Document:

gmvp_ex106.htm

EXHIBIT 10.6
 
STOCK PURCHASE AGREEMENT
 
THIS AGREEMENT is made and entered into this 28th day of January 2020, by and between Gridiron BioNutrients, Inc. (“Purchaser”) and Grays Peak Ventures (“Seller”) with regard certain capital stock of Gridiron BioNutrients, Inc. a Nevada corporation (“Corporation”).
 
WHEREAS, the Seller is the record owner and holder of certain issued and outstanding shares of capital stock of the Corporation which is the subject of this Agreement; 
 
WHEREAS, the Seller is willing to sell seventy-seven million eight hundred seventy-two thousand five hundred (77,872,500) shares (the “Shares”) of the Corporation’s common stock at an agreed price of $0.0010273 per share for an aggregate amount of eighty thousand dollars ($80,000.00) (“Purchase Price”); and 
 
WHEREAS, the Purchaser desires to purchase the Shares, and the Seller desires to sell the Shares, upon the terms and subject to the conditions hereinafter set forth; 
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and in order to consummate the purchase and the sale of the Shares, the parties hereby agreed as follows:
 
1. PURCHASE OR SALE: Subject to the terms and conditions hereinafter set forth, the Seller hereby sells, conveys, transfers and delivers to the Purchaser the Shares, and the Purchaser hereby purchases from the Seller the Shares in consideration of the Purchase Price set forth in this Agreement. Upon receipt of the Purchase Price from the Buyer via wire or cashier’s check, the Seller shall immediately order the preparation and deliver to the Buyer the above referenced Shares in certificate form. The Purchase Price is to be paid against delivery of the Shares by Seller in proper form as follows: (a) with respect to the Shares held in certificate form, the Seller must deliver (in accordance with delivery instructions provided by the Purchaser) certificates representing such shares, properly endorsed for transfer to the Purchaser and with appropriate medallion signature guarantees, and (b) with respect to the Shares held in uncertificated form, if any, the Seller must deliver a notification and/or stock power (with appropriate medallion signature guarantees) from the registered owner of such shares that it holds such shares for the Purchaser, and which directs the Corporation’s transfer agent that the transfer of such shares be effected. The Seller or his settlement agents must make the deliveries contemplated by this section not later than February 7, 2020.
 
2. REPRESENTATION AND WARRANTIES OF SELLER. Seller hereby warrants and represents:
 
	 
	(a)	Organization and Standing. Seller is duly organized, validly existing and in good standing under the laws of the State of Delaware and has the power and authority to carry on its business as it is now being conducted.

   
	 
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	i.	The Seller is not a party to any agreement, written or oral, creating rights in respect to the Shares in any third person or relating to the voting of the Shares;
	 
	ii.	Seller is the lawful owner of the Shares, free and clear of all security interests, liens, encumbrances, equities and other charges; and
	 
	iii.	There are no existing warrants, options, stock purchase agreements, redemption agreements, restrictions of any nature, calls or rights to subscribe of any character relating to the Shares, nor are there any securities convertible into the Shares.
	 
	iv.	The execution, delivery and performance of this Agreement by the Seller does not (i) conflict with or violate the charter or by-laws, partnership or other governing documents of the Seller, or (ii) conflict with or violate any order, writ, judgment, injunction, decree, determination, contract or award applicable to Setter.

 
3. REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER. Seller and Purchaser hereby represent and warrant that there has been no act or omission by Seller, Purchaser or the Corporation which would give rise to any valid claim against any of the parties hereto for a brokerage commission, finder’s fee or other like payment in connection with the transaction contemplated hereby. The parties’ representations and warranties contained in this Agreement shall be true and correct, and with the same effect, as though such representations and warranties had been made, on and as of the date that the transaction contemplated by Section 1 hereof is completed.
 
4. GENERAL PROVISIONS.
 
	 
	(a)	Entire Agreement; Assignment. This Agreement (including any written amendments to this Agreement executed by the parties) constitutes the entire Agreement and supersedes all prior agreements and understandings, oral and written, between the parties with regard to the Stock and this Agreement. This Agreement may not be assigned without written consent of the parties to this Agreement.
	 
	 
	 

	 
	(b)	Sections and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.
	 
	 
	 

	 
	(c)	Governing Law. This agreement and all transactions contemplated in this Agreement shall be governed by, construed and enforced in accordance with the laws of Nevada. The parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in State of Nevada. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party’s reasonable attorney’s fees, court costs and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing party duly be entitled.

    
SIGNATURES ON FOLLOWING PAGE
 
	 
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IN WITNESS WHEREOF, this Agreement has been executed by each of the individual parties on the date first above written.
 
AGREED TO:
 
	Gridiron BioNutrients, Inc.	 
	
	 	 	 	 

	By:	/s/ Timothy S Orr	(“Purchaser”)	 

	Name:	Timothy Orr, CEO	 	 

	 
	 
	 
	 

	Grays Peak Ventures
	 
	 

	 
	 
	 
	 

	By: 
	/s/ Scott Stevens
	(“Seller”) 
	 

	Name:
	Scott Stevens, Manager
	 
	 

  
	 
	3Exhibit

Exhibit 10.1
2020 Cash Incentive Compensation Plan

Eligible Employees:  All non-Section 16 officers (“Vice Presidents”) and senior executives (Section 16) officers (“Executive Officers”) of the Company are eligible for participation in the Company’s 2020 Cash Incentive Compensation Plan.  

Applicable Period:  The 2020 Cash Incentive Plan applies to performance during the Company’s fiscal year ending December 31, 2020.  

Components of the Plan and Criteria to Fund:  The 2020 Cash Incentive Compensation Plan consists of the following two components: (i) revenue targets and (ii) EBITDA targets. Each component of the 2020 Cash Incentive Compensation Plan includes targets at minimum, plan, and maximum payout. The minimum targets serve as the threshold upon which the incentive pool will begin to fund for that component. Achievement of the components at plan/target will earn the target cash incentive opportunity. Payout will be calculated along a linear continuum from minimum to plan/target and from plan/target to maximum with the maximum target serving as the point at which the management team will earn the highest possible cash incentive opportunity.

The minimum performance target must be met in order for a portion of the bonus to be paid relative to any one of the two components. Each component will be measured separately. Bonus payouts will be based 60% on achievement of revenue targets and 40% on achievement of EBITDA targets.

The following table below represents the target bonus and maximum bonus for each of the Company’s Vice Presidents and above and as a percent of such employee’s annual base salary.  

	
				
	Executive Officer

	Target
	Maximum

	President and CEO
	100%
	140%

	Executive Officers (other than President and CEO)
	75%
	105%

	Vice Presidents
	50%
	70%Exhibit

Exhibit 10.2
2020 Annual Equity Incentive Plan

The 2020 Annual Equity Incentive Plan provides for the issuance of equity incentive awards in the form of (i) non-qualified stock options; (ii) time-based restricted stock units; and (iii) performance-based restricted stock units for the CEO and (i) non-qualified stock options and (ii) time-based restricted stock units for other executives.

CEO:
	
				
	Executive Officer
	Time-Based Restricted Stock Units 
(# shares)
	Performance-Based Restricted Stock Units 
(# shares)
	Non-Qualified Stock Options (# shares)

	Douglas C. Bryant
President and Chief Executive Officer
	15,180
	15,180
	30,358

The vesting periods for the non-qualified stock options and time-based restricted stock units for Mr. Bryant are each over four years with the first 25% of such options and RSU awards vesting at the end of the first-year anniversary of the grant date and the remainder vesting 25% annually on each of the following three anniversaries thereafter.

The vesting for the performance-based restricted stock units (PSUs) for Mr. Bryant is over a five-year time period and is tied to the achievement of revenue growth targets over any three consecutive fiscal year period, starting with the three year period ending in 2022. If the Company achieves the revenue target over the prior three-year period in any fiscal year ending in December 2022, 2023 or 2024, then 100% of the PSUs will vest and release on the date that such target revenues are reported. If the Company has not achieved the annual revenue growth over a three-year period by the end of 2024, the PSUs will be canceled. 

Section 16 Officers:
	
			
	Executive Officer
	Time-Based Restricted Stock Units 
(# shares)
	Non-Qualified Stock Options (# shares)

	Randall J. Steward
Chief Financial Officer
	16,848
	—

	Michael D. Abney, Jr.
Senior Vice President, Distribution
	6,641
	6,641

	Ratan S. Borkar
Senior Vice President, International Commercial Operations
	6,641
	6,641

	Robert J. Bujarski
Senior Vice President,North America Commercial Operations and General Counsel
	6,641
	6,641

	Karen C. Gibson
Senior Vice President, Information Systems & Business Transformation
	6,641
	6,641

	Werner Kroll
Senior Vice President, Research and Development
	12,804
	—

	Edward K. Russell
Senior Vice President, Business Development
	6,641
	6,641

The vesting period for the non-qualified stock options and time-based restricted stock units for Section 16 officers, with the exception of Kroll and Steward, are each over four years with the first 25% of such options and RSU awards vesting at the end of the first-year anniversary of the grant date and the remainder vesting 25% annually on each of the following three anniversaries thereafter. 

The awards for Steward and Kroll in 2020 are comprised entirely of time-based restricted stock units vest over three years with the first one-third vesting at the end of the first-anniversary of the grant date and the remainder vesting one-third annually on each of the following two anniversaries pursuant to the terms of such executives individual retirement programs.

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