UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2021

 

☐     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

333-152805

(Commission File Number)

  

thcc_10qimg8.jpg

 

THE HEALING COMPANY INC.

(Exact name of registrant as specified in its charter)

   

Nevada

 

26-2862618

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

11th Floor, Ten Grand Street,

Brooklyn, New York

 

11249

(Address of principal executive offices)

 

(Zip Code)

 

(866) 241-0670

(Registrant’s telephone number, including area code)

 

 711 S. Carson Street, Suite 4,

Carson City, Nevada 89701

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock

 

N/A

 

N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

 

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒     No ☐

 

As of February 18, 2022, there were 44,000,000 shares of the registrant’s common stock outstanding.

 

 

 

   

The Healing Company Inc.

TABLE OF CONTENTS

 

 

 

Page

 

PART I – FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 3

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 4

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 9

 

 

 

Item 4.

Controls and Procedures

 9

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

 10

 

 

 

Item 1A.

Risk Factors

 110

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 10

 

 

 

Item 3.

Defaults Upon Senior Securities

 10

 

 

 

Item 4.

Mine Safety Disclosures

 10

 

 

 

Item 5.

Other Information

 10

 

 

 

Item 6.

Exhibits

 12

 

 

 

 

SIGNATURES

 13

 

 

2

Table of Contents

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

THE HEALING COMPANY INC.

 

CONDENSED FINANCIAL STATEMENTS

 

For the Six Months ended December 31, 2021 and 2020

(Unaudited)

 

Prepared by Management

 

(Stated in US Dollars)

 

 

3

Table of Contents

 

Index to Financial Statements

 

 

Page

 

 

Unaudited Condensed Balance Sheets

F-2

Unaudited Condensed Statements of Operations

F-4

Unaudited Condensed Statement of Stockholders’ Equity (Deficiency)

F-5

Unaudited Condensed Statements of Cash Flows

F-6

Notes to Unaudited Condensed Financial Statements

F-7 to F-12

 

 
F-1

Table of Contents

 

The Healing Company Inc.

Condensed Balance Sheets

(Stated in U.S. Dollars)

(Unaudited)

 

 

 

December 31,

2021

 

 

June 30,

2021

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$1,115,065

 

 

$-

 

Total Current Assets

 

 

1,115,065

 

 

 

-

 

Total Assets

 

$1,115,065

 

 

$-

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

135,028

 

 

 

79,110

 

Accounts Payable and accrued expenses – related party

 

 

65,000

 

 

 

-

 

Advances Payable – related parties

 

 

627,420

 

 

 

203,615

 

Subscription payable

 

 

1,000,000

 

 

 

-

 

Total Current Liabilities

 

 

1,827,448

 

 

 

282,725

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

$1,827,448

 

 

$282,725

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Preferred Shares – 10,000,000 authorized, $0.001 par value

 

 

 

 

 

 

 

 

Seed Preferred Shares, 5,000,000 designated, $0.001 par value, of which 325,000 and 0 are issued and outstanding as of December 31, 2021, and June 30, 2021 respectively

 

 

325

 

 

 

-

 

Common Shares – 300,000,000 authorized, $0.001 par value, 44,000,000 shares issued and outstanding

 

 

44,000

 

 

 

44,000

 

Additional Paid in Capital

 

 

649,675

 

 

 

-

 

Accumulated Deficit

 

 

(1,406,383)

 

 

(326,725)

Total Stockholders’ Deficit

 

 

(712,383)

 

 

(282,725)

Total Liabilities and Stockholders Deficit

 

 

(1,115,065)

 

 

-

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

 
F-2

Table of Contents

 

The Healing Company Inc.

Condensed Statements of Operations

(Stated in U.S. Dollars)

(Unaudited)

 

 

 

Three months ended

December 31,

 

 

Six months ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Sales

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and Administrative

 

 

27,740

 

 

 

683

 

 

 

33,876

 

 

 

3,195

 

Professional and Consulting fees

 

 

301,763

 

 

 

2,350

 

 

 

891,402

 

 

 

4,828

 

Management fees                   

 

 

154,380

 

 

 

-

 

 

 

154,380

 

 

 

-

 

Total operating expenses

 

 

483,883

 

 

 

3,033

 

 

 

1,079,658

 

 

 

8,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) from Operations before income taxes

 

 

(483,883)

 

 

(3,033)

 

 

(1,079,658)

 

 

(8,023)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions for income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)

 

$(483,883)

 

$(3,033)

 

$(1,079,658)

 

$(8,023)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss Per Common Share

 

$(0.01)

 

$(0.00)

 

$(0.03)

 

$(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in per share calculations

 

 

44,000,000

 

 

 

44,000,000

 

 

 

44,000,000

 

 

 

44,000,000

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

 
F-3

Table of Contents

 

The Healing Company Inc.

Condensed Statement of Stockholders’ Deficit

 (Stated in U.S. Dollars)

(Unaudited)

 

 

 

Seed Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-in

 

 

 

 

Stockholders

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance June 30, 2021

 

 

-

 

 

$-

 

 

 

44,000,000

 

 

$44,000

 

 

$-

 

 

$(326,725)

 

$(282,725)

Loss-- for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(595,775)

 

 

(595,775)

Balance September 30, 2021

 

 

-

 

 

$-

 

 

 

44,000,000

 

 

$44,000

 

 

$-

 

 

 

(922,500)

 

$(878,500)

Issuance of Seed Preferred Stock for cash

 

 

325,000

 

 

$325

 

 

 

 

 

 

 

 

 

 

 

649,675

 

 

 

-

 

 

 

650,000

 

Loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(483,883)

 

 

(483,883)

Balance December 31, 2021

 

 

325,000

 

 

$325

 

 

 

44,000,000

 

 

$44,000

 

 

$649,675

 

 

$(1,406,383)

 

 

(712,383)

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

Balance June 30, 2020

 

 

44,000,000

 

 

$44,000

 

 

 

-

 

 

 

(213,378)

 

$(169,378)

Loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,990)

 

 

(4,990)

Balance, June 30, 2020

 

 

44,000,000

 

 

$44,000

 

 

$-

 

 

$(218,368)

 

$(174,368)

Loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,033)

 

 

(3,033)

Balance December 31, 2020

 

 

44,000,000

 

 

$44,000

 

 

$-

 

 

$(219,401)

 

$(177,401)

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

 
F-4

Table of Contents

  

The Healing Company Inc.

Condensed Statements of Cash Flows

 (Stated in U.S. Dollars)

(Unaudited)

 

 

 

For the six months ended

December 31,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net (loss)

 

$(1,079,658)

 

$(8,023)

Adjustments to reconcile net (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

55,918

 

 

 

(6,355)

Accounts payable and accrued expenses – related party

 

 

65,000

 

 

 

-

 

Subscription payable

 

 

1,000,000

 

 

 

-

 

Net Cash provided by (used in) operating activities

 

 

41,260

 

 

 

(14,378)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from sale of shares

 

 

650,000

 

 

 

14,980

 

Advances payable – related parties

 

 

423,805

 

 

 

-

 

Cash provided by financing activities

 

 

1,073,805

 

 

 

14,980

 

 

 

 

 

 

 

 

 

 

INCREASE IN CASH

 

 

1,115,065

 

 

 

602

 

CASH AT BEGINNING OF YEAR

 

 

-

 

 

 

1,347

 

CASH AT END OF PERIOD

 

$1,115,065

 

 

$1,949

 

 

 

 

 

 

 

 

 

 

Interest Paid

 

$-

 

 

$-

 

Taxes Paid

 

$-

 

 

$-

 

 

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

 
F-5

Table of Contents

 

The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

DESCRIPTION OF BUSINESS AND HISTORY –

 

Historical Information

 

The Healing Company Inc. (formerly “Lake Forest Minerals) a Nevada corporation, (hereinafter referred to as the “Company”) was incorporated in the State of Nevada on June 23, 2008. The Company was originally formed to engage in the acquisition, exploration and development of natural resource properties of merit.

 

Commencing in February 22, 2010, our purpose has been to serve as a vehicle to acquire an operating business. As of the date of this report, we are currently considered a “shell” company in as much as we are not generating revenues and do not own an operating business.

 

Current Information         

 

During January 2021,  our then sole officer and director, Mr. Jeffrey Taylor sold his 32,000,000 shares of common stock of the Company, representing 73% of the issued and outstanding shares,  to certain third parties in a series of private  transactions for cash consideration of $300,000. Concurrently Mr. Taylor resigned all positions and Mr. Larson Elmore was appointed to fill ensuing vacancies.

 

In cooperation with the new majority shareholders, the Company determined to redefine its acquisition objectives to establish a platform of companies that source, harvest and utilize the most natural compounds for holistic nutrition from around the world. In doing so, the Company intends to offer the best natural remedies to connect humans with nature, and prevent and heal lifestyle diseases on a broad scale. In that regard, management has identified various targets which are currently undergoing due diligence review.

 

On April 29, 2021, the sole director and our majority shareholder approved a name change of our Company from Lake Forest Minerals Inc. to The Healing Company Inc.

 

Concurrently the board and majority shareholder approved a resolution to effect a forward stock split of our authorized and issued and outstanding shares of common stock on a four (4) new shares for one (1) share held. Upon effectiveness of the forward split, our authorized capital will be 300,000,000 shares of common stock and our issued and outstanding shares of common stock will increase from 11,000,000 to 44,000,000 shares of common stock, all with a par value of $0.001.  The Certificate of Amendment to effect the forward split and the change of name was filed with the Nevada Secretary of State on April 29, 2021. The name change and forward stock split were subsequently reviewed and approved by the Financial Industry Regulatory Authority (FINRA) with an effective date of June 2, 2021.  The impact of the forward split has been retroactively applied to all share and per share information contained herein.

 

On October 7, 2021, the sole director and majority shareholder approved the adoption of our Amended and Restated Articles of Incorporation, which replace our prior articles of incorporation in their entirety. Among other things, the Amended and Restated Articles of Incorporation authorize us to issue is 300,000,000 shares of stock, consisting of (a) 290,000,000 shares of common stock, $0.001 par value per share and (b) 10,000,000 shares of preferred stock, $0.001 par value per share, and establish 5,000,000 Seed Preferred Shares as a first series of such preferred stock.

 

A Certificate of Amendment was filed with the Nevada Secretary of State on October 7, 2021.

 

 
F-6

Table of Contents

 

The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 1 -  DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

DESCRIPTION OF BUSINESS AND HISTORY –  

 

Current Information – continued

 

During the period ended December 31, 2021, we entered into definitive agreements with non-U.S. persons to issue a total of 5,000,000 shares of the Seed Preferred stock in private transactions (the “Transactions”). Under the terms of the Transactions, we agreed to sell an aggregate of 5,000,000 Seed Preferred Shares at $2.00 per share for aggregate proceeds of $10,000,000. Prior to December 31, 2021, the Company received proceeds of $1,650,000 against the subscriptions and issued a total of 325,000  shares of Seed Preferred Stock.  As at December 31, 2021 the Company had not issued 500,000 shares relating to the $1,000,000 subscription proceeds received, which amount is reflected on the Company’s balance sheets as Subscription Payable.

 

All adjustments necessary for fair statement of the results for the periods have been made and all adjustments are of a normal recurring nature.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF PRESENTATION - These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States (“US GAAP”). The Company's fiscal year end is June 30. Certain information and note disclosures normally included in the  financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the condensed financial statements for the three and six months ended December 31, 2021, should be read in conjunction with the audited financial statements and accompanying notes included in the Company’s Form 10-K for the Company’s fiscal year ended June 30, 2021, as filed with the Securities and Exchange Commission (“SEC”).

 

USE OF ESTIMATES - The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

INCOME TAXES - The Company provides for income taxes under ASC 740, Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2021, and 2020 the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s statement of operations.

 

REVENUE RECOGNITION - The Company has no current source of revenue; therefore, the Company has not yet adopted any policy regarding the recognition of revenue or cost.

 

NET LOSS PER COMMON SHARE - The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

 

 
F-7

Table of Contents

 

The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

 

STOCK-BASED COMPENSATION - The Company has not adopted a stock option plan and has not granted any stock options. Accordingly, no stock-based compensation has been recorded to date.

 

CASH AND CASH EQUIVALENTS - For purposes of Statements of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

 

FINANCIAL INSTRUMENT - 

The carrying amounts of the company's financial instruments including accounts payable and due from related parties approximate fair value due to the relative short period for maturity these instruments.

 

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the company. Unobservable inputs are inputs that reflect the company's assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on reliability of the inputs as follows:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The Company’s financial instruments consist principally of Accounts payable and accrued liabilities, and amounts due to related parties. Pursuant to ASC 820 and 825, the fair value of our cash and cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

 

RECENT ACCOUNTING PRONOUNCEMENTS -

 

The Company has implemented all new accounting pronouncements that are in effects and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

 
F-8

Table of Contents

 

The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 3- GOING CONCERN

 

The Company has cash on hand of $1,115,065 and current liabilities of $1,827,448, including the liability of $1,000,000 in relation to certain subscribed for but unissued shares.  Further, the Company has entered into subscription agreements for an additional $8,350,000 which funds it intends to collect during the quarter ended March 31, 2022.   The Company has commenced limited operations and is conducting due diligence procedures on various potential acquisition targets.   Management believes the Company will have sufficient funds to continue operations within one year of the issuance date of this filing, however, there can be no assurance that the Company will receive the additional $8,350,000 in subscription funds or that the Company will be able to raise additional capital beyond the current cash on hand. Management’s plans include seeking additional sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful in accomplishing its objectives. The continuation of the Company as a going concern is also dependent upon the ability to attain profitable operations from the Company's future planned business operations. If the Company is unable to obtain adequate capital as needed, or conduct revenue generating operations, the Company may be required to reduce the scope, delay, or eliminate some or all of its planned operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern.

 

The financial statements reflect all adjustments consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the results for the periods shown. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

 

COVID-19 Pandemic

 

While it appears the COVID-19 pandemic is subsiding, the impact of COVID-19 could continue to have an adverse impact on the Company going forward.  COVID-19 has caused significant disruptions to the global financial markets, which may severely impact the Company’s ability to raise additional capital and to pursue certain acquisitions. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report and is highly uncertain and subject to change. The Company is not able to estimate the potential effects of the COVID-19 outbreak on its operations or financial condition for the next 12 months. There are no assurances that the Company will be able to meet its obligations, raise funds or conclude the acquisition of identified businesses.

 

NOTE 4. RELATED PARTY TRANSACTIONS

 

Astutia Venture Capital AG

 

As of January, 2021, the Company had received a total of $173,616 in advances from its previous CEO, Jeffrey Taylor.  On January 25, 2021, all advances made by the previous CEO were assigned to AVCG for $10. as part of a transaction where under AVCG also acquired a portion of 32,000,000 shares sold in a series of private transactions by Mr. Taylor for cash proceeds of $ 300,000. Further, during the fiscal year ended June 30, 2021, the Company received a further $29,999 in unsecured advances from AVCG for operational expenses. 

 

During the six months ended December 31, 2021, a minority shareholder of the Company reimbursed AVCG for advances paid in the amount of $29,999, leaving $173,616 due and payable to AVCG at December 31, 2021, which is reflected on the balance sheets of the Company as Advances Payable – related parties. The amount owing is unsecured, non-interest bearing, and due on demand.

 

Lee Larson Elmore

 

Effective January 31, 2021, Mr. Jeffrey Taylor resigned as the President, Chief Executive Officer, Chief Financial Officer, Treasurer and director of the Company and Mr. Lee Larson Elmore was appointed President and sole director 

 

On May 1, 2021, Mr. Elmore entered into an agreement with the Company  for a six  month term ending October 31, 2021, for a monthly fee of $1,000 plus stock compensation of 15,000 shares at $4.00 per share, or the equivalent cash consideration of $60,000, at Mr. Elmore’s election.  As at June 30, 2021, Mr. Elmore had received $2,000 and had accrued expenses of $60,000. 

 

On July 1, 2021, Mr. Elmore invoiced the Company an additional $4,000 for services provided prior to the formal agreement.

  

 
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The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 4. RELATED PARTY TRANSACTIONS (continued)

 

On November 1, 2021, Mr. Elmore entered into a revised compensation agreement with the Company through his controlled company, Administrative Services LLC, whereby services of Mr. Elmore would be invoiced at a rate of  $5,000 per month commencing November 1, 2021. 

  

During the six months ended December 31, 2021, Administrative Services LLC  was paid a total of $12,000 in fees, leaving a balance owing at December 31, 2021 of $65,000 (December 31, 2020 – nil).

 

WAOW Advisory Group Gmbh

 

During the fiscal year ended June 30, 2021, WAOW Entrepreneurship Gmbh ("WAOWE") acquired certain shares of the Company in a series of private transactions with AVCG and Mr. Jeffrey Taylor, our former officer and director.

 

During six months ended December 31, 2021, an affiliated company, WAOW Advisory Group Gmbh (“WAOW”) assumed amounts owing to AVCG in the amount of $29,999 and advanced a further $423,804 to the Company. As of December 31, 2021, WAOW was owed a total of $453,803 which amount is reflected on the financial statements as Advances Payable – related parties.

 

NOTE 5 . COMMITMENTS AND CONTINGENCIES

 

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. Management is currently not aware of any such legal proceedings or claims that could have, individually or in the aggregate, a material adverse effect on our business, financial condition, or operating results.

 

NOTE 6. STOCKHOLDER DEFICIT

 

One April 29, 2021, the Company’s board of directors approved a forward stock split of authorized and issued and, outstanding shares of common stock on four (4) new shares for one (1) share held. Upon effectiveness of the forward split, the authorized shares increased to 300,000,000 shares of common stock and the issued and outstanding shares of common stock increased to 44,000,000 shares of common stock, all with a par value of $0.001.

 

The forward stock split was approved by the Financial Industry Regulatory Authority (FINRA) with an effective date of June 2, 2021 as such all capital transaction have been retroactively restated to show the effect of the stock split.

 

On October 7, 2021, the Company amended its authorized capital to 290,000,000 common shares and 10,000,000 preferred shares of which 5,000,000 are designated as Seed Preferred Shares with a par value of $0.001 per share.

 

Common Stock

 

The Company did not issue any shares of common stock during the six months ended December 31, 2021.

 

As at December 31, 2021 and June 30, 2021, the Company has a total of 44,000,000 shares of common stock issued and outstanding.

 

Seed Preferred Stock

 

The Company issued a total of 325,000 shares of its Seed Preferred Stock during the six months ended December 31, 2021 for total proceeds of $650,000.

 

As at December 31, 2021, the Company had a total of 325,000 shares of Seed Preferred Stock issued and outstanding (June 30, 2021-Nil).

 

 
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The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 7.  OTHER COMMITMENTS

 

 

(a)

On November 27, 2021, the Company entered into a two-year employment agreement with Simon Belsham whereby Mr. Belsham was engaged by the Company to provide certain management services and to accept the appointment of Chief Executive Officer, President and Director immediately upon the Board making such appointment. The agreement provides for annual compensation of $400,000 in year one and $500,000 per annum in year two, a $75,000 signing bonus (which amount was paid during the six months ended December 31, 2021) and for the first calendar year completed during Mr. Belsham’s employment an annual bonus, with a maximum pay-out opportunity of one hundred thousand dollars ($100,000). During the second calendar year completed the annual bonus has a maximum pay-out opportunity of two hundred thousand dollars ($200,000). Further, under the terms of the employment agreement, within forty-five days of execution, Mr. Belsham is to be issued a total 1,250,000 shares of restricted common stock, subject to a restricted stock award agreement. As at the date of this report the shares underlying the stock award have yet to be issued.

 

 

 

 

(b)

Effective December 28, 2021, the Company entered into a two year Board Advisory Agreement with Deepak Chopra LLC for services to the Advisory Board of the Company. As consideration, Deepak Chopra LLC will receive $12,500 for each fiscal quarter and shall be granted a total of 200,000 non-statutory stock options with an exercise price set to the most recent Fair Market Value (FMV) at the time of the effective date of this agreement. Such options shall have a term of 10 years, with 25% of such Options to be fully vested as of (6) months from the Effective Date of this Agreement and the remainder vesting in three (3) equal installments every six (6) months thereafter until all Options have vested on the second anniversary of the Effective Date. At December 31, 2021 the Company has not yet adopted a stock option plan under which to grant the aforementioned stock options. Further under the agreement, the Company is to make an annual donation to The Chopra Foundation for Fifty Thousand Dollars ($50,000.00), with the first annual donation to be paid within thirty (30) days of the date of execution of the agreement.

 

 

 

 

(c)

On July 16, 2021, the Company entered into an agreement with Poonacha Machaiah, in relation to his proposed appointment to the Board of Directors of the Company. Under the terms of the agreement, retroactive to January 1, 2021, Mr. Machaiah is to receive an annual fee of $37,500 paid in equal monthly installments over 12 months and shall be granted the right to purchase $37,500 worth of the Company’s common stock based on an exercise price per share equal to the fair market value of the Common Stock of the Company at the time of such grant, pursuant to terms to be set forth in the Company’s Equity Incentive Plan. The Company is currently in the process of completing the establishment of an equity incentive plan.

 

 

 

 

(d)

On November 15, 2021, with an effective date of November 27, 2021, the Company entered into an employment agreement with Kelly Zuar. Under the terms of the agreement, Ms. Zuar with fill the position of executive business partner, reporting to the Company’s CEO. The agreement provides for an annual salary of $105,000 and a stock option for the purchase 100,000 shares of common stock in accordance with the terms of the Company’s stock incentive plan, once in place. At December 31, 2021 the Company has not yet adopted a stock option plan under which to grant the aforementioned stock options.

   

NOTE 8 - SUBSEQUENT EVENTS

 

On January 1, 2022, the Company entered into an independent contractor agreement with KET Consulting LLC (“KET”) to provide various marketing services, brand and go-to-market strategy and other operational services at the direction of the Board and the CEO.   The contract has an initial term of 18 months and is renewable by mutual consent for a further term.  Compensation is $240,000 per annum commencing January 1, 2022, payable monthly in arrears.  Further, under the agreement KET will be granted an option to purchase a total of 700,000 shares of the common stock of the Company to be granted under the Company’s Equity Incentive Plan, exercisable at $0.28 per share and vesting over a period of 48 months, with 25% to vest on January 1, 2023 and the remaining options shall vest monthly.

 

 
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The Healing Company Inc.

Notes to the Unaudited Condensed Financial Statements

December 31, 2021

 

NOTE 8 - SUBSEQUENT EVENTS (continued)

 

On January 2, 2022, the Company entered into a 24 month services agreement with Flight Story Limited (“FSL”), whereby FSL will provide various services.   Under the terms of the agreement, FST will be paid fees based on projects totaling $180,000 per annum and will receive 675,000 stock options, exercisable at $0.28 per share upon execution of the contract with a further 1,500,000 stock options at $2.00 per share which shall vest, 25% upon completion of an up-round capital raise in 2022, 25% on share prices sustaining an average market capitalization above $200 million for 30 days, 25% on the Company being listed on NASDAQ and the final 25% upon share prices sustaining an average market capitalization above $400 million for 30 days   The options will expire 5 years from an IPO being completed by the Company.

 

Effective January 10, 2022, Mr. Larson Elmore resigned as the President, Chief Executive Officer and director of the company.  Mr. Elmore remains as the Company’s Chief Financial Officer, Treasurer and Secretary.  Concurrently, Mr. Simon Belsham was appointed to fill the ensuing vacancies and each of  Steven Bartlett, Poonacha Machaiah and Anabel Oelmann were appointed to the Company’s board of directors.

 

On January 17, 2022, the Company entered into a letter agreement with R Agency to provide public relations services.  Consideration for the services to be provided are $15,750 per month commencing at the date of execution of the letter agreement.  The agreement will expire on July 16, 2022, unless terminated earlier upon 60 days written notice.

 

On February 2, 2022, the Company entered into a non-binding letter of intent to provide a Credit Facility Term Sheet with i80 Group (“Group”)  whereby Group will provide credit facilities initially in an amount up to $75,000,000 with an option at Group’s discretion to provide a further $75,000,000 to a newly formed wholly-owned subsidiary to be incorporated by the Company.  A definitive agreement has not yet been concluded.

 

On February 7, 2022, the Company entered into a letter agreement with R Agency to provide public relations services.  Consideration for the services to be provided are $15,750 per month commencing at the date of execution of the letter agreement.  The agreement will expire on July 16, 2022, unless terminated earlier upon 60 days written notice.

 

On February 16, 2022, the Company entered into a Board of Directors Services Agreement with Steven Bartlett with a January 1, 2022 start date, whereby Mr. Bartlett will receive an annual fee of $37,500 payable in 12 monthly installments in arrears and will be granted an option to purchase 125,000 shares of the Company’s common stock at the fair market value at the time of such grant. 

 

The Company’s management has reviewed all material subsequent events through the date these financial statements were issued in accordance with ASC 855-10.

 

 
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This Quarterly Report on Form 10-Q contains predictions, estimates and other forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “intends”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors  including the risks set forth in the section entitled “Risk Factors” in our Post-Effective Amendment No. 1 to our Registration Statement on Form S-1, as filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2018, that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements

 

Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Report. You should read this Report with the understanding that our actual future results may be materially different from what we expect.

 

All forward-looking statements speak only as of the date on which they are made. We undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they are made, except as required by federal securities and any other applicable law.

 

The management’s discussion and analysis of our financial condition and results of operations are based upon our condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

 

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed financial statements for the three and months ended December 31, 2021 and the notes thereto appearing elsewhere in this Report and the Company’s audited financial statements for the fiscal year ended June 30, 2021, as filed with the SEC on Form 10-K on October 14, 2021.

 

General Overview

 

We were incorporated as Lake Forest Minerals Inc. in the State of Nevada on June 23, 2008. 

 

During April 2021, our board of directors and major shareholder approved a name change of our company from Lake Forest Minerals Inc. to The Healing Company Inc.  Concurrently, the board of directors and majority shareholder approved a resolution to effect a forward stock split of our authorized and issued and outstanding shares of common stock on a four (4) new shares for one (1) share held. Certificate of Amendment to effect the forward split and the change of name was filed with the Nevada Secretary of State on April 29, 2021. The name change and forward split were reviewed and approved by the Financial Industry Regulatory Authority (FINRA) with an effective date of June 2, 2021 at which time our authorized capital increased to 300,000,000 shares of common stock and our issued and outstanding shares of common stock increased from 11,000,000 to 44,000,000 shares of common stock, all with a par value of $0.001.

 

On October 7, 2021, our board of directors and major shareholder approved the adoption of our Amended and Restated Articles of Incorporation, which replaced our prior articles of incorporation in their entirety. Among other things, the Amended and Restated Articles of Incorporation authorize us to issue is 300,000,000 shares of stock, consisting of (a) 290,000,000 shares of common stock, $0.001 par value per share and (b) 10,000,000 shares of preferred stock, $0.001 par value per share, of which we designated 5,000,000 Seed Preferred Shares as a first series of such preferred stock.

 

 
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A Certificate of Amendment was filed with the Nevada Secretary of State on October 7, 2021.

 

On October 7, 2021, our board of directors and major shareholder approved the adoption of our amended and restated bylaws, which have been updated in line with the changes to the Amended and Restated Articles of Incorporation and replace our prior bylaws in their entirety.

 

During October, 2021, we entered into share purchase agreements and share restriction agreements with investors and issued a first tranche of our Seed Preferred Shares, $0.001 par value per share (the “Seed Preferred Shares”), in a private placement, whereby the Company will sell a total of 5,000,000 shares of Seed Preferred Shares at $2.00 per share to raise $10,000,000 (the “Seed Preferred Offering”). As of December 31, 2021, the Company had issued a total of 325,000 Seed Preferred Shares under the Seed Preferred Offering.  As of the date of this filing, the Seed Preferred Offering is fully subscribed, and the Company expects to close the Offering during the quarter ending March 31, 2022.

 

During the period covered by this report, the Company, in cooperation with its major shareholder, the Company determined to redefine its acquisition objectives to establish a platform of companies that source, harvest, and utilize the most natural compounds for holistic nutrition from around the world. Management determined to pursue these opportunities in the wellness sector based on their evaluation of a heightened and growing awareness and interest in wellness which management further believes has been stimulated by a values reset during the pandemic.

 

In doing so, the Company intends to offer the best natural remedies to connect humans with nature and prevent and heal lifestyle diseases on a broad scale. In that regard, management has identified various targets which are currently undergoing due diligence review. To that end, during the most recently completed fiscal period ended December 31, 2021, the Company has identified candidates for senior management and board positions that complement the Company’s entry into this section.

 

Plan of Operations

 

We are an emerging health and wellness company that has identified the need for a change to healthcare, where conventional medicine and alternative healing can both be drawn on to provide a world of integrated healing encompassing conventional medicine and alternative medicine. 

 

Our intent is to build a community of integrated healing brands by identifying and acquiring early stage, high potential brands within selected wellness categories.  Our plan is to build individual market impact through enhanced branding, a credible narrative, social conversation and improved accessibility by positioning all portfolio brands with a larger “healing community” of brands thus building exponential market impact.

 

In order to attain these goals during the period covered by this report, management entered into various contracts with employees and consultants all of whom have experience in marketing, wellness and health fields.  Further information on the new management retained can be found in this report under Other Information.

 

Results of Operations

 

Three Months Ended December 31, 2021, compared to the three months ended December 31, 2020

 

We had a net loss of $483,883 for the three month period ended December 31, 2021, as compared to a net loss for the period ended December 31, 2020, of $3,033. The substantial increase to our current period loss a direct result of an increase in operational expenses of $480,850, consisting of increases to general and administrative expenses of $27,057, professional and consulting fees of $299,413 and management fees of $154,380.  These increased costs were a result of the Company’s decision to change its business direction and move to retain additional management and operational staff as well as legal and accounting staff to support its planned growth in the health and wellness sector.

 

The following table summarizes key items of comparison and their related increase for the three month periods ended December 31, 2021, and 2020.

 

 
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Three Months ended December 31, 2021, and 2020

 

 

 

Three Months Ended

 

 

Change between the three month periods ended

December 31,

 

 

December 31, 2021

 

 

December 31, 2020

2021, and 2020

General and Administrative

 

$27,740

 

 

$683

 

 

$27,057

 

Professional and Consulting Fees

 

 

301,763

 

 

 

2,350

 

 

 

299,413

 

Management Fees

 

 

154,380

 

 

 

-

 

 

 

154,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(483,883)

 

$(3,033)

 

$480,850

 

 

We have not earned any revenues since inception.  Management expects revenues to commence prior to June 30, 2022, through the acquisition of operating businesses and is currently completing due diligence reviews of various target acquisitions.

 

Six months ended December 31, 2021 and 2020

 

We had a net loss of $1,079,658 for the six month period ended December 31, 2021, as compared to a loss for the period ended December 31, 2020, of $8,023. The substantial increase in our current period loss is due to an increase in operational expenses of $1,071,635, including an increase in general and administrative expenses of $30,681, professional and consulting fees of $886,574 and management fees of $154,380.  These increased costs were a result of the Company’s decision to change its business direction and move to retain additional management and operational staff as well as legal and accounting staff to support its planned growth in the health and wellness sector.

 

Six Months ended December 31, 2021, and 2020

 

 

 

Six Months Ended

 

 

Change between the six  month periods ended

December 31,

 

 

December 31, 2021

 

 

December 31, 2020

2021, and 2020

 

General and Administrative

 

$33,876

 

 

$3,195

 

 

$30,681

 

Professional and Consulting Fees

 

 

891,402

 

 

 

4,828

 

 

 

886,574

 

Management Fees

 

 

154,380

 

 

 

-

 

 

 

154,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(1,079,658)

 

$(8,023)

 

$1,071,635

 

 

Statements of Cash Flows

 

December 31 2021 and 2020

 

The following table summarizes our cash flows for the period presented:

 

 

December 31, 2021

 

 

December 31, 2020

 

Net cash provided by (used in) operating activities

 

$41,260

 

 

$(14,378)

Net cash provided by financing activities

 

 

1,073,805

 

 

 

14,980

 

Increase in cash

 

 

1,115,065

 

 

 

602

 

Cash end of period

 

$1,115,605

 

 

$1,949

 

 

Cash Used in Operating Activities

 

Net Cash provided by operating activities for the six months ended December 31, 2021 was $41,260 as compared to $14,378 of cash used by operating activities in the six months ended December 31, 2020.

 

 
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Changes in operating activities in the six months ended December 31, 2021, include an increase in accounts payable and accrued expenses of $55,918, an increase to related party payables of 65,000 and a subscription payable of $1,000,000 resulting from unissued shares relating to private placement subscription funds received by the Company during the period, offset by our net loss of $1,079,658 for total cash provided from operating activities of $41,260. Changes in operating activities in the six months ended December 31, 2020, included a decrease in accounts payable and accrued expenses of $6,355 combined with a net loss of $8,023 for total cash used in operating activities of $14,378.

 

Cash Provided by Financing Activities

 

During the six months ended December 31, 2021, financing activities provided net cash of $1,073,805, which was comprised of proceeds from private placement share subscriptions of $650,000 and proceeds from related party advances of $423,805.

 

During the six months ended December 31, 2020, financing activities provided cash of $14,980 from proceeds from sale of shares.

 

Liquidity and Capital Resources

 

Our balance sheet as of December 31, 2021, reflects current assets of $1,115,065, consisting solely of cash on hand.  We had a working capital deficit of $712,382 (June 30, 2021 - $282,725) and have reported accumulated losses to date of $1,406,383. We have unfunded subscriptions totaling $8,350,000 and expect to receive those funds in the quarter ended March 31, 2022.   We believe that upon receipt of the subscription proceeds we will have sufficient working capital to enable us to carry out our stated plan of operation for the next twelve months.

 

The Company has been a shell with no operations until the quarter ended September 30, 2021, when management determined to pursue business opportunities in the health and wellness sector and commenced operations by retaining qualified additional management to assist in identifying potential acquisitions. We are currently in the start-up phase and have not generated any revenues from operations to date.  There can be no assurance that we will be able to identify and acquire revenue generating operations to fulfil our planned business objectives.  In January 2021, the Company underwent a change in control with the sale of the majority shareholdings by our then current CEO and the resignation and appointment of the sole officer and director. With the change in control management and the majority shareholder determined to enter into the health and wellness sector and commenced the search for qualified officers, directors and management to guide the proposed growth of the Company. Operating capital was advanced by related party and third-party stockholders for operations which allowed the Company to effect certain changes to its authorized capital effecting a forward split of the then issued and outstanding shares of the Company and designating a series of Seed Preferred Stock. The Company undertook an offering of its Seed Preferred Stock to raise a total of $10,000,000 at a price of $2.00 per share.  As of December 31, 2021, the Company was fully subscribed under the Seed Preferred offering and had received subscription funds totaling $1,650,000, upon receipt of which we have issued 325,000 Seed Preferred shares and recorded a Subscription payable for the remaining $1,000,000 pending issuance of the underlying preferred stock.  The Company expects to collect the remaining $8,350,000 in subscriptions in the upcoming quarter ended March 31, 2022.

 

During the period covered by this report the Company entered into various consulting and employment agreements with management, consultants, advisory board members and intended individuals who would join the Company’s Board of Directors. Subsequent to the period covered by this report, the current CEO, President and Director, Lee Larson Elmore resigned those positions and continued to serve as Secretary and Treasurer of the Company and Mr. Simon Belsham was appointed as CEO, President and Director. Further the Company appointed three new members to the Board of Directors in January 2022.  All of the new appointees have experience that will assist the Company in achieving its proposed business objectives. The issuance of additional securities may result in significant dilution in the equity interests of our current stockholders. The Company is currently reviewing a number of potential business acquisitions and expects to enter into acquisition agreements prior to the fiscal year ending June 30, 2022.  There can be no assurance that the Company will be successful in concluding any proposed acquisitions.  There is no assurance that the funds still due under the accepted subscription agreements will be received or that we will be able to obtain further funds required for our proposed operations or that additional financing will be available for use when needed or, if available, that it can be obtained on commercially reasonable terms.

 

 
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COVID-19 Pandemic

 

While it appears the COVID-19 pandemic is subsiding, the impact of COVID-19 could continue to have an adverse impact on the Company going forward.  COVID-19 has caused significant disruptions to the global financial markets, which may severely impact the Company’s ability to raise additional capital and to pursue certain acquisitions. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report and is highly uncertain and subject to change. The Company is not able to estimate the potential effects of the COVID-19 outbreak on its operations or financial condition for the next 12 months. There are no assurances that the Company will be able to meet its obligations, raise funds or conclude the acquisition of identified businesses.

 

Going Concern

 

These unaudited condensed financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has cash on hand of $1,115,065 and current liabilities of $1,827,448, including the liability of $1,000,000 in relation to certain subscribed for, but unissued shares.  Further, the Company has entered into subscription agreements for an additional $8,350,000 which funds it intends to collect during the quarter ended March 31, 2022. The Company has commenced limited operations and is conducting due diligence procedures on various potential acquisition targets. Management believes the Company will have sufficient funds to continue operations within one year of the issuance date of this filing, however, there can be no assurance that the Company will receive the additional $8,350,000 in subscription funds or that the Company will be able to raise additional capital beyond the current cash on hand. Management’s plans include seeking additional sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful in accomplishing its objectives. The continuation of the Company as a going concern is also dependent upon the ability to attain profitable operations from the Company's future planned business operations. If the Company is unable to obtain adequate capital as needed, or conduct revenue generating operations, the Company may be required to reduce the scope, delay, or eliminate some or all of its planned operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern.

 

The financial statements reflect all adjustments consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the results for the periods shown. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

 

Off Balance Sheet Arrangements

 

We currently have no off-balance sheet arrangements. 

 

Critical Accounting Policies

 

The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of their evaluation form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions and circumstances. Our significant accounting policies are more fully discussed in the Notes to our Financial Statements. 

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06 to simplify the current guidance for convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The update also provides for expanded disclosure requirements to increase transparency. For SEC filers, excluding smaller reporting companies, this update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, this Update is effective for fiscal years beginning after December 15, 2023, including interim periods therein.

 

 
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company and are not required to provide this information.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, as of December 31, 2021, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and principal financial officer concluded that, based on the material weaknesses discussed below, our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed by us in reports filed or submitted under the Securities Exchange Act were recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Act Commission’s rules and forms and that our disclosure controls are not effectively designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

Our internal controls and procedures are not effective for the following reasons: (i) there has been an inadequate segregation of duties consistent with control objectives as management was comprised of only one person, who is the Company’s principal executive officer and principal financial officer and, (ii) the Company currently has no formal audit committee with a financial expert, and thus the Company lacks the board oversight role within the financial reporting process.

 

In order to mitigate the foregoing material weakness, we have engaged additional management and outside accounting consultants with significant experience in the preparation of financial statements in conformity with GAAP to assist us in the preparation of our financial statements to ensure that these financial statements are prepared in conformity with GAAP. Further, it is the intent of management to establish an audit committee compliant with the regulations to ensure adequate board oversight going forward.  We will continue to monitor the effectiveness of this action and make any changes that our management deems appropriate.

 

We are currently hiring additional staff to provide greater segregation of duties. Management will continue to assess this matter to determine whether improvement in segregation of duty is adequately established. In addition, we have expanded our board to include independent members and may add additional independent directors, if and when deemed necessary.

 

Going forward, we intend to evaluate our processes and procedures and, where practicable and resources permit, implement changes in order to have more effective controls over financial reporting.

 

Changes in Internal Control over Financial Reporting

 

During the period covered by this report, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
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PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

We know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

 

ITEM 1A. RISK FACTORS

 

The Company is a smaller reporting company and is not required to provide this information.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

There were no sales of equity securities during the period covered by this Report that were not registered under the Securities Act and were not previously reported in a Current Report on Form 8-K filed by the Company.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable

 

ITEM 5. OTHER INFORMATION

 

Effective January 10, 2022, Mr. Larson Elmore resigned as the President, Chief Executive Officer and director of the company.  Mr. Elmore remains as the company’s Chief Financial Officer, Treasurer and Secretary.  Having consented to act as an officer and director of the company, Simon Belsham was appointed to fill the ensuing vacancies. Mr. Elmore’s resignation was not the result of any disagreement with our company regarding our operations, policies, practices or otherwise.

 

Concurrently appointed as members of the Board of Directors were Steven Bartlett, Poonacha Machaiah and Anabel Oelmann.

 

Simon Belsham, President, Chief Executive Officer and Director.

 

Simon’s career has been focused on unlocking the opportunities of consumer technology and retail amidst evolving consumer behaviors.

 

Simon recently joined as CEO for The Healing Company, where he and the founding team have a vision to inspire and lead the way to a healthier world through the most effective alternative healing methods. This is following a 20+ year career as a general manager building and leading consumer tech businesses across the US, UK, Europe and Asia. He has been CEO and President of a variety of businesses from start-up (Ocado, Fetch.co.uk, Equinox Media, notonthehighstreet.com) to e-commerce divisions of the largest companies in the world (Jet.com / Walmart, Tesco.com).  Most recently Simon served as President of Equinox Media in New York, where he helped start and lead the development of a pioneering digital fitness and wellness platform, Equinox+ and the SoulCycle at-home bike.

 

Simon is passionate about mental and physical wellness, protecting nature, building community and sustainability. He has travelled and / or worked in more than 80 countries across all 7 continents and believes that business has an opportunity (and ultimately a responsibility) for enabling development of a fairer, more just and sustainable society.

 

Simon holds an MA from the University of Cambridge, UK and an MBA from the Harvard Business School.

 

 
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Table of Contents

 

Steven Bartlett, Director

 

Steven Bartlett is the 29-year-old Founder of the social media marketing agency Social Chain. From a bedroom in Manchester, this university drop-out built what would become one of the world’s most influential social media companies when he was just 21 years old, before taking his company public at 27 years old with a current market valuation of over $600M.

 

Steven Bartlett is as a speaker, investor, author, content creator and the host of one of Europe’s biggest podcasts, ‘The Diary of a CEO’. In 2021 Steven released his debut book ‘Happy Sexy Millionaire’ which was a Sunday Times best seller.

 

Steven is particularly focused on inspiring a new generation of entrepreneurs and creators from a BAME background.

 

Steven has invested in and joined the board of Huel, which is the UK’s fastest growing e-commerce company internationally. He’s also invested in and taken a role as an advisor in atai life sciences - a biotech company working to cure mental health disorders. Other investments focus on blockchain technologies, biotech, space, Web 3 and social media.

 

Recently, Steven has launched two new businesses, Flight Story & thirdweb.

 

Flight Story is a company focused on building resilient retail investor communities around great public companies. thirdweb is a platform that makes it easy to build web3 applications.

 

At just 29 years old, he is widely considered one of Europe’s most talented and accomplished young entrepreneurs and philosophical thinkers.

 

Steven will join BBC Dragon’s Den from Series 19 in January 2022, as the youngest ever Dragon in the TV Show’s history.

 

Poonacha Machaiah, Director

 

Poonacha Machaiah is a global leader among a new breed of social entrepreneurs, having chosen to apply his corporate expertise from 25 years as a business executive in multiple Fortune 100 companies and entrepreneurial initiatives to addressing societal and wellbeing challenges.

 

Poonacha is the CEO of The Chopra Foundation, a 501 (c) (3) organization dedicated to improving health and well-being, cultivating spiritual knowledge, expanding consciousness, and promoting world peace. He is the co-founder of the Never Alone Movement for Suicide Prevention and Mental Health along with both world-renowned mind-body medicine pioneer and New York Times best-selling author Deepak Chopra, M.D, actress and humanitarian Gabriella Wright.

 

Poonacha has launched the Warrior Monk™ brand targeted at creating a positive societal shift through the compassionate transformation of humankind (www.thewarriormonk.com). Poonacha is the founder of Wellbeing Tech, a leading technology innovation company that has deployed transformative wellbeing solutions such as the hyper-local neighborhood app i.e. GABL (www.gabl.global) and Remote Assistance Management platform for providing assisted reality with Glass Enterprise edition (www.wellbeingtech.com/ramp)

 

As a serial entrepreneur, he has co-founded startups such as Jiyo, Deepak Chopra InnerSpace, and Qyuki. He has also held senior management positions at Nortel, Iridium, Motorola and Sasken.

 

He holds an MBA from the College of William and Mary, and a Bachelor of Science in Computer Science and Engineering from the B.M.S. College of Engineering.

 

Anabel Oelmann, Director

 

Anabel is a certified nutritionist, through the Institute of Integrative Nutrition (IIN) in New York after graduating with an International Baccalaureate in Berlin. She has worked as a health coach and model the past 5 years, living in NY, LA, London and Sydney represented by IMG. During her career as a health coach she discovered the eclectic benefits of medical cannabis and witnessed its potential to alleviate symptoms and cure diseases firsthand. She then co-founded the company Greenstein in Germany, which is a fully licensed narcotic wholesaler, being responsible for public relations and business development. Based on her passion for making alternative medicine even more accessible she founded NOEO, a direct-to-consumer brand focusing on adaptogenic herbs. As a thought leader in the industry, Anabel saw a promising opportunity, starting ‘The Healing Company’, creating a platform to gather the most promising companies in the fast growing nutraceuticals space, and to accelerate a change in the health industry.

 

 
11

Table of Contents

 

ITEM 6. EXHIBITS

 

Exhibit Number

 

Exhibit

(3)

 

Articles of Incorporation and Bylaws

3.1

 

Articles of Incorporation (incorporated by reference to our Registration Statement on Form S- 1 filed on August 6, 2008).

3.2

 

By-laws (incorporated by reference to our Registration Statement on Form S-1 filed on August 6, 2008).

3.3

 

Certificate of Amendment (incorporated by reference to our Current Report on Form 8-K filed on June 2, 2021).

(10)

 

Material Contracts

10.1

 

Engagement Agreement between the Company and Lee Larson Elmore dated May 1, 2021, (incorporated by reference to our Quarterly Report on Form 10 Q/A filed on February 22, 2022).

10.2

 

Board of Directors Services Agreement between the Company and Poonacha Machaiah, dated July 16, 2021, (incorporated by reference to our Quarterly Report on Form 10 Q/A filed on February 22, 2022).

10.3

 

Engagement Agreement between the Company and Administrative Services LLC dated November 1, 2021, filed herewith.

10.4

 

Employment Agreement between the Company and Kelly Zuar dated November 15, 2021, filed herewith

10.5

 

Employment Agreement between the Company and Simon Belsham dated November 27, 2021, filed herewith

10.6

 

Board of Directors Advisor Agreement between the Company and Deepak Chopra LLC filed herewith

10.7

 

Independent Contractor Agreement between the Company and KET Consulting LLC dated January 1, 2022, filed herewith

10.8

 

Services Agreement between the Company and Flight Story Limited dated January 10, 2022, filed herewith

10.10

 

Services Agreement between the Company and R Agency dated February 7, 2022, filed herewith

10.11

 

Board of Directors Services Agreement between the Company and Steven Bartlett filed herewith

(31)

 

Rule 13a-14(a)/15d-14(a) Certifications

31.1

 

Certification of the Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

 

Certification of the Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(32)

 

Section 1350 Certifications

32.1

 

Certification of the Chief Executive Officer (Principal Executive Officer) pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

32.2

 

Certification of the Chief Financial Officer (Principal Financial Officer) pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

101.INS

 

XBRL INSTANCE DOCUMENT

101.SCH

 

XBRL TAXONOMY EXTENSION SCHEMA

101.CAL

 

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE

101.DEF

 

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE

101.LAB

 

XBRL TAXONOMY EXTENSION LABEL LINKBASE

101.PRE

 

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

 

 
12

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

THE HEALING COMPANY INC.

 

 

 

 

 

Date: February 22, 2022

By:

/s/ Simon Belsham

 

 

 

Simon Belsham

 

 

 

Chief Executive Officer (Principal Executive Officer)

 

 

 

 

 

Date: February 22, 2022

By:

/s/ Lee Larson Elmore

 

 

 

Lee Larson Elmore

 

 

 

Principal Financial and Accounting Officer

 

 

 
13

 

EXHIBIT 10.3

 

ENGAGEMENT AGREEMENT

 

This ENGAGEMENT AGREEMENT (the “Agreement”), made effective as of November 1, 2021 (the “Effective Date”), between The Healing Company, Inc. with an address of 711 South Carson Street, Suite #4 Carson City ,Nevada, 89701 (the “Company”) and Administrative Services LLC (“Administrative”) with an address of 15954 Jackson Creek Parkway, Monument, CO 80132 and Lee Larson Elmore (“Elmore”) with an address of 15954 Jackson Creek Parkway, Monument, Co 80132 collectively (the “Parties”)

 

WHEREAS, Elmore and Company entered into an engagement agreement dated May 1, 2021, whereby Elmore would provide certain services to the Company (the “May Contract”);

 

AND WHEREAS, as the May Contract was completed on October 31, 2021 and the scope of the business has changed, the Parties wish to enter into this Agreement whereby Administrative shall provide the services of Elmore from the Effective Date;

 

AND WHEREAS, Company and Administrative wish to set forth in this Agreement the terms and provisions of the services to be provided by Elmore on behalf of Administrative as well as his overall duties, functions and obligations;

 

AND WHEREAS, Company and Administrative intend that this Agreement will supersede and replace any and all other agreements, letters of intent, verbal/electronic communication, or any other arrangement for services entered into (or previously contemplated) by and between Company and Administrative or Elmore, and that any such agreements, letters of intent or other arrangements shall have no further force or effect;

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises contained in this Agreement, Company and Administrative (who are sometimes individually referred to as a “party” and collectively referred to as the “parties”) agree as follows on this Agreement. .

 

AGREEMENT

 

1. SPECIFIED PERIOD AND OFFICE LOCATION/HEADQUARTERS.

 

The Company hereby engages Administrative pursuant to the terms of this Agreement and Administrative hereby accepts this engagement with Company pursuant to the terms of this Agreement. The term of the Agreement shall be for a period of six (6) months from the Effective Date (the “Term”); The Parties may also extend this Agreement further based upon mutual written consent...

 

 
1

 

 

2. GENERAL DUTIES.

 

Elmore shall report directly as an officer of Company. shall devote such time to Company’s business during the term of this Agreement as the Company may require. Elmore agrees to cooperate with and work to the best of his ability with Company’s strategic partners and affiliates (domestic and foreign), and shall serve as CEO, President, Secretary, Treasurer and a member of the Board of Directors, until replaced, or in such other officer capacity as may be determined during the Term of this Agreement to ensure that the Company’s mission statement is effectively carried-out, executed and accomplished. Elmore

 

3. COMPENSATION.

 

Commencing from the Effective Date and during the Term of this Agreement, Company shall pay Administrative the sum of $5000 per month, plus expenses as detailed herein. Payment of this fee by Company to Administrative shall be made on the first of each month via wire transfer or ACH pursuant to electronic instructions between the Parties on the first of each month or in any event no longer than 15 days per monthly invoice presented to Company.

 

4. REIMBURSEMENT/ADVANCES OF BUSINESS EXPENSES.

 

Company shall provide a cash advance (or similarly reimburse) Administrative to cover all reasonable business expenses as necessary or as incurred by Administrative in connection with the business of Company on as needed bases . Company will also provide if needed (at its expense) all air fare and hotel/apartment accommodations for Elmore including, without limitations, lodging, meals, and other necessary living items when he is on business trips. All air travel arrangements of Elmore for overseas destinations will be on business class and all accommodations will be fully paid by Company.

 

5. INDEMNIFICATION OF LOSSES.

 

Company shall indemnify and hold Elmore harmless to the full extent of the law from any and all claims, losses and expenses sustained by Elmore as a result of any action taken by him to discharge his duties under this Agreement, and Company shall defend Elmore, at Company’s expense, in connection with any and all claims by stockholders or third parties which are based upon actions taken by Elmore to discharge his duties under this Agreement.

 

6. TERMINATION FOR CAUSE.

 

Company reserves the right to declare Administrative and Elmore in default of this Agreement if Elmore fails to adequately perform, willfully breaches or habitually neglects the duties which he is required to perform under the terms of this Agreement, or if Elmore commits such acts of dishonesty, fraud, misrepresentation, gross negligence or willful misconduct as would prevent the effective performance of his duties or which results in material harm to the Company or its business. Company may terminate this Agreement for cause by giving written notice of termination to Elmore. Upon such termination the obligations of Administrative, Elmore and Company under this Agreement shall immediately cease. Such termination shall be without prejudice to any other remedy to which Company may be entitled either at law, in equity, or under this Agreement. If Elmore’s engagement is terminated pursuant to this paragraph, the Company shall pay to Administrative, immediately upon such termination, any accrued but unpaid amounts earned pursuant to Sections 3 and 5.

 

 
2

 

 

7. TERMINATION WITHOUT CAUSE.

 

(a) Death. This Agreement shall terminate upon the death of Elmore. Upon such termination, the obligations of Administrative, Elmore and the Company under this Agreement shall immediately cease. In the event of a termination pursuant to this Section, Administrative shall be entitled o receive any amounts accrued but unpaid pursuant to Sections 4 and 5. Successors, heirs and/or executor(s) of Elmore shall be entitled to exercise the provisions incorporated in Sections 4 (c) and (d) following the death of Elmore. All other rights Elmore has under any benefit, ownership interest, profit-sharing arrangements, and/or stock option plans and programs shall be determined in accordance with the terms and conditions of such plans and programs as defined by applicable corporate policies.

 

(b) Disability. Company reserves the right to terminate the Agreement upon 60 days written notice if, for a period of 60 days, Elmore is prevented from discharging his duties under this Agreement due to any physical or mental disability. Upon such termination the obligations of Elmore, Administrative and Company under this Agreement shall immediately cease. In the event of a termination pursuant to this section, Administrative shall be entitled to receive any accrued and unpaid amounts earned pursuant to Sections 4(a), (b), (c)

 

(c) Election By Administrative and Elmore. Administrative and Elmore may elect to terminate this Agreement at any time upon not less than 60 days written notice by Administrative to the Board. In the event of a termination pursuant to this Section, Administrative shall be entitled to receive any accrued and unpaid amounts earned pursuant to sections 4(a) and (b). All other rights under any benefit, ownership interest or stock option plans and programs shall be determined in accordance with the terms and conditions of such plans and programs as defined by applicable corporate policies.

 

(d) Election By Company and Termination Fee. Company may terminate this Agreement upon not less than 60 days written notice by Company to Administrative. In the event of a termination during the term of this Agreement, Administrative shall be entitled to receive any accrued and unpaid amounts pursuant to Sections 3 and 5

 

(e) Termination by Administrative for Good Reason. Administrative may terminate this Agreement immediately based on the reasonable determination that one of the following events has occurred:

 

(i) Company intentionally and continually breaches or wrongfully fails to fulfill or perform (a) its obligations, promises or covenants under this Agreement; or (b) any warranties, obligations, promises or covenants in any agreement (other than this Agreement) entered into between the Company and Administrative, without cure, if any, as provided in such agreement;

 

(ii) Company terminates this Agreement and Elmore’s engagement hereunder, and such termination does not constitute termination for cause;

 

 
3

 

 

(iii) Without the consent of Administrative, the Company: (a) substantially alters or materially diminishes the position, nature, status, prestige or responsibilities of Elmore from those in effect by mutual agreement of the parties from time-to-time; (b) assigns additional duties or responsibilities to Elmore which are wholly and clearly inconsistent with the position, nature, status, prestige or responsibilities of Elmore then in effect; or (c) removes or fails to reappoint or re-elect Elmore to Elmore’s offices under this Agreement (as they may be changed or augmented from time-to-time with the consent of Elmore), or as a director of the Company, except in connection with Elmore’s disability or consent;

 

(iv) Without the ratification of Administrative, Elmore is removed from Company without his consent; or Company fails to nominate or reappoint Elmore to (unless Elmore is deceased or disabled, or such removal or failure is attributable to an event which would constitute termination for cause)

 

(v) Company intentionally requires Elmore to commit or participate in any felony or other serious crime; and/or

 

(vi) The Company engages in other conduct constituting legal cause for termination.

 

If Administrative terminates this Agreement for good reason, the obligations of Administrative and the Company under this Agreement shall immediately cease. In the event of a termination pursuant to this section, Administrative shall be entitled to receive any accrued and unpaid amounts earned pursuant to Sections 3, 4, 5, and 9. All other rights Elmore has under any benefit or stock option plans and programs shall be determined in accordance with the terms and conditions of such plans and programs.

 

9. NO CONFLICTING DUTIES.

 

Elmore shall devote his/her productive time, ability, and attention to the business of Company during the term of this Agreement in a manner that will serve the best interests of Company. During the term of this Agreement, Elmore will not be restricted from performing services, or entering into any contract to do so, for any other corporation. This Agreement shall not be interpreted to prohibit Elmore from making passive personal investments in other firms, projects, etc.

 

10. MISCELLANEOUS.

 

(a) Preparation of Agreement. It is acknowledged by each party that such party either had separate and independent advice of counsel or the opportunity to avail itself or himself of same. In light of these facts, it is acknowledged that no party shall be construed to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged draftsman of this Agreement.

 

(b) Cooperation. Each party agrees, without further consideration, to cooperate and diligently and faithfully perform any acts, deeds and things and to execute and deliver any documents that may from time to time be reasonably necessary or otherwise reasonably required to consummate, evidence, confirm and/or carry out the intent and provisions of this Agreement, all without undue delay or expense.

 

 
4

 

 

(c) Interpretation.

 

(i) Entire Agreement/No Collateral Representations. Each party expressly acknowledges and agrees that this Agreement: (1) is the final, complete and exclusive statement of the agreement of the parties with respect to the subject matter hereof; (2) supersedes any prior or contemporaneous agreements, letters of intent, promises, assurances, guarantees, representations, understandings, conduct, proposals, conditions, commitments, acts, course of dealing, warranties, interpretations or terms of any kind, oral or written (collectively and severally, the “Prior Agreements”), and that any such Prior Agreements are of no force or effect except as expressly set forth herein; and (3) may not be varied, supplemented or contradicted by evidence of Prior Agreements, or by evidence of subsequent oral agreements. Any agreement hereafter made shall be ineffective to modify, supplement or discharge the terms of this Agreement, in whole or in part, unless such agreement is in writing and signed by the party against whom enforcement of the modification or supplement is sought.

 

(ii) Waiver. No breach of any agreement or provision herein contained, or of any obligation under this Agreement, may be waived, nor shall any extension of time for performance of any obligations or acts be deemed an extension of time for performance of any other obligations or acts contained herein, except by written instrument signed by the party to be charged or as otherwise expressly authorized herein. No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or a waiver or relinquishment of any other agreement or provision or right or power here in contained.

 

(iii) Remedies Cumulative. The remedies of each party under this Agreement are cumulative and shall not exclude any other remedies to which such party may be lawfully entitled.

 

(iv) Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be determined to be invalid, illegal or unenforceable under present or future laws effective during the term of this Agreement, then and, in that event: (A) the performance of the offending term or provision (but only to the extent its application is invalid, illegal or unenforceable) shall be excused as if it had never been incorporated into this Agreement, and, in lieu of such excused provision, there shall be added a provision as similar in terms and amount to such excused provision as may be possible and be legal, valid and enforceable, and (B) the remaining part of this Agreement (including the application of the offending term or provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable) shall not be affected thereby and shall continue in full force and effect to the fullest extent provided by law.

 

(v) No Third Party Beneficiary. Notwithstanding anything else herein to the contrary, the parties specifically disavow any desire or intention to create any third party beneficiary obligations, and specifically declare that no person or entity, other than as set forth in this Agreement, shall have any rights hereunder or any right of enforcement thereof.

 

(vi) Headings; References; Incorporation; Gender. The headings used in this Agreement are for convenience and reference purposes only, and shall not be used in construing or interpreting the scope or intent of this Agreement or any provision hereof. References to this Agreement shall include all amendments or renewals thereof. Any exhibit referenced in this Agreement shall be construed to be incorporated in this Agreement. As used in this Agreement, each gender shall be deemed to include the other gender, including neutral genders or genders appropriate for entities, if applicable, and the singular shall be deemed to include the plural, and vice versa, as the context requires.

 

 
5

 

 

(d) Enforcement.

 

(i) Applicable Law. This Agreement and the rights and remedies of each party arising out of or relating to this Agreement (including, without limitation, equitable remedies) shall be solely governed by, interpreted under, and construed and enforced in accordance with the laws (without regard to the conflicts of law principles thereof) of the State of Nevada,

 

(ii) Consent to Jurisdiction; Service of Process. Any action or proceeding arising out of or relating to this Agreement shall be filed in and heard and litigated solely before the state courts of Las Vegas and located within the Clark County.

 

(iii) Consent to Specific Performance and Injunctive Relief and Waiver of Bond or Security. Each party acknowledges that Company may, as a result of Elmore’s breach of the covenants and obligations included herein, will sustain immediate and long-term substantial and irreparable injury and damage that cannot be reasonably or adequately compensated by damages at law. Each party agrees that in the event of Elmore’s breach or threatened breach of the covenants and obligations, Company shall be entitled to obtain equitable relief from a court of competent jurisdiction or arbitration without proof of any actual damages that have been or may be caused to Company by such breach or threatened breach and without the posting of bond or other security in connection therewith.

 

(e) No Assignment of Rights or Delegation of Duties by Elmore. Elmore’s and Administrative’s rights and benefits under this Agreement are personal to them and therefore (i) no such right or benefit shall be subject to voluntary or involuntary alienation, assignment or transfer; and (ii) Elmore may not delegate his duties or obligations hereunder.

 

(f) Notices. Unless otherwise specifically provided in this Agreement, all notices, demands, requests, consents, approvals or other communications (collectively and severally called “Notices”) required or permitted to be given hereunder, or which are given with respect to this Agreement, shall be in writing, and shall be given by: (A) personal delivery (which form of Notice shall be deemed to have been given upon delivery), (B) by telegraph or by private airborne/overnight delivery service (which forms of Notice shall be deemed to have been given upon confirmed delivery by the delivery agency), (C) by electronic or facsimile or telephonic transmission, provided the receiving party has a compatible device or confirms receipt thereof (which forms of Notice shall be deemed delivered upon confirmed transmission or confirmation of receipt), or (D) by mailing in the United States mail (or international mail) by registered or certified mail, return receipt requested, postage prepaid (which forms of Notice shall be deemed to have been given upon the 5th business day following the date mailed). Each party, and their respective counsel, hereby agrees that if Notice is to be given hereunder by such party’s counsel, such counsel may communicate directly with all principals, as required in order to comply with the foregoing notice provisions. Notices shall be addressed to the address hereinabove set forth in the introductory paragraph of this Agreement, or to such other address as the receiving party shall have specified most recently by like Notice, with a copy to the other parties hereto. Any Notice given to the estate of a party shall be sufficient if addressed to the party as provided in this subparagraph.

 

 
6

 

 

(g) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument, binding on all parties hereto. Any signature page of this Agreement may be detached from any counterpart of this Agreement and reattached to any other counterpart of this Agreement identical in form hereto by having attached to it one or more additional signature pages.

 

(h) Execution by All Parties Required to be Binding; Electronically Transmitted Documents. This Agreement shall not be construed to be an offer and shall have no force and effect until this Agreement is fully executed by all parties hereto. If a copy or counterpart of this Agreement is originally executed and such copy or counterpart is thereafter transmitted electronically by facsimile or similar device, such facsimile document shall for all purposes be treated as if manually signed by the party whose facsimile signature appears.

 

(SIGNTURE PAGE TO FOLLOW)

 

 
7

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date so noted above and that the parties also acknowledge that by signing this contractual document they have read each Article, Section and Paragraph of the Agreement and hereby fully agree with the same.

 

Company:

 

The Healing Company Inc.

   

By:

 

 

 

Lee Larson Elmore

 

Its: CEO

 
   

Administrative Services LLC

 

 

 

By:

 

 

 

 

 

Lee Larson Elmore

 

Its: Managing Member

 

 

 

 

 

Lee Larson Elmore

 

 

 
8

 

EXHIBIT 10.4

 

 

Kelly Zuar

57 Gordonhurst Ave

Montclair, NJ 07043

 

November 15th 2021

 

Dear Ms. Zuar,

 

We are very pleased to offer you the position of Executive Business Partner (“EBP”), reporting to the CEO, with The Healing Company, Inc., a Nevada corporation (the “Company”). This offer of at-will employment is conditioned on your satisfactory completion of certain requirements, as explained in this letter. Your employment is subject to the terms and conditions set forth in this letter, which override anything communicated to you, orally or in writing, during your interview or as part of any other communication, about your employment with The Healing Company, Inc. Your employment will be subject to your satisfactory completion of a 90-day probationary period. However, completion of the probationary period will not alter your at-will employment status in any way (see below for more information regarding at-will employment).

 

As an EBP, you will be full-time, effective November 27th 2021 your start date (“Employment Start Date”). As an EBP, you will be classified as exempt under the federal Fair Labor Standards Act and New York state law, which means you are not entitled to overtime pay for working more than 40 hours in a workweek or more than 8 hours in a workday.

 

In your capacity as EBP, you will perform duties and responsibilities that are reasonable and consistent with such position as may be assigned to you from time to time by the CEO, and you will be regularly and directly assisting the CEO in an administrative capacity on matters of significance. You will report directly to the CEO, currently Simon Belsham, or another individual designated by The Healing Company, Inc.’s CEO. You agree to devote your full business time, attention, and best efforts to the performance of your duties and to the furtherance of The Healing Company, Inc.’s interests.

 

In consideration of your services as an EBP, you will be paid an annual salary of $105,000.00, pro-rated from your start date, plus all applicable overtime compensation as required by law, payable bi-weekly in accordance with the standard payroll practices of The Healing Company, Inc. and subject to all withholdings and deductions as required or permitted by law. The Healing Company, Inc. reserves the right, in its sole discretion, to prospectively modify your compensation from time to time, to the extent permitted by applicable law.

 

As further compensation for the services to be performed hereunder, you shall be awarded certain rights to purchase or receive shares of the Company’s Common Stock as follows:

 

 

(i)

Stock Option. The Company will grant you an option (“Option”) to purchase one hundred thousand (100,000) shares of Common Stock in accordance with the terms of the Company’s stock incentive plan and its standard employee stock option agreement, which shall vest in accordance with the terms and conditions outlined in the plan and agreement, and otherwise as described in this Agreement. The Option shall be exercisable at the fair market value of the Common Stock as determined by the Company’s 2021 409A valuation and shall have a term of ten years. The shares subject to the Option (“Shares”) shall vest ratably over the four (4) year period commencing as follows: 25% shall vest on November 27, 2022, and at a rate of 1/48 of the number of shares initially subject to the Option for each full calendar month thereafter (such that 100% of the Shares shall be vested as of November 27, 2025.

 

 
1

 

 

As an EBP, you will be eligible to participate in benefit plans and programs that may be in effect from time to time, including group medical and life  insurance and other fringe benefits as are made available to other similarly situated employees of The Healing Company, Inc., in accordance with and subject to the eligibility and other provisions of such plans and programs. The Healing Company, Inc. reserves the right, in its sole discretion, to prospectively modify or terminate any of its benefits plans or programs at any time and for any reason, to the extent permitted by applicable law.

 

You will be subject to all applicable employment and other policies of The Healing Company, Inc., as outlined in The Healing Company, Inc.’s employee handbook and elsewhere.

 

Your employment will be at-will, meaning that you or The Healing Company, Inc. may terminate the employment relationship at any time, with or without cause, and with or without notice. Any contrary representations that may have been made to you are superseded by this offer letter. This is the full and complete agreement between you and The Healing Company, Inc. on this term. Although your duties, title, compensation, and benefits, as well as The Healing Company, Inc.’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express agreement signed by you and an authorized representative of The Healing Company, Inc.

 

Providing notice does not create an express or implied contract for continued employment or employment for a fixed period.

 

The Healing Company, Inc. reserves the right, in its sole discretion, to prospectively modify or rescind any of the terms set forth in this letter at any time during the course of your employment, to the extent permitted by applicable law.

 

This offer is contingent upon:

 

 

(a)

Verification of your right to work in the United States, as demonstrated by your completion of the Form I-9 upon hire and your submission of acceptable documentation (as noted on the Form I-9) verifying your identity and work authorization within three days of starting employment. For your convenience, a copy of the Form I-9 List of Acceptable Documents is enclosed for your review.

 

 

 

 

(b)

Your execution of The Healing Company, Inc.’s enclosed Employee Confidentiality and Proprietary Rights Agreement.

 

This offer will be withdrawn if any of the above conditions are not satisfied. Please do not resign from your current job until you have confirmation from The Healing Company, Inc. that these conditions have been satisfied.

 

By accepting this offer, you confirm that you are able to accept this job and carry out the work involved without breaching any legal restrictions on your activities, such as restrictions imposed by a current or former employer. You also confirm that you will inform The Healing Company, Inc. about any such restrictions and provide The Healing Company, Inc. with as much information  about them as possible, including copies of any agreements between you and your current or former employer describing such restrictions on your activities.

 

 
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You further confirm that you will not remove or copy any documents or proprietary data or materials of any kind, electronic or otherwise, from your current or former employer to The Healing Company, Inc. without written authorization from your current or former employer, nor will you use or disclose any  such confidential information during the course and scope of your employment  with The Healing Company, Inc.. If you have any questions about the ownership of particular documents or other information, discuss such questions with your former employer before removing or copying the documents or information.

 

All of us at The Healing Company, Inc. are excited about the prospect of you joining our team. If you have any questions about the above details, please call me immediately. If you wish to accept this position, please sign below and return this letter agreement to me within seven (7) days. This offer is open for you to accept until December 5th 2021, at which time it will be deemed to be withdrawn.

 

I look forward to hearing from you.

 

Yours sincerely,

 

Signed

             

 

 

Larson Elmore, CEO

 

On behalf of The Healing Company, Inc.

 

Acceptance of Offer

 

I have read and understand all the terms of the offer of employment set forth in this letter and I accept each of those terms. I also understand and agree that my employment is at-will and, with the exception of a subsequent written agreement signed by an authorized The Healing Company, Inc. representative, no statements or communications, whether oral or written, will modify my at-will employment status. I further understand that this letter is The Healing Company, Inc.’s complete offer of employment to me and this letter supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to my employment. I have not relied on any agreements or representations, express or implied, that are not set forth expressly in this letter.

 

Kelly Zuar

 

Signed

             

 

 

 

 

Date

              11/29/2021

 

 

Attachment:

 

Exhibit A: The Healing Company’s Employee Confidentiality and Proprietary Rights Agreement

 

 
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EXHIBIT A

 

THE HEALING COMPANY’S EMPLOYEE CONFIDENTIALITY AND PROPRIETARY RIGHTS AGREEMENT

 

[see attached]

 

 
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EXHIBIT 10.5

 

The Healing Company Inc.

 

Employment Agreement

 

Dated as of November 27, 2021

 

Simon Belsham

1101 Grand Street, Apt 501

Hoboken, New Jersey 07030

 

This letter (the "Agreement") will confirm of the terms of your employment with The Healing Company Inc. (the "Company").

 

1. Position and Duties; Term.

 

(a) Effective as of the date first above written (or such other date as is mutually agreed between you and the Company) (the "Effective Date"), you will be employed by the Company, on a full-time basis, to undertake such management duties as may be required from the Effective Date and upon appointment by the Board of Directors of the Company, as its Chief Executive Officer / Member of the Board, provided, however, that as of the date your employment with the Company terminates, however occurring, you shall resign from your membership on the Company's Board of Directors (the "Board") and on any of its committees on which you then have membership and execute any resignation in writing requested at that time by the Board. In addition, you may be asked from time to time to serve as a director or officer of one or more of the Company's other Affiliates, without further compensation.

 

(b) You agree to perform the duties of your position and such other duties as may reasonably be assigned to you from time to time. You also agree that, while employed by the Company, you will devote your substantial business time and your best efforts, business judgment, skill and knowledge exclusively to the advancement of the business interests of the Company and its Affiliates and to the discharge of your duties and responsibilities for them. The Company will indemnify and hold you harmless (including advancement of legal fees) for any losses incurred in connection with a claim or threatened claim arising due to your service as an officer or Board member to the maximum extent permitted by law and the Company’s organizational documents. The Company will procure liability insurance in reasonable amounts consistent with similarly situated companies.

 

(c) We also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company's understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Similarly, you agree not to bring any third party confidential information to the Company, including that of your former employer, and that in performing your duties for the Company you will not in any way utilize any such information.

 

 
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(d) You will work principally in the Company's New York City offices, subject to reasonable covid-19 exceptions and business travel from time to time.

 

(e) You agree that, while employed by the Company, you will comply with all Company policies, practices and procedures and all codes of ethics or business conduct applicable to your position, as in effect from time to time. You should note that the Company may modify job titles, salaries and benefits from time to time as it deems necessary.

 

(f) The term of this Agreement shall commence on the Effective Date and shall end on the first to occur of your termination of employment for any reason or the two-year anniversary of the Effective Date; provided, however, that if not terminated by either party prior to the end of the initial two-year term, the term shall automatically extend for additional one-year terms thereafter, subject to any earlier termination (as such, the "Term"). The Company may, in its sole discretion and for any reason, provide written notice of termination (effective as of the then applicable expiration date) to you at any time, subject to the other provisions of this Agreement.

 

(g) You understand and agree that employment under this Agreement is "at will." Your employment may be terminated by the Company with or without cause, with or without notice, and without resort to any specific disciplinary procedure or process at any time, subject to the provisions of this Agreement, and you may resign or otherwise terminate your employment with the Company at any time, with or without any reason, with or without notice. This Agreement is not intended to, and shall not infer or imply any right on your part to continue in the employ of the Company or any of its Affiliates. This Agreement is not intended in any way to limit the right of the Company to terminate your employment.

 

2. Compensation and Benefits.

 

During your employment, as compensation for all services performed by you for the Company and its Affiliates and subject to your full performance of your obligations hereunder, the Company will provide you the following pay and benefits:

 

(a) Base Salary. The Company will pay you a base salary at the rate of four hundred thousand dollars ($400,000) for the first year following the Effective Date and five hundred thousand dollars ($500,000) for the second year following the Effective Date, payable in accordance with the regular payroll practices of the Company (the "Base Salary"). The Base Salary will thereafter be reviewed by the Board or a compensation committee of the Board in its discretion, it being understood that the Base Salary may only be increased and not decreased. You agree that the Company may deduct and withhold from your compensation hereunder the amounts required to be deducted and withheld under the provisions of the applicable federal and state laws heretofore or hereafter enacted requiring the withholding of compensation.

 

(b) Bonus Compensation. You will receive a signing bonus in the amount of $75,616 to be paid on or before December 31, 2021. For the first calendar year completed during your employment under this Agreement you will be eligible to earn an annual bonus, with a maximum pay-out opportunity of one hundred thousand dollars ($100,000) and for the second calendar year completed during your employment under this Agreement you will be eligible to earn an annual bonus, with a maximum pay-out opportunity of two hundred thousand dollars ($200,000) (the "Bonus"). The Bonus will thereafter be reviewed by the Board or a compensation committee of the Board in its discretion, it being understood that the Bonus may only be increased and not decreased. Each such Bonus will be paid within 60 days of the relevant calendar year end provided you remain an employee of the Company on the last day of the related calendar year. The actual amount of any such Bonus will be determined by the Board or a compensation committee of the Board in its discretion following reasonable consultations with you, based on your performance and that of the Company as measured against objective metrics communicated to you in writing by the Board or a compensation committee of the Board. In addition, you will be eligible to receive an additional bonus to offset certain tax expenses you incur in connection with the Equity Grant (as defined in subsection (f) below).

 

 
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(c) Participation in Employee Benefit Plans. You will be eligible to participate in any medical, dental, 401(k), and other benefit plans from time to time in effect for employees of the Company generally, except to the extent such plans are duplicative of benefits otherwise provided you under this Agreement (e.g., a severance pay plan). Your participation will be subject to the terms of the applicable plan documents and generally applicable Company policies, as the same may be in effect from time to time, and any other restrictions or limitations imposed by law.

 

(d) Vacations. You will be entitled to earn up to four (4) weeks of vacation per year, in addition to holidays observed by the Company. Vacation may be taken at such times and intervals as you shall determine, subject to the business needs of the Company. Vacation shall otherwise be subject to the policies of the Company, as in effect from time to time, and with the timing and duration of specific vacations mutually and reasonably agreed to by the Board (or its duly authorized representative) and you.

 

(e) Business Expenses. The Company will pay or reimburse you for all reasonable business expenses incurred or paid by you in the performance of your duties and responsibilities for the Company, including without limitation, travel expenses between your residences and the Company's New York City offices, subject to any maximum annual limit and other restrictions on such expenses set by the Company and to such reasonable substantiation and documentation as may be specified from time to time. Your right to payment or reimbursement for business expenses hereunder shall be subject to the following additional rules: (i) the amount of expenses eligible for payment or reimbursement during any calendar year shall not affect the expenses eligible for payment or reimbursement in any other calendar year, (ii) payment or reimbursement shall be made not later than December 31 of the calendar year following the calendar year in which the expense or payment was incurred, and (iii) the right to payment or reimbursement is not subject to liquidation or exchange for any other benefit. In addition, the Company will cover your costs incurred for the necessary relocation within New York City as well as your expenses for obtaining a U.S. work permit, subject to a limit of $5,000. To the extent that expenses in any given calendar year exceed $50,000, all expenses in excess of such amount must be approved by the Board in its discretion.

 

(f) Incentive Equity. On or as soon as practicable after the Effective Date (but no later than 45 days thereafter), you will be granted 1,250,000 shares of restricted common stock (the "Equity Grant"), subject to a restricted stock award agreement containing substantially the terms set forth on Annex A attached hereto.

 

3. Confidential Information and Restricted Activities.

 

(a) Confidential Information. During the course of your employment with the Company, you will learn of Confidential Information, as defined below, and you may develop Confidential Information on behalf of the Company and its Affiliates. You agree that you will not use or disclose to any Person (except as required by applicable law or for the proper performance of your regular duties and responsibilities for the Company) any Confidential Information obtained by you incident to your employment or any other association with the Company or any of its Affiliates. You agree that this restriction shall continue to apply after your employment terminates, regardless of the reason for such termination. Nothing in this Agreement limits, restricts or in any other way affects your communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or entity. You cannot be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed under seal in a lawsuit or other proceeding. Notwithstanding this immunity from liability, you may be held liable if you unlawfully access trade secrets by unauthorized means.

 

 
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(b) Protection of Documents. All documents, records and files, in any media of whatever kind and description, relating to the business, present or otherwise, of the Company or any of its Affiliates, and any copies, in whole or in part, thereof (the "Documents"), whether or not prepared by you, shall be the sole and exclusive property of the Company. You agree to safeguard all Documents and to surrender to the Company, at the time your employment terminates or at such earlier time or times as the Board or its designee may specify, all Documents then in your possession or control. You also agree to disclose to the Company, at the time your employment terminates or at such earlier time or times as the Board or its designee may specify, all passwords necessary or desirable to obtain access to, or that would assist in obtaining access to, any information which you have password-protected on any computer equipment, network or system of the Company or any of its Affiliates.

 

(c) Assignment of Rights to Intellectual Property. You shall promptly and fully disclose all Intellectual Property to the Company. You hereby assign and agree to assign to the Company (or as otherwise directed by the Company) your full right, title and interest in and to all Intellectual Property. You agree to execute any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the Company to assign the Intellectual Property to the Company (or as otherwise directed by the Company) and to permit the Company to enforce any patents, copyrights or other proprietary rights to the Intellectual Property. You will not charge the Company for time spent in complying with these obligations. All copyrightable works that you create during your employment shall be considered "work made for hire" and shall, upon creation, be owned exclusively by the Company.

 

(d) Restricted Activities. You acknowledge that, during your employment with the Company, you will have access to Confidential Information and trade secrets which, if disclosed, would assist in competition against the Company and its Affiliates, and that you will also generate good will for the Company and its Affiliates. Therefore, you agree that the following restrictions on your activities are necessary to protect the good will, Confidential Information, trade secrets and other legitimate interests of the Company and its Affiliates:

 

(i) While you are employed by the Company and until the first anniversary after the end of such employment, unless your employment is terminated pursuant to Section 4(b) or (c) below, you shall not, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with the Company or any of its Affiliates for which you are materially involved or undertake any planning for any Competitor or any of its Affiliates that are engaged in a competitive business. Specifically, but without limiting the foregoing, you agree not to work or provide services, in any capacity, whether as an employee, independent contractor or otherwise, whether with or without compensation, to any Person that is a Competitor or its Affiliates (unless not engaged in a competitive business), as conducted or in planning during your employment with the Company. The foregoing, however, shall not prevent your (i) passive ownership of two percent (2%) or less of the equity securities of any publicly traded company; (ii) providing goods or services to charitable and community organizations; or (iii) following written consent by the Board, serving on the board of directors of entities other than Competitors.

 

 
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(ii) While you are employed by the Company, you will not directly or indirectly (a) solicit or encourage any customer, vendor, supplier or other business partner of the Company or any of its Affiliates to terminate or diminish its relationship with them; or (b) seek to persuade any such customer, vendor, supplier or other business partner or prospective customer, vendor, supplier or other business partner of the Company or any of its Affiliates to conduct with anyone else any business or activity which such customer, vendor, supplier or other business partner or such prospective customer, vendor, supplier or other business partner conducts or could conduct with the Company or any of its Affiliates.

 

(iii) While you are employed by the Company and during the twelve (12) month period immediately following termination of your employment, unless your employment is terminated pursuant to Section 4(b) or (c) below (in the aggregate, the "Restricted Period"), you will not, and will not assist any other Person to, (a) solicit for hiring or engagement, any employee of the Company or any of its Affiliates or seek to persuade any employee of the Company or any of its Affiliates to discontinue employment or (b) solicit or encourage any independent contractor providing services to the Company or any of its Affiliates to terminate or diminish his, her or its relationship with them. For the purposes of this Agreement, an "employee" or an "independent contractor" of the Company or any of its Affiliates is any person who was such at any time within the preceding twelve (12) months.

 

(e) In signing this Agreement, you give the Company assurance that you have carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed on you under this Section 3. You agree without reservation that these restraints are necessary for the reasonable and proper protection of the Company and its Affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. You further agree that, were you to breach any of the covenants contained in this Section 3, the damage to the Company and its Affiliates may be irreparable. You therefore agree that the Company, in addition and not in the alternative to any other remedies available to it, shall be entitled to seek preliminary and permanent injunctive relief against any breach or threatened breach by you of any of those covenants, without having to post bond,; it being understood that in respect of any adversarial proceedings between the Company and you under this Agreement or otherwise, the prevailing party (the party receiving substantially the relief sought) shall recover its reasonable attorney's fees. So that the Company may enjoy the full benefit of the covenants contained in this Section 3, you further agree that the Restricted Period shall be tolled, and shall not run, during the period of any breach by you of any of the covenants contained in this Section 3. You and the Company further agree that, in the event that any provision of this Section 3 is determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. It is also agreed that each of the Company's Affiliates shall have the right to enforce all of your obligations to that Affiliate under this Agreement, including without limitation pursuant to this Section 3. Finally, no claimed breach of this Agreement or other violation of law attributed to the Company, or change in the nature or scope of your employment or other relationship with the Company or any of its Affiliates, shall operate to excuse you from the performance of your obligations under this Section 3.

 

 
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4. Termination of Employment.

 

Your employment under this Agreement shall continue until terminated pursuant to this Section 4.

 

(a) By the Company for Cause. The Company may terminate your employment for Cause upon notice to you setting forth in reasonable detail the nature of the cause. The following, as determined by the Board in its reasonable judgment, shall constitute "Cause" for termination: (i) your substantial failure to perform (other than by reason of disability), or substantial negligence in the performance of, your duties and responsibilities to the Company or any of its Affiliates for a period of sixty (60) days after a written demand for substantial performance is delivered to you by the Board that specifically identifies the manner in which the Board believes that you have not performed your duties; (ii) your material breach of this Agreement or any other agreement between you and the Company or any of its Affiliates, which breach if curable, is not cured within sixty (60) days following written notice from the Board specifying such breach; (iii) your commission of, or plea of nolo contendere to, a felony or other crime involving moral turpitude; (iv) your willful violation of any applicable material law or regulation respecting the business of the Company; or (v) your breach of fiduciary duty owed to the Company.

 

(b) By the Company Without Cause. The Company may terminate your employment other than for Cause at any time upon notice to you. The Company’s delivery of a non-renewal notice shall be treated as a termination without Cause.

 

(c) By You for Good Reason. You may terminate your employment for Good Reason. For purposes of this Agreement, "Good Reason" means, without your written consent,

 

(i) subject to the other provisions herein, a material breach by the Company of the terms of this Agreement, or any other equity or compensation written agreement between the Company and you related to your services as an officer, director, or employee of the Company, including but not limited to, the failure of the Company to make any material payment or provide any material benefit specified under this Agreement, except as provided in clause (iii) herein, (ii) any material adverse change and diminution of your authority, duties or responsibilities, as provided for hereunder, or (iii) a material reduction in your Base Salary or (iv) a requirement to relocate your primary residence; provided, however, that you must provide the Company with written notice that describes in reasonable detail the existence of one or more of the conditions described in clauses (i)-(iv) above no later than sixty (60) days after the date of the initial occurrence of such condition or conditions; in addition, you must provide the Company a period of at least thirty (30) days during which the Company can remedy the condition or conditions and, if you terminate your employment for Good Reason, you must actually resign within one (1) year of providing such written notice.

 

(d) By You for Other than Good Reason. You may terminate your employment at any time upon sixty (60) days' notice to the Company. The Board may elect to waive such notice period or any portion thereof; but in that event, the Company shall pay you your base salary for that portion of the notice period so waived.

 

 
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(e) Death and Disability. Your employment hereunder shall automatically terminate in the event of your death during employment. In the event you become disabled during employment and, as a result, are unable to continue to perform substantially all of your duties and responsibilities under this Agreement, either with or without reasonable accommodation, the Company will continue to pay you your base salary and to provide you benefits in accordance with Section 2(c) above, to the extent permitted by plan terms, for up to twelve (12) weeks of disability during any period of three hundred sixty-five (365) consecutive calendar days. If you are unable to return to work after twelve (12) weeks of disability, the Company may terminate your employment, upon notice to you. If any question shall arise as to whether you are disabled to the extent that you are unable to perform substantially all of your duties and responsibilities for the Company and its Affiliates, you shall, at the Company's request, submit to a medical examination by a physician selected by the Company to whom you or your guardian, if any, has no reasonable objection to determine whether you are so disabled, and such determination shall for purposes of this Agreement be conclusive of the issue. If such a question arises and you fail to submit to the requested medical examination, the Company's determination of the issue shall be binding on you.

 

5. Other Matters Related to Termination.

 

(a) Final Compensation. In the event of termination of your employment with the Company, howsoever occurring, the Company shall pay you (i) the Base Salary for the final payroll period of your employment, through the date your employment terminates; (ii) compensation at the rate of the Base Salary for any vacation time earned but not used as of the date your employment terminates; (iii) in the case of a termination of your employment pursuant to Sections 4(b), (c) or (e), above, the Company will pay you a prorated portion of the Bonus for the year of your termination through the date of your termination or death, as applicable, based on your performance and that of the Company as measured against objective metrics, with the actual amount of such bonus being determined by the Board, and (iv) reimbursement, in accordance with Section 2(e) hereof, for business expenses incurred by you but not yet paid to you as of the date your employment terminates; provided you submit all expenses and supporting documentation required within sixty (60) days of the date your employment terminates, and provided further that such expenses are reimbursable under Company policies as then in effect (all of the foregoing, "Final Compensation"). Except as otherwise provided in Section 5(a)(iii), Final Compensation will be paid to you within thirty (30) days following the date of termination (or such shorter period required by law).

 

(b) Severance Payments. In the event of any termination of your employment pursuant to Section 4(b) (including as a result of the non-renewal by the Company), (c) or (e) above, the Company will: (i) pay you, or your estate, if applicable, in addition to Final Compensation, the Base Salary for a period of six (6) months from the date of termination or, if earlier, until commencement of your employment with or engagement to provide consulting services to a Competitor, it being understood that your earnings received from any Competitor during such period will be offset against such Base Salary (the "Severance Payments"); (ii) during any Severance Payment period, or, if earlier than the end of such period, until covered by your subsequent employer, should you timely elect to continue coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA") the Company shall reimburse you for the COBRA premiums due to maintain health insurance coverage that is substantially equivalent to that which you received immediately prior to the date of your termination; and (iii) provide for full accelerated vesting of all the unvested portion of the Equity Grant. You agree to provide the Company with prompt notice if you commence any employment or consulting relationship during the period when you are receiving the Severance Payments.

 

 
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(c) Conditions to and Timing of Severance Payments. Any obligation of the Company to provide you the Severance Payments is conditioned, however, on your signing and returning to the Company, and not revoking, a timely and effective separation agreement containing a general release of claims and other customary terms in the form provided to you by the Company at the time your employment is terminated (the "Separation Agreement"). The Separation Agreement must become effective, if at all, by the sixtieth (60th) calendar day following the date your employment is terminated. Any Severance Payments to which you are entitled will be provided in the form of salary continuation, payable in accordance with the normal payroll practices of the Company. The first payment will be made on the Company's next regular payday following the expiration of sixty (60) calendar days from the date of termination; but that first payment shall be retroactive to the day following the date your employment terminates.

 

(d) Benefits Termination. Subject to Section 5(b) hereof, except for any right you may have under COBRA or other applicable law to continue participation in the Company's group health and dental plans at your cost, your participation in all employee benefit plans shall terminate in accordance with the terms of the applicable benefit plans based on the date of termination of your employment, without regard to any continuation of base salary or other payment to you following termination and you shall not be eligible to earn vacation or other paid time off following the termination of your employment.

 

(e) Survival. Provisions of this Agreement shall survive any termination of employment if so provided in this Agreement or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation your obligations under Section 3 of this Agreement. The obligation of the Company to make payments to you under Section 5(b), and your right to retain the same, are expressly conditioned upon your continued full performance of your obligations under Section 3 hereof. Upon termination by either you or the Company, all rights, duties and obligations of you and the Company to each other shall cease, except as otherwise expressly provided in this Agreement.

 

6. Timing of Payments and Section 409A.

 

(a) Notwithstanding anything to the contrary in this Agreement, if at the time your employment terminates, you are a "specified employee," as defined below, any and all amounts payable under this Agreement on account of such separation from service that would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon your death; except (A) to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury regulation Section 1.409A-1(b) (including without limitation by reason of the safe harbor set forth in Section 1.409A-1(b)(9)(iii), as determined by the Company in its reasonable good faith discretion); (B) benefits which qualify as excepted welfare benefits pursuant to Treasury regulation Section 1.409A-1(a)(5); or (C) other amounts or benefits that are not subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A").

 

(b) For purposes of this Agreement, all references to "termination of employment" and correlative phrases shall be construed to require a "separation from service" (as defined in Section 1.409A-1(h) of the Treasury regulations after giving effect to the presumptions contained therein), and the term "specified employee" means an individual determined by the Company to be a specified employee under Treasury regulation Section 1.409A-1(i).

 

(c) Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.

 

 
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(d) In no event shall the Company have any liability relating to the failure or alleged failure of any payment or benefit under this Agreement to comply with, or be exempt from, the requirements of Section 409A.

 

7. Definitions.

 

For purposes of this Agreement, the following definitions apply:

 

 

·

"Affiliates" means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company, where control may be by management authority, equity interest or otherwise.

 

 

 

 

·

"Competitor" means any company that is active in the business area of the Company or any of its Affiliates, especially in the field of natural remedies, as well as companies that would qualify as portfolio companies under the Company's investment strategy at the relevant point in time.

 

 

 

 

·

"Confidential Information" means any and all information of the Company and its Affiliates that is not generally available to the public or readily ascertainable in the industry in which the Company operates. Confidential Information also includes any information received by the Company or any of its Affiliates from any Person with any understanding, express or implied, that it will not be disclosed. Confidential Information does not include information that enters the public domain, other than through your breach of your obligations under this Agreement.

 

 

 

 

·

"Intellectual Property" means inventions, discoveries, developments, methods, processes, compositions, works, concepts and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by you (whether alone or with others, whether or not during normal business hours or on or off Company premises) during your employment that relate either to the business of the Company or any of its Affiliates or to any prospective activity of the Company or any of its Affiliates or that result from any work performed by you for the Company or any of its Affiliates or that make use of Confidential Information or any of the equipment or facilities of the Company or any of its Affiliates.

 

 

 

 

·

"Person" means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust or any other entity or organization, other than the Company or any of its Affiliates.

 

8. Withholding.

 

All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law.

 

9. Assignment.

 

Neither you nor the Company may make any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other; provided, however, the Company may assign its rights and obligations under this Agreement without your consent to one of its Affiliates or to any Person with whom the Company shall hereafter effect a reorganization, consolidate or merge, or to whom the Company shall hereafter transfer all or substantially all of its properties or assets so long as such assignee assumes all of the obligations hereunder. This Agreement shall inure to the benefit of and be binding upon you and the Company, and each of our respective successors, executors, administrators, heirs and permitted assigns.

 

 
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10. Severability.

 

If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

11. Miscellaneous.

 

This Agreement sets forth the entire agreement between you and the Company, and replaces all prior and contemporaneous communications, agreements and understandings, written or oral, with respect to the terms and conditions of your employment. This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and an expressly authorized representative of the Board. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. This is a New York contract and shall be governed and construed in accordance with the laws of the State of New York, without regard to any conflict of laws principles that would result in the application of the laws of any other jurisdiction. You agree to submit to the exclusive jurisdiction of the courts of or in the State of New York in connection with any dispute arising out of this Agreement.

 

12. Notices.

 

Any notices provided for in this Agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage prepaid, and addressed to you at your last known address on the books of the Company or, in the case of the Company, to it at its principal place of business, attention of the Chair of the Board, or to such other address as either party may specify by notice to the other actually received.

 

[Remainder of page intentionally blank.]

 

 
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If the foregoing is acceptable to you, please sign this letter in the space provided and return it to me as soon as practicable. At the time you sign and return it, this letter will take effect as a binding agreement between you and the Company on the basis set forth above. The enclosed copy is for your records.

 

Sincerely yours,

 

 

 

The Healing Company Inc.

 

By: Lee Larson Elmore

 

Its: Chief Executive Officer

 

Accepted and agreed:

 

 

Simon Belsham

 

 

 
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Annex A

 

Terms of Restricted Stock Grant

 

Vesting Schedule

25% after one year from the Effective Date (employment start date); remaining 1/36th monthly over the following three year period (full vesting 4 years from start date)

83b election and valuation

Company to obtain 409A valuation so that you may file an 83b election within 30 days of the grant

Termination of Employment

See employment agreement:

 

Acceleration of vesting if terminated without Cause (including non-renewal by the Company), resignation with Good Reason or death or Disability (“Qualifying Termination”).

 

The Company will not have repurchase/call rights on the vested shares if terminated without Cause or if you resign for Good Reason

 

If terminated by the Company for Cause, vested and unvested shares are forfeited.

Change in Control/Sale Provisions

Tag-along and Drag-along; piggy back registration rights

 

 
12

 

 

EXHIBIT 10.6

 

BOARD ADVISOR AGREEMENT

 

This agreement (the “Agreement”) is made effective as of December 28, 2021 (“Effective Date”), by The Healing Company Inc., a Nevada corporation (the “Company”), and Deepak Chopra, LLC (the “Advisor”).

 

The Company wishes to retain the Advisor as an outside advisor to the Company’s Board of Directors (the “Board”), and the Advisor desires to perform such services. Accordingly, the parties hereby agree as follows:

 

1. Service as an Advisor. The Advisor shall serve on the Company’s advisory board (“Advisory Board”) as Special Advisor to the Board of The Healing Company on a non-exclusive basis for the term of this Agreement. The Advisor shall perform services hereunder as an independent contractor and not as an employee, agent, joint venturer, or partner of the Company and not as a member of the Board. The Advisor shall have no power or authority to act for, represent, or bind the Company or its affiliates in any manner whatsoever. The Advisor agrees to take no action that expresses or implies that the Advisor has such power or authority.

 

2. Duties. During the term of this Agreement, the Advisor will use its commercially reasonable efforts to provide advice and counsel to the members of the Board as may be reasonably requested from time to time, including by rendering the services described on Schedule 1 (the “Services”) to this Agreement. The Advisor will directly advise the Board in the course of performing the Advisor’s duties, unless otherwise expressly directed by the Board.

 

3. Term. This Agreement shall have a term of two (2) years (the “Term”), provided that either party may terminate the Agreement, with or without reason, by written notice to the other, and provided further that the provisions of Section 4.2, Section 5, and Section 6 and all payment provisions for compensation incurred prior to the termination date shall survive any termination or expiration of this Agreement. In the event this Agreement is terminated by either party, pro-rata fees, and unpaid expenses through the termination date shall be paid to the Advisor promptly thereafter.

 

4. Fees.

 

4.1. As compensation for the Advisor’s services under this Agreement, the Company shall pay to the Advisor the compensation described on Schedule 2 to this Agreement.

 

4.2. The Advisor agrees to pay all federal, state, and local taxes applicable to any compensation paid to the Advisor under this Agreement. The terms and provisions of this Section 4.2 shall survive termination or expiration of this Agreement.

 

5. Confidential Information. The Advisor acknowledges that, during the course of performing his services hereunder, the Company will disclose information to the Advisor in connection with the Services, including but not limited to projects, products, services, potential customers, personnel, business plans, and finances, as well as other commercially valuable information (collectively “Confidential Information”). The Advisor agrees that the Confidential Information will be used by the Advisor only in connection with Advisory Services and will not be used in any way that is detrimental to the Company. The Advisor agrees not to disclose, directly or indirectly, the Confidential Information to any third person or entity, other than representatives or agents of the Company or as required by applicable law or order of a court of competent jurisdiction. The Advisor will treat all such information as confidential and proprietary property of the Company. The term “Confidential Information” does not include information that (i) is or becomes generally available to the public other than by disclosure in violation of this Agreement, (ii) was within the Advisor’s possession prior to being furnished by the Company, (iii) becomes available to the Advisor on a nonconfidential basis, or (iv) was independently developed by the Advisor without reference to the information provided by the Company. The Advisor shall continue to be bound by the terms of the confidentiality provisions contained in this Section 5 for a period of two years after the termination of the Services by the Advisor.

 

 
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6. Developments. All content and improvements (whether or not copyrightable) (“Developments”) related to the business of the Company which are made, conceived, created, written, designed or developed by the Advisor, solely or jointly with others during the Term while actively serving as an advisor to the Company or thereafter if resulting directly or indirectly derived from the Services or the Confidential Information of the Company, shall be the sole property of the Company. By way of clarification, any Developments made, conceived, created, written, designed, or developed by the Advisor in the course of the Advisor’s activities with any third party, and not in the course of his performance of the Services and which are not directly or indirectly derived from the Services or Confidential Information, shall not constitute “Developments”. The Advisor hereby assigns to the Company all Developments and all related copyrights, trademarks, and other industrial and intellectual property rights and applications therefore, in the United States and elsewhere and appoints any officer of the Company as the Advisor’s duly authorized attorney to execute, file, prosecute and protect the same before any government agency, court or authority and Advisor shall execute further assignments and other instruments as may be necessary or desirable to fully and completely assign all Developments to the Company and to assist the Company in applying for, obtaining and enforcing patents, trademarks, or copyrights or other rights in the United States and any foreign country concerning any Development. Company acknowledges that Advisor has been previously involved in intellectual property discussions with numerous other parties, including those with related and unrelated to Advisor. From time to time, conflicts may arise, so Company will undertake commercial best efforts to communicate with Advisor to seek to avoid such conflicts

 

7. Publicity. The Company shall not, without the specific, prior written approval by the Advisor (which consent can be withheld and restricted at the sole discretion of Advisor), have the right to use the name, biography, and picture of the Advisor on the Company’s website, marketing, and advertising materials as pre-approved by Advisor and only for the period approved by Advisor or such shorter or longer period later approved by Advisor.

 

8. No Conflicts. The Advisor represents and warrants to the Company that the Advisor is free to enter into this Agreement and the Services to be provided under this Agreement are not in conflict with any other contractual or other obligation to which the Advisor is bound.

 

9. Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by electronic mail or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.

 

10. Parties in Interest. This Agreement is made solely for the benefit of the Advisor and the Company. No other person shall acquire or have any right under or by virtue of this Agreement.

 

 
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11. Entire Agreement; Severability; Counterparts. This Agreement contains the entire agreement between the parties and supersedes any and all prior and contemporaneous oral and written agreements. This Agreement may only be amended, changed or modified by a written document executed by both parties. In the event any one or more of the provisions of this Agreement is held to be invalid or otherwise unenforceable, the enforceability of the remaining provisions shall be unimpaired. This Agreement may be executed in separate counterparts and shall become effective when the separate counterparts have been exchanged between the parties. Neither Advisor nor Company may assign or transfer this Agreement or any of its rights or obligations under this Agreement without the other party’s prior written consent, which consent may not be unreasonably withheld.

 

12. Governing Law. This Agreement shall be governed by and construed under the laws of the State of Nevada.

 

13. Authority. This Agreement has been duly authorized, executed, and delivered by and on behalf of the Company and the Advisor.

 

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

 

  THE HEALING COMPANY INC.
       
  By:

 

Name:

Simon Belsham  
  Title: CEO  
       

 

DEEPAK CHOPRA, LLC

 

 

 

 

 

 

 

 

Name:

Michael McCarthy

 

 

Title:

CFO

 

 

 
3

 

 

SCHEDULE 1

 

DUTIES

 

The responsibility of the members of the advisory board of the Company (“Advisory Board”) is to advise the Company’s executive management team and Board on the direction and progress of the Company’s impact to healing and living healthily.

 

Additionally, as a Board Advisor, you shall provide the following services, as reasonably requested by the Company:

 

1. General Services.

 

a. Attending and participating in up to four (4) three-hour in-person Advisory Board meetings per year, generally to be held in-person at a location to be selected by the Board or remotely via electronic conference. Your attendance at Board meetings shall be at the Board’s invitation only. If you are invited to attend a Board meeting, your status will be as an observer, without any right to vote on matters submitted to a vote of the Board.

 

b. Participating in a reasonable number of mutually agreed to and scheduled advisory calls with the Company’s executive management team which shall last no more than one (1) hour each.

 

c. Being available upon reasonable advance notice to provide telephonic guidance and consultation to members of the Company’s executive management team on an as-needed basis in between Advisory Board meetings.

 

d. Studying and reviewing the business, operations, and historical financial performance of the Company, to be able to properly advise members of the Company’s executive management team.

 

e. On a biannual basis, with the executive management team, review progress towards our “Healing Goals”, advise on strategy/direction to achieve those goals, and support the production of an impact report to that extent.

 

2. Content Support.

 

a. Providing support or collaboration for one (1) piece of content support per month (e.g., creating video, audio, or written content for the Company’s platform, speaking at conferences on behalf of The Healing Company, etc.) – to be agreed in advance by the parties. The Company agrees to provide Deepak Chopra with a minimum of two (2) weeks’ notice to determine whether Deepak Chopra will agree to collaborate on a project. Deepak Chopra and his team will commit to respond to proposals by the Company within 72 hours or such proposals will be deemed to have been accepted, and Deepak Chopra shall not unreasonably object to proposals.

 

3. Product and Research Guidance.

 

a. Providing an expert opinion on products that the Company or its subsidiaries may sell, businesses the Company may acquire or partner with, and content that the Company may create.

 

b. Providing non-exclusive, temporary access to research from the Chopra organizations (including the Chopra Foundation) or other resources to ensure a science-backed approach to the ingredients, formulations, and content the Company or its subsidiaries may offer. If research is used to market and/or promote, The Healing Company will cite the source – e.g., Chopra Global or Dr. Deepak Chopra or Chopra Foundation

 

 
4

 

 

c. Connecting the Company with subject matter experts from your network to support where more specialized knowledge may be required.

 

d. Advise on complementary integrative approaches to support the healing goals of The Healing Company (e.g., meditation, breathwork, journaling, Ayurvedic practices, etc.).

 

e. Support with creating a "Healing Standard" of efficacy for products and formulations that can become an industry-wide designation of quality, purity, and sustainability.

 

4. General Promotion.

 

a. Allow for the promotion of Deepak Chopra’s name and image on the Company’s website and/or mobile application and any marketing materials referencing the Advisory Board and purpose of The Healing Company (e.g., investor materials, consumer marketing, etc.) all final promotions must need approval from Deepak Chopra. However, the Company will not ask Deepak Chopra to endorse specific products unless Deepak Chopra otherwise desires to. All proposals for the promotion of Deepak Chopra’s name, image and likeness shall be sent to Deepak Chopra’s team with at least two (2) weeks’ notice in advance for approval. Deepak Chopra may choose not to proceed with any specific marketing plans, pending the specific products, services and/or way he is being marketed by The Healing Company and its affiliates. Deepak Chopra and his team will commit to respond to proposals by the Company within 72 hours or such proposals will be deemed to have been accepted, and Deepak Chopra shall not unreasonably object to proposals.

 

The anticipated time commitment to be expected of you is estimated to be at .5 days per month, or 6 days per year, inclusive of Board meetings; provided, however, that this is an estimate only, and your time commitment may be spread across the calendar year unevenly as dictated by business needs of the Company.

 

 
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SCHEDULE 2

 

COMPENSATION

 

1. Consulting Fees.

 

As compensation for the Services under this Agreement, the Company shall pay to the Advisor a fee of Twelve Thousand Five Hundred Dollars ($12,500.00) each fiscal quarter, payable in arrears on or about March 31, June 30, September 30, December 31 for Services provided during the quarter, with the first quarter being pro-rated from the date of this Agreement.

 

The Company shall not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes, making any insurance contributions, including unemployment or disability, or obtaining worker’s compensation insurance on the Advisor’s behalf. However, the Company may file informational returns with the appropriate federal and state agencies regarding such payments. The Advisor is solely responsible for the payment of all taxes and contributions on the Advisor’s behalf.

 

2. Stock Consideration.

 

In addition, subject to the approval of the Company’s Board of Directors, Advisor shall receive a grant of non-statutory stock options (“Options”) to purchase 200,000 shares of the Company’s common stock with an exercise price set to the most recent Fair Market Value (FMV) at the time of the effective date of this agreement. Such options shall have a term of 10 years, with 25% of such Options to be fully vested as of (6) months from the Effective Date of this Agreement and the remainder vesting in three (3) equal installments every six (6) months thereafter until all Options have vested on the second anniversary of the Effective Date. In the event this Agreement is terminated by either party, any unvested Options shall be forfeited in accordance with the terms of the Company’s 2021 Equity Incentive Plan.

 

The Options shall be granted under, and subject to, the terms of the Company’s 2021 Equity Incentive Plan and an award agreement between the Company and the Advisor.

 

3. Chopra Foundation Donation.

 

The Company shall make an annual donation to The Chopra Foundation for Fifty Thousand Dollars ($50,000.00), with the first annual donation to be paid within thirty (30) days of the date of execution of this Agreement by both parties.

 

 
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EXHIBIT 10.7

 

THE HEALING COMPANY, INC.

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This Independent Contractor Agreement (this “Agreement”) is made and entered into as of January 1, 2022 (the “Effective Date”) by and between The Healing Company, Inc., a Nevada corporation with its principal place of business at 711 S. Carson Street, Suite 4, Carson City, Nevada 89701 (the “Company”), and KET Consulting LLC, a limited liability company with a principal place of business at Km 4.4, Carretera 413, Interior, Rincon, PR 00677 (“Contractor”) (each herein referred to individually as a “Party,” or collectively as the “Parties”).

 

The Company desires to retain Contractor as an independent contractor to perform various services for the Company, and Contractor is willing to perform such services, on the terms described below. In consideration of the mutual promises contained herein, the Parties agree as follows:

 

1. Services and Compensation. Contractor, by and through its designated representative Katie Tobias (“Tobias”), shall perform the services described in Exhibit A (the “Services”) for the Company (or its designee), and the Company agrees to pay Contractor the compensation described in Exhibit A for Contractor’s performance of the Services. Contractor’s anticipated start date is January 1, 2022 (“Start Date”).

 

2. Confidentiality.

 

A. Definition of Confidential Information. Confidential Information” means any information (including any and all combinations of individual items of information) that relates to the actual or anticipated business and/or products, research or development of the Company, its affiliates or subsidiaries, or to the Company’s, its affiliates’ or subsidiaries’ technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s, its affiliates’ or subsidiaries’ products or services and markets therefor, customer lists and customers (including, but not limited to, customers of the Company on whom Contractor called or with whom Contractor became acquainted during the term of this Agreement), software, developments, inventions, discoveries, ideas, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company, its affiliates or subsidiaries, either directly or indirectly, in writing, orally or by drawings or inspection of premises, parts, equipment, or other property of Company, its affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any such information which Contractor can establish: (i) was publicly known or made generally available prior to the time of disclosure to Contractor; (ii) becomes publicly known or made generally available after disclosure to Contractor through no wrongful action or inaction of Contractor; or (iii) is in the rightful possession of Contractor, without confidentiality obligations, at the time of disclosure as shown by Contractor’s then-contemporaneous written records; provided that any combination of individual items of information shall not be deemed to be within any of the foregoing exceptions merely because one or more of the individual items are within such exception, unless the combination as a whole is within such exception.

 

 
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B. Nonuse and Nondisclosure. During and after the term of this Agreement, Contractor will hold in the strictest confidence, and take all reasonable precautions to prevent any unauthorized use or disclosure of Confidential Information, and Contractor will not (i) use the Confidential Information for any purpose whatsoever other than as necessary for the performance of the Services on behalf of the Company, or (ii) subject to Contractor’s right to engage in Protected Activity (as defined below), disclose the Confidential Information to any third party without the prior written consent of an authorized representative of the Company, except that Contractor may disclose Confidential Information to the extent compelled by applicable law; provided however, prior to such disclosure, Contractor shall provide prior written notice to Company and seek a protective order or such similar confidential protection as may be available under applicable law. Contractor agrees that no ownership of Confidential Information is conveyed to the Contractor. Without limiting the foregoing, Contractor shall not use or disclose any Company property, intellectual property rights, trade secrets or other proprietary know-how of the Company to invent, author, make, develop, design, or otherwise enable others to invent, author, make, develop, or design identical or substantially similar designs as those developed under this Agreement for any third party. Contractor agrees that Contractor’s obligations under this Section 2.B shall continue after the termination of this Agreement.

 

C. Other Client Confidential Information. Contractor agrees that Contractor will not improperly use, disclose, or induce the Company to use any proprietary information or trade secrets of any former or current employer of Contractor or other person or entity with which Contractor has an obligation to keep in confidence. Contractor also agrees that Contractor will not bring onto the Company’s premises or transfer onto the Company’s technology systems any unpublished document, proprietary information, or trade secrets belonging to any third party unless disclosure to, and use by, the Company has been consented to in writing by such third party.

 

D. Third Party Confidential Information. Contractor recognizes that the Company has received, and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Contractor agrees that at all times during the term of this Agreement and thereafter, Contractor owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence and not to use it or to disclose it to any person, firm, corporation, or other third party except as necessary in carrying out the Services for the Company consistent with the Company’s agreement with such third party.

 

3. Ownership.

 

A. Assignment of Inventions. Contractor agrees that all right, title, and interest in and to any copyrightable material, notes, records, drawings, designs, inventions, improvements, developments, discoveries, ideas and trade secrets conceived, discovered, authored, invented, developed or reduced to practice by Contractor, solely or in collaboration with others, during the term of this Agreement and arising out of, or in connection with, performing the Services under this Agreement and any copyrights, patents, trade secrets, mask work rights or other intellectual property rights relating to the foregoing (collectively, “Inventions”), are the sole property of the Company. Contractor also agrees to promptly make full written disclosure to the Company of any Inventions and to deliver and assign (or cause to be assigned) and hereby irrevocably assigns fully to the Company all right, title and interest in and to the Inventions.

 

The Healing Company, Inc.

Independent Contractor Agreement (Tobias)

 
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B. Pre-Existing Materials. Subject to Section 3.A, Contractor will provide the Company with prior written notice if, in the course of performing the Services, Contractor incorporates into any Invention or utilizes in the performance of the Services any invention, discovery, idea, original works of authorship, development, improvements, trade secret, concept, or other proprietary information or intellectual property right owned by Contractor or in which Contractor has an interest, prior to, or separate from, performing the Services under this Agreement (“Prior Inventions”), and the Company is hereby granted a nonexclusive, royalty-free, perpetual, irrevocable, transferable, worldwide license (with the right to grant and authorize sublicenses) to make, have made, use, import, offer for sale, sell, reproduce, distribute, modify, adapt, prepare derivative works of, display, perform, and otherwise exploit such Prior Inventions, without restriction, including, without limitation, as part of or in connection with such Invention, and to practice any method related thereto. Contractor will not incorporate any invention, discovery, idea, original works of authorship, development, improvements, trade secret, concept, or other proprietary information or intellectual property right owned by any third party into any Invention without Company’s prior written permission, including without limitation any free software or open-source software.

 

C. Moral Rights. Any assignment to the Company of Inventions includes all rights of attribution, paternity, integrity, modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively, “Moral Rights”). To the extent that Moral Rights cannot be assigned under applicable law, Contractor hereby waives and agrees not to enforce any and all Moral Rights, including, without limitation, any limitation on subsequent modification, to the extent permitted under applicable law.

 

D. Maintenance of Records. Contractor agrees to keep and maintain adequate, current, accurate, and authentic written records of all Inventions made by Contractor (solely or jointly with others) during the term of this Agreement, and for a period of three (3) years thereafter. The records will be in the form of notes, sketches, drawings, electronic files, reports, or any other format that is customary in the industry and/or otherwise specified by the Company. Such records are and remain the sole property of the Company at all times and upon Company’s request, Contractor shall deliver (or cause to be delivered) the same.

 

E. Further Assurances. Contractor agrees to assist Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in Inventions in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments that the Company may deem necessary in order to apply for, register, obtain, maintain, defend, and enforce such rights, and in order to deliver, assign and convey to the Company, its successors, assigns and nominees the sole and exclusive right, title, and interest in and to all Inventions and testifying in a suit or other proceeding relating to such Inventions. Contractor further agrees that Contractor’s obligations under this Section 3.E shall continue after the termination of this Agreement.

 

The Healing Company, Inc.

Independent Contractor Agreement (Tobias)

 
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F. Attorney-in-Fact. Contractor agrees that, if the Company is unable because of Contractor’s unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure Contractor’s signature with respect to any Inventions, including, without limitation, for the purpose of applying for or pursuing any application for any United States or foreign patents or mask work or copyright registrations covering the Inventions assigned to the Company in Section 3.A, then Contractor hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Contractor’s agent and attorney-in-fact, to act for and on Contractor’s behalf to execute and file any papers and oaths and to do all other lawfully permitted acts with respect to such Inventions to further the prosecution and issuance of patents, copyright and mask work registrations with the same legal force and effect as if executed by Contractor. This power of attorney shall be deemed coupled with an interest, and shall be irrevocable.

 

4. Conflicting Obligations. Contractor represents and warrants that Contractor has no agreements, relationships, or commitments to any other person or entity that conflict with the provisions of this Agreement, Contractor’s obligations to the Company under this Agreement, and/or Contractor’s ability to perform the Services. Contractor will not enter into any such conflicting agreement during the term of this Agreement.

 

5. Return of Company Materials. Upon the termination of this Agreement, or upon Company’s earlier request, Contractor will immediately deliver to the Company, and will not keep in Contractor’s possession, recreate, or deliver to anyone else, any and all Company property, including, but not limited to, Confidential Information, tangible embodiments of the Inventions, all devices and equipment belonging to the Company, all electronically-stored information and passwords to access such property, those records maintained pursuant to Section 3.D and any reproductions of any of the foregoing items that Contractor may have in Contractor’s possession or control.

 

6. Term and Termination.

 

A. Term. The term of this Agreement will begin on the Effective Date of this Agreement and will continue until the earlier of (i) eighteen (18) months from the Effective Date, or (ii) termination as provided in Section 6.B, below (the “Term”). The Term may be renewed by mutual agreement of the Parties.

 

B. Termination. Either Party may terminate this Agreement for any reason upon giving the other Party (1) thirty (30) days’ prior written notice of such termination pursuant to Section 12.G of this Agreement during the first year of the Term, and (2) sixty (60) days’ prior written notice of such termination pursuant to Section 12.G of this Agreement after the first year of the Term. The Company may terminate this Agreement immediately and without prior notice if Contractor refuses to or is unable to perform the Services or is in breach of any material provision of this Agreement.

 

C. Survival. Upon any termination, all rights and duties of the Company and Contractor toward each other shall cease except:

 

(1) The Company will pay, within thirty (30) days after the effective date of termination, all amounts owing to Contractor for Services completed and accepted by the Company prior to the termination date and related reimbursable expenses, if any, submitted in accordance with the Company’s policies and in accordance with the provisions of Section 1 of this Agreement; and

 

The Healing Company, Inc.

Independent Contractor Agreement (Tobias)

 
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(2) Section 2 (Confidentiality), Section 3 (Ownership), Section 4 (Conflicting Obligations), Section 5 (Return of Company Materials), Section 6 (Term and Termination), Section 7 (Independent Contractor; Benefits), Section 8 (Indemnification), Section 9 (Non-solicitation), Section 10 (Limitation of Liability), Section 11 (Arbitration and Equitable Relief), and Section 12 (Miscellaneous) will survive termination or expiration of this Agreement in accordance with their terms.

 

7. Independent Contractor; Benefits.

 

A. Independent Contractor. It is the express intention of the Company and Contractor that Contractor perform the Services as an independent contractor to the Company. Nothing in this Agreement shall in any way be construed to constitute Contractor as an agent, employee or representative of the Company. Without limiting the generality of the foregoing, Contractor is not authorized to bind the Company to any liability or obligation or to represent that Contractor has any such authority. Contractor agrees to furnish (or reimburse the Company for) all tools and materials necessary to accomplish this Agreement and shall incur all expenses associated with performance. Contractor acknowledges and agrees that Contractor is obligated to report as income all compensation received by Contractor pursuant to this Agreement. Contractor agrees to and acknowledges the obligation to pay all self-employment and other taxes on such income.

 

B. No Employment Benefits. The Company and Contractor agree that Contractor will receive no Company-sponsored benefits from the Company where benefits include, but are not limited to, sick leave, medical insurance and 401k participation. If Contractor is reclassified by a state or federal agency or court as the Company’s employee, Contractor will become a reclassified employee and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the Company’s benefit plans or programs of the Company in effect at the time of such reclassification, Contractor would otherwise be eligible for such benefits.

 

C. Paid Time Off. Notwithstanding Section 7.B, Contractor may take time off for regenerative, medical, vacation or other purposes from time to time, in amounts that are in line with the Company’s Paid Time Off Policy as set forth in the Company’s Employee Handbook, as amended from time to time. The scope and amount of time off shall be agreed to in advance by both Parties, and shall not affect Contractor’s right to the compensation referenced in Exhibit A hereto.

 

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8. Indemnification.

 

A. Indemnification of Contractor. Company agrees to indemnify and hold harmless Contractor and its officers and employees from and against all losses, claims, damages, liabilities, judgments, costs and expenses, including attorneys’ fees and other legal expenses in connection with defending Contractor in any litigation, whether commenced or threatened, in connection with any claim, action or proceeding to which Contractor becomes subject, whether or not resulting in any liability, caused by, arising out of any Services provided to the Company by the Contractor under this Agreement; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, or liability is found to have resulted from the negligence, bad faith, fraud or misconduct of Contractor or Contractor’s assistants, employees, contractors, or agents.

 

B. Indemnification of Company. Contractor agrees to indemnify and hold harmless the Company and its affiliates and their directors, officers and employees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in connection with (i) any negligent, reckless or intentionally wrongful act of Contractor or Contractor’s assistants, employees, contractors or agents, (ii) a determination by a court or agency that the Contractor is not an independent contractor, (iii) any breach by the Contractor or Contractor’s assistants, employees, contractors, or agents of any of the covenants contained in this Agreement and corresponding Confidential Information and Invention Assignment Agreement, (iv) any failure of Contractor to perform the Services in accordance with all applicable laws, rules and regulations, or (v) any violation or claimed violation of a third party’s rights resulting in whole, or in part, from the Company’s use of the Inventions or other deliverables of Contractor under this Agreement.

 

9. Nonsolicitation. To the fullest extent permitted under applicable law, from the date of this Agreement until twelve (12) months after the termination of this Agreement for any reason (the “Restricted Period”), Contractor will not, without the Company’s prior written consent, directly or indirectly, solicit any of the Company’s employees to leave their employment, or attempt to solicit employees of the Company, either for Contractor or for any other person or entity. Contractor agrees that nothing in this Section 9 shall affect Contractor’s continuing obligations under this Agreement during and after this twelve (12) month period, including, without limitation, Contractor’s obligations under Section 2.

 

10. Limitation of Liability. IN NO EVENT SHALL THE COMPANY BE LIABLE TO CONTRACTOR OR TO ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS OR LOSS OF BUSINESS, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER COMPANY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. IN NO EVENT SHALL COMPANY’S LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT EXCEED THE AMOUNTS PAID BY COMPANY TO CONTRACTOR UNDER THIS AGREEMENT FOR THE SERVICES, DELIVERABLES OR INVENTION GIVING RISE TO SUCH LIABILITY.

 

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11. Arbitration and Equitable Relief.

 

A. Arbitration. IN CONSIDERATION OF CONTRACTOR’S CONTRACTOR RELATIONSHIP WITH THE COMPANY, ITS PROMISE TO ARBITRATE ALL DISPUTES RELATED TO CONTRACTOR’S CONTRACTOR RELATIONSHIP WITH THE COMPANY AND CONTRACTOR’S RECEIPT OF THE COMPENSATION AND OTHER BENEFITS PAID TO CONTRACTOR BY COMPANY, AT PRESENT AND IN THE FUTURE, CONTRACTOR AGREES THAT ANY AND ALL CONTROVERSIES, CLAIMS, OR DISPUTES WITH ANYONE (INCLUDING COMPANY AND ANY EMPLOYEE, OFFICER, DIRECTOR, SHAREHOLDER OR BENEFIT PLAN OF THE COMPANY IN THEIR CAPACITY AS SUCH OR OTHERWISE), ARISING OUT OF, RELATING TO, OR RESULTING FROM CONTRACTOR’S CONTRACTOR OR OTHER RELATIONSHIP WITH THE COMPANY OR THE TERMINATION OF CONTRACTOR’S CONTRACTOR OR OTHER RELATIONSHIP WITH THE COMPANY, INCLUDING ANY BREACH OF THIS AGREEMENT, SHALL BE SUBJECT TO BINDING ARBITRATION UNDER THE FEDERAL ARBITRATION ACT AND PURSUANT TO THE ARBITRATION PROVISIONS SET FORTH IN NEVADA RULES OF CIVIL PROCEDURE (THE “NRCP ACT”) AND PURSUANT TO NEVADA LAW. THE FEDERAL ARBITRATION ACT GOVERNS THIS AGREEMENT AND SHALL CONTINUE TO APPLY WITH FULL FORCE AND EFFECT NOTWITHSTANDING THE APPLICATION OF PROCEDURAL RULES SET FORTH IN THE NRCP ACT AND NEVADA LAW. CONTRACTOR AGREES TO ARBITRATE ANY AND ALL COMMON LAW AND/OR STATUTORY CLAIMS UNDER LOCAL, STATE, OR FEDERAL LAW, INCLUDING, BUT NOT LIMITED TO, CLAIMS UNDER THE NEVADA LABOR LAWS, CLAIMS RELATING TO EMPLOYMENT OR INDEPENDENT CONTRACTOR STATUS, CLASSIFICATION, AND RELATIONSHIP WITH THE COMPANY, AND CLAIMS OF BREACH OF CONTRACT, EXCEPT AS PROHIBITED BY LAW. CONTRACTOR ALSO AGREES TO ARBITRATE ANY AND ALL DISPUTES ARISING OUT OF OR RELATING TO THE INTERPRETATION OR APPLICATION OF THIS AGREEMENT TO ARBITRATE, BUT NOT TO DISPUTES ABOUT THE ENFORCEABILITY, REVOCABILITY OR VALIDITY OF THIS AGREEMENT TO ARBITRATE OR ANY PORTION HEREOF OR THE CLASS, COLLECTIVE AND REPRESENTATIVE PROCEEDING WAIVER HEREIN. WITH RESPECT TO ALL SUCH CLAIMS AND DISPUTES THAT CONTRACTOR AGREES TO ARBITRATE, CONTRACTOR HEREBY EXPRESSLY AGREES TO WAIVE, AND DOES WAIVE, ANY RIGHT TO A TRIAL BY JURY. CONTRACTOR FURTHER UNDERSTANDS THAT THIS AGREEMENT TO ARBITRATE ALSO APPLIES TO ANY DISPUTES THAT THE COMPANY MAY HAVE WITH CONTRACTOR.

 

B. Procedure. CONTRACTOR AGREES THAT ANY ARBITRATION WILL BE ADMINISTERED BY JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. (“JAMS”) PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (THE “JAMS RULES”), WHICH ARE AVAILABLE AT http://www.jamsadr.com/rules- employment-arbitration/. CONTRACTOR AGREES THAT THE USE OF THE JAMS RULES DOES NOT CHANGE CONTRACTOR’S CLASSIFICATION TO THAT OF AN EMPLOYEE. TO THE CONTRARY, CONTRACTOR REAFFIRMS THAT CONTRACTOR IS AN INDEPENDENT CONTRACTOR. CONTRACTOR AGREES THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION AND MOTIONS TO DISMISS AND DEMURRERS APPLYING THE STANDARDS SET FORTH UNDER THE NEVADA RULES OF CIVIL PROCEDURE. CONTRACTOR AGREES THAT THE ARBITRATOR SHALL ISSUE A WRITTEN DECISION ON THE MERITS. CONTRACTOR ALSO AGREES THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW, AND THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY WHERE PROVIDED BY APPLICABLE LAW. CONTRACTOR AGREES THAT THE DECREE OR AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED AS A FINAL AND BINDING JUDGMENT IN ANY COURT HAVING JURISDICTION THEREOF. CONTRACTOR AGREES THAT THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH NEVADA LAW, INCLUDING THE NEVADA RULES OF CIVIL PROCEDURE AND THE NEVADA RULES OF EVIDENCE, AND THAT THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL NEVADA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO RULES OF CONFLICT OF LAW. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH NEVADA LAW, NEVADA LAW SHALL TAKE PRECEDENCE. CONTRACTOR FURTHER AGREES THAT ANY ARBITRATION UNDER THIS AGREEMENT SHALL BE CONDUCTED IN NEVADA.

 

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C. Remedy. Except as provided by the NRCP Act and this Agreement, arbitration shall be the sole, exclusive, and final remedy for any dispute between Contractor and the Company. Accordingly, except as provided for by the NRCP Act and this Agreement, neither Contractor nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.

 

D. Availability of Injunctive Relief. In accordance with the Nevada rules of Civil Procedure, the Parties agree that any Party may also petition the court for injunctive relief where either Party alleges or claims a violation of any agreement regarding intellectual property, confidential information or noninterference. In the event either Party seeks injunctive relief, the prevailing Party shall be entitled to recover reasonable costs and attorneys’ fees.

 

E. Administrative relief. Contractor understands that except as permitted by law this agreement does not prohibit Contractor from pursuing certain administrative claims with local, state, or federal administrative bodies or government agencies such as the Nevada Equal Rights Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, or the Workers’ Compensation Board. This Agreement does, however, preclude Contractor from bringing any alleged wage claims with the labor commissioner.

 

F. Voluntary Nature of Agreement. Contractor acknowledges and agrees that Contractor is executing this Agreement voluntarily and without any duress or undue influence by the company or anyone else. Contractor further acknowledges and agrees that contractor has carefully read this Agreement and that Contractor has asked any questions needed for Contractor to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Contractor is waiving contractor’s right to a jury trial. Finally, Contractor agrees that Contractor has been provided an opportunity to seek the advice of an attorney of Contractor’s choice before signing this Agreement.

 

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12. Miscellaneous.

 

A. Governing Law; Consent to Personal Jurisdiction. This Agreement shall be governed by the laws of the State of Nevada, without regard to the conflicts of law provisions of any jurisdiction. To the extent that any lawsuit is permitted under this Agreement, the Parties hereby expressly consent to the personal and exclusive jurisdiction and venue of the state and federal courts located in Nevada.

 

B. Assignability. This Agreement will be binding upon Contractor’s heirs, executors, assigns, administrators, and other legal representatives, and will be for the benefit of the Company, its successors, and its assigns. There are no intended third-party beneficiaries to this Agreement, except as expressly stated. Except as may otherwise be provided in this Agreement, Contractor may not sell, assign, or delegate any rights or obligations under this Agreement. Notwithstanding anything to the contrary herein, Company may assign this Agreement and its rights and obligations under this Agreement to any successor to all or substantially all of Company’s relevant assets, whether by merger, consolidation, reorganization, reincorporation, sale of assets or stock, change of control or otherwise.

 

C. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter herein and supersedes all prior written and oral agreements, discussions, or representations between the Parties. Contractor represents and warrants that Contractor is not relying on any statement or representation not contained in this Agreement. To the extent any terms set forth in any exhibit or schedule conflict with the terms set forth in this Agreement, the terms of this Agreement shall control unless otherwise expressly agreed by the Parties in such exhibit or schedule.

 

D. Headings. Headings are used in this Agreement for reference only and shall not be considered when interpreting this Agreement.

 

E. Severability. If a court or other body of competent jurisdiction finds, or the Parties mutually believe, any provision of this Agreement, or portion thereof, to be invalid or unenforceable, such provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full force and effect.

 

F. Modification; Waiver. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in a writing signed by the Parties. Waiver by the Company of a breach of any provision of this Agreement will not operate as a waiver of any other or subsequent breach.

 

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G. Notices. Any notice or other communication required or permitted by this Agreement to be given to a Party shall be in writing and shall be deemed given (i) if delivered personally or by commercial messenger or courier service, (ii) when sent by confirmed email or facsimile, or (iii) if mailed by U.S. registered or certified mail (return receipt requested), to the Party at the Party’s address written below or at such other address as the Party may have previously specified by like notice. If by mail, delivery shall be deemed effective three business days after mailing in accordance with this Section 12.G.

 

(1) If to the Company, to:

 

Fauver, Large, Archbald and Spray, LLP

Attention: Trevor Large, Esq.

820 State St., 4th Floor

Santa Barbara, CA 93101

 

(2) If to Contractor, to the address in the introduction paragraph to this Agreement or, if no such address is provided, to the last address of Contractor provided by Contractor to the Company.

 

H. Attorneys’ Fees. In any court action at law or equity that is brought by one of the Parties to this Agreement to enforce or interpret the provisions of this Agreement, the prevailing Party will be entitled to reasonable attorneys’ fees, in addition to any other relief to which that Party may be entitled.

 

I. Signatures. This Agreement may be signed in two counterparts, each of which shall be deemed an original, with the same force and effectiveness as though executed in a single document.

 

J. Applicability to Past Activities. Contractor agrees that if and to the extent that Contractor provided any services or made efforts on behalf of or for the benefit of Company, or related to the current or prospective business of Company in anticipation of Contractor’s involvement with the Company, that would have been “Services” if performed during the term of this Agreement (the “Prior Consulting Period”) and to the extent that during the Prior Consulting Period: (i) Contractor received access to any information from or on behalf of Company that would have been “Confidential Information” if Contractor received access to such information during the term of this Agreement; or (ii) Contractor (a) conceived, created, authored, invented, developed or reduced to practice any item (including any intellectual property rights with respect thereto) on behalf of or for the benefit of Company, or related to the current or prospective business of Company in anticipation of Contractor’s involvement with Company, that would have been an Invention if conceived, created, authored, invented, developed or reduced to practice during the term of this Agreement, or (b) incorporated into any such item any pre-existing invention, improvement, development, concept, discovery or other proprietary information that would have been a Prior Invention if incorporated into such item during the term of this Agreement; then any such information shall be deemed Confidential Information hereunder and any such item shall be deemed an Invention or Prior Invention hereunder, and this Agreement shall apply to such activities, information or item as if disclosed, conceived, created, authored, invented, developed or reduced to practice during the term of this Agreement. Contractor further acknowledges that Contractor has been fully compensated for all services provided during any such Prior Consulting Period.

 

K. Protected Activity Not Prohibited. Contractor understands that nothing in this Agreement shall in any way limit or prohibit Contractor from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission (“Government Agencies”). Contractor understands that in connection with such Protected Activity, Contractor is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Contractor agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information to any parties other than the Government Agencies. Contractor further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. Pursuant to the Defend Trade Secrets Act of 2016, Contractor is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

 

(signature page follows)

 

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

 

CONTRACTOR

  THE HEALING COMPANY, INC.

 

 

       

By:

By:

Name:

Katie Tobias

 

Name:

Larson Elmore  

Title:

Founder

  Title: CEO  

 

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EXHIBIT A

 

SERVICES AND COMPENSATION

 

1. Contact. Contractor’s principal Company contact:

 

Name: Katie Tobias

 

Title: Founder

 

Email: tobias.katie@gmail.com

 

Phone: 3122068180

 

2. Services.

 

At the Company’s direction, Tobias, by and through Contractor, will serve as Chief Marketing Officer of the Company, and will perform the following Services for the Company, including:

 

A. Various marketing services, brand and go-to-market strategy, and other operational services spanning brand, growth, retention, public relations, creative, and partnerships matters; and

 

B. Other services upon request of, and at the direction of, the Company’s Board of Directors of the Company (the “Board”) and CEO from time to time.

 

Contractor shall provide the Services on a “ramp up” schedule according to the following anticipated basis:

 

·

2-3 days per week beginning Jan 1, 2022, for an anticipated total of ten (10) working days of Services in January; and

 

 

·

Full-time (at least forty (40) hours of Services per week) beginning Feb 1, 2022 and continuing thereafter for the Term.

 

Contractor understands that the aforementioned schedule is based on anticipated needs and is an estimate only, and the Company may require additional time from Contractor, in the Company’s sole discretion.

 

3. Compensation.

 

A. Cash Compensation. The Company will pay Contractor $240,000.00 per annum, payable monthly in arrears within fifteen (15) days of the Company’s receipt of an invoice for Services from Contractor month beginning January 2022.

 

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B. Reimbursements.

 

(1) General. The Company will reimburse Contractor, in accordance with Company policy, for all reasonable expenses incurred by Contractor in performing the Services pursuant to this Agreement, if Contractor receives written consent from an authorized agent of the Company prior to incurring such expenses and submits receipts for such expenses to the Company in accordance with Company policy.

 

(2) Healthcare. In further consideration of the Contractor’s provision of the Services, the Company shall provide an annual stipend to Contractor during the Term for Contractor’s and Contractor’s employees’ healthcare related expenses, not to exceed $5,000.00 per annum.

 

(3) Chief and Coaching Reimbursement. Additionally, the Company shall reimburse Contractor for Contractor’s expenses for Tobias’s (1) enrollment in coaching programs, and (2) annual membership of Chief, up to an aggregate maximum of $10,000.00 per annum.

 

(4) Reimbursement Procedure. Every month, simultaneously with the submission of invoices for Services under Section 3.A of this Exhibit A, Contractor shall submit to the Company a written invoice for all expenses to be reimbursed under this Section 3.B, and such statement shall be subject to the approval of the contact person listed above or other designated agent of the Company. The Company will remit payment for properly submitted and approved invoices within fifteen (15) days following receipt of the invoices by the Company. In order to help prevent adverse tax consequences to Contractor under Section 409A (as defined below), in no event will any payment under Section 3.A. of this Exhibit be made later than the later of March 15th of the calendar year following the calendar year in which such payment was earned.

 

A. Equity Compensation. On the Start Date, the Company will grant you an option (“Option”) to purchase seven hundred and seventy thousand (770,000) shares of Common Stock in accordance with the terms of the Company’s Equity Incentive Plan and its standard employee stock option grant agreement, which shall vest in accordance with the terms and conditions outlined in the plan and agreement, and otherwise as described in this Agreement. The Option shall be exercisable at the fair market value of the Common Stock as determined by the Company’s 2021 409A valuation and shall have a term of ten years. The shares subject to the Option (“Shares”) shall vest ratably over the four (4) year period commencing on the Employment Start Date (“Vesting Start Date”) as follows: 25% upon the 12 month anniversary of the Vesting Start Date, and at a rate of 1/48 of the number of shares initially subject to the Option for each full calendar month thereafter (such that 100% of the Shares shall be vested as of the fourth anniversary of the Vesting Start Date), provided that Employee is employed by the Company on each such vesting date.

 

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B. All payments and benefits provided for under this Agreement are intended to be exempt from or otherwise comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance thereunder (together, “Section 409A”), so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be exempt or so comply. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. In no event will the Company reimburse Contractor for any taxes that may be imposed on Contractor as a result of Section 409A.

 

This Exhibit A is accepted and agreed upon as of January 1, 2022.

  

CONTRACTOR

  THE HEALING COMPANY, INC.

 

 

       

By:

By:

Name:

Katie Tobias

 

Name:

Larson Elmore  

Title:

Founder

  Title: CEO  

 

 

 

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Independent Contractor Agreement (Tobias)

 
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EXHIBIT 10.8

 

AGREEMENT OF SERVICES

 

THIS CONTRACT IS ENTERED INTO ON 10th January 2022 BETWEEN:

 

(1)            FLIGHT STORY LIMITED a company registered in England whose registered office is at 4th Floor 131 Shoreditch High Street, London, E1 6JE and registered number is 13441974 (FSL); and

 

(2)            THE HEALING COMPANY a company registered in USA whose registered office is at 711 S Carson Street, Suite 4, Carson City, NV 89701 and registered number is 26-2862618 (Client).

 

BACKGROUND

 

(A)           The Client wishes to purchase and FSL wishes to provide a range of services and deliverables as more particularly described in one or more Statements of Work on a project basis.

 

(B)            The parties agree that such services and deliverables shall be supplied in accordance with the terms of this Contract.

 

NOW IT IS AGREED AS FOLLOWS

 

1. Definitions

 

1.1 In these conditions (unless the context otherwise requires):

 

Advertising Regulation: any present or future applicable code of practice or adjudication of the Committee of Advertising Practice, Broadcast Committee of Advertising Practice or the Advertising Standards Authority and includes any applicable modification, extension or replacement thereof in force from time to time, together with other USA and UK laws, statutes and regulations which are directly applicable to the Services, including but not limited to the Federal Trade Commission Act, the CAN-SPAM Act, the California Consumer Privacy Act, Children’s Online Privacy Protection Act, the Telephone Consumer Protection Act, and the Foreign Corrupt Practices Act.

 

Affiliates: any company, partnership or other entity which at any time directly or indirectly controls, is controlled by or is under common control with either party including as a subsidiary, parent or holding company.

 

Associates: a party’s employees, officers, agents, sub-contractors or authorised representatives.

 

Flight Story Limited – Terms and Conditions

 

 

Assumption: any preconditions or requirements (if any) that must (as the case maybe) be in place, true or met for the Campaign to be properly delivered by FSL to the Client which is set out in the applicable Statement of Work.

 

Authorised Persons: those personnel of FSL and the Client specified in the applicable Statement of Work who have the authority to contractually bind FSL and the Client in all matters relating to this Contract.

 

Business Day: a day (other than a Saturday or a Sunday) when clearing banks are open for the conduct of normal banking business in London. 

 

Campaign: any project(s) agreed between the parties from time to time under which FSL is to perform Services and supply Deliverables to the Client, as more fully described in this Contract and the applicable Statement of Work.

 

Campaign Duration: has the meaning set out in the applicable Statement of Work. 

 

Client Materials: any data, client equipment, computer systems, software, documents, copy, Intellectual Property Rights, artwork, logos and any other materials or information concerning Client or Client’s Confidential Information that is owned by or licensed to the Client which are provided to FSL and/or its Associates by or on behalf of the Client.

 

Client Obligations: those obligations (if any) set out in the applicable Statement of Work which must be performed by the Client in order for FSL to be able to perform the Deliverables.

 

Commencement Date: has the meaning set out in the applicable Statement of Work. 

 

Contact Information: the contact details (Sales Representative, Primary Contact and other) set out in the applicable Statement of Work and where pursuant to condition 21 FSL will send correspondence.

 

Contract: this document and the applicable Statement of Work.

 

Deliverables: the advertising, creative and other materials which are to be provided by FSL as specified in a Statement of Work which comprise the Campaign, including Third Party Materials and FSL Proprietary Materials where applicable.

 

Effective Date: means the date of this Contract. 

 

Entity: any company, limited liability partnership, limited partnership or partnership. 

 

Feedback: the analysis of the Campaign that FSL will disclosed to the Client either during the Campaign and / or at the end of the Campaign.

 

Flight Story Limited – Terms and Conditions

 

 

Force Majeure Event: any act, event, non-happening, omission or accident beyond a party's reasonable control, including but not limited to: strikes; lock-outs or other industrial action; civil commotion; riot; invasion, war (whether declared or not) or threat of or preparation for war; fire, explosion, storm, flood, earthquake, subsidence, epidemic, pandemic or other natural disaster; impossibility of the use of railways, shipping, aircraft, motor transport or any other means of public or private transport; or compliance with any law or governmental order, rule, regulation or direction.

 

Fees: the sums set out in the Payment Details which are payable by the Client to FSL in respect of the Deliverables.

 

General Terms: the terms and conditions set out in this Contract but not including any Schedules and/or Statements of Work.

 

Intellectual Property Rights: all patents, rights to inventions, utility models, copyright and related rights, trademarks, service marks, trade, business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database right, typography rights, moral rights, rights in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications for and renewals or extensions of

such rights, and all similar or equivalent rights or forms of protection in any part of the world. 

 

Losses: losses, damages, liabilities, claims, demands, actions, penalties, fines, awards, costs and expenses (including reasonable legal and other professional expenses), subject to condition 18.

 

Materials: any artwork, copy, models, designs, photographs, commercial, feature film, character, music, voice over, sound recording, performance, book, painting, logo, or any other material protected by Intellectual Property Rights, but not including any software.

 

Moral Rights: all rights described in Part I, Chapter IV of the Copyright Designs and Patents Act 1988 and any similar rights of authors anywhere in the world.

 

Payment Details: the relevant details of the applicable Statement of Work which regulate what Fees are due (including discounts) and when the Fees are due to be paid.

 

Payment Schedule: the specific entries of the Payment Details which set out the terms by which the Client will pay the Fees.

 

Primary Contact: the person(s) detailed in the applicable Statement of Work who FSL understand are duly authorised to manage the Campaign on behalf of the Client.

 

Progress Meetings: meetings between the parties as set out in the applicable Statement of Work whereby FSL provides the Client with status reports advising the Client of FSL's progress regarding the Campaign.

 

Schedule: a schedule attached to this agreement, signed by the parties.

 

FSL Proprietary Materials: software (including all programming code in object and source code form), methodology, know-how and processes and Materials in relation to which the Intellectual Property Rights are owned by (or licensed to) FSL and which are:

 

(i)              in existence prior to the date on which it is intended to use them for a Campaign; or

(ii)             created by or for FSL outside of a Campaign and which are intended to be reused across its business.

 

 

Flight Story Limited – Terms and Conditions

 

 

Services: the Services to be supplied by FSL under this Contract as set out in the relevant Statement of Work, which includes the provision of Deliverables.

 

Statement of Work: one or more documents in the form set out in Schedule 1 or similar form as agreed and signed by the parties from time to time containing a description of the relevant Campaign.

 

Term: the period commencing on the Effective Date and ending on the effective date of termination of this Contract in accordance with condition 17.

 

Territory: the United Kingdom and the United States of America, unless expressly specified otherwise in the applicable Statement of Work. Publication and marketing on globally accessible mediums such as the internet shall not mean that the Territory is deemed to be world-wide.

 

Third Party Materials: those Materials which are either commissioned by FSL from third parties during the Term and incorporated into the Deliverables, or which have been created by a third party and which are in existence at the time it is desired to make use of them for inclusion in the Deliverables, but which excludes software which is owned or licensed by a third party.

 

1.2               Headings in this document shall not affect their interpretation.

 

1.3               As referred to in conditions 26.1 and 26.2 the Statement of Work forms part of the Contract. Any revisions to the Statement of Work may also form part of these conditions.

 

1.4               A reference to writing or written does not include e-mail.

 

1.5               Any obligation in the Contract on a person not to do something includes, without limitation, an obligation not to agree, allow, permit or acquiesce in that thing being done.

 

1.6               References to conditions are to the provisions of this document.

 

2. Application of the Contract

 

2.1               This Contract shall prevail over any inconsistent terms or conditions contained, or referred to, in any purchase order or confirmation of order produced by the Client, acceptance of a quotation, or specification or other document supplied by the Client, or implied by law, trade custom, practice or course of dealing.

 

2.2               The Client's standard terms and conditions (if any) attached to, enclosed with or referred to in any purchase order or other document shall not govern the Contract.

 

Flight Story Limited – Terms and Conditions

 

 

3. Appointment and Statements of Work

 

3.1               During the Term, FSL shall perform the Services and (where relevant) shall supply the Deliverables to the Client in the Territory in accordance with agreed Statements of Work.

 

3.2               The parties may agree new Campaigns from time to time by agreeing a new Statement of Work in writing. Once a Statement of Work has the signature of both parties' Authorised Persons, such Statement of Work shall automatically form part of this Contract.

 

3.3               A Statement of Work may include one or more Schedules which incorporate additions and amendments to these General Terms to reflect the different types of Services to be provided for the relevant Campaign. Any such Schedules shall form part of this Contract only for the duration of the relevant Campaign set out in the Statement of Work.

 

3.4               FSL will not be obliged to perform any work on behalf of the Client until the Statement of Work has been signed by both parties.

 

4. Term

 

4.1               This Contract shall commence on the Effective Date and shall continue until terminated in accordance with condition 17.

 

4.2               Each Campaign shall commence on the Commencement Date and shall continue until expiry of the Campaign Duration, subject to earlier termination in accordance with the terms of condition 17.

 

5. Fees

 

5.1               The Fees specified and all other sums payable to FSL are exclusive of Value Added Tax and any other applicable sales tax (unless otherwise stated) which shall also be payable by the Client at the rate prevailing from time to time.

 

5.2               Unless the Fees specified are fixed Fees, the Fees specified do not include travel, hotel or subsistence expenses or the cost of materials and external services incurred in providing the Deliverables. FSL shall be responsible for all costs and fees related to or arising out of the Services unless otherwise agreed to in advance by Client. All expenses for which Client may reimburse FSL shall be authorized in advance in writing and supported by receipts.

 

5.3               FSL reserves the right to revise the fee rates if a change to the Deliverables is agreed pursuant to condition 9.2. Any such change will be:

 

5.3.1           notified to the Client for approval;

 

5.3.2           reasonable and proportionate to the agreed change to the Deliverables; and

 

5.3.3           if the Client does not agree to the revised fee then FSL is under no obligation to deliver the revised Deliverables.

 

Flight Story Limited – Terms and Conditions

 

 

6. Third Party Costs

 

6.1               Unless the Fees specified are fixed Fees, FSL will invoice the Client in respect of all third party costs incurred by FSL on behalf of the Client in performing the Services, subject to the Client approving all such costs in advance in writing ("Third Party Costs").

 

7. Payment

 

7.1               FSL shall submit an invoice in respect of the Fees in accordance with the Payment Schedule.

 

7.2               If the Client fails to pay any sum due under this Contract within thirty (30) days of its due date (except in the event of termination by either party or breach by FSL):

 

7.2.1           the Client recognises that FSL may incur administration time and costs that may be caused by the Client’s failure to pay the invoice in accordance with these Terms and FSL is entitled to recover such costs.

 

7.3               If the Client fails to pay any sum due under this Contract, FSL may, without prejudice to any other remedy, suspend the Campaign until the payment is made; in which case the Fees shall be increased by the amount of the costs and expenses of FSL occasioned by such suspension and the subsequent resumption of work and the Client shall grant a reasonable extension of time to conclude the Campaign.

 

8. Non Solicitation

 

8.1               Both the Client and FSL agrees that during the duration of the Campaign and for twelve (12) months thereafter it shall not employ or engage whether directly or indirectly on any other basis or offer such employment or engagement to any person employed or engaged by FSL who has been associated with the Campaign without FSL's prior agreement in writing. This provision does not apply to person who independently applies for employment to Client through published job openings.

 

9. The Campaign

 

9.1               FSL shall provide the Client with status reports advising the Client of FSL's progress regarding the Campaign. The frequency of the Progress Meetings and how the Campaign will be evaluated shall be as set out in the Statement of Work. The parties acknowledge that should (for whatever reason) FSL does not provide status reports then that is a breach of warranty of the Contract and not a condition of the Contract and will not entitle the Client to withhold payment of Fees.

 

9.2               Either party can request changes to the Campaign at any time. Each party shall have the right to reject on reasonable grounds any such change requested by the other party. The Statement of Work will be updated to include the relevant changes and the revisions will form part of the Contract.

 

 

Flight Story Limited – Terms and Conditions

 

 

9.3               The Client recognises that FSL will not organise a campaign that FSL believes is likely to:

 

9.3.1           mislead consumers; or

 

9.3.2           breach the rights conferred on consumers by law; or

 

9.3.3           breach the guidelines of the Advertising Standards Agency (Prohibited Behaviour).

 

9.4               If FSL consider that a campaign falls into in a manner that is Prohibited Behaviour FSL shall on written notice suspend the Campaign and unless FSL’s concerns are rectified the campaign shall terminate.

 

10. FSL Obligations

 

10.1             Until Client notifies FSL otherwise, the following procedure shall apply to publication and distribution of all media: FSL will provide to Client a copy of each proposed media for publication or distribution for Client’s review at least five business days before planned publication or distribution of the media. Client will either approve the media, reject the media, or approve the media contingent on changes being made, in each case in writing. Each media will only be published or distributed if approved in writing by Client. If media is approved in writing contingent upon changes being made, FSL will resubmit the media to Wejo at least two business days prior to the planned publication and will not be published unless approved in writing by media.

 

11. Client Obligations

 

11.1            The Client acknowledges that the performance by FSL of the Campaign is dependent upon the Client's prompt performance of the Client Obligations which include, among others, the responsibilities described in this condition 11 and the Statement of Work.

 

11.2             The Client will give FSL full and clear instructions as to its requirements for the Services and Deliverables to be included in a Statement of Work, including full details of the dates by which each stage of the proposed Services and Deliverables are to commence and finish.

 

11.3             The Client will promptly supply to FSL (at no charge) any Client Materials reasonably required by FSL or otherwise necessary to provide the Services and Deliverables and shall ensure that it has all rights and licences in place to enable use by FSL of all Client Materials.

 

11.4             The Client agrees to make available to FSL an Authorised Person named in the Statement of Work who shall be authorised to make binding decisions for the Client with regard to this Contract, including any change to the Campaign or other variation hereto.

 

11.5             Where participation by, or access by FSL to, the Client's personnel is necessary for the Campaign, the Client shall procure such personnel to be available at the times reasonably required by FSL. The Client shall use its best endeavours to meet any reasonable timetable proposed by FSL. Furthermore, where such personnel participate in the Campaign, the Client shall ensure that such personnel possess the appropriate skills and experience for the tasks assigned to them.

 

 

Flight Story Limited – Terms and Conditions

 

 

11.6             The Client shall notify FSL in writing should it become aware of any information which it considers or suspects may impact upon the Campaign, including if the Client considers that any Deliverables submitted to the Client by FSL for approval are false or misleading or in any way contrary to law or applicable Advertising Regulation.

 

11.7             If the Client does not consistently fulfil its obligations under or in connection with this Contract (including its payment obligations), then to the extent that such failure prevents FSL from performing any Services and/or providing any Deliverables in accordance with this Contract, FSL will be relieved of its obligations to the Client, and FSL shall not be liable for any Losses incurred by the Client as a result of any such failure. In the event that FSL terminates the Agreement pursuant to this Section 11.7, Client shall have no further obligations to FSL hereunder, including the payment of Fees.

 

12. Service Delivery

 

12.1          FSL will give the Client full and clear instructions as to the Client Materials it reasonably requires for the purposes of performing the Services and providing the Deliverables.

 

12.2          FSL shall:

 

(a)           apply such time, attention, and reasonable skill and care as may be necessary or appropriate for its proper performance of the Services and provision of the Deliverables;

 

(b)           comply with all lawful and reasonable directions regarding the Services and Deliverables communicated to it from time to time by the Client (provided such directions do not materially deviate from or add to the Statement of Work);

 

(c)           keep Client Materials reasonably safe and secure while they are in the possession or control of FSL; and

 

(d)           deliver all Deliverables by the dates set out in the applicable Statement of Work or any other delivery date(s) agreed by the parties in writing.

 

12.3          If at any time FSL becomes aware that it may not be able to perform the Services or deliver any Deliverables by any date set out in the applicable Statement of Work (or any other deadline agreed by the parties in writing), FSL will promptly notify the Client and give details of the reasons for the delay. Any such delays in the delivery of any deliverables hereunder shall proportionately delay Client’s payment obligations hereunder.

 

13. Personnel

 

13.1          FSL will allocate suitable personnel with appropriate levels of experience and seniority to provide the Services. The Client acknowledges and agrees that it may be necessary for FSL to replace the personnel providing the Services with alternative personnel with similar levels of seniority and experience.

 

 

Flight Story Limited – Terms and Conditions

 

 

14. Campaign Management

 

14.1          During the Term, FSL will keep the Client fully informed as to the progress and status of all Services and Deliverables including through Progress Meetings. FSL will prepare and submit written reports at such intervals and in such format as is agreed by the parties and will promptly inform the Client of any actual or anticipated problems relating to delivery of the Deliverables.

 

15. Approval Process

 

15.1          Where a party is asked to give approval under or in connection with this Contract, such approval shall not be unreasonably withheld or delayed.

 

15.2          FSL may from time to time during Progress Meetings seek the Client's prior approval of any draft Deliverables and such approval will be FSL’s authority to proceed with the use of the relevant Deliverables.

 

15.3          In the event that the Client does not approve of any matter requiring approval it shall notify FSL of its reasons for disapproval within 5 days of FSL's request, or in accordance with any time frame set out in the Statement of Work or as otherwise agreed in writing. If the Client does not notify FSL of its disapproval in accordance with this condition 14.3, it shall be deemed approved.

 

15.4          In the event of any delay or failure of the Client giving approvals (or disapprovals) requested under or in connection with this Contract, FSL will not be liable for any resulting delays or adverse impact caused to the delivery of the Campaign.

 

15.5          Until Client notifies FSL otherwise, the following procedure shall apply to publication and distribution of all media: FSL will provide to Client a copy of each proposed media for publication or distribution for Client’s review at least five business days before planned publication or distribution of the media. Client will either approve the media, reject the media, or approve the media contingent on changes being made, in each case in writing. Each media will only be published or distributed if approved in writing by Client. If media is approved in writing contingent upon changes being made, FSL will resubmit the media to The Healing Company at least two business days prior to the planned publication and will not be published unless approved in writing by Client.

 

16. Intellectual Property Rights

 

16.1          FSL acknowledges that ownership of Client Materials and ownership of all Intellectual Property Rights in any Client Materials (including any modifications or adaptations of such Client Materials produced in the course of providing the Services and Deliverables) shall remain vested in the Client or its licensors. The Client hereby grants to FSL a non-exclusive, revocable licence during the applicable Campaign Term to use the Client Materials solely for the purposes of providing the Services and Deliverables.

 

16.2          Subject to the remaining provisions of this condition 16 and subject to FSL receiving payment of all applicable Fees, FSL shall assign to the Client absolutely with full title guarantee (by way of a present assignment of present and future rights) all of the Intellectual Property Rights in Campaign Materials which are delivered to and paid for by Client, and are capable of being assigned, together with the right to sue for past infringement of the Intellectual Property Rights in Campaign Materials.

 

Flight Story Limited – Terms and Conditions

 

 

16.3          The Client acknowledges that all Intellectual Property Rights in FSL Proprietary Materials shall be owned by and remain the property of and vested in FSL. Subject to FSL receiving payment of all Fees FSL hereby grants to the Client a non-exclusive, revocable (only for non-payment of applicable Fees) royalty-free licence to use such FSL Proprietary Materials as are included in the Deliverables, in the Territory, for so long as Client is not in material breach of this Agreement, and for the purposes set out

in the Statement of Work.

 

16.4          FSL shall use all reasonable endeavours to obtain all usage rights in the Third Party Materials as shall be necessary in order that the Client can use such Third Party Materials for the purposes set out in the Statement of Work. If FSL is unable to secure necessary usage rights for any Third Party Materials, FSL shall not incorporate those Third Party Materials into the Campaign Materials. FSL shall notify the Client in writing of any restrictions on usage and any other contractual restrictions arising in respect of such Third Party Materials, and if Client agrees to accept the Third Party Materials under the restrictions, the Client hereby indemnifies and keeps FSL indemnified against any Losses suffered by FSL as a result of the Client or its Affiliates breaching any such restrictions. If so requested by the Client, FSL shall use reasonable endeavours to obtain an assignment of the Intellectual Property Rights in the Third Party Materials at the Client's cost. FSL indemnifies and keeps Client indemnified against any Losses suffered by Client as a result of the FSL failing to procure usage rights to Third Party Materials necessary for the full use of any Third Party Materials in accordance with the Statement of Work and the Deliverables; this indemnity does not apply to any restrictions on usage agreed to by Client according to this paragraph.

 

16.5          FSL represents and warrants that its work under this Agreement and the Deliverables will not infringe, misappropriate, or violate any third party proprietary or intellectual property rights (whether copyright or any other recognizable intellectual property right), right to privacy or publicity of any third party, or constitute unfair competition or trade practices under the laws of any jurisdiction.

 

16.6          FSL agrees, at the Client’s request and expense, to take all such actions and execute all such documents as are necessary (in the Client’s reasonable opinion) to enable the Client to obtain, defend or enforce its rights in the Deliverables, and shall not do or fail to do any act which would or might prejudice the Client’s rights under this condition 16.

 

16.7          To the extent permitted by law and subject to FSL receiving payment of all applicable Fees, FSL shall ensure that all Moral Rights in FSL Proprietary Materials included in the Deliverables are waived (or where not lawfully possible to waive Moral Rights, FSL agrees not to assert any Moral Rights in respect of Campaign Materials). Subject to FSL receiving payment of all applicable Fees that are attributable to Campaign Materials, FSL shall use its reasonable endeavours to ensure that all Moral Rights in Third Party Materials are waived (or where not lawfully possible to waive Moral Rights, to procure that Moral Rights are not asserted in respect of Third Party Materials).

 

16.8          Notwithstanding any of the above and save as otherwise expressly provided for in a Statement of Work or the Schedule(s), FSL shall:

 

(a)     be able during and after the Term to use any Deliverables which have been broadcast, published, distributed or otherwise made available to the public, and the Client’s name and logo for the purposes of promoting its work and its business including on FSL’s website, in credentials pitches and in its showreel, provided that any such use by FSL shall be subject to the Client’s prior written approval granted in the Client’s sole discretion; and

(b)     retain all know-how obtained in connection with the Services and Deliverables.

 

16.9          For the avoidance of doubt, FSL shall not be liable under or in connection with this Contract for any modifications, adaptations or amendments to any Deliverables made by the Client or by a third party on the Client’s behalf, nor in the event that any fault, error, destruction or other degradation in the quality and/or quantity of the Deliverables arises due to the acts or omissions of the Client and/or its Associates.

 

16.10        The terms of and obligations imposed by this condition 16 shall survive the termination of this Contract for any reason.

 

Flight Story Limited – Terms and Conditions

 

 

17. Confidentiality and Publicity

 

17.1          Neither party shall during the term of this Contract or after its termination disclose to any third party any confidential information of the other party (except as required by law or with the prior written consent of the other party). "Confidential Information" of the other party means any document, material, idea, data or other information of whatever nature which is obtained either in writing, visually or electronically (including but without limitation to the generality of the foregoing, software, photographs, videos or recordings of visual images on any media and which relates either to FSL's or the Client's research and development, trade secrets or business affairs or which is marked confidential and disclosed by either party to the other for the purposes hereof). Confidential Information of the other party does not however include any document, material, idea, data, or other information which:

 

17.1.1        is known to the receiving party under no obligation of confidence, at the time of disclosure by the other party; or

 

17.1.2        is or becomes publicly known through no wrongful act of the receiving party; or

 

17.1.3        is lawfully obtained by the receiving party from a third party who in making such disclosure breaches no obligation of confidence to the other party; or

 

17.1.4        is independently developed by the receiving party; or

 

17.1.5        is disclosed by the other party to a third party under no obligation of confidence.

 

17.1.6       Notwithstanding this condition 17, if FSL receives actual notice that FSL is or may be required by law or legal process to communicate or divulge any such Confidential Information, unless otherwise prohibited by law or regulation, FSL shall promptly so notify the Client, and FSL shall ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own Confidential Information.

 

17.2          Neither party shall at any time, whether during the Term or at any time thereafter, without the prior written approval of the other party, use, disclose, exploit, copy or modify any of the other party’s Confidential Information, or authorise or permit any third party to do the same, other than for the sole purpose of the exercise of its rights and/or the performance of its obligations in connection with this Contract.

 

17.3          The Client acknowledges that nothing in this Contract shall affect FSL’s right to use as it sees fit any general marketing or advertising intelligence gained by FSL in the course of its appointment so long as such general marketing or advertising intelligence does not include and is not related to Client Materials or Client Confidential Information.

 

17.4          Each party hereby indemnifies the other party from and against all Losses arising out of or in connection with the other party’s breach of this condition 17, including breach by each party’s Associates.

 

17.5          The terms of and obligations imposed by this condition 17 shall survive the termination of this Contract for any reason.

 

Flight Story Limited – Terms and Conditions

 

 

18. Termination

 

18.1          The Client cannot terminate the Contract without Cause until the Campaign has been completed but if the Client without cause terminates prior to that the Client will pay FSL the outstanding fees.

 

18.2          Termination of Agreement for Cause. Client shall also have the right to terminate this Agreement immediately for Cause upon written notice to FSL. As used in this Agreement, “Cause” shall mean: (1) breach of any material obligation of FSL under this Agreement including, without limitation, confidentiality obligations; (2) commission by FSL of any act of dishonesty, fraud, theft or harassment in connection with the performance of the Services; (3) unethical or illegal conduct by FSL in connection with the performance of the Services; or (4) FSL’s neglect or poor performance of the Services which conduct continues or resumes after written notice to FSL.

 

18.3             Without prejudice to any other rights or remedies which the parties may have, either party may terminate the Contract without liability to the other immediately on giving written notice to the other if:

 

18.3.1        either party gives notice to terminate the Contract pursuant to condition 18.3;

 

18.3.2        the other party fails to pay any amount due under the Contract on the due date for payment and remains in default not less than seven days after being notified in writing to make such payment, or is deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986; or

 

18.3.3        the other party commits a material breach of any of the terms of the Contract and (if such a breach is remediable) fails to remedy that breach within 30 days of that party being notified in writing of the breach; or

 

18.3.4        the other party repeatedly breaches any of the terms of the Contract in such a manner as to reasonably justify the opinion that its conduct is inconsistent with it having the intention or ability to give effect to the terms of the Contract; or

 

18.3.5        the other party commences negotiations with all or any class of its creditors with a view to rescheduling any of its debts, or makes a proposal for or enters into any compromise or arrangement with its creditors other than for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party; or

 

18.3.6        a petition is filed, a notice is given, a resolution is passed, or an order is made, for or in connection with the winding up of that other party other than for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party; or

 

18.3.7        an application is made to court, or an order is made, for the appointment of an administrator or if a notice of intention to appoint an administrator is given or if an administrator is appointed over the other party; or

 

Flight Story Limited – Terms and Conditions

 

 

18.3.8        a creditor or encumbrancer of the other party attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of its assets and such attachment or process is not discharged within 14 days; or

 

18.3.9        In the event a party determines in good faith that continuation of the contract is harmful to the party’s brand or reputation;

 

18.3.10    the other party suspends or ceases, or threatens to suspend or cease, to carry on all or a substantial part of its business; or

 

18.3.11    there is a change of control of the other party (as defined in section 574 of the Capital Allowances Act 2001).

 

18.4             On termination of the Contract for any reason:

 

18.4.1        If FSL terminates this Agreement for any reason or Client terminates this Agreement pursuant to conditions 18.2 or 22, the Client shall immediately pay to FSL all of FSL's outstanding unpaid invoices and interest including during the notice period and, in respect of Deliverables supplied but for which no invoice has been submitted, FSL may submit an invoice, which shall be payable immediately on receipt;

 

18.4.2        (unless the Client lawfully terminates this Agreement pursuant to conditions 18.2 or 22, whereupon the Client’s exposure will be restricted to the sums referred to in condition 18.4.1) then the remaining Fees (as detailed on the relevant Payment Schedule) will become immediately due to be paid by the Client to FSL;

 

18.4.3        each party shall also promptly return to the other (1) all materials owned by the other (except for copies authorized under this Agreement), and (2) all Confidential Information of other party and provide to the other written confirmation that all such items have been returned or destroyed; and

 

18.4.4        the accrued rights and liabilities of the parties as at termination and the continuation of any provision expressly stated to survive or implicitly surviving termination (in particular but not limited to conditions 8.1, 8.2, 16, 17, and 20), shall not be affected.

 

19. Compliance with Laws and Regulations

 

19.1           FSL represents and warrants that all work under this Agreement will not violate any laws or Advertising Regulation. FSL’s publications and distributions hereunder will be in accordance with the guidelines established by the United States Federal Trade Commission (the “FTC”), including without limitation the FTC’s guidelines for endorsements in advertising and native advertising.

 

 

Flight Story Limited – Terms and Conditions

 

 

20. Limitation of Liability

 

20.1             Except in case of breach of warranty or indemnity, this condition 20 sets out the entire financial liability of FSL to the Client in respect of any breach of the Contract including any deliberate personal repudiatory breach by FSL and any representation, statement or tortious act or omission (including

negligence) arising under or in connection with the Contract.

 

20.2             Except as expressly stated, all contractual warranties, contractual conditions and other terms implied by statute or common law are, to the fullest extent permitted by law, excluded from the Contract.

 

20.3             The Client recognises that:

 

20.3.1        the nature of FSL’s work means that although all the Deliverables will be effected no guarantee that the Campaign will lead to increased revenue or a more prominent web presence. The services offered by FSL and any Campaign will by their nature be speculative;

 

20.3.2        the idea or methodology behind any Campaign and the decision to proceed with a particular Campaign will always be the Client’s and FSL will always rely on the knowledge that the Client has of its business.

 

20.4             Nothing in these conditions limits or excludes the liability of FSL:

 

20.4.1        for death or personal injury resulting from negligence;

 

20.4.2        for any breach of expressly granted warranty or indemnity;

 

20.4.3        for any damage or liability incurred by the Client as a result of gross negligence, wilful misconduct, fraud, or fraudulent misrepresentation by FSL;

 

20.5             Subject to conditions 20.2 and 20.3, unless such losses arise out of the indemnifying party’s gross negligence, wilful misconduct, fraud, or fraudulent misrepresentation, neither party shall be liable to the other for:

 

20.5.1        loss of profits;

 

20.5.2        loss of business;

 

20.5.3        depletion of goodwill and/or similar losses;

 

20.5.4        loss of anticipated savings;

 

20.5.5        any special, indirect, consequential or pure economic loss, costs, damages, charges or expenses.

 

20.5.6        Except for breach of warranty or indemnity, FSL's total liability in contract, tort (including ordinary negligence or breach of statutory duty), misrepresentation, restitution or otherwise arising in connection with the performance, or contemplated performance, of the Contract shall be limited to the aggregate of the Fees paid by the Client at the time of breach.

 

 

Flight Story Limited – Terms and Conditions

 

 

20.6             If FSL's performance of its obligations under the Contract is prevented or delayed by any act or omission of the Client, its agents, subcontractors, consultants or employees, FSL shall not be liable for any costs, charges or losses sustained or incurred by the Client arising directly or indirectly from such prevention or delay.

 

20.7             FSL takes no responsibility for any defects in the Campaign which are caused by:

 

20.7.1        the Assumptions being incorrect or misleading;

 

20.7.2        any loss to the Client resulting from, or substantially caused by, the Client’s failure to comply with its Client Obligations;

 

20.7.3        the omissions or negligence of the Client (including its contractors or employees); or

 

20.7.4        any problems with the Client’s information technology systems.

 

21. Client Warranties

 

21.1             The Client warrants and undertakes that:

 

21.1.1        it has full power and authority to enter into this Contract and that by doing so it will not be in breach of any obligation to a third party;

 

21.1.2        the Client Materials will not, when used in accordance with this Contract and any written instructions given by the Client, infringe third party Intellectual Property Rights;

 

21.1.3        to the best of its knowledge and belief, the Client Materials will comply with all applicable laws and regulations including all Advertising Regulations; and

 

21.1.4        the Client Materials are accurate and complete in all material respects.

 

22. Force Majeure

 

22.1             Neither party shall be liable for any delay in performing or for failure to perform any of its obligations under this Contract to the extent that and for so long as the delay or failure results from a Force Majeure Event.

 

22.2             The party whose performance is affected by a Force Majeure Event shall, as soon as reasonably practicable after becoming aware of the Force Majeure Event, notify the other party in writing of the circumstances of the Force Majeure Event and the other party shall grant a reasonable extension for the performance of this Contract, provided however that if either party shall have been so prevented from meeting its obligations for more than twenty (20) Business Days following the receipt of such notice, then either party may terminate this Contract forthwith upon written notice. Each party shall use its reasonable endeavours to minimise the effects of any Force Majeure Event. In the event that either party terminates this Agreement due to a Force Majeure Event, FSL shall be entitled to be paid for Services satisfactorily and properly performed prior to the effective date of termination in accordance with the Contract, and Client shall have no further financial obligations towards FSL.

 

Flight Story Limited – Terms and Conditions

 

 

23. Notices and other Communications

 

23.1             Any notice which expression includes any other communication whatsoever which is made in accordance with this Contract, should refer to this Contract and shall without prejudice to any other method of giving it be sufficiently given if it is sent by registered or recorded delivery first class post to the other party to the address (as the case maybe) FSL’s registered office or in the case of the Client the address stated in the Statement of Work or to such other address as the respective party may advise by notice in writing from time to time.

 

23.2             Notices shall be deemed to have been properly given after three (3) Business Days in the case of notices posted from the United Kingdom to a destination therein and eight (8) Business Days in the case of all other notices posted internationally.

 

23.3             For the purpose of this condition 23 and calculating deemed receipt all references to time are to local time in the place of deemed receipt.

 

23.4             This condition 23 does not apply to the service of any proceedings or other documents in any legal action or other method of dispute resolution.

 

24. Assignment

 

24.1           No right or obligation under this Contract shall be assigned or transferred by either party without the prior written approval of the other party. FSL may not sub-contract the performance of any of its obligations under this Contract to third parties without the Client's consent. In the event that Client authorizes FSL’s use of a subcontractor, FSL shall ensure such subcontractor agrees to and is bound by the terms of this Agreement. Any such authorized sub-contracting shall not relieve FSL from its obligations to the Client under this Contract.

 

25. Data Processing

 

25.1             Definitions and Interpretation

 

25.1.1        For the purposes of this condition 25, the following terms shall have the meanings set out below:

 

"Affiliate" means any company, partnership or other entity which at any time directly or indirectly controls, is controlled by or is under common control with either party including as a subsidiary, parent or holding company; 

“Applicable Laws” means the laws of any Member State of the European Union or the laws of the European Union applicable to the Data Processor and any other applicable law;

“Data Protection Legislation” means (i) the EU Directive 95/46/EC as transposed into domestic legislation of each Member State as amended, replaced or superseded from time to time including by the GDPR and laws implementing or supplementing the GDPR ; and (ii) to the extent applicable, the data protection laws of any other country, including the United Kingdom if the GDPR ceases to have direct effect in the United Kingdom;

“Data Controller” has the meaning set out in the Data Protection Legislation;

“Data Processor” has the meaning set out in the Data Protection Legislation;

“Data Subject” has the meaning set out in the Data Protection Legislation; “GDPR” means General Data Protection Regulation ((EU) 2016/679);

“Personal Data” has the meaning set out in the Data Protection Legislation;

“Sub-processor” means any person appointed by or on behalf of the Data Processor to process Personal Data on behalf of the Data Controller in connection with this Contract.

 

Save as otherwise defined above, defined terms in this clause shall have the meaning given to them in this Contract.

 

Flight Story Limited – Terms and Conditions

 

 

 25.2             Data Protection

 

25.2.1        Both parties will comply with all applicable requirements of the Data Protection Legislation. This condition 25 is in addition to, and does not relieve, remove or replace, a party's obligations under the Data Protection Legislation.

 

25.2.2        The parties acknowledge that for the purposes of the Data Protection Legislation and this condition 25, unless otherwise agreed between the parties, for data provided by Client, the Client is the Data Controller and the Agency is the Data Processor.

 

25.2.3        The Data Controller warrants and undertakes that it has all necessary rights to provide personal data to the Data Processor and to require the Data Processor to process personal data on its behalf.

 

25.2.4        The obligations contained in this condition 25 shall apply to any Affiliate of the Data Processor who processes data under this Contract.

 

25.2.5        The Data Controller sets out the scope, nature and purpose of processing by the Data Controller, the duration of the processing and the types of Personal Data and categories of Data Subject.

 

25.2.6        Without prejudice to the generality of condition 25.2.1, the Data Controller will ensure that it is lawfully to enable the transfer of the Personal Data to the Data Processor for the duration and for the purposes of this Contract.

 

25.2.7        Without prejudice to the generality of condition 25.2.1, the Data Processor shall, in relation to any Personal Data processed in connection with the performance by the Data Processor of its rights and obligations under this Contract:

 

25.2.7.1                 process that Personal Data only on the written instructions of the Data Controller unless the Data Processor is obliged to process such Personal Data by the Applicable Laws;

 

25.2.7.2                 ensure that it has in place technical and organisational measures to protect against unauthorised or unlawful processing of Personal Data and against accidental loss or destruction of, or damage to, Personal Data;

 

25.2.7.3                 take all reasonable steps to ensure that all personnel who have access to and/or process Personal Data are obliged to keep the Personal Data confidential and that access to Personal Data is limited to those individuals who need to have access to Personal Data for the purposes of this Contract;

 

25.2.7.4                 assist the Data Controller, at the Data Controller's cost, in responding to any request from a Data Subject and in ensuring compliance with its obligations under the Data Protection Legislation with respect to security, breach notifications, impact assessments and consultations with supervisory authorities or regulators; and

 

25.2.7.5                 notify the Data Controller on becoming aware of a serious Personal Data breach.

 

Flight Story Limited – Terms and Conditions

 

 

25.2.8        The Data Processor shall not appoint any other Sub-Processor without the Data Controller's prior written consent. The Data Processor confirms that it has entered or (as the case may be) will enter with any appointed Sub-Processor into a written agreement incorporating terms which are substantially similar to those set out in this condition 25. As between the Data Controller and the Data Processor, the Data Processor shall remain fully liable for all acts or omissions of any Sub-Processor appointed by it pursuant to this condition 25.2.8.

 

25.2.9          The Data Processor may, at any time on not less than 30 days’ notice, revise this condition 25 by replacing it with any applicable controller to processor standard clauses or similar terms forming party of an applicable certification scheme.

 

26. No Partnership or Agency

 

26.1             Nothing in the Contract is intended to, or shall be deemed to, constitute a partnership or joint venture of any kind between any of the parties, nor constitute any party the agent of another party for any purpose. No party shall have authority to act as agent for, or to bind, the other party in any way.

 

27. Legal Construction

 

27.1             The parties have populated the Statement of Work appended to this Contract which pertains to the Campaign. Where the Statement of Work is not referred to in the document that information is not legally binding.

 

27.2             This Contract constitutes the entire agreement reached between the parties with respect to the Campaign. It supersedes all prior proposals (and details on the Statement of Work which are not expressly referred to in this document) and no other representations, understandings and contracts, whether oral or written, and all other communications save for any fraudulent misrepresentation shall form a term herein.

 

27.3             In the event of a conflict between this document and the Statement of Work, the terms of this document shall prevail.

 

27.4             The failure of either party to enforce or exercise at any time any term or any right under this Contract does not constitute and shall not be construed as a waiver of such term or right and shall in no way affect that party’s later right to enforce or to exercise it.

 

27.5             The rights and obligations of the parties under this Contract shall remain in full force and effect, except and only to the extent that they are so modified or varied.

 

27.6             If any condition, provision or any part of this Contract becomes invalid, illegal or unenforceable in any respect under any law or for any other reason whatsoever, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

 

27.7             No modification or variation of this Contract shall be valid unless made in writing and signed by an authorised representative of each party. No modification or variation of this Contract shall affect any rights, obligations or liabilities under this Contract which have already accrued to the date of such modification or waiver. The rights and obligations of the parties under this Contract shall remain in full force and effect, except and only to the extent that they are so modified or varied.

  

27.8             No delay or failure of either party in enforcing against the other party any term or condition of this Contract, and no partial exercise by either party of any right hereunder, shall be deemed to be a waiver of any right of that party under this Contract.

 

27.9             This Contract shall be governed by and construed in accordance with the laws of England and Wales and the parties hereby submit to the exclusive jurisdiction of the courts of England and Wales.

 

27.10         No third party shall acquire rights pursuant to the Contracts (Rights of Third Parties) Act 1999.

 

[signatures on next page]

Flight Story Limited – Terms and Conditions

 

 

 

IN WITNESS WHEREOF, the parties have caused this Contract to be signed by their respective duly authorized representatives as of the Effective Date.

 

FLIGHT STORY     THE HEALING COMPANY  
Signature:       Signature:  
Print Name: Oliver Yonchev     Print Name: Simon Belsham  
Title: COO     Title: CEO  

 

 

                                                           

Flight Story Limited – Terms and Conditions

 

 

SCHEDULE 1 STATEMENT OF WORK

 

Name of Project

The Healing Company x Flight Story

Contact Person

simon@healingcompany.com

Contact Address

711 S Carson Street, Suite 4, Carson City, NV 89701

Client Obligations

Provide Options Agreement See Payment Terms

Nature of Client’s Business

Health & Wellbeing

Commencement Date

03/01/22

24 Month Agreement

Review period after 12 months to establish new goals and bonus

structure for Flight Story

Services & Deliverables

 

Service Summary

 

I.    Flight Story Studios (5 days p/m) 

II.   Phase 1: Foundations & Strategy (detailed overview) 

III.  Phase 2: Execute (detailed overview) 

IV.  Phase 3 & Phase 4: Optimise & Scale (vague overview) 

V.   Year 2 (Phase 5-8): Post Review (TBC)

  

Flight Story Studios (5 days p/m) Flight Story Studio Allocation

 

●      5 x Day w/ Head of Design and/or Head of Video 

●      This allocation each month can be accrued if not used 

●      Production (shoots) and/or hard costs (music licenses, etc) these are paid for by Healing Co, and/or scoped separately 

●      Flight Story offer a 25% reduction on our studio rate card for all out of scope productions

  

Phase 1: Foundations & Strategy

 

Immersion

●      Prepare and lead management team immersion sessions 

●      Prepare and lead an IPO Ready Planning Session 

●      Prepare and lead a brand planning session

 

 

Audit

●      Review and provide an opinion on all public communication material and identify effective tactics to scale 

●      Produce a performance analysis of owned digital channels exploring owned, earned and paid 

●      Produce an audience analysis and segmentation aimed at identifying key target segments 

●      Review and provide an opinion on the current creative activity across digital channels 

●      Review and provide an opinion on the existing operational structures across people, process and technology

 

 

Flight Story Limited – Terms and Conditions

 

 

 

●      Produce a digital media landscape competitor analysis relevant to The Healing Co 

●      Review and analyse brand sentiment and share of voice against comparable groups

 

Strategy

●      Review and refine brand positioning, guidelines and TOV 

●      Develop a clear public markets communication & media strategy in conjunction with partners 

●      Develop an impactful channel strategy that appeals to the retail investor community 

●      Explore the development of new channels that relate to effective investor relations engagement 

●      Provide guidance on how to engage the Key Opinion Leaders within the Retail Investment community 

●      Guide art and creative direction for all channels 

●      Produce an IR strategy playbook which contains the guidelines and best practices to optimise performance across all marketing functions

 

Ambassador

●      Identify key opinion leader advocacy and ambassador network of influential creators and voices 

●      Deliver a framework to engage with key opinion leaders and provide advice to The Healing Co/3rd party partner on how to engage

 

Tech

●      Identify and engage suppliers of effective technology stack to support business needs 

●      Build an attribution model and reporting measurement matrix tracking all core metrics

 

Staffing & Process

●      Identify the best talent and provide support in staffing immediate open roles, in line with recommendations outlined with the audit report 

●      Build a dynamic freelance network for when activity and comms demands increase

 

Governance

●      Provide leadership, organisation and project management of all deliverables 

●      Management of key project stakeholders across The Healing Co and any identified 3rd party suppliers 

●      Develop and launch a centralised and indexed content hub for ease of access for all stakeholders

 

Phase 2: Execute Activity (outline) Strategy Playbook Execution

 

●      Lead the roll-out and management of the new strategy playbook 

●      Provide advice and guidance to The Healing Co on how to employ a ethos of consistent experimentation 

●      Analyse and test new paid media platforms to look for efficiency channels to scale

●      Analyse and scale the acquisition strategy of new community building

 

 

Flight Story Limited – Terms and Conditions

 

 

 

 Optimise & Review

●      Develop new audience profiles to focus on ongoing agreed objectives 

●      Develop the sustained public markets story based on learnings 

●      Plan the future communication agenda with partners 

●      Analyse and report on communication activity - advising optimisation where relevant 

●      Advanced paid media testing to accelerate the community growth 

●      Prepare and lead management team review sessions 

●      Evaluate activity and cut in-effective channels and resource 

●      Review partners and ensure software integration has been adopted by relevant parties

 

 

Creative

●      Develop new content themes 

●      Provide ongoing creative ideation for all marketing functions to test 

●      Deliver big quarterly brand moment that embodies new positioning 

●      Support the development of own media channels - email and other

 

 

Ambassador

●      Introduce new ambassadors/Key Opinion Leaders and secure long term contracts with top performers 

●      Launch The Healing Co leadership personal brand program - enhancing profile across key business communities

 

 

Staffing & Process

●      Support the build of new internal processes establish in phase 1 

●      Provide continued support on sourcing and staffing world class talent 

●      Initiate management feedback sessions to ensure that the process is being used and is still effective

 

 

Governance

●      Provide leadership, organisation and project management of all deliverables 

●      Management of key project stakeholders across The Healing Co and any identified 3rd party suppliers 

●      Manage content production, legal process and social strategy in line with the playbook

 

 

Phase 3 & 4 (6 months): Optimise & Scale Activity

 

Scale

●      Prepare and lead management team review sessions with a focus on scaling strategy 

●      Scale media channels and partnerships formed based on prior learnings 

●      Develop and deliver the long-term communication agenda

 

 

 

Flight Story Limited – Terms and Conditions

 

 

 

●      Develop and deliver a quarterly report on social activity 

●      Continue advising on paid media and channel testing to accelerate the communities growth

 

 

Sustain

●      Develop a roll-off strategy - ensuring all systems are in place for a end of year handover across values, culture & performance 

●      Help all teams employ a ethos of consistent experimentation through education and consultation 

●      Ongoing testing of new paid media platforms to look for efferent channels to scale 

●      Look to develop new relevant ways to engage the community

 

 

Creative

●      Develop new content themes directed by past performance 

●      Provide ongoing creative ideation for all marketing functions to test 

●      Deliver concepts for a big quarterly brand moment that embodies new positioning 

●      Continue to develop own media channels

 

 

Ambassador

●      Introduce new ambassadors and secure long term contracts with top performers 

●      Launch The Healing Co wider company personal brand program producing toolkits to share company messages

 

 

Staffing & Process

●      Provide continued support on sourcing and staffing world class talent 

●      Work with management to develop sustained values that lead to the highest performing communication teams

 

 

Governance

●      Provide leadership, organisation and project management of all deliverables 

●      Management of key project stakeholders across The Healing Co and any identified 3rd party suppliers

 

Y2: Phase 5, 6, 6 & 8

 

●      Phase 5-8: Scope Provided In Collaboration Post 12 Month Review

 

 

Fee Details

 

RETAINED FEE (automatic award): $180,000 + (any local tax)

 

-          Phase 1 (automatic award): $45,000 

-          Phase 2 (automatic award): $45,000 

-          Phase 3 (automatic award): $45,000 

-          Phase 4 (automatic award): $45,000 

 

SHARE AWARD

 

 

Flight Story Limited – Terms and Conditions

 

 

 

For the services provided, Flight Story Limited will receive options on the shares of The Healing Company.

 

675,000 options ($0.28 strike price) will provided as an automatic award from contract signing.

 

A further 1,500,000 options ($2.00 strike price) will be provided as vested allocation.

 

Terms as follows:

 

Automatic Options

●      Issued Options: 675,000 

●      Strike: $0.28

 

Vested Options:

•       Vested Options: 1,500,000 

•       Strike: $2.00

 

I.      25% on completion of an up-round capital raise in 2022 

II.     25% on share price sustained >$200m average market capitalization for a month 

III.    25% on NASDAQ listing 

IV.    25% on share price sustained >$400m average market capitalization for a month 

 

All options will have an expiry date 5 years after the IPO.

 

If our MSA agreement were to mutually end any unvested options would lapse Flight Story would have 12 months to exercise vested options.

 

The Stock Option grant made pursuant to this Agreement shall be made subject to the terms and conditions of a separate Stock Option Grant Agreement, the terms of which shall supersede the terms herein.

 

(Additional Fee’s)

 

-       Additional scopes agreed separately with new IO if required, governed under the MSA terms.

 

Payment Schedule

 

Payment Terms

 

-          First invoice to be issued upon contract execution and payable immediately. 

-          Subsequent payments due within 30 days of invoice receipt 

 

Payment Schedule

 

-       Phase 1 

-       05/01/22: $45,000 (due upon receipt)

-       Phase 2 

-       01/04/22: $45,000 (due 30 days upon receipt)

-       Phase 3 

-       01/07/22: $45,000 (due 30 days upon receipt)

-       Phase 4 

-       01/10/22: $45,000 (due 30 days upon receipt)

 

 

Flight Story Limited – Terms and Conditions

 

 

 

-       Phase 5 

-       01/01/23: $45,000 (due 30 days upon receipt)

-       Phase 6 

-       01/04/23: $45,000 (due 30 days upon receipt)

-       Phase 7 

-       01/07/23: $45,000 (due 30 days upon receipt)

-       Phase 8 

-       01/10/23: $45,000 (due 30 days upon receipt)

 

 

Flight Story Limited – Terms and Conditions

 

EXHIBIT 10.10

 

R. Agency (Rebecca Abigail PR LTD)

4th Floor

12 Little Portland Street

London

W1W 8BJ

 

Katie Tobias

The Healing Company

711 S Carson Street

Suite 4

Carson City

NV

89701

USA

 

18.01.22

 

Dear Katie,

 

I write to confirm the terms on which The Healing Company (the Customer) has instructed Rebecca Abigail PR Limited (R Agency).

 

This letter agreement (Letter) is subject to R Agency’s standard Terms and Conditions for the Supply of Services (Conditions), a copy of which is enclosed with this Letter. Your attention is particularly drawn to clauses 4.3 and 10. Terms defined in Conditions have the same meaning when used in this Letter.

 

Services

 

The Communications Services Rebecca Abigail will provide are outlined in the scope of work dated January 2022.

 

Where necessary R. Agency can also provide crisis management services to assist the Customer with an urgent public relations issue (Crisis Management). Crisis Management will only be provided at the request of the Customer.

 

Term and Termination

 

Subject to the other terms of the Contract, R. Agency shall provide the Services from 17th January 2022 and the Contract shall continue, unless terminated earlier as provided for in the Conditions, until a party gives to the other party not less than two months' written notice to terminate, expiring on or after 16th of July 2022 (Term).

 

Charges

 

The Charges for the Communications Services are as follows (exclusive of VAT in each case):

 

Monthly Charges

 

$ 15,000

 

Press Office Expenses

 

$ 750

 

Total

 

$ 15,750

 

 

Rebecca Abigail PR Limited registered in England & Wales.

 

Company Number: 08951376. Registered Office: 10 Queen Street Place, London, United Kingdom, EC4R 1AG.

 

 
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Excludes: Crisis Management – £300 per hour (exclusive of VAT)

 

If you agree to the terms of this Letter please indicate your acceptance of its terms by signing two copies of this Letter where indicated below, I will return one copy for your records.

 

Yours sincerely,

 

 

 

Rebecca Ridge MD & Founder

For and on behalf of

Rebecca Abigail PR Limited

07/02/2022

Date

 

 

 

 

I/we agree to the terms of this Letter and the Conditions.

 

 

 

 

 

January 19, 2022

Date

 

For and on behalf of Date

The Healing Company

 

 

 

 

 

 

 
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Rebecca Abigail PR Limited

Terms and Conditions for the Supply of Services

(v03.06.2021)

 

The Customer's attention is particularly drawn to the provisions of clause 10.

 

1. INTERPRETATION

 

1.1  Definitions. In these Conditions, the following definitions apply:

 

Business Day: a day (other than a Saturday, Sunday or public holiday) when banks in London are open for business.

 

Communications Services: all Services other than Crisis Management.

 

Charges: the charges payable by the Customer for the supply of the Services in accordance with clause 6, including the Monthly Charges, the Press Office Expenses and any charges for Crisis Management.

 

Claim: means any claim by a third party for defamation, malicious falsehood, breach of confidence, misuse of private information, harassment, breach of data protection laws, passing off, breach of advertising codes or the actual or alleged infringement of intellectual property rights or any similar claim brought under the laws of England and Wales or any other jurisdiction including breach of image or personality rights.

 

Commencement Date: has the meaning set out in clause 2.1.

 

Conditions: these terms and conditions as amended from time to time in accordance with clause 15.7.

 

Contract: the contract between R. Agency and the Customer for the supply of Services comprising the Letter and these Conditions, or otherwise incorporating these Conditions.

 

Crisis Management: services provided by R. Agency to the Customer at the request of the Customer to assist the Customer with an urgent public relations issue which is not included in the Communications Services, or as more fully described in the Letter.

 

Customer: the individual or person (including a corporation) to which R. Agency provides Services.

 

Customer Materials: all documents, information, specifications, items and materials in any form (whether owned by the Customer or a third party), which are provided by the Customer to R. Agency in connection with the Services, including under clause 5.1(c).

 

Data Protection Legislation: the UK Data Protection Legislation; to the extent it applies to the Contract, the General Data Protection Regulation ((EU) 2016/679); and, to the extent it applies to the Contract, any other legislation and regulatory requirements in force from time to time which relates to the protection of personal data.

 

 
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Deliverables: any deliverables provided as part of the Services.

 

Group: in relation to a company, that company, any subsidiary or holding company from time to time of that company, and any subsidiary from time to time of a holding company of that company.

 

Intellectual Property Rights: patents, rights to inventions, copyright and related rights, trade marks, business names and domain names, rights in get-up, goodwill and the right to sue for passing off, rights in designs, database rights, rights to use, and protect the confidentiality of, confidential information (including know-how), and all other intellectual property rights, in each case whether registered or unregistered and including all applications and rights to apply for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar or equivalent rights or forms of protection which subsist or will subsist now or in the future in any part of the world.

 

Letter: the letter agreement between the Customer's and R. Agency incorporating these Conditions and containing the description or specification of the Services and the Charges.

 

Monthly Charges: the Charges for the Communications Services at the price stated in the Letter payable on a monthly basis or as otherwise set out in the Letter.

 

Personal Data: has the meaning given in the UK Data Protection Legislation.

 

Press Office Expenses: a monthly charge equal to 5% of the Monthly Charges or as otherwise set out in the Letter.

 

R. Agency: Rebecca Abigail PR Limited registered in England and Wales with company number 08951376.

 

R. Agency Materials: has the meaning set out in clause 5.1(g).

 

Services: the services, including the Deliverables, supplied by R. Agency to the Customer as set out in the Letter.

 

UK Data Protection Legislation: all applicable data protection and privacy legislation in force from time to time in the United Kingdom including, the Data Protection Act 2018; the Privacy and Electronic Communications Regulations 2003 (SI 2003/2426); and the UK GDPR (as defined in section 3(10) (as supplemented by section 205(4)) of the Data Protection Act 2018).

 

1.2 Construction. In these Conditions, the following rules apply:

 

(a) a person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality);

 

(b) a reference to a party includes its personal representatives, successors or permitted assigns;

 

(c) a reference to a statute or statutory provision is a reference to such statute or statutory provision as amended or re-enacted. A reference to a statute or statutory provision includes any subordinate legislation made under that statute or statutory provision, as amended or re-enacted;

 

(d) a reference to a holding company or a subsidiary means a holding company or a subsidiary (as the case may be) as defined in section 1159 of the Companies Act 2006;

 

 
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(e) if there is any conflict between the terms of the Letter and these Conditions, the terms of the Letter shall prevail;

 

(f) any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms;

 

(g) any phrase introduced by the terms including, include, in particular or any similar expression, shall be construed as illustrative and shall not limit the sense of the words preceding those terms; and

 

(h) a reference to writing or written includes faxes and e-mails.

 

2. BASIS OF CONTRACT

 

2.1 The Contract is formed when the Letter is executed by or on behalf of R. Agency and the earliest of:

 

(a) the execution of the Letter by or on behalf of the Customer; or

 

(b) a written request by the Customer to R. Agency to commence the provision of the services described in the Letter,

 

(such date being the Commencement Date).

 

2.2 Any descriptions or illustrations contained in R. Agency's catalogues, brochures, and website are issued or published for the sole purpose of giving an approximate idea of the Services described in them. They shall not form part of the Contract or have any contractual force.

 

2.3 These Conditions apply to the Contract to the exclusion of any other terms that the Customer seeks to impose or incorporate, or which are implied by trade, custom, practice or course of dealing.

 

2.4 Any quotation given by R. Agency shall not constitute an offer, and is only valid for such period as is specified in the quotation or, where there is not such period specified, a period of 20 Business Days from its date of issue.

 

3. SUPPLY OF SERVICES

 

3.1 R. Agency shall supply the Services to the Customer in accordance with the Contract in all material respects.

 

3.2 R. Agency shall use reasonable endeavours to meet any key performance indicators which have been agreed with the Customer in connection with the Services, but failure to meet any key performance indicator shall not constitute a breach of the Contract.

 

3.3 R. Agency shall have the right to make any changes to the Services which are necessary to comply with any applicable law, or which do not materially affect the nature or quality of the Services, and R. Agency shall notify the Customer in any such event. In the event the change materially affects the nature or quality of the Services the parties will negotiate in good faith to agree a proportionate variation to the Charges.

 

3.4 R. Agency warrants to the Customer that the Services will be provided using reasonable care and skill and in accordance with good industry practice.

 

 
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4. APPROVAL OF COMMUNICATIONS AND INDEMNITY

 

4.1 R. Agency shall seek the Customer’s approval of any statement or communication prepared by R. Agency for distribution or publication to the press or the public as part of the Services (including press releases and press packs) before they are so distributed or published and shall use reasonable endeavours to seek such approval not less than two hours prior to any applicable deadline.

 

4.2 The Customer warrants and represents that the Customer Materials are accurate in all material respects and not misleading, comply with any relevant laws or regulations, and do not infringe the rights, including any Intellectual Property Rights, of any third party.

 

4.3 The Customer shall indemnify R. Agency its officers and employees against all liabilities, costs, expenses, damages and losses suffered or incurred by R. Agency, its officers or employees (including any Claim brought against R. Agency its officers or employees) in connection with the Customer’s breach of the warranty in clause 4.2, provided that R. Agency has complied with clause 4.1 in relation to those Customer Materials.

 

4.4 Nothing in clause 4.3 shall restrict or limit R. Agency's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under this indemnity.

 

5. OBLIGATIONS ON THE PARTIES

 

5.1 The Customer shall:

 

(a) co-operate with R. Agency in all matters relating to the Services;

 

(b) provide R. Agency, its employees, agents, consultants and subcontractors, with access to the Customer's premises, office accommodation and other facilities as reasonably required by R. Agency during the Customer’s business hours;

 

(c) provide R. Agency with such instruction, information and materials as R. Agency may reasonably require in order to supply the Services and the Deliverables, and ensure that such information is accurate in all material respects and not misleading;

 

(d) use reasonable endeavors to promptly consider and respond to all requests for the approval under clause 4.1;

 

(e) obtain and maintain all necessary licenses, permissions and consents which may be required before the date on which the Services are to start;

 

(f) ensure all products, goods or services the Customer supplies to which the Services relate comply with all relevant laws and regulations; and

 

(g) where the Customer has agreed to keep materials, equipment, documents and other property of R. Agency (R. Agency Materials) at the Customer’s premises, it shall keep and maintain all those R. Agency Materials at the Customer's premises in safe custody at its own risk, maintain those R. Agency Materials in good condition until returned to R. Agency, and not dispose of or use those R.  Agency  Materials  other  than in accordance with R. Agency's written instructions or authorisation.

 

 
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5.2 If R. Agency's performance of any of its obligations under the Contract is prevented or delayed by any act or omission by the Customer or failure by the Customer to perform any relevant obligation (Customer Default):

 

(a) R. Agency shall without limiting its other rights or remedies have the right to suspend performance of the Services until the Customer remedies the Customer Default, and to rely on the Customer Default to relieve it from the performance of any of its obligations to the extent the Customer Default prevents or delays R. Agency's performance of any of its obligations;

 

(b) R. Agency shall not be liable for any costs or losses sustained or incurred by the Customer arising directly or indirectly from R. Agency's failure or delay to perform any of its obligations as set out in this clause 5.2 to the extent such cost or losses are attributable to any Customer Default; and

 

(c) the Customer shall reimburse R. Agency on written demand for any costs or losses sustained or incurred by R. Agency arising directly from the Customer Default.

 

5.3 R. Agency shall maintain all materials, equipment, documents and other property of the Customer kept at R. Agency premises in safe custody and in good condition until returned to the Customer, and not dispose of or use such materials contrary to the written instructions of the Customer.

 

6. CHARGES AND PAYMENT

 

6.1 The Charges for the Services shall be as follows:

 

(a) the Customer shall pay the Monthly Charges as set out in the Letter;

 

(b) the Customer shall additionally pay the Press Office Expenses as set out in the Letter;

 

(c) the Customer shall pay for Crisis Management on a time spent basis at the hourly rate set out in the Letter, or where no hourly rate is stated, the rate shall be £300 per hour (excluding VAT, if applicable);

 

(d) R. Agency shall be entitled to charge the Customer for any expenses reasonably and properly incurred by the individuals whom R. Agency employs or engages in connection with the Services including, but not limited to, travelling expenses, hotel costs, subsistence and any associated expenses, and for the cost of services provided by third parties and required by R. Agency for the performance of the Services, and for the cost of any materials upon provision of the invoice and supporting receipts and documentation of such expenses. R. Agency shall obtain the Customer’s prior approval for such expenses.

 

6.2  R. Agency shall invoice the Customer:

 

(a) in respect of Communications Services, monthly in advance or as otherwise stated in the Letter;

 

(b) in respect of Crisis Management, the conclusion of the particular matter for which Crisis Management was provided or at the end of each month in which Crisis Management was provided.

 

6.3 The Customer shall pay each invoice submitted by R. Agency within 14 days of the date of the invoice in full and in cleared funds to a bank account nominated in writing by R. Agency. Breach of this clause shall be a material breach of the Contract.

 

 
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6.4 All amounts payable by the Customer under the Contract are exclusive of amounts in respect of value added tax chargeable for the time being (VAT). Where any taxable supply for VAT purposes is made under the Contract by R. Agency to the Customer, the Customer shall, on receipt of a valid VAT invoice from R. Agency, pay to R. Agency such additional amounts in respect of VAT as are chargeable on the supply of the Services at the same time as payment is due for the supply of the Services.

 

6.5 If the Customer fails to make any payment due to R. Agency under the Contract by the due date for payment, then the Customer shall pay interest on the overdue amount at the rate of 3% per cent per annum above Barclays Bank PLC's base rate from time to time. Such interest shall accrue on a daily basis from the due date until actual payment of the overdue amount, whether before or after judgment. The Customer shall pay the interest together with the overdue amount.

 

6.6 The Customer shall pay all amounts due under the Contract in full without any set-off, counterclaim, deduction or withholding (except for any deduction or withholding required by law). R. Agency may at any time, without limiting its other rights or remedies, set off any amount owing to it by the Customer against any amount payable by R. Agency to the Customer.

 

7. INTELLECTUAL PROPERTY RIGHTS

 

7.1 Those Intellectual Property Rights in the Deliverables which have been created by R. Agency specifically for the Customer and for no other purpose shall be assigned to the Customer.

 

7.2 R. Agency and its licensors shall retain ownership of all Intellectual Property Rights in the Deliverables not assigned under clause 7.1 (excluding the Customer Materials) and R. Agency shall grant or procure the grant of a fully paid-up, worldwide, non-exclusive, royalty-free, non-transferable licence for the duration of the Services to use all Intellectual Property Rights in the Deliverables not assigned under clause 7.1 (other than the Customer Materials) which are necessary for the Customer to receive the full benefit of the Services.

 

7.3 R. Agency and its licensors shall retain ownership of all Intellectual Property Rights in the R. Agency Materials and the Customer and its licensors shall retain ownership of all Intellectual Property Rights in the Customer Materials.

 

7.4 In relation to the Customer Materials, the Customer grants R. Agency a fully paid-up, non-exclusive, royalty-free, non-transferable licence to copy and modify the Customer Materials and incorporate them into the Deliverables for the term of this agreement for the purpose of providing the Services to the Customer.

 

7.5 Subject to clause 7.6, R. Agency warrants that the receipt and use of the Deliverables by the Customer shall not infringe the Intellectual Property Rights of any third party.

 

7.6 R. Agency shall not be in breach of the warranty in clause 7.5, to the extent the infringement arises from the use of the Customer Materials (including incorporating Customer Materials into the Deliverables) or compliance with the Customer's specifications or instructions, provided that R. Agency shall notify the Customer if it knows that compliance with such specification or instruction will result in infringement.

 

7.7 R. Agency shall indemnify the Customer its officers and employees against all liabilities, costs, expenses, damages and losses suffered or incurred by the Customer, its officers or employees in connection with R. Agency’s breach of the warranty in clause 7.5.

 

 
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8. RESTRICTIONS

 

8.1 In order to protect the business of R. Agency to which the Customer has access as a result of the Services, the Customer covenants with R. Agency that it shall not and shall procure that no member of its Group shall, without the prior written consent of R. Agency:

 

(a) during the term of the Contract and for a period of six months after termination of the Contract, solicit or endeavour to entice away from the Company any person employed by R. Agency with whom the Customer has had dealings within the previous 12 months (from time to time);

 

(b) during the term and for a period of six months after termination of the Contract, employ or engage or otherwise facilitate the employment or engagement of any person employed by R. Agency with whom the Customer has had dealings within the previous 12 months (from time to time).

 

9. CONFIDENTIALITY

 

9.1 A party (receiving party) shall keep in strict confidence all technical or commercial know-how, specifications, inventions, processes or initiatives which are of a confidential nature and have been disclosed to the receiving party by the other party (disclosing party), its employees, agents or subcontractors, and any other confidential information concerning the disclosing party's business, its products and services which the receiving party may obtain. The receiving party shall only disclose such confidential information to those of its employees, agents and subcontractors who need to know it for the purpose of discharging the receiving party's obligations under the Contract, and shall ensure that such employees, agents and subcontractors comply with the obligations set out in this clause as though they were a party to the Contract. The receiving party may also disclose such of the disclosing party's confidential information as is required to be disclosed by law, any governmental or regulatory authority or by a court of competent jurisdiction provided that, to the extent it is legally permitted to do so, it gives the other party as much notice of such disclosure as possible and, where notice of disclosure is not prohibited and is given in accordance with this clause 9.1, it takes into account the reasonable requests of the other party in relation to the content of such disclosure.

 

9.2 Without prejudice to any other rights or remedies that either party may have, each party acknowledges and agrees that damages alone would not be an adequate remedy for any breach of the terms of clause 9.1 by the other party. Accordingly, each party shall be entitled to the remedies of injunction, specific performance or other equitable relief for any threatened or actual breach of clause 9.1.

 

9.3 This clause 9 shall survive termination of the Contract.

 

10. LIMITATION OF LIABILITY: THE CUSTOMER'S ATTENTION IS PARTICULARLY DRAWN TO THIS CLAUSE

 

10.1   Nothing in these Conditions shall limit or exclude a party’s liability:

 

(a) under the indemnity in clause 4.3, save as provided in clause 4.4;

 

(b) for death or personal injury caused by its negligence, or the negligence of its employees, agents or subcontractors;

 

(c) for fraud or fraudulent misrepresentation; or

 

(d) for breach of the terms implied by section 2 of the Supply of Goods and Services Act 1982 (title and quiet possession).

 

 
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10.2 Subject to clause 10.1, neither party shall under any circumstances whatever be liable to the other, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss of profit, or any indirect or consequential loss arising under or in connection with the Contract.

 

10.3 Subject to clause 10.1:

 

(a) R. Agency shall under no circumstances whatever be liable to the Customer, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss, damages or costs suffered by the Customer as a result of the Customer providing Customer Materials or instructions which are not accurate in all material respects or misleading, or do not comply with any relevant laws or regulations, or which infringe the rights, including any Intellectual Property Rights, of any third party;

 

(b) subject to clause 10.3(c), without limiting the Customer's obligation to pay the Charges and save for any liabilities under clauses 4.2, 4.3, 7.5, 7.7 or 9, in each 12 month period beginning on the Commencement Date, each party’s total liability to the other in respect of all losses arising under or in connection with the Contract, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall in no circumstances exceed 125% the amount paid or payable to R. Agency under the Contract in the 12 months prior to the event giving rise to the liability; and

 

(c)   without limiting the Customer's obligation to pay the Charges, each party's total liability to the other in respect of all losses arising under or in connection with the Contract (including under clauses 4.2, 4.3, 7.5, 7.7 or 9) , whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall in no circumstances exceed £1,000,000.

 

10.4 The terms implied by sections 3 to 5 of the Supply of Goods and Services Act 1982 are, to the fullest extent permitted by law, excluded from the Contract.

 

10.5 This clause 10 shall survive termination of the Contract.

 

11. TERMINATION

 

11.1 The Contract shall continue until terminated as described in the Letter or as otherwise terminated as provided for in these Conditions.

 

11.2 Without limiting its other rights or remedies, either party may terminate the Contract with immediate effect by giving written notice to the other party if:

 

(a) the other party commits a material breach of any term of this agreement which breach is irremediable or (if such breach is remediable) fails to remedy that breach within a period of 14 days after being notified in writing to do so;

 

(b) the other party suspends, or threatens to suspend, payment of its debts or is unable to pay its debts as they fall due or admits inability to pay its debts or (being a company or limited liability partnership) is deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 or (being an individual) is deemed either unable to pay its debts or as having no reasonable prospect of so doing, in either case, within the meaning of section 268 of the Insolvency Act 1986 or (being a partnership) has any partner to whom any of the foregoing apply;

 

(c) the other party commences negotiations with all or any class of its creditors with a view to rescheduling any of its debts, or makes a proposal for or enters into any compromise or arrangement with its creditors other than (where a company) for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party;

 

 
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(d) a petition is filed, a notice is given, a resolution is passed, or an order is made, for or in connection with the winding up of that other party (being a company) other than for the sole purpose of a scheme for a solvent amalgamation of that other party with one or more other companies or the solvent reconstruction of that other party;

 

(e) the other party (being an individual) is the subject of a bankruptcy petition or order;

 

(f) a creditor or encumbrancer of the other party attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of its assets and such attachment or process is not discharged within 14 days;

 

(g) an application is made to court, or an order is made, for the appointment of an administrator or if a notice of intention to appoint an administrator is given or if an administrator is appointed over the other party (being a company);

 

(h) the holder of a qualifying floating charge over the assets of that other party (being a company) has become entitled to appoint or has appointed an administrative receiver;

 

(i) a person becomes entitled to appoint a receiver over the assets of the other party or a receiver is appointed over the assets of the other party;

 

(j) any event occurs or proceeding is taken with respect to the other party in any jurisdiction to which it is subject that has an effect equivalent or similar to any of the events mentioned in clause 11.2(b) to clause 11.2(i) (inclusive);

 

(k) the other party suspends or ceases, or threatens to suspend or cease, to carry on all or a substantial part of its business;

 

(l) the other party's financial position deteriorates to such an extent that in the first party’s reasonable opinion the other party's capability to adequately fulfil its obligations under the Contract has been placed in jeopardy; or

 

(m) the other party (being an individual) dies or, by reason of illness or incapacity (whether mental or physical), is incapable of managing his own affairs or becomes a patient under any mental health legislation.

 

11.3   Without limiting its other rights or remedies, R. Agency may suspend provision of the Services under the Contract or any other contract between the Customer and R. Agency if the Customer becomes subject to any of the events listed in clause 11.2(b) to clause 11.2(m), or R. Agency reasonably believes that the Customer is about to become subject to any of them, or if the Customer fails to pay any amount due under this Contract on the due date for payment.

 

12. CONSEQUENCES OF TERMINATION

 

12.1   On termination of the Contract following any of the events in clause 11.2 applying to the Customer, the Customer shall immediately pay to R. Agency all of R.  Agency's  outstanding  unpaid  invoices  and interest and, in respect of Services supplied for which no invoice has been submitted, R. Agency shall submit an invoice, which shall be payable by the Customer immediately on receipt.

 

 
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12.2   On termination of the Contract for any reason:

 

(a) save where clause 12.1 applies, the Customer shall pay to R. Agency all of R. Agency's outstanding unpaid invoices and interest and, in respect of Services supplied for which no invoice has been submitted, R. Agency shall submit an invoice, which in each case shall be payable by the Customer on the terms of the Contract;

 

(b) the Customer shall return or destroy all of R. Agency Materials and any Deliverables which have not been fully paid for and until they have been returned, the Customer shall be solely responsible for their safe keeping and will not use them for any purpose not connected with this Contract;

 

(c) R. Agency shall return or destroy all physical Customer Materials not used in the provision of the Services, and until they have been returned or destroyed R. Agency shall be solely responsible for their safe keeping and will not use them for any purpose not connected with this Contract;

 

(d) the accrued rights, remedies, obligations and liabilities of the parties as at expiry or termination shall be unaffected, including the right to claim damages in respect of any breach of the Contract which existed at or before the date of termination or expiry; and

 

(e) clauses which expressly or by implication survive termination shall continue in full force and effect.

 

13. FORCE MAJEURE

 

Neither party shall be in breach of the Contract nor liable for delay in performing, or failure to perform, any of its obligations under the Contract if such delay or failure result from events, circumstances or causes beyond its reasonable control. The time for performance of such obligations shall be extended accordingly.

 

14. DATA PRIVACY

 

14.1   Both parties will comply with all applicable requirements of the Data Protection Legislation. This clause 14 is in addition to, and does not relieve, remove or replace, a party's obligations or rights under the Data Protection Legislation. In this clause 14, Applicable Laws means (for so long as and to the extent that they apply to R. Agency) the law of the European Union, the law of any member state of the European Union and/or the UK Data Protection Legislation and any other law that applies in the UK, in each case to the extent to which it relates to the protection of personal data.

 

14.2   The parties acknowledge that for the purposes of the Data Protection Legislation, the Customer is the Controller and R. Agency is the Processor.

 

14.3   Without prejudice to the generality of clause 14.1, the Customer will ensure that it has all necessary appropriate consents and notices in place to enable lawful transfer of the Personal Data to R. Agency for the duration and purposes of the Contract.

 

 
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14.4   Without prejudice to the generality of clause 14.1, R. Agency shall, in relation to any Personal Data processed in connection with the performance by R. Agency of its obligations under this agreement:

 

(a) process that Personal Data only on the documented written instructions of the Customer or as necessary to provide the Services, unless R. Agency is required by Applicable Laws to otherwise process that Personal Data;

 

(b) ensure that it has in place appropriate technical and organisational measures, to protect against unauthorised or unlawful processing of Personal Data and against accidental loss or destruction of, or damage to, Personal Data, having regard to the state of technological development and the cost of implementing any measures;

 

(i) ensure that all personnel who have access to  and/or  process  Personal  Data  are obliged to keep the Personal Data confidential; and

 

(ii) not transfer any Personal Data outside of the European Economic Area unless the prior written consent of the Customer has been obtained and the following conditions are fulfilled:

 

(A) the Customer or R. Agency has provided appropriate safeguards in relation to the transfer;

 

(B)  the data subject has enforceable rights and effective legal remedies;

 

(C)  R. Agency complies with its obligations under the Data Protection Legislation by providing an adequate level of protection to any Personal Data that is transferred; and

 

(D) R. Agency complies with reasonable instructions notified to it in advance by the Customer with respect to the processing of the Personal Data;

 

(c) assist the Customer, at the Customer's cost, in responding to any request from a Data Subject and in ensuring compliance with its obligations under the Data Protection Legislation with respect to security, breach notifications, impact assessments and consultations with supervisory authorities or regulators;

 

(d) notify the Customer without undue delay on becoming aware of a breach of security leading to the accidental or unlawful disclosure of, or access to, Personal Data;

 

(e) at the written direction of the Customer, delete or return Personal Data and copies thereof to the Customer on termination of the agreement unless required by Applicable Law to store the Personal Data; and

 

(f) maintain records and information to demonstrate its compliance with this clause.

 

14.5   The Customer consents to R. Agency using any third-party processor of Personal Data necessary to provide the Services, provided such processing complies with the Data Protection Legislation.

 

 
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15. GENERAL

 

15.1 Assignment and other dealings

 

(a) Neither party shall, without the prior written consent of the other (such consent not to be unreasonably withheld of delayed), assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other manner with any or all of its rights or obligations under the Contract.

 

15.2 Notices

 

(a) Any notice or other communication given to a party under or in connection with the Contract shall be in writing, addressed to that party at its registered office (if it is a company) or its principal place of business (in any other case) or such other address or email address as that party may have specified to the other party in writing in accordance with this clause, and shall be delivered personally, sent by pre-paid first class post or other next working day delivery service, commercial courier, fax or e-mail.

 

(b) A notice or other communication shall be deemed to have been received: if delivered personally, when left at the address referred to in clause 15.2(a); if sent by pre-paid first class post or other next working day delivery service, at 9.00 am on the second Business Day after posting; if delivered by commercial courier, on the date and at the time that the courier's delivery receipt is signed; or, if sent by fax or e-mail, one Business Day after transmission.

 

(c) The provisions of this clause shall not apply to the service of any proceedings or other documents in any legal action.

 

15.3 Severance

 

(a) If any provision or part-provision of the Contract is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause shall not affect the validity and enforceability of the rest of the Contract.

 

(b) If one party gives notice to the other of the possibility that any provision or part-provision of this Contract is invalid, illegal or unenforceable, the parties shall negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable, and, to the greatest extent possible, achieves the intended commercial result of the original provision.

 

15.4   Waiver. A waiver of any right under the Contract or law is only effective if it is in writing and shall not be deemed to be a waiver of any subsequent breach or default. No failure or delay by a party in exercising any right or remedy provided under the Contract or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict its further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

 

15.5   No partnership or agency. Nothing in the Contract is intended to, or shall be deemed to, establish any partnership or joint venture between the parties, nor constitute either party the agent of the other for any purpose. Neither party shall have authority to act as agent for, or to bind, the other party in any way.

 

 
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15.6 Third parties. Save as expressly provided, a person who is not a party to the Contract shall not have any rights to enforce its terms.

 

15.7 Variation. Except as set out in these Conditions, no variation of the Contract, including the introduction of any additional terms and conditions, shall be effective unless it is agreed in writing by both parties. 

 

15.8 Entire Agreement. The Contract constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter. Each party agrees that it shall have no remedies in respect of any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in the Contract. Each party agrees that it shall have no claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in the Contract.

 

15.9 Governing law. This Contract, and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims), shall be governed by, and construed in accordance with the law of England and Wales.

 

15.10 Jurisdiction. Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this Contract or its subject matter or formation (including non-contractual disputes or claims).

 

 

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EXHIBIT 10.11

 

THE HEALING COMPANY, INC.

BOARD OF DIRECTORS SERVICES AGREEMENT

 

This Board of Directors Services Agreement (the “Agreement”), dated 2/16/2022, (the “Effective Date”), is entered into between The Healing Company, Inc., a Nevada corporation (the “Company), and Steven Bartlett, an individual with a principal place of residence in [131 Shoreditch High Street, 4th Floor, London, E1 6JE] (“Director”).

 

WHEREAS, the Company desires to retain the services of Director for the benefit of the Company and its stockholders; and

 

WHEREAS, Director desires to serve on the Company’s Board of Directors for the period of time and subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, for consideration and as set forth herein, the parties hereto agree as follows:

 

1. Board Duties. Director agrees to provide services to the Company as a member of the Board of Directors beginning on January 1, 2022 (the “Start Date”), provided, however, that the Director’s continued service on the Board of Directors of the Company (the “Board”) after the initial one-year term on the Board shall be subject to any necessary approval by the Company’s stockholders. Director shall, for so long as he remains a member of the Board of Directors, but in any case not less than one year from the date hereof, meet with the Company upon written request, at dates and times mutually agreeable to Director and the Company, to discuss any matter involving the Company or its Subsidiaries, which involves or may involve issues of which Director has knowledge and cooperate in the review, defense or prosecution of such matters. Director acknowledges and agrees that the Company may rely upon Director’s expertise in technology, marketing or other business disciplines where Director has a deep understanding with respect to the Company’s business operations and that such requests may require substantial additional time and efforts in addition to Director’s customary service as a member of the Board of Directors. Director will notify the Company promptly if he is subpoenaed or otherwise served with legal process in any matter involving the Company or its subsidiaries. Director will notify the Company if any attorney who is not representing the Company contacts or attempts to contact Director (other than Director’s own legal counsel) to obtain information that in any way relates to the Company or its Subsidiaries, and Director will not discuss any of these matters with any such attorney without first so notifying the Company and providing the Company with an opportunity to have its attorney present during any meeting or conversation with any such attorney.

 

2. Independent Contractor. The Director’s status during the Directorship Term shall be that of an independent contractor and not, for any purpose, that of an employee or agent with authority to bind the Company in any respect. All payments and other consideration made or provided to the Director under Section 3 shall be made or provided without withholding or deduction of any kind, and the Director shall assume sole responsibility for discharging all tax or other obligations associated therewith.

 

 
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3. Compensation. All compensation arrangements that existed prior to execution of this Agreement, including but not limited to the employment and non-competition agreement, are hereby terminated. As compensation for the services provided herein, the Company shall pay to Director an annual fee of $37,500.00 for the Director’s services (the “Director’s Fee”), which shall be payable in twelve (12) equal monthly installments, in arrears, pro-rated from the Start Date, as long as Director continues to fulfill his duties and provide the services set forth above. As further consideration for the Director’s provision of the services and subject to approval by the Board, the Company shall grant to Director the options (the “Options”) to purchase one hundred and twenty- five thousand (125,000) shares of Common Stock of The Healing Company, Inc., at an exercise price per share equal to the fair market value of a share of Common Stock of the Company at the time of such grant, pursuant to terms to be set forth in the Company’s then-current Equity Incentive Plan (“Plan”) and a Non-Qualified Stock Option Award Agreement (“Award Agreement”).

 

4. Benefits and Expenses. The Company shall reimburse Director for reasonable out-of-pocket expenses incurred in connection with discharging his duties as a Board member. Any additional expenses shall be pre-approved by the CEO or CFO of the Company and will be reimbursed subject to receiving reasonable substantiating documentation relating to such expenses.

 

5. Directorship Term. The “Directorship Term,” as used in this Agreement, shall mean the period commencing on the Start Date and terminating on the earlier of the date of the next annual stockholders meeting and the earliest of the following to occur: (a) the death of the Director; (b) the termination of the Director from his membership on the Board by the mutual agreement of the Company and the Director; (c) the removal of the Director from the Board by the majority stockholders of the Company; and (d) the resignation by the Director from the Board.

 

6. Director’s Representation and Acknowledgment. The Director represents to the Company that his execution and performance of this Agreement shall not be in violation of any agreement or obligation (whether or not written) that he may have with or to any person or entity, including without limitation, any prior or current employer. The Director hereby acknowledges and agrees that this Agreement (and any other agreement or obligation referred to herein) shall be an obligation solely of the Company, and the Director shall have no recourse whatsoever against any stockholder of the Company or any of their respective affiliates with regard to this Agreement.

 

7. Director Covenants.

 

A. Unauthorized Disclosure. The Director agrees and understands that in the Director’s position with the Company, the Director has been and will be exposed to and receive information relating to the confidential affairs of the Company, including, but not limited to, technical information, business and marketing plans, strategies, customer information, other information concerning the Company’s products, promotions, development, financing, expansion plans, business policies and practices, and other forms of information considered by the Company to be confidential and in the nature of trade secrets. The Director agrees that during the Directorship Term and thereafter, the Director will keep such information confidential and will not disclose such information, either directly or indirectly, to any third person or entity without the prior written consent of the Company; provided, however, that (i) the Director shall have no such obligation to the extent such information is or becomes publicly known or generally known in the Company’s industry other than as a result of the Director’s breach of his obligations hereunder and (ii) the Director may, after giving prior notice to the Company to the extent practicable under the circumstances, disclose such information to the extent required by applicable laws or governmental regulations or judicial or regulatory process. This confidentiality covenant has no temporal, geographical or territorial restriction. Upon termination of the Directorship Term, the Director will promptly return to the Company and/or destroy at the Company’s direction all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data, other product or document, and any summary or compilation of the foregoing, in whatever form, including, without limitation, in electronic form, which has been produced by, received by or otherwise submitted to the Director in the course or otherwise as a result of the Director’s position with the Company during or prior to the Directorship Term, provided that the Company shall retain such materials and make them available to the Director if requested by him in connection with any litigation against the Director under circumstances in which (i) the Director demonstrates to the reasonable satisfaction of the Company that the materials are necessary to his defense in the litigation and (ii) the confidentiality of the materials is preserved to the reasonable satisfaction of the Company.

 

 
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B. Non-Solicitation. During the Directorship Term and for a period of three (3) years thereafter, the Director shall not interfere with the Company’s relationship with, or endeavor to entice away from the Company, any person who, on the date of the termination of the Directorship Term and/or at any time during the one year period prior to the termination of the Directorship Term, was an employee or customer of the Company or otherwise had a material business relationship with the Company.

 

C. Insider Trading Guidelines. Director agrees to execute the Company’s Insider Trading Guidelines as provided by the Company.

 

D. Remedies. The Director agrees that any breach of the terms of this Section 7 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Director therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by the Director and/or any and all entities acting for and/or with the Director, without having to prove damages or paying a bond, in addition to any other remedies to which the Company may be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including, but not limited to, the recovery of damages from the Director. The Director acknowledges that the Company would not have entered into this Agreement had the Director not agreed to the provisions of this Section 7.

 

E. The provisions of this Section 7 shall survive any termination of the Directorship Term, and the existence of any claim or cause of action by the Director against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements of this Section 7.

 

8. Mutual Non-Disparagement. Director and the Company mutually agree to forbear from making, causing to be made, publishing, ratifying or endorsing any and all disparaging remarks, derogatory statements or comments made to any party with respect to either of them. Further, the parties hereto agree to forbear from making any public or non-confidential statement with respect to the any claim or complain against either party without the mutual consent of each of them, to be given in advance of any such statement.

 

9. Indemnification. The Company agrees to indemnify the Director for his activities as a member of the Board to the fullest extent permitted under applicable law and shall use its best efforts to maintain Directors and Officers Insurance benefitting the Board.

 

 
3

 

 

10. Non-Waiver of Rights. The failure to enforce at any time the provisions of this Agreement or to require at any time performance by the other party hereto of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part hereof, or the right of either party hereto to enforce each and every provision in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time or at any prior or subsequent time.

 

11. Binding Effect/Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, personal representatives, estates, successors (including, without limitation, by way of merger) and assigns. Notwithstanding the provisions of the immediately preceding sentence, neither the Director nor the Company shall assign all or any portion of this Agreement without the prior written consent of the other party.

 

12. Entire Agreement. This Agreement (together with the other agreements referred to herein) sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to such subject matter.

 

13. Severability. If any provision of this Agreement, or any application thereof to any circumstances, is invalid, in whole or in part, such provision or application shall to that extent be severable and shall not affect other provisions or applications of this Agreement.

 

14. Cooperation. In the event of any claim or litigation against the Company and/or Director based upon any alleged conduct, acts or omissions of Director during the tenure of Director as an officer of the Company, whether known or unknown, threatened or not as of the time of this writing, the Company will cooperate with Director and provide to Director such information and documents as are necessary and reasonably requested by Director or his counsel, subject to restrictions imposed by federal or state securities laws or court order or injunction. The Company shall cooperate in all respects to ensure that Director has access all available insurance coverage and shall do nothing to damage Director’s status as an insured, and shall provide all necessary information for Director to make or tender any claim under applicable coverage.

 

15. Modifications. Neither this Agreement nor any provision hereof may be modified, altered, amended, or waived except by an instrument in writing duly signed by the party to be charged.

 

16. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

17. Governing Law. This Agreement shall be governed by the law of the State of Utah. In the event of any dispute regarding the performance or terms hereof, the prevailing party in any litigation shall be entitled to an award of reasonable attorneys’ fees and costs of suit, together with any other relief awarded hereunder or in accordance with governing law.

 

 
4

 

 

IN WITNESS WHEREOF, the Company has caused this Director Agreement to be executed by authority of its Board of Directors, and the Director has hereunto set his hand, on the day and year first above written.

 

  THE HEALING COMPANY, INC.
       

 

 

Simon Belsham  
    Chief Executive Officer  

 

 

 

 

    DIRECTOR  

 

 

 

 

 

 

 

 

 

Steven Bartlett

 

 

 
5

 

EXHIBIT 31.1

 

CERTIFICATION PURSUANT TO
18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Simon Belsham, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of The Healing Company Inc.

 

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

 

4.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

 

 

d.

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Quarterly Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

 

5.

I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

 

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: February 22, 2022

 

/s/ Simon Belsham

 

 

 

Simon Belsham

Chief Executive Officer, President and Director

(Principal Executive Officer)

 

 

EXHIBIT 31.2

 

CERTIFICATION PURSUANT TO
18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Larson Elmore, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of The Healing Company Inc.

 

 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

 

4.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

 

 

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

 

 

d.

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Quarterly Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

 

5.

I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

 

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

 

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: February 22, 2022

 

/s/ Larson Elmore

 

 

 

Larson Elmore

Chief Financial Officer, Secretary and Treasurer

(Principal Financial Officer and Principal Accounting Officer)

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Simon Belsham, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

(1)

the Quarterly Report on Form 10-Q of The Healing Company Inc. for the interim period ended December 31, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

 

 

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of The Healing Company Inc.

 

 

The Healing Company Inc.

 

 

 

 

 

Dated: February 22, 2022

 

/s/ Simon Belsham

 

 

 

Simon Belsham

 

 

 

Chief Executive Officer, President and Director

 

 

 

(Principal Executive Officer)

 

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Healing Company Inc. and will be retained by The Healing Company Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Larson Elmore, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

 

(1)

the Quarterly Report on Form 10-Q of The Healing Company Inc. for the interim period ended December 31, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

 

 

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of The Healing Company Inc.

 

 

The Healing Company Inc.

 

 

 

 

 

Dated: February 22, 2022

 

/s/ Larson Elmore

 

 

 

Larson Elmore

 

 

 

Chief Financial Officer, Secretary, and Treasurer

 

 

 

(Principal Financial Officer and Principal Accounting Officer)

 

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Healing Company Inc. and will be retained by The Healing Company Inc. and furnished to the Securities and Exchange Commission or its staff upon request.