Document:

ex_102.htm

Exhibit 10.2

EMPLOYMENT AGREEMENT

Employment Agreement, between TOMI Environmental Solutions, Inc. (“TOMI” or “Company”) and Robert Wotczak (“you” or “Employee”). TOMI is delighted to offer you a position as TOMI’s President. The President will provide excellent leadership and develop plans and strategies for developing business and achieving the Company’s mission. You will work in collaboration with TOMI staff, external partners, and the Board of Directors (“Board”) in order to enhance Company values and goals, and ensure the organization of Company day to day activities for policies and procedures to run in an effective and efficient manner. You will report to the Board and the Chief Executive Officer (“CEO”). In addition, the President will manage in accordance with current Standard Operating Procedures, Good Manufacturing Practices, Environmental Protection Agency marketing requirements, and all Company policies and safety regulations.

Duties and Responsibilities include but are not limited to:

Create a culture of success and ongoing business and goal achievements;

Work closely with the CEO, Board, and Executive staff to ensure the Company’s mission, vision, and goals; 

Ensure that the Board is well constituted and properly trained to provide effective oversight and governance; 

Cultivate and sustain a productive and mutually supportive relationship with the Board and assist in the identification and recruitment of new board member as needed;

Communicate the mission, vision, and goals effectively and ensure that they continuously serve as a guide for the Company;

Ensure adoption of and adherence to appropriate ethical values and standards in all TOMI activities, maintain and continue to develop culture of collaboration and transparency, and reputation of integrity; 

Define and oversee staff compensation and incentive programs that motivate TOMI employees to reach their potential;

Recruit, hire, and oversee high-quality executives and staff and support and guide their professional development;

Put in place infrastructure and systems to support the success of the Company;

Oversee all plans, policies, practices, strategies and procedures toward achievement of corporate sales objectives and to create an effective and efficient Company;

Provide inspirational leadership and direction to staff and executives;

Ensure organizational strategy and priorities are aligned with TOMI’s objectives, and establish effective decision-making processes that will enable TOMI staff and executives to achieve the Company’s long and short term goals and objectives;

Refine and implement strategic business plans;

Guide and support the continued success of existing procedures and policies and the development of new ones, including development of models to ensure the financial stability of the Company;

Travel for in-person meetings with customers, investors, partners and develop key relationships;

Manage and implement TOMI’s Capital Markets and IR strategy;

Coordinate Company resources to ensure efficiency,

 

  

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Work with the Chief Financial Officer and develop and implement financial accounting systems to ensure proper administration of TOMI’s annual budget, including managing revenues and expenditures including internal controls;

Work with the Chief Regulatory & Compliance Officer to ensure TOMI complies with all legal and financial requirements and standards and is protected against legal liabilities;

Develop investor relationships to accommodate the goals of the Company;

Provide leadership in the public domain and serve as an effective spokesperson for the Company;

Build and maintain strong relationship with government agencies, business interests, environmental and healthcare organizations and work collaboratively in support of market-based actions;

Create and execute a diversified plan to secure revenue from new and existing sources to support the growth and long-term financial health of TOMI;

Represent and promote TOMI externally to appropriate stakeholders to foster partnership opportunities and enhance visibility; and

Assist the CEO in all matters.

The Employee’s duties may be reasonably modified at the Company’s discretion from time to time.

Term of Employment.

Subject to the provisions for termination set forth below this agreement will begin on February 1, 2016, unless sooner terminated.

Base Salary.

The Company shall pay you a salary of $240,000. per annum paid bi-weekly on the 1st and 15th of every month for the services listed above. Employee is entitled to participate in TOMI’s future stock plan and 401K after meeting the above mentioned responsibilities for a time period that satisfies the Company.

Sign on Bonus. 150,000 shares of TOMI restricted (144) stock.

Performance Bonus.

Provided you meet the achievement of pre-agreed performance objectives; you will be entitled to an annual raise:

	
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Options. Annual grants of up to 250,000 Stock Options at market price from the Company’s Stock Option Plan.

Stock Grants - additional shares of TOMI stock may be granted on an annual basis at TOMI’s discretion based on level of overachievement of performance objectives.

 

  

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Provided you meet the achievement of your objective as President for TOMI, you will be entitled to an annual raise and/or a bonus for meeting or beating performance objectives.

Transportation.

The Company will pay $750.00 per month for purchase or lease of an automotive vehicle of employee’s choice.  This can be paid directly to the employee or to the automotive or leasing company.

Health Insurance.

Until such time as TOMI has its own health insurance offering, TOMI will contribute to COBRA insurance for Employee at a rate of 80% toward the cost of an individual plan (Medical, Dental and Eye) and continue to contribute 80% of the plan cost until such time Company has its own health insurance offering.  TOMI is actively pursuing a corporate health plan.

Business Expenses.

The Company will provide you with a corporate credit card for all necessary and reasonable business expenses incurred in connection with your duties hereunder upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the Company’s generally accepted policies. Employee shall review the Employee Handbook for its Travel and Expense Policy and other detailed policies and procedures relating to business expenses.

In addition, Company will provide Employee with a laptop and cell phone.  Employee shall review the Employee Handbook for detailed policies relating to the use of Company technology.

Vacation.

You shall be entitled to a fourteen (14 days) paid vacation and seven (7 days) sick/personal time paid off.  Employee shall give advanced notice when possible and follow other such procedures as described in the Company employee handbook.

Confidentiality of Proprietary Information.

 

Employee agrees, during or after the term of this employment, not to reveal confidential information, or trade secrets to any person, firm, corporation, or entity.  Should Employee reveal or threaten to reveal this information, TOMI shall be entitled to an injunction restraining the Employee from disclosing same, or from rendering any services to any entity to whom said information has been or is threatened to be disclosed, the right to secure an injunction is not exclusive, and the Company may pursue any other remedies it has against the Employee for a breach or threatened breach of this condition, including recovery of damages from the Employee.

 

  

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Disability.

In the event that the Employee cannot perform the duties because of illness or incapacity for a period of more than 3 weeks, the compensation otherwise due during said illness or incapacity will be reduced by fifty (50) percent. The Employee’s full compensation will be reinstated upon return to work. However, if the Employee is absent from work for any reason for a continuous period of over a month, the Company may terminate the Employee’s employment, and the Company’s obligations under this agreement will cease on that date.

Change of Control.

In the event of a change in control of the company that results in termination of your position, you will be entitled to a lump sum payment of one year’s salary.  Additionally, all stock grants will be accelerated and all stock options granted pursuant will be fully vested.

Termination of Agreement.

While we look forward to a long and profitable relationship, you are an at-will employee of TOMI which means the employment relationship can be terminated by either of us for any reason, at any time.

Without cause, the Company may terminate this agreement at any time.  The Company requests, the Employee will continue to perform his/her duties and will be paid his/her regular salary up to the date of termination.

Without cause, the Employee may terminate employment upon fourteen (14) days’ written notice to the Company.  Employee may be required to perform his or her duties and will be paid the regular salary to date of termination but will not receive severance allowance.  Notwithstanding anything to the contrary contained in this agreement, the Company may terminate the Employee’s employment upon fourteen (14) days’ notice to the Employee should any of the following event occur:

(a) The sale of substantially all of the Company’s assets to a single purchaser or group of associated purchasers; (b) The sale, exchange, or other disposition, in one transaction of the majority of the Company’s outstanding corporate shares; (c) The Company’s decision to terminate its business and liquidate its assets; (d) The merger or consolidation of the Company with another company; or (e) Bankruptcy or chapter 11 reorganization.

 

  

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Restriction of Post Employment Compensation.

For a period of three (3) years after the end of employment, the Employee shall not control, consult to or be employed by any business similar to that conducted by the Company (EPA approved hydrogen peroxide products), either by soliciting any of its accounts or by operating within Employer’s general trading area.  Employee’s current business is exempt from this.

 

Effect of Prior Agreements.

This Agreement supersedes any prior agreement between the Company or any predecessor of the Company and the Employee, except that this agreement shall not affect or operate to reduce any benefit or compensation inuring to the Employee of a kind elsewhere provided and not expressly provided in this agreement.

 

Assistance in Litigation.

Employee shall upon reasonable notice, furnish such information and proper assistance to the Company as it may reasonably require in connection with any litigation in which it is, or may become, a party either during or after employment.

 

Settlement by Arbitration.

Any claim or controversy that arises out of or relates to this agreement, or the breach of it, shall be settled by arbitration in accordance with the rules of the American Arbitration Association.  Judgment upon the award rendered may be entered in any court with jurisdiction.

 

Limited Effect of Waiver by Company.

Should Company waive breach of any provision of this agreement by the Employee, that waiver will  not operate or be construed as a waiver of further breach by the Employee.

 

Severability.

If, for any reason, any provision of this agreement is held invalid, all other provisions of this agreement shall remain in effect.  If this agreement is held invalid or cannot be enforced, then to the full extent permitted by law any prior agreement between the Company (or any predecessor thereof) and the Employee shall be considered to be deemed reinstated as if this agreement had not been executed.

 

  

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Assumption of Agreement by Company’s Successors and Assignees.

The Company’s rights and obligations under this agreement will inure to the benefit and be binding upon the Company’s successors and assignees.

 

Oral Modifications Not Binding.

This instrument is the entire agreement of the Company and the Employee.  Oral changes have no effect.      It may be altered only by a written agreement signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought.

Please indicate your acceptance of this offer by signing below and returning one copy to the Company.

Signed this 8th day of February, 2016.

/s/ Robert Wotczak

_________________________________

Signature of Employee

Robert Wotczak

_________________________________

Print Name: Mr. Robert Wotczak

 

/s/ Dr. Halden Shane

_________________________________

Dr. Halden Shane

CEO of TOMI Environmental Solutions, Inc.

 

 6ex_103.htm

Exhibit 10.3

 

 

 

September 2, 2015

 

Via e-mail n.jennings@tomiesinc.com

 

Mr. Nick Jennings, CPA

[Home Address]

 

Dear Mr. Jennings,

 

TOMI is delighted to offer you a position as our Chief Financial Officer (CFO).  Upon execution of this agreement between TOMI and Mr. Jennings all other previous agreements between TOMI and Mr. Jennings will be null and void.

 

GENERAL PURPOSE:

 

Mr. Jennings will be generally responsible for directing the fiscal functions of TOMI in accordance with generally accepted accounting principles issued by the Financial Accounting Standards Board, the Securities and Exchange Commission, and any other regulatory and advisory organizations and in accordance with financial management techniques and practices appropriate and applicable to TOMI.  You will report directly to the CEO and the Board of Directors.

 

DUTIES AND RESPONSIBILITIES:

 

Planning:

 

	
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Assist in formulating TOMI’s future direction and supporting tactical initiatives.

	
Ø

	
Monitor and direct the implementation of strategic business plans.

	
Ø

	
Develop financial and tax strategies.

	
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Manage the budgeting processes.

	
Ø

	
Develop performance measures that support TOMI’s strategic direction.

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

  

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Operations:

 

	
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Participate in key decisions as a member of the executive management team.

	
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Maintain in-depth relations with all members of the senior management team.

	
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Oversee the financial operations of foreign operations.  Oversee the financial operations of TOMI Service Network (TSN).

	
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Manage any third parties to which functions have been outsourced.

	
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Oversee TOMI’s transaction processing systems and upgrade to SAGE 100 along with intergreting to ZOHO.

	
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Establish and write policy for AP, AR and inventory.

	
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Assist with a QA policy.

	
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Change accounting to SAGE 100 as soon as feasible to not effect current operations.

	
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Implement operational best practices.

	
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Supervise acquisition due diligence and negotiate acquisitions.

 

Financial Information:

 

	
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Beginning with 3Q 2014, personally review, approve and execute all Form 8-K, 10-K, and 10-Q TOMI filings with the Securities and Exchange Commission.

	
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Oversee the issuance of financial information.

	
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Report financial results to the board of directors.

 

Risk Management:

 

	
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Understand and mitigate key elements of TOMI’s risk profile.

	
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Monitor all open legal issues involving TOMI.

	
Ø

	
Construct and monitor reliable internal control systems.

	
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Maintain appropriate insurance coverage.

	
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Ensure that TOMI complies with all applicable legal and regulatory requirements as it relates to accounting and other financial issues.

	
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Ensure that accounting record keeping meets the requirements of auditors and government agencies.

 

	
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Report risk issues to the audit committee of the board of directors.

	
Ø

	
Maintain relations with external auditors and investigate their findings and recommendations.

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

  

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Funding:

 

	
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Monitor cash balances and cash forecasts.

	
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Arrange for debt and equity financing.

	
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Assist TSN members in financing options.

	
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Invest funds.

 

Third Parties:

 

	
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Participate in conference calls with the investment community.

	
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Participate in quarterly earnings calls and investor up-date calls.

	
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Represent TOMI with investment bankers as well as with investors in TOMI.

	
Ø

	
Work with TOMI’s IR company in all capacities.

	
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Maintain and monitor improved D & B ratings.

 

TOMI and Jennings will periodically meet to define performance objectives for Jennings.  Other activities as directed from time to time by: Dr. Shane, CEO, Norris Gearhart, COO and TOMI’s Board of Directors.

 

EMPLOYMENT AGREEMENT DATE: SEPTEMBER 2TH, 2015

 

BASE SALARY:

 

$132,000 per annum paid bi-weekly on the 1st and 15th of every month.  First Review will be at the 12-month anniversary.

 

PERFORMANCE BONUS:

 

Provided you meet the achievement of pre-agreed performance objectives; you will be entitled to an annual evaluation, which may lead to a raise:

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

  

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WARRANTS:

 

	

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Effective October 1st, 2015, TOMI will issue a grant to Mr. Jennings of 100,000 stock warrants at a strike price of $0.50.  The said warrants shall vest on that day.

 

	
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Annual grants of 100,000 Stock Options at a strike price of $.50 from the Company’s Stock Option Plan will be issued on every October 1st anniversary; next anniversary is October 1st, 2016.

 

	
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Stock Grants – additional shares of TOMI stock may be granted on an annual basis at TOMI’s discretion based on level of overachievement of performance objectives.

 

PERFORMANCE OBJECTIVES:

 

Performance Objectives listed under duties and responsibilities.

 

HEALTH INS:

 

Until such time as TOMI has it’s own health insurance offering. TOMI will contribute 80% towards the cost of an Individual plan (Medical, Dental and Eye) and continue to contribute 80% of the plan cost until such time company has its own health insurance offering. TOMI is actively pursuing a corporate health plan.

 

BUSINESS EXPENSES:

 

The company will provide you with a computer, phone and associated service costs as well as reimburse you for your necessary and reasonable business expenses incurred in connection with your duties hereunder upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the companies generally accepted policies.

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

  

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VACATION:

Twenty-one days annually, plus employee will be paid the following days; New Year’s Day, Memorial Day, Independence Day, Thanksgiving Day, the day after Thanksgiving and Christmas Day.

 

CHANGE OF CONTROL:

In the event of a change in control of the company that results in termination of your position, you will be entitled to a lump sum payment of one year’s salary.   Additionally, all stock grants will be accelerated and all stock options granted pursuant will be fully vested.

 

TERMINATION:

If you are terminated by TOMI for a reason other than Cause, TOMI will pay you an amount equal to your gross annual salary at the time of your termination after the second employment anniversary.

 

AT WILL:

While we look forward to a long and profitable relationship, you are an at-will employee of TOMI which means the employment relationship can be terminated by either of us for any reason, at any time, with or without prior notice and with or without cause.

 

Please indicate your acceptance of this offer by signing below and returning one copy to me.

 

Sincerely,

 

/s/ Dr. Halden Shane

Dr. Halden Shane, CEO of TOMI

 

Accepted:

 

/s/ Nick Jennings

Mr. Nick Jennings, CPA

Chief Financial Officer

 

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

  

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ADDENDUM TO THE

TOMI ENVIRONMENTAL SOLUTIONS, INC. AND NICK JENNINGS

EMPLOYMENT AGREEMENT

 

 

This Addendum takes on all terms, conditions, and definitions in the employment agreement between TOMI Environmental Solutions, Inc. and Nick Jennings executed on or around September 2, 2015.

 

TOMI and Employee agree to the following modifications of the Agreement at the Section “Warrants”:

 

The issuance of the 100,000 stock options; originally agreed for the issuance of such options on October 1, 2015 was modified to the issuance date of January 26, 2016 at a strike price of $.55.

 

 

/s/ Dr. Halden Shane

_______________________________

Dr. Halden Shane, CEO

TOMI Environmental Solutions, Inc.

 

 

 

/s/ Nick Jennings

_______________________________

Nick Jennings, CFO

TOMI Environmental Solutions, Inc.

 

TOMI Environmental Solutions, Inc.

World Corporate Office| 9454 Wilshire Blvd. | Penthouse, G-6 | Beverly Hills, CA 90212

800.525.1698 | www.tomiesinc.com

 

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