (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the Board (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iv) to return any and all confidential information in the Executive’s possession or control to the Company, including all electronic copies thereof, and to take all commercially reasonable efforts to destroy any copies of such Confidential Information on his personal electronic devices and to not take steps to recover such information, at any time as requested by the Company and immediately upon the termination of his employment for any reason. 

These obligations shall continue to exist indefinitely following the cessation of the Term for any reason (including where the Term is ended for just cause).

Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Executive shall promptly provide written notice of any such order in accordance with Section 7(h) of this Agreement.

b.

“Confidential Information” Defined.  For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, inventions, unpublished patent applications, original works of 

4

 

authorship, discoveries, experimental processes, experimental results, specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Company or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.  Without limiting the generality of the foregoing, Confidential Information includes information developed by the Executive in the course of his employment with the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive’s behalf.

The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 

6.

Restrictive Covenants:

a.

Definitions:  For the purposes of this Agreement:

i.

“Restricted Period” means the Term and a period of twelve (12) months following the cessation of the Term for any reason (including where the Term is ended for just cause);

ii.

“Restricted Territory” means British Columbia, Canada;

iii.

“Business” means the commercial manufacture and distribution of hydroponic cannabis; and

iv.

“Prohibited Activity” means an activity in which the Executive contributes the Executive’s knowledge and expertise, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, stockholder, officer, or any other similar capacity to an entity engaged in the Business.

b.

Non-Competition. The Executive expressly covenants and agrees that during the Restricted Period (except for in furtherance of the performance of the Executive’s duties and responsibilities under this Agreement), the Executive shall not, without the Company’s prior written consent, engage in Prohibited Activity in the Restricted Territory.

c.

Non-Solicitation. The Executive expressly covenants and agrees that during the Restricted Period (except for in furtherance of the performance of the Executive’s duties and responsibilities under this Agreement), the Executive shall not, without the Company’s prior written consent:

5

 

i.

contact or communicate with any Client for the purpose of offering services or products that are the same as or similar to those offered by the Company;

ii.

persuade, induce or solicit any Client to patronize any other business engaged in the Business or any part of the Business;

iii.

service, or otherwise enter into contractual relations with any Client for the purpose of offering services or products that are the same as or similar to those offered by the Company for the Executive’s gain, profit or pecuniary advantage or for the gain, profit or pecuniary advantage of any business which is engaged in the Business or any part of the Business;

iv.

request, advise or suggest to any Client to withdraw, curtail or cancel such Client’s business with the Company;

v.

employ or offer to employ, or engage or offer to engage in an independent contractor relationship any of the Company’s employees or independent contractors;

vi.

suggest to any of the Company’s employees or independent contractors that they quit their relationship with the Company; or

assist any other person to do so.

For the purposes of this Section “Client” means: 

i.

during the Term, any person to whom the Company, or its employees or contractors acting on behalf of the Company, provides services relating to the Business; and 

ii.

following the conclusion of the Term, any person to whom the Company, or its employees or contractors acting on behalf of the Company, provides services relating to the Business and who the Executive came to know in the course of the performance of the Executive’s duties and responsibilities in the two years prior to the end of the Term.

d.

Acknowledgment. The Executive acknowledges and agrees that: (i) the Executive’s services to be rendered to the Company are of a special and unique character; (ii) that the Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and marketing strategies by virtue of the Executive’s employment; (iii) the Executive has fostered relationships with the Company’s clientele; (iv) the Company’s relationships with its clientele is of great competitive value; (v) the Company has invested and continues to invest substantial resources in developing and preserving its client relationships and goodwill; (vi) the loss of any such client relationship or goodwill will cause significant and irreparable harm to the Company; and (vii) in view of the foregoing, the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interests of the Company. 

6

 

e.

Remedies. In the event of a breach or threatened breach by the Executive of any of the provisions in Section 6 of this Agreement, the Executive consents and agrees that the Company shall be entitled to, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief.

7.

General Provisions:

a.

Non-Disparagement. The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties. This Section 7(a) does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order in accordance with Section 7(h) of this Agreement.

b.

Governing Law, Jurisdiction, and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of British Columbia without regard to conflicts of law principles and the parties hereby irrevocably submit to the exclusive jurisdiction of the courts of British Columbia.

c.

Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by the Board. No waiver by either of the Parties of any breach by the other Party of any condition or provision of this Agreement to be performed by the other Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

d.

Severability. Should any provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions in this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.

e.

Headings. Headings are intended solely for convenience and no provision of this Agreement is to be construed by reference to the heading of any section or paragraph.

f.

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

7

 

g.

Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

h.

Notice. Notices and all other communications provided for in this Agreement shall be given in writing by personal delivery, electronic delivery, or by registered mail to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):

If to the Company:

7694 Colony Palm Drive

Boynton Beach, Florida 33436

Attention: Gianfranco Bentivoglio

E-mail: johnb@ephsholdings.com

With a copy to:

Locke Lord LLP

600 Travis, Suite 2800

Houston, Texas 77002

Attention: Michael Blankenship

E-mail: michael.blankenship@lockelord.com

If to the Executive:

401-1419 Beach Avenue 

Vancouver British Columbia 

Canada V6G-1Y3  

i.

Representations of the Executive. The Executive represents and warrants to the Company that:

i.

the Executive’s acceptance of employment with the Company and the performance of his duties will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement, or understanding to which he is a party or is otherwise bound; and

ii.

the Executive’s acceptance of employment with the Company and the performance of his duties will not violate any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer or third-party.

j.

Survival. Upon the termination of this Agreement for any reason, the respective rights and obligations of the parties hereto shall survive such termination to the extent necessary to carry out the intentions of the parties under this Agreement.

k.

Entire Agreement. The Agreement represents the entire agreement between the Executive and the Company concerning the terms and conditions of the Executive’s employment and supersedes any previous oral or written communications, representations, understandings or agreements with the Company.  No Party has been induced to enter into this Agreement in reliance on, and there will be no liability assessed, either in tort or contract, with respect to any warranty, representation, 

8

 

opinion, advice or assertion of fact, except to the extent it has been reduced to writing and included as a term in this Agreement or in any of the other agreements and documents delivered under this Agreement.  

l.

Acknowledgement of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND SEEK INDEPENDENT LEGAL ADVICE BEFORE SIGNING THIS AGREEMENT. 

[Signature Page Follows]

9

 

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

			
	 
	EPHS Holdings, Inc.

	 
	 
	 

	 
	By: 

	/s/ Gianfranco Bentivoglio

	 
	Name: 

	Gianfranco Bentivoglio

	 
	Title: 

	Chief Executive Officer

EXECUTIVE

		
	Signature: 

	/s/ Stevan Perry

	Print Name: 

	Stevan Perry

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]