Document:

grph_ex101.htm

EXHIBIT 10.1 
 
LIMITED LIABILITY COMPANY OPERATING AGREEMENT
FOR Tubz, LLC
 
A Manager-Managed Limited Liability Company
 
THIS LIMITED LIABILITY COMPANY AGREEMENT (this "Agreement") of Tubz, LLC, a limited liability company organized under the laws of Delaware (the "Company"), originally formed on October 29, 2014 under the Delaware Limited Liability Company Act, dated January 1, 2016, is entered into by and between Graphite Corp., a Nevada corporation ("GC"), Anode1, LLC, a Delaware limited liability company ("A1"), and eTe Solutions, LLC , a California Limited Liability Company ("eTe") and, together with GC and AI, the "Members"). 
 
WHEREAS, the Company has licensed from William Marsh Rice University certain inventions, know-how and rights pertaining to a graphene-carbon nanotube hybrid material and its use in electrodes, including without limitation all rights pursuant to and as described more fully in the license agreement dated December 9, 2014 (the "License Agreement"). 
 
WHEREAS, the Members desire to commercialize, use, sell, license, sub-license and/or otherwise exploit the technology licensed under the License Agreement and other related or useful (in the discretion of the Managers) technologies.
 
WHEREAS, the Members desire to enter into this Agreement to set forth their respective rights and obligations as Members of the Company and to provide for the management and affairs of the Company through its Managers and for the conduct of the business of the Company.
 
NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
 
ARTICLE I: Company Formation and Registered Agent
 
1.1 REGISTERED OFFICE AND AGENT. The location of the registered office of the Company shall be: 616 Corporate Way, Suite 2-9011, Valley Cottage, NY 10989.
 
1.2 TERM. The Company shall continue for an indefinite period unless dissolved by
 
(a) Members whose capital interest as defined in Article 2.2 exceeds 50 percent vote for dissolution; or 
 
(b) Any event which makes it unlawful for the business of the Company to be carried on by the Members; or 
 
(c) The death, resignation, expulsion, bankruptcy, retirement of a Member or the occurrence of any other event that terminates the continued membership of a Member of the Company; or
 
(d) Any other event causing a dissolution of an LLC under the laws of the State of Delaware.
 
1.3 CONTINUANCE OF COMPANY. Notwithstanding the provisions of ARTICLE 1.2, in the event of an occurrence described in ARTICLE 1.2(c), if there are at least two remaining Members, said remaining Members shall have the right to continue the business of the Company. Such right can be exercised only with consent of the remaining Members holding a majority of the capital interests in the Company within ninety (90) days after the occurrence of an event described in ARTICLE 1.2(c). If not so exercised, the right of the Members to continue the business of the Company shall expire.   

 
	 
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1.4 BUSINESS PURPOSE. The purpose of the Company is to engage in any lawful act or activity for which a Limited Liability Company may be formed under the Limited Liability statutes of the State of Delaware.
 
1.5 PRINCIPAL PLACE OF BUSINESS. The location of the principal place of business of the Company shall be in Valley Cottage, NY or at such other place as the Managers from time to time select.
 
1.6 THE MEMBERS. The name and residence of each member are listed in Exhibit 2 of this Agreement.
 
1.7 ADMISSION OF ADDITIONAL MEMBERS. Except as otherwise expressly provided in the Agreement, no additional members may be admitted to the Company through issuance by the company of a new interest in the Company without the prior written consent of the majority of the Members. Notwithstanding anything else to the contrary, the Members hereby agree that the Managers will be allowed to offer equity ownership stakes to employees and consultants of the Company in amounts and on terms to be decided in the reasonable discretion of the Mangers in order to attract, incentivize and compensate such employees.
 
ARTICLE 2: Capital Contributions
 
2.1 CONTRIBUTIONS. As at the date hereof, the Members had made the capital contributions set forth opposite their names on Exhibit 3.
 
2.2 ADDITIONAL CONTRIBUTIONS. Except as provided in ARTICLE 6.2, no Member shall be obligated to make any additional contribution to the Company's capital. 
 
ARTICLE 3: Profits, Losses and Distributions
 
3.1 PROFITS/LOSSES. For financial accounting and tax purposes the Company's net profits or net losses shall be determined on an annual basis and shall be allocated to the Members in proportion to each Member's relative capital interest in the Company as set forth in Exhibit 2 as amended from time to time in accordance with Treasury Regulation 1.704-1. 
 
3.2 DISTRIBUTIONS. The Members shall determine and distribute available funds annually or at more frequent intervals as they see fit. Available funds, as referred to herein, shall mean the net cash of the Company available after appropriate provision for expenses and liabilities, as determined by the Managers. Distributions in liquidation of the Company or in liquidation of a Member's interest shall be made in accordance with the positive capital account balances pursuant to Treasury Regulation 1.704-l(b)(2)(ii)(b)(2). To the extent a Member shall have a negative capital account balance, there shall be a qualified income offset, as set forth in Treasury Regulation 1.704-l(b)(2)(ii)(d).
 
ARTICLE 4: Management
 
4.1 MANAGEMENT OF THE BUSINESS. By a vote of the Members holding a majority of the capital interests in the Company, as set forth in Exhibit 2 as amended from time to time, shall elect so many Managers as the Members determine, but no fewer than one, with one Manager elected by the Members as Chief Executive Manager.  
    
	 
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4.2 MEMBERS. The liability of the Members shall be limited as provided under the laws of the Delaware Limited Liability statutes. Members that are not Managers shall take no part whatever in the control, management, direction, or operation of the Company's affairs and shall have no power to bind the Company. The Managers may from time to time seek advice from the Members, but they need not accept such advice, and at all times the Managers shall have the exclusive right to control and manage the Company. No Member shall be an agent of any other Member of the Company solely by reason of being a Member. However, notwithstanding anything else to the contrary herein, to the extent that any matter is subject to the approval of the Members, each Member will have such voting power as corresponds to such Member's percentage ownership interest. By way of illustration only, if eTe owns 17% of the Company, then eTe shall have 17% of the voting power in respect of any matter that goes before the Members for approval. The Members further agree that should eTe's ownership percentage be challenged, denied, unrecognized or contested by any person, whether in court, arbitration or otherwise, then A1 shall hereby become attorney-in-fact for eTe and will have full authority to vote (in its sole discretion) on behalf of and for eTe for so long as such challenge, denial, lack of recognition or contest is being waged by any person or a court order is entered in respect of eTe's ownership percentage.
 
4.3 POWERS OF MANAGERS. The Managers are authorized on the Company's behalf to make all decisions as to (a) the sale, development lease or other disposition of the Company's assets; (b) the purchase or other acquisition of other assets of all kinds; (c) the management of all or any part of the Company's assets; (d) the borrowing of money and the granting of security interests in the Company's assets; (e) the pre-payment, refinancing or extension of any loan affecting the Company's assets; (f) the compromise or release of any of the Company's claims or debts; and, (g) the employment of persons, firms or corporations for the operation and management of the company's business. In the exercise of their management powers, the Managers are authorized to execute and deliver (a) all contracts, conveyances, assignments leases, sub-leases, franchise agreements, licensing agreements, management contracts and maintenance contracts covering or affecting the Company's assets; (b) all checks, drafts and other orders for the payment of the Company's funds; (c) all promissory notes, loans, security agreements and other similar documents; and, (d) all other instruments of any other kind relating to the Company's affairs, whether like or unlike the foregoing.
 
4.4 CHIEF EXECUTIVE MANAGER. The Chief Executive Manager shall have primary responsibility for managing the operations of the Company and for effectuating the decisions of the Managers. 
 
4.5 COMPANY INFORMATION. Upon request, the Managers shall supply to any member information regarding the Company or its activities. Each Member or his authorized representative shall have access to and may inspect and copy all books, records and materials in the Manager's possession regarding the Company or its activities. The exercise of the rights contained in this ARTICLE 4.6 shall be at the requesting Member's expense.
 
4.6 EXCULPATION. Any act or omission of the Managers, the effect of which may cause or result in loss or damage to the Company or the Members if done in good faith to promote the best interests of the Company, shall not subject the Managers to any liability to the Members.
 
4.7 INDEMNIFICATION. The Company shall indemnify any person who was or is a party defendant or is threatened to be made a party defendant, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the Company) by reason of the fact that he is or was a Member of the Company, Manager, employee or agent of the Company, or is or was serving at the request of the Company, for instant expenses (including attorney's fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if the Members determine that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interest of the Company, and with respect to any criminal action proceeding, has no reasonable cause to believe his/her conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of "no lo Contendere" or its equivalent, shall not in itself create a presumption that the person did or did not act in good faith and in a manner which he reasonably believed to be in the best interest of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his/her conduct was lawful.   

 
	 
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4.8 RECORDS. The Managers shall cause the Company to keep at its principal place of business the following: 
 
(a) a current list in alphabetical order of the full name and the last known street address of each Member; 
 
(b) a copy of the Certificate of Formation and the Company Operating Agreement and all amendments;
 
(c) copies of the Company's federal, state and local income tax returns and reports, if any, for the three most recent years;
 
(d) copies of any financial statements of the limited liability company for the three most recent years.
  
ARTICLE 5: Compensation
 
5.1 MANAGEMENT FEE. Any Manager rendering services to the Company shall be entitled to compensation commensurate with the value of such services, the manager's experience and geographical location.
 
5.2 REIMBURSEMENT. The Company shall reimburse the Managers or Members for all direct out-of-pocket expenses incurred by them in managing the Company.
 
ARTICLE 6: Bookkeeping
 
6.1 BOOKS. The Managers shall maintain complete and accurate books of account of the Company's affairs at the Company's principal place of business. Such books shall be kept on such method of accounting as the Managers shall select. The company's accounting period shall be the calendar year. 
 
6.2 MEMBER'S ACCOUNTS. The Managers shall maintain separate capital and distribution accounts for each member. Each member's capital account shall be determined and maintained in the manner set forth in Treasury Regulation 1.704-l(b)(2)(iv) and consist of his initial capital contribution increased by:
 
(a)     any additional capital contribution made by him/her;
 
(b)     credit balances transferred from his distribution account to his capital account; and decreased by:
 
(c)     distributions to him/her in reduction of Company capital;
 
(d)     the Member's share of Company losses if charged to his/her capital account.
 
6.3 REPORTS. The Managers shall close the books of account after the close of each calendar year, and shall prepare and send to each member a statement of such Member's distributive share of income and expense for income tax reporting purposes.   

 
	 
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ARTICLE 7: Transfers
 
7.1 ASSIGNMENT. Subject at all times to the consent of a majority of Members (with such consent not to be unreasonably withheld or delayed), if at any time a Member proposes to sell, assign or otherwise dispose of all or any part of his interest in the Company, such Member shall first make a written offer to sell such interest to the other Members at a price determined by mutual agreement. If such other Members decline or fail to elect such interest within thirty (30) days, and if the sale or assignment is made and the Members fail to approve this sale or assignment by a vote of the Members holding a majority of the capital interests in the Company then, pursuant to the Delaware Limited Liability statutes, the purchaser or assignee shall have no right to participate in the management of the business and affairs of the Company. The purchaser or assignee shall only be entitled to receive the share of the profits or other compensation by way of income and the return of contributions to which that Member would otherwise be entitled.
 
Signed and agreed this 1st day of January 2016.
 
	
	 
	
	 
	 

	Graphite Corp.
	 
	Anode1, LLC 
	 
	eTe Solutions, LLC

	Member
	 
	Member
	 
	Member 

 

	 
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LIMITED LIABILITY COMPANY OPERATING AGREEMENT
 
FOR TUBZ, L.L.C.
 
EXHIBIT 1 - LISTING OF MANAGERS
 
By a majority vote of the Members the following Managers were elected to operate the Company pursuant to ARTICLE 4 of the Agreement:
 
eTe Solutions, LLC
Chief Executive Manager
4256 Manuela Ct
Palo Alto, CA, 94306, USA 
 
The above listed Manager (eTe Solutions, LLC) will serve in their capacities until they are removed for any reason by a majority vote of the Members as defined by ARTICLE 4 or upon their voluntary resignation. 
 
Signed and agreed this 1st day of January 2016.  
 
	Graphite Corp
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	Anode1, LLC 
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	eTe Solutions, LLC 
	 
	
	 

	Member
	 
	Signature   

	 

    

	 
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LIMITED LIABILITY COMPANY OPERATING AGREEMENT
 
FOR TUBZ, L.L.C.
 
EXHIBIT 2 - LISTING OF MEMBERS
 
As of the 1st day of January 2016 the following is a list of Members of the Company: 
 
	NAME:
	 
	ADDRESS:

	 
	 
	 

	Graphite Corp 
	 
	616 Corporate Way, Suite 2-9011, Valley Cottage, NY 10989

	 
	 
	 

	Anode1, LLC 
	 
	16192 Coastal Highway, Lewes, DE 19958

	 
	 
	 

	eTe Solutions, LLC 
	 
	4256 Manuela Ct, Palo Alto, CA 94306, USA

 
Authorized by Member(s) to provide Member Listing as of this 1st day of January 2016
 
	Graphite Corp
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	Anode1, LLC 
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	eTe Solutions, LLC 
	 
	
	 

	Member
	 
	Signature   

	 

     

	 
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LIMITED LIABILITY COMPANY OPERATING AGREEMENT
 
FOR TUBZ, L.L.C.
 
EXHIBIT 3 - CAPITAL CONTRIBUTIONS
 
The description and each individual portion of this initial contribution is as follows:
 
	Member 
	Percent
Interest
	Capital Account Contribution
	Address
	Email Address

	Graphite Corp.*
	37%
	founder + $60,000 in cash
	616 Corporate Way, Suite 2-9011, Valley Cottage, NY 10989
	mark@grphcorp.com

	Dr. James Tour
	11%
	Advisory and consulting services
	Rice University
Smalley Institute for Nanoscale Science and Technology, MS222
6100 Main Street, Houston, Texas 77005
	tour@rice.edu

	Anode1, LLC*
	35%
	$180,000
	16192 Coastal Highway, Lewes, DE 19958
	Anode1llc@gmail.com

	eTe Solutions, LLC*
	17%
	service
	4256 Manuela Ct,
Palo Alto, CA 94306, USA
	ete_solutions@me.com

 
*Such member is also or has designated a manager.
 
SIGNED AND AGREED this 1st day of January 2016. 
 

	Graphite Corp
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	Anode1, LLC 
	 
	
	 

	Member
	 
	Signature
	 

	 
	 
	 
	 

	eTe Solutions, LLC 
	 
	
	 

	Member
	 
	Signature   

	 

 
 
8fision_ex101.htm

EXHIBIT 10.1
 
EMPLOYMENT, CONFIDENTIALITY
AND NON-SOLICITATION AGREEMENT
 
THIS EMPLOYMENT, CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT dated as of July 1, 2014 is by and between Fision Holdings, Inc., a Minnesota corporation (hereinafter "Company" or "FISION") and Michael P. Brown ("Employee"), whose social security number is xxx-xx-xxxx.
 
WHEREAS, FISION desires to have the availability of Employee's expertise in general and financial management and business leadership as an Employee; and
 
WHEREAS, Employee desires to be employed by Employer to provide such services; and
 
WHEREAS, Employer and Employee have reached this Agreement in good faith and in arm's length negotiations, separate and apart from any other agreements.
 
NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants set forth below, the parties hereto agree as follows:
 
1. Duration of Employment. Effective July 1, 2014, Employee is hired (ratified) by FISION in the capacity of President and Chief Executive Officer and shall remain employed until terminated as provided herein. Employees first day of employment is August 1, 2010.
 
2. Duties of Employee. In accepting employment by FISION, Employee shall undertake and assume the responsibilities and duties as follows:
 
		a. 	Employee to perform in the function of President and CEO of FISION on a full-time basis;

			 
		b. 	President and CEO to report directly to the Board of Directors of FISION;

			 
		c. 	President and CEO has the responsibility for providing strategic leadership for the company by working with the Board and other management to establish long-range goals, strategies, plans, and policies.

			 
		d. 	President and CEO has the responsibility for overseeing the complete operation of the Company in accordance with the direction established in the strategic plans.

			 
		e. 	President and CEO will enhance and/or develop, implement and enforce policies and procedures of the organization by way of systems that will improve the overall operation and effectiveness of the corporation.

 
	 
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		f. 	President and CEO will create, communicate, and implement the organization's vision, mission, and overall direction of the corporation.

			 
		g. 	President and CEO acts in the capacity of a Corporate Officer of FISION;

			 
		h. 	Employee to perform all responsibilities and duties in a professional manner;

			 
		i. 	Employee to promptly comply with all policies, rules and regulations that may be issued from time to time by FISION; and

			 
		j. 	Employee agrees to devote his best efforts and all necessary time, energy and efforts to the position set forth above. FISION recognizes that Employee has now and may have future commitments to participate as a Board of Director and/or ad-hoc consultant for other companies and will allow Employee to do so during the term of Employee's employment with FISION including charitable and professional associations, as long as these activities do not conflict with Fision.

    
3. Compensation. Employee's compensation plan is set out in Addendum "A" attached hereto and by reference made a part hereof. 
 
4.Additional Benefits. In addition to the compensation referred to in Section 3 above, Employee shall be entitled, during the term of this Agreement, to participate in the fringe benefits programs provided by Employer to its employees, including without limitation, participation in any medical, dental or other group health plans or accident benefits, disability benefits, life insurance benefits, pension or profit-sharing plans, as shall be instituted by Employer, in its sole discretion. Employee shall be entitled to and FISION agrees to grant Employee twenty (20) days of paid personal time off (PTO) per year vested in advance. Such PTO shall be used for vacation, sick leave and all other non-working absences while employed by FISION. If Employee decides to leave the Company, Employee shall be entitled to and FISION agrees to grant Employee two months of severance pay for every year of service (employment) to the Company, commencing August 1, 2010 (original day of employment), or twelve month's severance, whichever is greater. In the event of a change of control of the Company, the severance package to the Employee in the event of termination for any reason will be fifteen months.
 
Any of the additional benefits referenced in this Section 4 and provided by Employer to its Employees may not be terminated or amended by Employer. In the event that any benefit referenced above is terminated or amended on a company-wide basis, such termination or amendment shall in no way affect Employee's covenants, agreements and obligations pursuant to this Agreement.
 
In addition to the compensation and benefits set forth herein, FISION shall reimburse Employee for all reasonable and necessary business expenses incurred by Employee within the guidelines established, from time to time by the Officers of the Company. All approved business expenses and reimbursements will be paid to Employee after Employee submits a timely general expense report with supporting documents of actual expenses incurred.
 
5. Term and Termination of Employment. The employment of Employee is effective on the date set out in Paragraph 1 and shall remain in effect until terminated as set forth below. 
 
The term of the employment agreement shall be thirty-six months. Upon termination for any reason, Employee shall concurrently resign as an officer of the company. 
 
Upon termination for any reason, FISION would at its option also be able to repurchase any FISION stock owned by Employee, as accepted by Employee. At the time of termination, if there is a pending merger, sale, IPO or liquidation transaction, then Employee, at his option, may elect to have the fair market value be determined by the subsequent valuation at any time prior to the closing of such transaction. Furthermore, any accrued fees, salaries, accrued interest, expense reimbursements and outstanding loans made by Employee to FISION shall be paid back in full to Employee within ten days of termination.   

 
	 
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A "for cause" termination by FISION shall be defined as (a) materially adverse and deliberate dishonesty, fraud, injury or attempted injury by Employee, in each case related to FISION or its business, (b) any criminal activity of a serious nature in which Employee is formally charged or convicted, (c) any materially adverse breach of this Agreement where Employee failed to perform the duties of its job assigned to it by the Board of Directors of FISION as specified with written notice to Employee and where Employee has not corrected such materially adverse deficiency in performing its duties for a period of thirty (30) days after such written notice.
 
If terminated "without cause," FISION agrees to pay Employee monthly severance compensation in the amount of twelve (12) months of base salary compensation at the highest level of monthly base salary compensation prior to termination (including any accruals), unless such termination occurs within one-year of a change in control of FISION in which case such severance payments shall be extended to fifteen (15) months. Any such payments shall be made in accordance with the payment process defined in Addendum A Section 1. BASE SALARY COMPENSATION.
 
If FISION or any such successor organization shall materially alter the job duties of Employee as President & CEO or has adversely changed the role, responsibilities and authority of Employee, then Employee shall consider such act as Constructive Termination without cause and FISION shall pay the severance compensation in the amount of fifteen (15) months of base salary compensation at the highest level of monthly base salary compensation prior to termination (including any accruals).
 
Those provisions of this Agreement which, by their terms, continue after termination of the engagement relationship (including, without limitation, paragraphs 6, 7, 8, 9 and 13) shall survive termination and remain in full force and effect. 
 
6. Confidential Information and Trade Secrets. Employee recognizes that Employee's position with FISION is one of trust and confidence. During the course of Employee's employment with FISION, Employee will become acquainted with confidential information relating to FISION's business including, without limitation, information relating to FISION's vendor relationships, to FISION's business allies, to FISION's customers, to FISION's strategic and marketing plans, to FISION's finances and pricing, to FISION's software applications, and to FISION's proprietary processes and methods of doing business. Employee understands and agrees that there is independent economic value in not having FISION's confidential and proprietary information known to others in the industry.
 
Therefore, by accepting employment with FISION, Employee agrees to respect all confidences and not to, directly or indirectly, use any of FISION's confidential or proprietary information for its own benefit or divulge any of FISION's confidential or proprietary information to any third party. Employee further agrees to cooperate in all efforts to see that the confidentiality of the information with which Employee deals, and to which Employee has access, will be maintained. 
 
7. Inventions and Intellectual Property. Employee agrees that all copyrightable materials, trademarks, inventions, discoveries, designs, product developments, computer software, and any other intellectual property which are, or have been developed or conceived by Employee, either solely or jointly with others (a) in the course of performance of its duties on behalf of FISION, or (b) utilizing the equipment, supplies, facility or information of FISION, or (c) relating to, or capable of being used or adopted for use in connection with the business of FISION, shall inure to, and be the property of FISION. Any such copyrightable material, trademark, invention, discovery, design, product development, computer software, or other similar property must be promptly disclosed to FISION.   

 
	 
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Employee agrees to execute such documents and provide such assistance as FISION may reasonably request in order to enable it (a) to apply for a copyright, registered design, registered trademark, patent, or other protection for any copyrightable material, trademark, invention, discovery, design, product development, computer software, or other similar property described above, or (b) to be vested with exclusive title, free and clear of any liens or encumbrances, to any such copyrights, trademarks, trade names, inventions, discoveries, designs, product developments, patents, and any similar property. If any such request for assistance occurs after termination of Employee's employment with FISION, Employee shall be entitled to reimbursement of all reasonable expenses incurred by it as a consequence of that assistance, including reimbursement for the value of its time at a reasonable hourly rate.
 
NOTICE: This paragraph does not apply to a past or future invention for which (1) no equipment, supplies, facilities or trade secret information of FISION was used and (2) which was developed entirely on Employee's own time, and (3) which does not relate (i) directly to the business of FISION, or (ii) to FISION's actual or demonstratively anticipated research or development and (4) which does not result from any work performed by Employee for FISION.
 
8. Non-Solicitation. In view of the unique value to FISION of the services to be performed by Employee, the Confidential Information to be acquired, obtained by or disclosed to Employee, and as a material inducement to FISION to enter into this Agreement and to pay and provide to Employee the compensation and benefits referred to in this Agreement, Employee covenants and agrees that, during the term of Employee's employment with FISION, and for a period of one (1) year thereafter, Employee will not, on behalf of anyone other than FISION (including Employee);
 
(a) directly or indirectly solicit, contact, sell to, service, or assist in the solicitation, contact, sales or services to customers, prospective customers, vendors, referral sources, or strategic allies of FISION with whom Employee had any contact during Employee's engagement with FISION if that solicitation, contact, sales, or service, or assistance with solicitation, contract, or sales relates to a product or service which is offered by FISION, or 
 
(b) directly or indirectly, induce, encourage, solicit, or assist in the inducement, encouragement, or solicitation of Employees, vendors, customers, or business allies to terminate their relationships with FISION. 
 
9. Breach of Covenants. The terms of paragraphs 6, 7 and 8 shall be enforceable in both law and equity, including by temporary restraining order or injunction, notwithstanding the existence of any claim or cause of action between the parties, whether predicated on this Agreement or otherwise. The parties agree that in the event of a breach by Employee of any of the terms of paragraphs 6, 7 and 8, FISION would suffer irreparable harm. In the event FISION brings any proceedings to enforce the provisions of paragraphs 6, 7 and 8 of this Agreement, the prevailing party shall be entitled to recover costs, including reasonable attorneys' fees.
 
10. Waiver. The waiver by FISION of due performance of, or compliance with any provisions of this Agreement shall not operate or be construed as a waiver of its right to demand due performance or compliance by Employee thereafter.
 
11. Severability. In the event that any term or portion of this Agreement is determined to be invalid or unenforceable, the parties intend and agree that the remaining terms shall continue to be valid and enforceable in all respects. Moreover, the parties intend and agree that the non-solicitation provisions of paragraph 8 of this Agreement may be judicially modified so as to make them enforceable should a court believe that they are overbroad in any respect.    
    
	 
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12. Assignment and Modification. The rights and obligations of FISION under this Agreement shall inure to the benefit of, and be binding upon the successors and assigns of FISION. The rights and obligations of Employee under this Agreement, however, shall not be assigned to others. 
 
13. Arbitration. This Agreement is deemed to have been made in the State of Minnesota and shall be interpreted pursuant to Minnesota law. The parties shall make good faith efforts to work through any disputes over the language or intent of this Agreement or over the performance of obligations hereunder. However, any unresolved disputes arising from, or relating to this Agreement or the relationship between the parties shall be resolved through binding arbitration conducted under the auspices of the American Arbitration Association at its Minneapolis, Minnesota office. The parties shall equally split the cost of any arbitration but the arbitrator is empowered to award to the prevailing party reimbursement of those costs. The existence of this arbitration clause shall not prevent FISION from initiating suit to seek injunctive relief in the manner contemplated in paragraph 9 above. However, any damage claim, including damage claims arising from the same alleged breach, which resulted in a suit for injunctive relief, shall be resolved through binding arbitration. Either party shall be entitled to docket an arbitration award in any court of competent jurisdiction. 
 
14. Governing Law. The parties agree that this Agreement has been executed in the State of Minnesota and shall be governed in all respects by the laws of said state.
 
15. Entire Agreement. This document contains the entire agreement of the parties relating to the subject matter hereof. No waiver, change or modification of any of the terms hereof shall be binding on either party unless executed in a writing signed by both parties.
 
16. Opportunity to Review. Employee acknowledges that Employee has had the opportunity to review this Agreement, and to have Employee's attorney, if Employee is represented by any such attorney, do the same, before executing the Agreement. The Agreement accurately recites the product of negotiations between the parties.
 
17. Good Faith. The parties hereto shall exercise good faith in the undertaking of all the duties, obligations, rights and responsibilities set forth herein.
 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, intending to be bound hereby.
    	 
	FISION: FISION Holdings, Inc.	 

	 	 	 	 
		By:	/s/ Garry N. Lowenthal	 

	 
	 
	Garry N. Lowenthal	 

	 
	Its:
	EVP & CFO	 

	 
	 
	 
	 

	 
	EMPLOYEE:  
	 

	 
	 
	 

	 
	By:
	/s/ Michael P. Brown

	 
	 
	Michael P. Brown 

 
	 
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ADDENDUM A
 
THIS ADDENDUM, is effective July 1, 2014, by and between FISION Holdings, Inc., a Minnesota corporation (hereinafter "FISION" or "Company") and Michael P. Brown (hereinafter "Employee").
 
WHEREAS, this Addendum is fully incorporated into the EMPLOYMENT, CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT effective July 1, 2014 ("Agreement") between FISION and Employee and specifically addresses Employee's compensation and benefits per Sections 3 and 4 of that Agreement.
 
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby agree to as follows:
 
	1. 	BASE SALARY COMPENSATION- Effective January 1, 2013, and ratified on July 1, 2014, Employee shall be paid a base salary compensation of FIFTEEN THOUSAND DOLLARS AND 00/100 ($15,000.00) per month in accordance with the Company's payroll policy, if any.

 
	 
	 
	·
	Employee will earn compensation of FIFTEEN THOUSAND DOLLARS AND 00/100 ($15,000.00) per month.

	 
	 
	·
	Employee will be paid any unpaid monthly compensation/accruals, expense reimbursement, and accrued interest upon a successful closing of at least $1 million of an institutional round.

	 
	 
	·
	Effective the earlier of: a) the closing of at least $1.5 million of an institutional round or b) January 1, 2015, Employee shall be paid a base salary compensation of twenty thousand dollars ($20,000) per month.

	 
	 
	·
	Future increases in base salary compensation shall be reviewed at least annually for potential increase relative to company performance and compensation levels at comparative companies.

 
	2. 	PAID-TIME-OFF and OTHER BENEFITS- FISION agrees to grant Employee twenty (20) days of paid personal time off (PTO) per year, vested in advance with accruals for unused PTO, from the original start date of August 1, 2010. Such PTO shall be used for vacation, sick leave and all other non-working absences from FISION. Employee will be eligible to participate in all other company benefits available to any other FISION employee or consultant.

		
	3. 	FISION BONUS, STOCK AWARDS AND STOCK OPTIONS- The Compensation Committee and/or the Board of Directors will determine, on a periodic basis, at least annually, any cash bonus, stock awards and stock options to be awarded to Employee. All FISION awards/grants of common stock, warrants or options will be based on par value.

		
	4. 	TERMINATION OF ADDENDUM – This Addendum shall terminate upon execution of a new Addendum A or by termination of the Agreement and any extensions.

 
	 
	6

	

	 

 
IN WITNESS WHEREOF, the parties have made and entered into this Addendum effective as of the date first written above.
 
	EMPLOYEE: 
	 
	 
	FISION HOLDINGS, INC.  
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Michael P. Brown
	 
	By:
	/s/ Garry N. Lowenthal
	 

	 
	Michael P. Brown 
	 
	 
	Garry N. Lowenthal
	 

	 
	 
	 
	Title:
	EVP & CFO
	 

	 
	 
	 
	 
	 
	 

	Date:
	7/1/2014
	 
	Date:
	7/1/2014
	 

 
 
7

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