Document:

ex_104.htm

Exhibit 10.4

 

 

 

September 2, 2015

 

Via e-mail Norris.gearhart@tomiesinc.com

 

Mr. Norris Gearhart

[Home Address]

 

Dear Mr. Gearhart,

 

TOMI is delighted to offer you a position as TOMI’s Chief Operating Officer (COO).  The COO oversees all of TOMI’s corporate issues.  The position ensures the CEO and Board of Directors that operations in both TOMI and TSN is being held to the highest standards.  The COO reports directly to the CEO, the Chief Operating Officer (COO) will have overall strategic and operational responsibilities for all of TOMI and TSN’s divisions and will manage the entire group of directors.

 

Upon execution of this agreement between TOMI and Mr. Gearhart all other previous agreements between TOMI and Mr. Gearhart will be null and void.

 

GENERAL PURPOSE:

 

	
I.  

	
As the chief operating officer of TOMI and TSN he will provide leadership to TOMI’s and TSN’s strategic planning process and will implement new programmatic strategic initiatives.  In addition, the COO will: provide coordination for TOMI’s and TSN senior management team; serve as liaison to All of TOMI and TSN’s partners; and work with TOMI’s CEO and its Board of Directors to keep them abreast of programmatic strategies and challenges.

 

	
II.  

	
The COO will partner with the chief financial officer (CFO), and all other director’s and will be responsible for developing,

 

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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implementing, and managing the operational aspects of the annual budget.

 

	
III.  

	
Finally, the COO will cultivate existing relationship with public and private funders.

 

DUTIES AND RESPONSIBILITIES:

 

	

Ø

	
Provide day-to-day leadership and management to TOMI’s and TSN corporate and service organization that mirrors the adopted mission and core values of the TOMI.  Bottom line: Build a beautiful company.

 

	

Ø

	
Responsible for driving the company to achieve and surpass sales, profitability, cash flow and business goals and objectives.

 

	

Ø

	
Responsible for working with TOMI’s manufacturers, partners and divisions.

 

	

Ø

	
Responsible for the measurement and effectiveness of all processes internal and external.  Provides timely, accurate and complete reports on the operating condition of the company.

 

	

Ø

	
Spearhead the development, communication and implementation of effective growth strategies and processes including the advancement of TOMI’s technology.

 

	

Ø

	
Be the master of the technician’s and develop methods for your core values to be simulated by the technicians and trainers.

 

	

Ø

	
Collaborate with the management team to develop and implement plans for the operational infrastructure of systems, processes, and personnel designed to accommodate the rapid growth objectives of our organization.

 

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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Ø

	
Motivate and lead a high performance management team; attract, recruit and retain required members of the executive team not currently in place; provide mentoring as a cornerstone to the management career development program.

 

	

Ø

	
Act as lead “client-care officer” through direct contact with every client and partner.

 

	

Ø

	
Assist, as required, in raising additional capital at appropriate valuations to enable the Company to meet sales, growth, and market share objectives.

 

	

Ø

	
Foster a success-oriented, accountable environment within the company.

 

	

Ø

	
Represent TOMI in a positive way with clients, investors, and business partners.

 

	

Ø

	
Provide effective and inspiring leadership by being actively involved in all programs and services, developing a broad and deep knowledge of all programs.

 

	

Ø

	
Identify opportunities for XYZ Nonprofit to leverage cross-program strengths to take advantage of new opportunities and/or to address organizational challenges.

 

	

Ø

	
Lead, coach, develop, train and retain TOMI’s high-performance senior management team with an emphasis on developing capacity in strategic analysis and planning and program budgeting.

 

	

Ø

	
Develop and implement training programs and retreats to expand the capacity of all staff.

 

	

Ø

	
Prepare and submit an annual operational budget, manage effectively within this budget, and report accurately on progress made and challenges encountered.

 

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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Ø

	
Ensure the continued financial viability of TOMI’s technology and service/operational units through sound fiscal management.

 

	

Ø

	
Manage and cultivate existing relationships with funders to secure and expand recurring revenue streams.

 

	

Ø

	
Publicly represent TOMI with the media and external constituency groups including community, governmental, and private organizations and build excitement for TOMI’s mission.

 

	

Ø

	
Provide programmatic leadership and input for all strategic plan implementation processes with the CFO and staff.

 

	

Ø

	
Coach program directors as they implement the strategic plan and transition program operations.

 

	

Ø

	
Develop and implement a system for tracking and reporting on the progress of the strategic plan implement.

 

START DATE: SEPTEMBER 2nd, 2015

 

BASE SALARY:

 

$145,000 per annum paid bi-weekly on the 1st and 15th of every month. First Review will be at the 2nd anniversary.

 

PERFORMANCE BONUS:

 

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

 

	
●

	
Warrants. Annual grants of up to 250,000 Stock Options, at a strike price at a strike price equal to a Vwap of the five-day period prior to the close of the year.

 

	
●

	
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.

 

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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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.

 

TRANSPORTATION:

 

If needed the Company will pay $600.00 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.

 

VACATION: Twenty-eight 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.

 

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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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/ Norris Gearhart

Mr. Norris Gearhart

Chief Operating Officer

 

TOMI Environmental Solutions, Inc.

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

800.525.1698 | www.tomiesinc.com

 

6ex_105.htm

Exhibit 10.5

 

Date: _____________

Dear _______________­­­­­­­­­­­­­­­­­­­:

Re:           Appointment to the Board of Directors as Independent Director for

	
  

	
TOMI Environmental Solutions, Inc.

 

PRIVILEGED AND CONFIDENTIAL

On behalf of TOMI Environmental Solutions, Inc. (the “Company”), the Company is pleased to inform you that the Company’s current Board of Directors (the “Board”) have    approved your appointment as an independent director/member of the Board by certain provisions and criteria set in the Company’s Bylaws and Nominating and Governance Committee Charter (“Corporate Governance Guidelines”). In addition, the Company would also like to extend an invitation to you to be a Member of the Nominating, Audit, and Compensation Committees. This letter of appointment is issued to formalize your appointment as an Independent Director.

APPOINTMENT

Your appointment as a member of the Board starts February 1, 2016 and will be for up to one (1) year depending upon the assigned class of directors and thereafter for three (3) years upon reelection, unless prematurely concluded by mutual consent, or otherwise as provided hereinafter. Your service on the Board will be in accordance with and is subject to Company and Classified Board provisions. The relationship between you and the Company shall be that of office-holder and not one of employment, you will be considered to be an independent Non-Executive Director and will be identified as such as such in the annual report and other documentation.

TIME COMMITMENT

The Company would like to request that you set a time commitment for seven (7) Board meetings a year of at least one (1) day. As of now, the Company will hold all meetings in the Corporate Beverly Hills, California office unless notified in advance of alternative sites. For your review a calendar of dates for the Board and Committee meetings as agreed with the Directors is attached at Appendix A. This will enable you to plan your travel for attending the meetings. If, for any reason, you cannot make it to a meeting, we will connect you via audio/video conference.

  

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In addition to the above, depending on business exigencies, additional meetings may be convened. In addition, you may be nominated to additional Committees of the Board, from time to time. While the Company would seek your convenience for availability before fixing dates for such meetings, this will depend on the overall conveniences of a majority of directors. The Company will seek your guidance, suggestions and support, whenever your assistance is needed.

By accepting this appointment, including your nomination to the Committees of the Board of the Company, the Company appreciates your committing to be able to have the available time that is necessary to discharge your duties and obligations and assist the Company’s superior governance.

DUTIES AND OBLIGATIONS

TOMI’s board members will always observe, in letter and spirit, the duties, rights and role as a member of the Company’s Board as stipulated in the relevant sections of the Company’s Bylaws and Corporate Governance Guidelines, and all other relevant Company Guidelines and Charters, as amended from time to time. As a member of the Board you are expected to undertake executive duties or to assume executive responsibilities, but the Company would like it if you could work with and through the Board. The Company also asks you to exercise the general fiduciary duties and duties of care and confidentiality expected of every director.

In addition, in your role as a member of the Board, the Company asks you to:

	
  

	
1.

	
Constructively challenge and help develop proposals on strategy;

 

	
  

	
2.

	
Participate on committees of the Board;

 

	
  

	
3.

	
Attend Board meetings of the Company and give advice to the Board as is consistent with certain duties as a director of the Company;

 

	
  

	
4.

	
Accept responsibility, publicly and where necessary in writing, when required to do so under any act, regulation or code of conduct;

 

	
  

	
5.

	
Scrutinize the performance of management in meeting pre agreed goals and objectives and monitor the reporting of performance;

 

	
  

	
6.

	
Set the Company’s strategic aims, ensuring that the necessary resources are in place for the Company to meet its objectives;

 

	
  

	
7.

	
Satisfy yourself on the integrity of financial information and that financial controls and systems of risk management are robust and defensible;

 

	
  

	
8.

	
Devote time to developing and refreshing your knowledge on the Company’s technology, products, and mission in “Innovating for a Safer World”;

 

	
  

	
9.

	
Uphold high standards of integrity and probity and extend your support in instilling the appropriate culture, values and behaviors in the boardroom, for the Company, and beyond;

 

	
  

	
10.

	
Take into account the views of shareholders and other stakeholders where appropriate.

 

  

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FEES

 

Your appointment pays twenty-five thousand ($25,000.00) dollars per annum, paid on a quarterly basis. You will also be granted options to purchase 25,000 shares of the Company’s common stock on an annual basis. The exercise price will be based on the fair value at time of grant with a term of three years.

The Company will reimburse you for all reasonable expenses in connection with your travel for attending the Board/Committee meetings as per Company Policy. All payments are subject to appropriate applicable taxes. The Company asks you to submit any details of expenses incurred to the Corporate Secretary within 14 days from the date of expense.

CONFLICT OF INTERESTS

It is accepted and acknowledged that you may have business interests other than those of the Company and will declare any conflicts that are apparent at present. In the event that you become aware of any potential conflict of interest or, of not meeting the requirements as an Independent Member of the Board, you are requested to disclose the same to the Chairman of the Board (“Chairman”) and Corporate Secretary as soon as you become aware of the same.

The Board of the Company has determined you to be independent in terms of “independence” requirements as stipulated by the Company charters and other relevant regulations.

If circumstances change in any way which may affect your status as an independent member of the Board, you must immediately disclose this to the Board.

CONFIDENTIALITY AND INDEMNITY

You recognize that during your appointment you will have access to and come into contact with confidential information belonging to the Company. Therefore, you agree all information acquired during your appointment will be applied to the highest standards of confidentiality and you agree you will not disclose or release any non-public information, either during your appointment or following separation (by any means), to any third parties.

Your attention is drawn to the requirements under both legislation and regulation as to the disclosure of price-sensitive information. Consequently, you should avoid making any statement that might risk a breach of these requirements without prior clearance from the Chairman or Corporate Secretary.

On termination of the Appointment you will deliver to the Company all books, documents, papers and other property of or relating to the business of the Company which are in your possession, custody or power by virtue of your position as an Independent Board Director of the Company.

The Company will provide you with a right to indemnity to the extent set out in the Bylaws.

 

  

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INSIDER TRADING RULES

As a member of the Board of the Company, you will be considered an “Officer” and an “Insider” under Insider Trading regulations. Any trade of the Company’s stock by you and your relatives will be subject to appropriate statutory disclosures and will require prior approvals in accordance with the regulations.

CODE OF CONDUCT

During your Appointment the Company asks you to comply with any relevant regulations as may be issued in the future and all such other requirements as mentioned in the Corporate Governance Guidelines and any additional requirements the Board of Directors may from time to time specify.

INSURANCE

The Company has directors’ and officers’ liability insurance and will maintain such cover in a minimum amount of $1,000,000, in aggregate, for the full term of your appointment.

NOTIFICATION OF PERSONAL INFORMATION

Under the provisions of the Securities Exchange Commission, the Company is required to provide information about its Directors. Therefore, the Company hereby requests a resume for the past five years and a listing of all current Boards you may currently be appointed to.

PREMATURE CONCLUSION OF TERM OF APPOINTMENT

Your existing term of appointment would stand terminated and concluded on the occurrence of any of the following events:

	
1.  

	
Upon either party deciding to prematurely conclude the existing term of appointment, the party deciding to so conclude the existing term of appointment would serve a reasonable written notice on the other.

 

	
2.  

	
The Company may terminate your appointment subject to approval by a majority vote from the Board and/or the shareholders, if you:

 

	
a.   

	
 Commit a material breach of your obligation under this letter;

	
b.   

	
 Commit any serious or repeated breach or non-observance of your obligation to the Company (which include an obligation not to breach your duties to the Company, whether statutory, fiduciary or common-law); and

	
c.   

	
 Are guilty of any fraud or dishonesty or acted in a manner which, in the opinion of the Company, brings or is likely to bring you or the Company into disrepute or is materially opposing to the interests of the Company.

In addition, continuation of your contract of appointment is also contingent on your satisfactory performance as a member of the Board and any relevant statutory provision relating to the removal or disqualification of a director and subject to the performance evaluation by the entire Board.

 

  

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EXTENSION OF EXISTING TERM

Upon the expiry of your present term, in accordance with the laws and regulations of a Classified Board, and subject to your eligibility under applicable laws, as prevailing from time to time and subject to annual performance evaluation, the Board may, at its discretion, recommend to the shareholders a renewal of your existing term for such period as it may deem fit and proper, in the interest of the Company.

RIGHTS OF THIRD PARTIES

No person other than you and the Company shall have any rights under this letter and the terms of this letter shall not be enforceable by any person other than you and the Company. This letter constitutes the entire terms and conditions of your appointment and no waiver or modification of these terms shall be valid unless in writing, signed by you and for and on behalf of the Company and only to the extent set out in such written waiver or modification.

This letter cancels and is in substitution for all previous letters, agreements, arrangements (whether oral or in writing) relating to the subject-matter of this letter between you and the Company all of which shall be deemed to have been terminated by mutual consent.

We look forward to your joining of the Company’s Board and your continued participation at the meetings of the Board and Committee(s). Please feel free to contact the Chairman or the Corporate Secretary if you have any queries in relation to this letter or any other concerns or questions. Kindly confirm your agreement to the terms set out in this letter by executing the below and returning the copy to the Chairman at the Company’s address printed at the head of this letter.

Chairman of the Board, TOMI Environmental Solutions, Inc.

__________________________________

Dr. Halden S. Shane

I confirm and agree to the terms of my appointment as an Independent Member of the Board of TOMI Environmental Solutions, Inc. as set out in this letter.

Name of Director:_____________________

Signature:___________________________

Date:_______________________________

 

Place:______________________________

 

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