Exhibit 10.1


 


Executive Employment Agreement


 


This Executive Employment Agreement (the
“Employment Agreement”) by and between Eric R. Mortensen (the “Executive”) and CytoSorbents
Medical, Inc. (with its parent CytoSorbents Corporate, hereinafter referred to as the “Company”), effective
as of June 1, 2017.


 


WHEREAS, the Company and Executive wish
to enter into this new Employment Agreement on the mutually agreed-upon terms and conditions set forth herein.


 


NOW, THEREFORE, in consideration of the
mutual covenants, promises and obligations set forth herein, the parties agree as follows:


 


1.       Term.
The term of the Executive’s employment under this Agreement shall be from June 1, 2017 through December 31, 2019, unless
terminated earlier pursuant to Section 6 of this Agreement (“Initial Term”). Thereafter, the Executive’s
employment hereunder shall automatically renew for an additional term of one year (a “Renewal Term” and together,
the Initial Term and the Renewal Term, the “Term”), unless either party provides written notice of non-renewal
on the other party at least sixty (60) days prior to the Renewal Term.


 


2.       Position
and Duties.


 


2.1       Position.
During the Term, the Executive shall serve as the Chief Medical Officer of the Company, reporting to the Chief Executive Officer
of the Company (the “CEO”). In such position, the Executive shall have such duties, authority and responsibility
as shall be determined from time to time by the CEO, which duties, authority and responsibility are consistent with the Executive’s
position.


 


2.2       Duties.
During the Term, the Executive shall devote substantially all of his business time and attention to the performance of his duties
as Chief Medical Officer and will not engage in any other business, profession or occupation for compensation or otherwise which
would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent
of the CEO.


 


3.       Place
of Performance. The principal place of the Executive’s employment shall be at the Company’s principal office currently
located in Monmouth Junction, New Jersey; provided that, the Executive may be required to travel from time to time on Company business.


 


4.       Compensation.


 


4.1       Base
Salary. The Company shall pay the Executive a base salary at an annualize rate of $330,000 payable in equal semimonthly installments
in accordance with the Company’s customary payroll practices. The Executive’s base salary shall be reviewed annually
by the Compensation Committee of the Board. The Executive’s annual base salary, as in effect from time to time, is hereinafter
referred to as “Base Salary.”


 


4.2       Stock
Options. The Executive shall be eligible to participate in any equity incentive plan that the Company may adopt for its management
team, on such terms and conditions as determined by the Compensation Committee of the Board.


 






     


     


    

 


4.3       
Change of Control Incentive Compensation. The Executive shall be entitled to an incentive compensation award in the event
of Change of Control of the Company (as defined in Section 6.6(b)), on such terms and conditions as determined by the Compensation
Committee of the Board.


 


4.4       Treatment
of Stock Options and Restricted Stock. The Executive’s stock options and restricted shares will be adjusted on the same
basis as all other shareholders to account for any stock split, stock dividend or recapitalization.


 


4.5       Bonuses.
The Executive shall be eligible to receive such discretionary bonuses as the Board, in its sole discretion, deems appropriate.
 


 


5.       Benefits.
During the Term, the Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained
by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”), on a basis which is
no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable
law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit
Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.


 


5.1       Vacation,
Sick and Personal Days. During the Term, the Executive shall be entitled to four (4) weeks of paid vacation days per calendar
year (prorated for partial years) in accordance with the Company’s vacation policies, as in effect from time to time for
executive employees. In addition to paid vacation days, the Executive shall be entitled to paid sick days and paid personal days
in accordance with the Company’s applicable policies, as in effect from time to time for executive employees.


 


5.2       Continuing
Medical Education and Licensing. The Executive shall be provided up to forty (40) hours of paid time off each calendar year
for attendance at continuing education (“CE”) programs. The forty (40) hours of paid time off shall be prorated
for partial years. The Company shall reimburse the Executive the cost of attendance at CE programs, up to a maximum amount of One
Thousand Dollars ($1,000) per year, prorated for partial years. The Company also agrees to pay for the cost of the one-time conversion
or transfer of Executive’s Pennsylvania Medical License to New Jersey, up to a maximum of Five Hundred Dollars ($500), and
up to Five Hundred Dollars ($500) each year for annual renewal of his New Jersey Medical License for the term of this agreement.
The Executive shall furnish the Company with adequate supporting documentation for all such incurred expenses.


 


5.3       Business
Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment
and travel expenses incurred by the Executive in connection with the performance of his duties in accordance with the Company’s
expense reimbursement policies and procedures.


 


5.4       Liability
Insurance. With respect to the Executive’s acts or failures to act while employed by the Company in the Executive’s
capacity as a director, officer, employee or agent of the Company, the Executive shall be entitled to: (i) indemnification from
the Company; and (ii) liability insurance coverage, in each case on the same basis as other directors and officers of the Company.


 






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6.       Termination
of Employment. This Agreement and the Executive’s employment hereunder may be terminated as provided for in this Section
6.


 


6.1       Termination
for Cause or Expiration.  The Company may terminate the Executive’s employment effective immediately for Cause (as
defined below). If the Executive’s employment is terminated by the Company for Cause or the Agreement expires at the end
of the Term, the Executive shall be entitled to receive only:


 


		(i)	any accrued but unpaid Base Salary and accrued but unused vacation date as of the date of termination of Executive’s
employment (“Termination Date”);



 


		(ii)	reimbursement for unreimbursed business expenses properly incurred by the Executive through the Termination Date, which shall
be subject to and paid in accordance with the Company’s expense reimbursement policy; and



 


		(iii)	such employee benefits (including equity compensation), if any, to which the Executive may be entitled under the Company’s
Employee Benefit Plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in
the nature of severance or termination payments except as specifically provided herein.



 


Items 6.1(i) through 6.1(iii) are referred
to herein collectively as the “Accrued Obligations.”


 


6.2       Termination
without Cause. The Company may terminate the Executive’s employment at any time without Cause.


 


(a)       If
the Company terminates the Executive’s employment without Cause, then the Executive shall be entitled to:


 


		(i)	The Accrued Obligations;



 


		(ii)	An amount equal to three (3) weeks’ Base Salary for every full year the Executive was employed by the Company, with a
minimum of six (6) months and a maximum of twelve (12) months, payable in equal installments in accordance with the Company’s
regular payroll practices; and



 


		(iii)	Full payment of the premiums for continued health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”), provided that the Executive timely elects and remains eligible for COBRA, until the earlier of
(x) twelve (12) months or (y) until the Executive becomes eligible to participate in another employer’s group health plan.



 






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		(iv)	Notwithstanding the terms of any applicable stock option plan and/or agreement, (x) any and all stock options and/or restricted
stock granted to the Executive will become fully vested and/or exercisable on the Termination Date and (y) Executive shall have
(i) until the expiration date noted in the applicable stock option agreement to exercise any stock options previously granted to
the Executive prior to the date of this Agreement (as specified on the signature page hereto), and (ii) ninety (90) days from the
Termination Date to exercise any stock options granted to the Executive on or after the date of this Agreement (as specified on
the signature page hereto).



 


(b)       The
Executive’s receipt of the payments and benefits under Section 6.2 (ii), (iii) and (iv) are subject to the Executive’s
execution of a release of claims in favor of the Company, its parent and affiliates and their respective officers and directors
in a form provided by the Company (the “Release”) and such Release becoming effective within 60 days following
the Termination Date (such 60-day period, the “Release Execution Period”); provided that if the Release Execution
Period begins in one taxable year and ends in another taxable year, any payment which is “nonqualified deferred compensation”
under Section 409A of the Internal Revenue Code shall not be made until the beginning of the second taxable year; provided further
that, the first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period
beginning on the Termination Date and ending on the first payment date if no delay had been imposed.


 


6.3       Termination
for Good Reason. The Executive may terminate his employment hereunder for Good Reason (as defined below), in accordance Section
6.6(d) herein. If the Executive terminates his employment for Good Reason, then the Executive shall be entitled to the payments
and benefits described in Section 6.2(a), subject to the same terms and conditions thereof and subject to the provisions of Section
6.2(b).


 


6.4       Termination
for Death or Disability. The Executive’s employment hereunder shall terminate automatically upon the Executive’s
death during the Term, and the Company may terminate the Executive’s employment on account of the Executive’s Disability.
In the case of a termination for Disability, such termination shall be effective as of the last day of the month following the
month in which the Company shall have given notice to the Executive of its intention to terminate the Executive’s employment
for Disability. In the event of termination of employment by death or Disability, the Executive (or the Executive’s estate,
as applicable) shall be entitled only to the Accrued Obligations.


 


6.5       Change
of Control.


 


(a)       In
the event that the Executive is terminated without Cause or the Executive terminates his employment for Good Reason, in each case
within twelve (12) months of a Change of Control (as defined below), then the Executive shall be entitled to the following:


 


		(i)	The Accrued Obligations;



 






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		(ii)	An amount equal to three (3) weeks’ Base Salary for every full year the Executive was employed by the Company, with a
minimum of six (6) months and a maximum of twelve (12) months, payable in lump sum; and



 


		(iii)	Full payment of the premiums for continued health insurance coverage pursuant to COBRA, provided the Executive timely elects
and remains eligible for COBRA, until the earlier of (x) twelve (12) months or (y) until the Executive becomes eligible to participate
in another employer’s group health plan.



 


(b)       The
Executive’s receipt of the payments and benefits under Section 6.5 (a)(ii) and (iii) are subject to the Executive’s
execution of a Release during the Release Execution Period; provided that if the Release Execution Period begins in one taxable
year and ends in another taxable year, payment under Section 6.5(a)(ii) shall not be made until the beginning of the second taxable
year. Subject to the foregoing, the payment set forth in Section 6.5(a)(ii) shall be made no later than 30 days after the Company’s
receipt of the Release executed by the Executive. Notwithstanding anything contained in this Agreement to the contrary, the Company
shall commence payment of the COBRA premiums in accordance with Section 6.5(a)(iii) upon the effectiveness of the Release.


 


6.6       Definitions.
For purposes of this Agreement, the following definitions apply:


 


(a)       “Cause”
shall mean:


 


		(i)	the Executive’s failure to perform the Executive’s duties (other than any such failure resulting from incapacity
due to physical or mental illness);



 


		(ii)	the Executive’s failure to comply with any valid and legal directive of the Board;



 


		(iii)	the Executive’s engagement in dishonesty, illegal conduct or other misconduct, which is, in each case, materially injurious
to the Company or its affiliates;



 


		(iv)	the Executive’s embezzlement, misappropriation or fraud, whether or not related to the Executive’s employment with
the Company;



 


		(v)	the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state
law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;



 


		(vi)	the Executive’s violation of a material policy of the Company;



 


		(vii)	the Executive’s material breach of any material obligation under this Agreement or any other written agreement between
the Executive and the Company.



 






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Cause shall not be deemed to exist
pursuant to Section 6.6(a)(i) and (ii) unless the Company provides the Executive with written notice of the circumstances providing
ground for cause under Section 6.6(a)(i) or (ii) and the Executive fails to cure such circumstances within 30 days of receipt of
notice from the Company.


 


(b)       “Change
of Control” shall mean the occurrence of any of the following after the Effective Date:


 


		(i)	one person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock
held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such
corporation; provided that, a Change of Control shall not occur if any person (or more than one person acting as a group) owns
more than 50% of the total fair market value or total voting power of the Company’s stock and acquires additional stock;



 


		(ii)	one person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on the
date of the most recent acquisition) ownership of the Company’s stock possessing 50% or more of the total voting power of
the stock of such corporation;



 


		(iii)	a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election
is not endorsed by a majority of the Board before the date of appointment or election; or



 


		(iv)	the sale of all or substantially all of the Company’s assets.



 


Notwithstanding the foregoing, a Change of Control
shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of
the Company, or a change in the ownership of a substantial portion of the Company’s assets under Section 409A. For purposes
of this Change of Control definition, the Company shall include the Company’s parent, CytoSorbents Corporation.


 


(c)       “Disability”
shall mean the Executive’s inability, due to physical or mental incapacity, to substantially perform the Executive’s
duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five (365) day
period or one hundred twenty (120) consecutive days.


 


(d)       “Good
Reason” shall mean the occurrence of any of the following, in each case without the Executive’s written consent:


 


		(i)	a material reduction in the Executive’s Base Salary, other than a general reduction in Base Salary that affects all similarly
situated executives in substantially the same proportions;



 


		(ii)	a relocation of the Executive’s principal place of employment by more than 30 miles; provided that such relocation results
in a longer commute for the Executive;



 






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		(iii)	any material breach by the Company of any material provision of this Agreement; or



 


		(iv)	a material, adverse change in the Executive’s duties or responsibilities (other than temporarily while the Executive
is physically or mentally incapacitated or as required by applicable law).



 


Notwithstanding the foregoing,
the Executive cannot terminate his employment for Good Reason unless the Executive has provided written notice to the Company of
the existence of the circumstances providing grounds for termination for Good Reason within thirty (30) days of the initial existence
of such grounds and the Company has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances.
If the Executive does not terminate his employment for Good Reason within 65 days after the first occurrence of the applicable
grounds, then the Executive will be deemed to have waived the right to terminate for Good Reason with respect to such grounds.


 


6.7       Resignation
of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive shall
be deemed to have resigned from all positions that the Executive holds as an officer or member of the board of directors (or a
committee thereof) of the Company or any of its affiliates, if any.


 


7.       Section
280G .  If any of the payments or benefits received or to be received by the Executive (including, without limitation,
any payment or benefits received in connection with a Change of Control or the Executive’s termination of employment, whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively
referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of
Section 280G of the Code and would, but for this Section 7, be subject to the excise tax imposed under Section 4999 of the Code
(the “Excise Tax”), then such 280G Payments shall be reduced in a manner determined by the Company (by the minimum
possible amounts) that maximizes the economic position of the Executive and that is consistent with the requirements of Section
409A until no amount payable to the Executive will be subject to the Excise Tax. If two economically equivalent amounts are subject
to reduction but are payable at different times, the amounts shall be reduced (but not below zero) on a pro rata basis.


 


8.       Cooperation.
The parties agree that certain matters in which the Executive will be involved during the Term may necessitate the Executive’s
cooperation in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent
reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the
Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the
Executive’s other activities. The Company shall reimburse the Executive for reasonable out-of-pocket expenses incurred in
connection with such cooperation.


 






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9.       Confidential
Information. The Executive understands and acknowledges that during the Term, the Executive will have access to and learn about
the Company’s Confidential Information.


 


9.1       Definition.
For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information
of the Company, and its parent, subsidiaries and affiliates, not generally known to the public, in spoken, printed, electronic
or any other form or medium, relating directly or indirectly to: clinical trials, clinical data, preclinical data, product development,
manufacturing, intellectual property, business processes, methods, policies, plans, publications, documents, research, operations,
services, techniques, transactions, know-how, trade secrets, computer programs, databases, records, Medical information, marketing
information, pricing information, design information, developments, market studies, sales information, revenue, costs, formulae,
algorithms, product plans, designs, models, client information, client lists, of the Company or its businesses or any existing
or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted
information to the Company in confidence. The Executive understands that the above list is not exhaustive, and that Confidential
Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would
otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information
is known or used. The Executive understands and agrees that Confidential Information includes information developed by the Executive
during the Term. Confidential Information shall not include information that is generally available to and known by the public
at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive
or person(s) acting on the Executive’s behalf.


 


9.2       Disclosure
and Use Restrictions. The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential;
(ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be
disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees
of the Company not having a need to know and authority to know and use the Confidential Information in connection with the business
of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance
of the Executive’s authorized employment duties or with the prior consent of the Board; and (iii) not to access or use any
Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential Information,
or remove any such documents, records, files, media or other resources from the premises or control of the Company, except as required
in the performance of his employment duties or with the prior consent of the Board. Nothing herein shall be construed to prevent
disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a
court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of
disclosure required by such law, regulation or order. The Executive shall provide written notice of any such order to the Board
prior to disclosure, to the extent feasible. The Executive understands and acknowledges that the obligations under this Agreement
with regard to any particular Confidential Information shall continue after his employment by the Company.


 


9.3       Exceptions.
Notwithstanding the foregoing, nothing herein shall prohibit or restrict the Executive from reporting possible violations of federal
law or regulation to any governmental agency or entity, or making other disclosures that are protected under the whistleblower
provisions of applicable law or regulation.


 






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10.       Restrictive
Covenants.


 


10.1       Acknowledgment.
The Executive understands and acknowledges that the nature of the Executives’ position gives the Executive access to and
knowledge of Confidential Information and places the Executive in a position of trust and confidence with the Company, and that
the Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and marketing
strategies by virtue of the Executive’s employment with the Company. The Executive further understands and acknowledges that
the Company’s ability to reserve the use of Confidential Information for the exclusive knowledge and use of the Company is
of great competitive importance and commercial value to the Company, and that improper use or disclosure by the Executive is likely
to result in unfair or unlawful competitive activity. The Executive acknowledges and agrees that the restrictive covenants herein
are reasonable and reasonably necessary to protect the legitimate business interests of the Company, including its Confidential
Information, customer relationships and goodwill.


 


10.2       Non-competition.
Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered
to the Executive, during the Term and for the period of twelve (12) months after the termination of Executive’s employment
for any reason, the Executive agrees and covenants not to engage in any business, as an employee, employer, owner, operator, manager,
advisor, consultant, agent, employee, partner, director, stockholder, officer, or any other similar capacity to an entity engaged
in the same or similar business as the Company or its parent, and their respective subsidiaries, which is the use of polymeric
sorbents to purify blood, blood products, and bodily fluids to prevent or treat inflammation or organ dysfunction, except on behalf
of the Company. Executive acknowledges and agrees that the business of the Company shall also include any business or activity
in which the Company is engaged, in research and development, or is demonstrably planning to conduct, each as of the Termination
Date. Nothing herein shall prohibit the Executive from purchasing or owning less than three percent (3%) of the publicly traded
securities of any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling
person of, or a member of a group that controls, such corporation.


 


10.3       Non-solicitation
of Employees. During the Term and for a period of twelve (12) months after the termination of the Executive’s employment
for any reason, the Executive agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit,
or induce the termination of employment of any employee of the Company.


 


10.4       Non-solicitation
of Customers. The Executive understands and acknowledges that because of the Executive’s experience with and relationship
to the Company, the Executive will have access to and learn about much or all of the Company’s customer information, and
will have formed customer relationships. The Executive understands and acknowledges that loss of this customer relationship and/or
goodwill will cause significant and irreparable harm to the Company. Therefore, Executive agrees and covenants, during the Term
and for a period of twelve (12) months after the termination of Executive’s employment for any reason, not to directly or
indirectly solicit, contact, attempt to contact or meet with the Company’s customers that the Executive contracted or solicited
in the two-year period prior to the Termination Date, or those potential customers who the Executive solicited within the six (6)
month period before the Termination Date, for purposes of offering or providing goods or services similar to or competitive with
those offered by the Company.


 






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11.       Non-disparagement.
The Executive agrees and covenants that the Executive will not during and after the Term, make, publish or communicate to any person
or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses,
or any of its employees, officers or directors.


 


12.       Remedies.
In the event of a breach or threatened breach by the Executive of Section 9, Section 10 or Section 11 of this Agreement, the Executive
hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or
permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction,
without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the
necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal
remedies, monetary damages or other available forms of relief. Should the Executive violate any of the terms of the restrictive
covenant obligations articulated herein, the obligation at issue will run from the first date on which the Executive ceases to
be in violation of such obligation.


 


13.       Proprietary
Rights.


 


13.1       Work
Product. The Executive acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries,
ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived
or reduced to practice by the Executive individually or jointly with others during the Term and relating in any way to the business
or contemplated business, research or development of the Company (regardless of when or where the Work Product is prepared or whose
equipment or other resources is used in preparing the same) and all printed, physical and electronic copies, all improvements,
rights and claims related to the foregoing, and other tangible embodiments thereof (collectively, “Work Product”),
as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill), patents and other intellectual
property rights therein arising in any jurisdiction throughout the world and all related rights of priority under international
conventions with respect thereto, including all pending and future applications and registrations therefor, and continuations,
divisions, continuations-in-part, reissues, extensions and renewals thereof (collectively, “Intellectual Property Rights”),
shall be the sole and exclusive property of the Company. Work Product includes, but is not limited to, Company publications, research,
strategies, discoveries, techniques, know-how, results, developments, algorithms, product designs, inventions, trade secrets, original
works of authorship, and discoveries.


 


13.2       Work
Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant times,
to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made for hire”
as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does
not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive’s entire
right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim
and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto
throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company’s rights, title
or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would have
had in the absence of this Agreement.


 






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13.3       Further
Assurances; Power of Attorney. During and after the Term, the Executive agrees to reasonably cooperate with the Company to
(a) apply for, obtain, perfect and transfer to the Company the Work Product as well as an Intellectual Property Right in the Work
Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation, executing
and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents
and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company power of attorney to
execute and deliver any such documents on the Executive’s behalf in the Executive’s name and to do all other lawfully
permitted acts to transfer the Work Product to the Company and further the transfer, issuance, prosecution and maintenance of all
Intellectual Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with the
Company’s request (without limiting the rights the Company shall have in such circumstances by operation of law). The power
of attorney is coupled with an interest and shall not be effected by the Executive’s subsequent incapacity.


 


14.       Governing
Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State
of New Jersey without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this
Agreement shall be brought only in a state or federal court located in New Jersey. The parties hereby irrevocably submit to the
exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding
in such venue.


 


15.       Entire
Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between
the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree
that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the
Agreement.


 


16.       Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Executive and by the Chair of the Board. No waiver by either of the parties of any breach by the other
party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver
of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay
by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other
or further exercise thereof or the exercise of any other such right, power or privilege.


 






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17.       Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable and thus stricken, such
holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon
the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The
parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement
in lieu of severing such unenforceable provision from this Agreement, whether by rewriting the offending provision, deleting any
or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems
warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.


 


18.       Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.


 


19.       Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.


 


20.       Section
409A.


 


20.1       General
Compliance. This Agreement is intended to comply with or be exempt from Section 409A and shall be construed and administered
in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement
may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this
Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a
short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment
payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon
a termination of employment shall only be made upon a “separation from service” under Section 409A. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section
409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that
may be incurred by the Executive on account of non-compliance with Section 409A.


 


20.2       Specified
Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection
with his termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning
of Section 409A and the Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i),
then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the
Termination Date (the “Specified Employee Payment Date”) or, if earlier, on the Executive’s death. The
aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to the Executive
in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance
with their original schedule.


 






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20.3       Reimbursements.
To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in
accordance with the following:


 


(a)       the
amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;


 


(b)       any
reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the
calendar year in which the expense was incurred; and


 


(c)       any
right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.


 


21.       Successors
and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. The Company may assign
this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted
successors and assigns.


 


22.       Notice.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent
by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below
(or such other addresses as specified by the parties by like notice):


If to the Company:


 


CytoSorbents Corporation


7 Deer Park Drive, Suite K


Monmouth Junction, NJ 08852


c/o Chief Executive Officer


If to the Executive:


 


Eric R. Mortensen, MD, PhD


5 Trestle Way


Dayton, NJ 08810


 


23.       Representations
of the Executive. The Executive represents and warrants to the Company that the Executive’s execution of this Agreement
and performance thereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement
or understanding to which the Executive is a party or is otherwise bound.


 


24.       Withholding.
The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for
the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.


 






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25.       Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive
such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.


 


26.       Acknowledgment
of Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS
INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT
WITH AN ATTORNEY OF THE EXECUTIVE’S CHOICE BEFORE SIGNING THIS AGREEMENT.


 


 


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


 





	 	CYTOSORBENTS MEDICAL, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Dr. Phillip P. Chan	 
	 	Name:	Dr. Phillip P. Chan	 
	 	Title:	CEO	 
	 	Date:	May 19, 2017	 







 









	ERIC R. MORTENSEN	 
	 	 
	Signature:	/s/ Eric R. Mortensen	 
	Date: May 23, 2017  	 







 


 






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