Exhibit 10.1


 


HEARTBEAM, INC.


 


September 10, 2021


Branislav Vajdic


[Address]


 


Dear Branislav:


 


This letter memorializes certain
terms of your ongoing employment with HeartBeam, Inc. (the “Company”). You will continue in your position with the
Company as its Chief Executive Officer and a member of the Company’s Board of Directors (the “Board”). You will
receive an annual salary of $325,000, commencing on September 15, 2021, which will be paid semi-monthly in accordance with the
Company’s normal payroll procedures. As an employee, you will also be eligible to receive certain employee benefits. You should
note that the Company may modify job titles, salaries and benefits from time to time as it deems necessary. Additionally, it is the intent
of the Board to establish a Company bonus program following the closing of the Company’s initial public offering. Any bonus awarded
to you pursuant to the program will be payable as soon as practicable after it is earned, but in no event later than March 15 of the year
following the year in which the bonus is earned.


 


In the event that your employment
is terminated other than for Cause, death or disability or you resign with Good Reason (each as defined below), subject to your execution
of a release of claims in a form reasonably satisfactory to the Company (a “Release”) that becomes effective and irrevocable
by the sixtieth (60th) day following your termination of employment (the “Release Deadline Date”), you shall be entitled
to (i) a lump-sum severance payment equal to 12 months of your then-base salary, less applicable withholdings, (ii) acceleration of vesting
under any then-outstanding stock option or other equity award issued to you by the Company, and (iii) if you elect continuation coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for you and your eligible
dependents within the time period prescribed pursuant to COBRA, the Company will reimburse you for the COBRA premiums for such coverage
(at the coverage levels in effect immediately prior to your termination) until the earlier of (A) a period of twelve (12) months from
your termination date, or (B) the date upon which you and your eligible dependents become covered under similar plans, with such reimbursements
made in accordance with the Company’s normal expense reimbursement policy; provided, however, however, that if the Company determines
in its sole discretion that it cannot provide the COBRA benefits without potentially violating applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to you a taxable monthly payment in an amount
equal to the monthly COBRA premium that you would be required to pay to continue your group health coverage in effect on the date of your
termination of employment (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made
regardless of whether you elect COBRA continuation coverage.


 






     


     


    

 


If the Release does not become
effective and irrevocable by the Release Deadline Date, you will forfeit any right to severance payments or benefits under this letter
agreement (the “Agreement”). In no event will severance payments or benefits be paid or provided until the Release
actually becomes effective and irrevocable. If the Release becomes effective by the Release Deadline Date, severance payments and benefits
under this Agreement will commence on the Release Deadline Date, except as otherwise required by the following paragraph.


 


Notwithstanding anything to
the contrary in this Agreement, if you are a “specified employee” within the meaning of Section 409A of the Internal Revenue
Code (as it has been and may be amended from time to time) and any regulations and guidance that has been promulgated or may be promulgated
from time to time thereunder (“Section 409A”) at the time of your termination, then the severance and any other separation
benefits payable to you upon your separation from service, to the extent that the same constitute deferred compensation under Section
409A (the “Deferred Payments”), otherwise due to you on or within the six (6) month period following your separation
from service will accrue during such six (6) month period and will become payable in a lump sum payment on the date six (6) months and
one (1) day following the date of your termination (such rule, the “Six Month Delay Rule”). All subsequent Deferred
Payments following the application of the Six Month Delay Rule, if any, will be payable in accordance with the payment schedule applicable
to each payment or benefit. Additionally, any Deferred Payments will be paid on, or, in the case of installments, will commence on the
Release Deadline Date, or, if later, such time as required by the Six Month Delay Rule. Except as required by the Six Month Delay Rule,
any installment payments that would have been made to you during the sixty (60) day period immediately following your separation from
service but for the preceding sentence will be paid to you on the sixtieth (60th) day following your separation from service and the remaining
payments shall be made as provided in this Agreement. It is the intent of this Agreement to comply with the requirements of Section 409A
so that none of the severance payments will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will
be interpreted to 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.


 


For purposes of this Agreement,
“Cause” is defined as (i) your conviction of, or plea of nolo contendere to, a felony or any crime involving
fraud, embezzlement or any other act of moral turpitude, (ii) your gross misconduct, (iii) your unauthorized use or disclosure of
any proprietary information or trade secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result
of your relationship with the Company, (iv) your willful breach of any obligations under any written agreement or covenant with the
Company, or (v) your continued failure to perform your employment duties after you have received a written demand of performance from
the Company which specifically sets forth the factual basis for the Company’s belief that you have not substantially performed your
duties and have failed to cure such non-performance to the Company’s satisfaction within 10 business days after receiving such notice.


 






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For purposes of this Agreement,
“Good Reason” means your resignation within thirty (30) days following the expiration of any Company cure period (discussed
below) following the occurrence of one or more of the following, without your prior written consent: (i) a material diminution of your
base salary, unless such diminution is part of a generalized salary reduction affecting senior level (VP or higher) employees; (ii) a
material diminution of your authority, duties or responsibilities as an employee relative to such authority, duties or responsibilities
in effect immediately prior to such diminution; provided that your authority, duties and responsibilities will not be deemed to be materially
reduced if you have reasonably comparable authority, duties and responsibilities as an employee with respect to the Company’s business
following a Change of Control, regardless of any change in title or whether you subsequently provide services to a subsidiary, affiliate,
business unit, division or otherwise; (iii) your relocation to a facility or a location fifty (50) miles or more from your then current
office location; or (iv) a material breach by the Company of the agreement under which you provide services to the Company, which failure
is not cured to your sole and reasonable satisfaction within ten (10) business days after the Company receives a written demand for performance
from you. Your resignation will not be deemed to be for Good Reason unless you have first provided the Company with written notice of
the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds
for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date the Company receives such
notice, and such condition has not been cured during such period.


 


For purposes of this Agreement,
a “Change of Control” means either: (i) the acquisition of the Company by another entity by means of any transaction
or series of related transactions (including, without limitation, any reorganization, merger or consolidation or stock transfer, but excluding
any such transaction effected primarily for the purpose of changing the domicile of the Company), unless the Company’s stockholders
of record immediately prior to such transaction or series of related transactions hold, immediately after such transaction or series of
related transactions, at least 50% of the voting power of the surviving or acquiring entity (provided that the sale by the Company
of its securities for the purposes of raising additional funds shall not constitute a Change of Control hereunder); or (ii) a sale of
all or substantially all of the assets of the Company.


 


The Company looks forward
to an ongoing beneficial and productive relationship. Nevertheless, you should be aware that your employment with the Company is for no
specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason.
Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without
notice. We request that, in the event of resignation, you give the Company at least two weeks’ notice.


 


For purposes of federal
immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment
in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our
employment relationship with you may be terminated.


 






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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. Moreover, you agree
that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other
business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment.
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.


 


As a Company employee, you
will be expected to abide by the Company’s rules and standards. Specifically, you will be required to sign an acknowledgment that
you have read and that you understand the Company’s rules of conduct which are included in the Company Handbook, which the
Company will soon complete and distribute.


 


As a condition of your employment,
you are also required to sign and comply with an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement
which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and
non-disclosure of Company proprietary information. In the event of any dispute or claim relating to or arising out of our employment relationship,
you and the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding
arbitration, (ii) you are waiving any and all rights to a jury trial but all court remedies will be available in arbitration, (iii) all
disputes shall be resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall provide for adequate
discovery, and (v) the Company shall pay all the arbitration fees, except an amount equal to the filing fees you would have paid
had you filed a complaint in a court of law. Please note that we must receive your signed At-Will Employment, Confidential Information,
Invention Assignment and Arbitration Agreement before your first day of employment.


 


To accept the Company’s
offer, please sign and date this Agreement in the space provided below. A duplicate original is enclosed for your records. This Agreement,
along with any agreements relating to proprietary rights between you and the Company, set forth the terms of your employment with the
Company and supersede any prior representations or agreements including, but not limited to, any representations made during your recruitment,
interviews or pre-employment negotiations, whether written or oral. This Agreement, including, but not limited to, its at-will employment
provision, may not be modified or amended except by a written agreement signed by the Chairman of the Board of the Company or other officer
of the Company as directed by the Board and you.


 


We look forward to your favorable
reply and to continued work with you at HeartBeam, Inc.


 




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	 	Sincerely,
	 	 
	 	/s/ Rick Ferrari
	 	Name: Rick Ferrari
	 	Title: Executive Chairman


 


Agreed to and accepted:


 


	Signature:	/s/ Branislav Vajdic	 
	Printed Name: 	Branislav Vajdic	 
	Date:	 	 


 


Enclosures


Duplicate Original Letter


Employment, Confidential Information,
Invention Assignment and Arbitration Agreement


 


 


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