UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): June 22, 2017

 

Croe, Inc.

(Exact name of registrant as specified in its charter)

 

Utah   333-214187   46-4212105

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

23805 Stuart Ranch Road, Suite 235

Malibu, CA

  90265
(Address of principal executive offices)   (Zip Code)

 

(424) 228-9955

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 
 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

The information provided in Items 5.02 of this Current Report on Form 8-K is incorporated herein by reference.

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Appointment of Directors

 

Effective as of June 22, 2017, James Gilbert and Anthony Strickland were appointed directors of the Company.

 

The following is biographical information about Messrs. Gilbert and Strickland.

 

James Gilbert. Mr. Gilbert, 40, has served as President and director of The Crypto Company, a Nevada corporation (“Crypto”) and a wholly owned subsidiary of the Company, since March 2017. Mr. Gilbert also has been serving as a Board Member at the Economic Space Agency, which creates programmable organizations on the Blockchain, since January 2017. In 2012, Mr. Gilbert co-founded Spring.me, an interest based community for social conversations where he also managed capital raising efforts and continued to serve as a Board Member until 2014. In 2009, he co-founded LivingSocial Australia, where he served as Sales Director and Board Member until 2012. Mr. Gilbert earned a Higher School Certificate at St. Ignatius College Riverview in 1995 and a Master’s in Business Administration from the Australian Graduate School of Management at the University of New South Wales in 2009.

 

Anthony Strickland. Mr. Strickland, 48, currently serves as Vice President of GreenWave Energy Solutions LLC, a company that seeks to harness the power of ocean waves to provide energy to Californians, and President and Chief Executive Officer of Strong America, an advocacy group and political action committee. Mr. Strickland is a former Republican member of the California State Senate, representing District 19 from 2008 to 2012, and a former California Assemblyman, representing the 37th District from 1998 to 2004. Strickland earned his B.A. in political science from Whittier College.

 

On June 7, 2017, the Company, entered into a Share Exchange Agreement (the “Exchange Agreement”) with Michael Poutre, in his sole capacity as representative for the shareholders of Crypto, pursuant to which each issued and outstanding share of common stock of Crypto was exchanged for shares of common stock of the Company (the “Share Exchange”), resulting in the aggregate issuance of 7,026,609 shares of common stock of the Company, on a pro rata basis, in exchange for 727,867 shares of common stock of Crypto. Mr. Gilbert received 2,575,303 shares of common stock in the Share Exchange in exchange for 100% of his Crypto shares having an aggregate value of $12,264,165.

 

There are no family relationships between any of our executive officers and directors.

 

No material plan, contract or arrangement to which either Mr. Gilbert or Mr. Strickland is a party or in which Mr. Gilbert or Mr. Strickland participates has been entered into by the Company.

 

CEO Consulting Agreement

 

On June 22, 2017, the Company entered into a Consulting Agreement (“Consulting Agreement”) with MP2 Ventures, LLC (“MP2”), pursuant to which MP2 shall cause Michael Poutre, principal of MP2 and Chief Executive Officer of the Company, to serve as Chief Executive Officer of the Company for an initial term of one year, in exchange for a consulting fee in the amount of Two Hundred Forty Thousand Dollars ($240,000) per annum. The information provided in this Item 5.02 is qualified in its entirety by the Consulting Agreement, filed herewith as Exhibit 10.1, which is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits
   
10.1 Consulting Agreement by and between the Company and MP2 Ventures, LLC, dated as of June 22, 2017.

 

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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 hereunto duly authorized.

 

  CROE, INC.
Date: June 28, 2017    
  By: /s/ Michael Poutre
  Name: Michael Poutre
  Title: Chief Executive Officer

 

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Consulting Agreement

 

This Consulting Agreement (the “ Agreement ”) is made and entered into, effective as of June 22, 2017 (the “ Effective Date ”), by and between Croe, Inc., a Utah corporation (the “ Company ”), and MP2 Ventures, LLC (“ Consultant ”), with reference to the following facts:

 

Recitals :

 

A. As of June 7, 2017, Michael Poutre, the sole member of Consultant, was appointed by the Board of Directors of the Company to serve as Chief Executive Officer of the Company; and

 

B. Consultant and the Company have agreed to execute this Agreement in order to memorialize the terms and conditions on which Consultant shall provide such consulting services to the Company.

 

Agreements :

 

Now, Therefore , the parties hereto, intending to be legally bound, do hereby agree as follows:

 

1. Performance of Services

 

1.1 Engagement . The Company hereby engages Consultant on the general terms and conditions set forth in this Agreement to cause Consultant’s principal, Michael Poutre, to provide consulting services in connection with the management of the Company, and in cooperation with the Board of Directors, as may be required from time to time, including, but not limited managing the day-to-day transactions of the Company and implementing the Company’s long and short term objectives (collectively, the “ Services ”). Consultant shall have the title of “Chief Executive Officer”.

 

1.2 Business Time . The parties agree that Consultant shall devote to the performance of the Services pursuant to this Agreement such time as is mutually acceptable to Consultant and the Company, based upon the tasks assigned to Consultant by the Company from time to time; provided that Consultant shall not be required to devote Consultant’s exclusive business time to the performance of Services pursuant to this Agreement.

 

1.3 Location . Consultant shall perform the Services primarily from the Company’s location in Malibu, California, or such other location as may be convenient or necessary, in Consultant’s sole and reasonable discretion.

 

1.4 Reporting . Consultant shall report to the Board of Directors of the Company.

 

1.5 Acceptance . Consultant hereby accepts the engagement by the Company pursuant to this Agreement, and agrees to perform the Services in a competent, efficient, trustworthy and businesslike manner.

 

2. Compensation . The Company shall compensate Consultant for Consultant’s Services pursuant to this Agreement as follows:

 

2.1 Consulting Fee . The Company shall pay to Consultant a consulting fee in the amount of Two Hundred Forty Thousand Dollars ($240,000) per annum, payable at the discretion of the Company, in accordance with its payroll practices.

 

2.2 Reimbursement of Expenses . The Company shall reimburse Consultant for expenses paid or incurred by Consultant directly in connection with performing the Services, provided that such expenses are reasonable in amount, are incurred for the benefit of the Company and are supported by itemized accountings and expense receipts submitted to the Company prior to any reimbursement therefor. Any such expenses shall be reimbursed within two (2) weeks of Consultant’s submission of any such request for reimbursement.

 

 
 

 

3. Confidential Information. Consultant acknowledges that the Company does not desire to obtain improperly any proprietary or confidential information owned by any company or other person with whom Consultant now has or heretofore has had a consulting engagement or employment relationship, and therefore agrees that (a) Consultant shall not bring to the Company or share with any employee or other representative of the Company any written, electronic, or other materials containing any confidential information belonging to any such current or former employer or other person, and (b) Consultant shall not provide any such information in any other form to the Company (or any representative of the Company) in violation of any agreements or any other obligations that Consultant may owe to any other persons.

 

4. INDEMNIFICATION. Subject to the limits on excess indemnification under the California Corporations Code, each Party (the “ Indemnifying Party ”) agrees to indemnify and hold harmless the other Party and each person, if any, controlling the other Party or any of its affiliates within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended (individually an “ Indemnified Person ” and collectively the “ Indemnified Persons ”). Indemnifying Party will hold each Indemnified Person harmless from and against any and all losses, claims, damages, and liabilities, joint or several (and all actions, claims, proceedings and investigations in respect thereof), caused by, related to or arising out of, directly or indirectly, the engagement referred to in the Agreement, whether under any statute, under common law, or otherwise. Indemnifying Party will also reimburse the Indemnified Person for all reasonable expenses (including reasonable fees and disbursements of legal counsel), as such expenses are incurred, in connection with investigating, preparing to defend or defending any such action, claim, proceeding or investigation, whether or not in connection with pending or threatened litigation in which the Indemnified Person is a party or target. However, the Indemnifying Party will not be liable under this paragraph to the extent that any loss, claim, damage, liability or expense is found in final judgment by a court of competent jurisdiction from which no appeal can be or is taken to have resulted from the gross negligence of the Indemnified Person.

 

5. Independent Contractor

 

5.1 Status . Consultant acknowledges that in performing Services pursuant to this Agreement, Consultant (a) shall be an independent contractor and not an employee of the Company, (b) shall not be entitled to participate in any fringe benefit programs established by the Company for the benefit of its employees, and (c) shall be solely responsible for paying prior to delinquency, and shall indemnify, defend, and hold the Company free and harmless from and against, all income taxes, self-employment taxes, and other taxes (including any interest and penalties with respect thereto) imposed on the fees and expense reimbursements paid by the Company to Consultant pursuant to this Agreement.

 

5.2 Limitation on Authority . Consultant shall not be an agent of the Company and shall have no authority to bind the Company or incur any liabilities in the name of the Company, except with the prior written consent of the Board of Directors (which consent may be withheld in the absolute discretion of the Company).

 

6. Term

 

6.1 Term and Termination . The Term of this Agreement shall commence on the Effective Date and shall terminate upon the earlier of (a) the first anniversary of the Effective Date, or (b) upon fifteen (15) days’ advance written notice by either party to the other party at any time, which Term shall automatically renew on a monthly basis until terminated by either party upon fifteen (15) days’ advance written notice.

 

 
 

 

6.2 Effect of Termination . The Company shall continue to be obligated to (i) pay Consultant any pro rata consulting fee to which Consultant is entitled under Section 2 , above, with respect to the period ending on the effective date of Termination; and (ii) reimburse Consultant for all expenses paid or incurred prior to termination and for which Consultant is entitled to be reimbursed pursuant to Section 2 , above.

 

7. Miscellaneous

 

7.1 Notices . All notices permitted or required by this Agreement shall be in writing, and shall be deemed to have been delivered and received (a) when personally delivered, (b) on the third (3 rd ) business day after the date on which deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, (c) on the date on which transmitted by facsimile, email, or other electronic means producing a tangible receipt evidencing a successful transmission , or (d) on the next business day after the day on which deposited with a regulated public carrier ( e.g. , Federal Express), freight prepaid, addressed to the party for whom intended at the address, facsimile number, or email set forth on the signature page of this Agreement, or such other address, notice of which has been delivered in a manner permitted by this Section 7.1 .

 

7.2 Further Assurances . Each party agrees, upon the request of the other party, to make, execute, and deliver such additional documents, and to take such additional actions, as may be reasonably necessary to effectuate the purposes of this Agreement.

 

7.3 Complete Agreement; Amendments . This Agreement (a) contains the entire agreement and understanding between the parties and supersede all prior and contemporaneous agreements and understandings, whether oral or written, concerning Consultant’s engagement with the Company, and (b) shall not be modified or amended, except by a written instrument executed after the effective date hereof by the party sought to be charged with such amendment or modification.

 

7.4 Counterparts; Electronic Signatures . This Agreement may be executed in counterparts, each of which shall be deemed an original and both of which, taken together, shall be one and the same instrument, binding on each signatory. A copy of this Agreement that is executed by a party and transmitted by that party to the other party by facsimile or email shall be binding on the signatory to the same extent as a copy hereof containing the signatory's original signature.

 

7.5 Attorneys’ Fees . If any action is commenced to construe this Agreement or to enforce any of the rights and duties created herein, then the party prevailing in that action shall be entitled to recover its costs and attorneys' fees in that action, as well as all costs and fees of enforcing any judgment entered therein.

 

7.6 Governing Law; Venue . This Agreement shall be governed by and construed in accordance with applicable provisions of California law (other than its conflict-of-law principles), and each party hereby consents to the jurisdiction of the state courts of the State of California for purposes of all actions commenced to construe or enforce this Agreement.

 

[ Signatures appear on the following page .]

 

 
 

 

In Witness Whereof , the parties hereto have executed this Agreement, effective as of the Effective Date.

 

“Company:”   “Consultant:”
     
Croe, Inc .,   MP2 Ventures, LLC
a Utah corporation    
     
By: /s/ Ron Levy                          By: /s/ Michael Poutre                  
Name & Title: Ron Levy, Chief Operating Officer     Michael Poutre, Sole Member 
     
June 22, 2017   June 22, 2017
Date   Date
     
Address for Notices:   Address for Notices:
     
23805 Stuart Ranch Road, Suite 235   PO Box 1207
Malibu, CA 90265   Simi Valley, CA 93062
Attn: Chief Operating Officer    
    Email: mike@thecryptocompany.com
Email: ron@thecryptocompany.com