Document:

Exhibit
10.1

SECURITIES
PURCHASE AGREEMENT

by and among

HEALTH RIGHT DISCOVERIES, INC.,

COMMON
COMPOUNDS, INC.,

EZPHARMARX, LLC

and

 HUNTER
BURROUGHS, 

THE
SOLE SHAREHOLDER OF COMMON COMPOUNDS, INC. 

AND

THE
SOLE MEMBER OF EZPHARMARX, LLC

 

Dated
as of August 17, 2017

 

     

     

    

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of August 17, 2017 (the “Effective
Date”), is by and among HEALTH-RIGHT DISCOVERIES, INC., a Florida corporation (“HRD”), COMMON
COMPOUNDS, INC., an Arkansas corporation (“CCI”), EZPHARMARARX, LLC, an Arkansas limited liability
company (“EZRX,” and together with CCI collectively, the “Company”) and HUNTER BURROUGHS,
an individual and resident of the State of Arkansas and the sole shareholder of the Company (the “Shareholder”).
Each of the foregoing entities or individuals is sometimes referred to herein individually as a “Party” and
collectively as the “Parties.”

 

RECITALS

 

WHEREAS,
the Shareholder owns beneficially and of record one hundred percent (100%) of each of (a) the issued and outstanding shares
of capital stock of CCI (the “CCI Shares”); and (b) the issued and outstanding limited liability company membership
interests of EZRX (the “Interests,” and collectively with the CCI Shares, collectively the “Company
Securities”); and

 

WHEREAS,
the Shareholder wishes to sell, convey and transfer to HRD all of the Company Securities, and HRD wishes to purchase from
the Shareholder all of the Company Securities, in each case pursuant to and subject to the terms and conditions set forth in this
Agreement.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

SALE AND PURCHASE OF THE COMPANY SECURITIES

 

1.1           Sale
and Purchase; Purchase Price. Subject to the terms and conditions set forth in this Agreement, at Closing (as hereinafter
defined), the Shareholder shall assign, transfer, convey and deliver the Company Securities to HRD and HRD shall purchase, acquire
and accept the Company Securities from the Shareholder in exchange for a purchase price consisting of (a) $6,100,000 in cash (the
“Cash Purchase Price”); and (b) 1,751,580 “restricted” shares of HRD’s common stock
(the “HRD Shares,” and together with the Cash Purchase Price, collectively, the “Purchase Price”).
The Purchase Price shall be subject to adjustment for any increases or decreases in working capital between the Execution Date
and the Closing Date (as hereinafter defined).

 

1.2           Payment
of the Purchase Price. At Closing, HRD shall (a) issue the HRD Shares to the Shareholder; (b) pay to the Shareholder
$3,600,000, subject to any Closing adjustments as set forth in Section 1.3, by wire transfer in immediately available funds
to such bank or brokerage account as may be designated by the Shareholder; and (c) execute and deliver to the Shareholder a promissory
note for the balance of the Cash Purchase Price in the form of Exhibit A hereto (the “Note”).

 

     2 | Page

     

    

 

1.3           Net
Working Capital At Closing. At Closing, the Company shall have, in the aggregate, Net Working Capital of no less than
Two Hundred Thousand Sixty-Three Thousand Four Hundred and No/100 Dollars ($263,400.00). The term “Net Working Capital”
means, as of any particular date, an amount equal to the current assets reflected on the balance sheet of the Company, minus the
current liabilities reflected on such balance sheet. For purposes of calculating the Net Working Capital as of Closing, such amount
shall be estimated in accordance with the provisions of Section 1.4, with a subsequent final calculation to be made in
accordance with Section 1.4. In the event, any estimated shortfall in the Net Working Capital as of Closing is identified
prior to Closing, such estimated shortfall shall be a preliminary adjustment to the Cash Purchase Price payable at Closing pursuant
to Section 1.4.

 

1.4          Closing
Statements. For purposes of identifying any estimated shortfall in the Net Working Capital pursuant to Section 1.3,
the initial calculation shall be estimated by the Parties in good faith at Closing based on the most current interim financial
statements included in the Company Financial Statements (as hereinafter defined) with provisional adjustments as shall be mutually
agreed upon at Closing and such estimate shall be called the “Preliminary Closing Statement.” No later than
forty-five (45) days after Closing, HRD and the Shareholder shall prepare the “Final Closing Statement” reflecting
the final determination of Net Working Capital as of Closing, determined in accordance with U.S. generally accepted accounting
principles (“GAAP”) consistently applied with prior periods. If such Final Closing Statement reflects Net Working
Capital at Closing pursuant to Section 1.3 was less than the amount estimated at Closing on the Preliminary Closing Statement,
the Shareholder shall refund the amount of such shortfall to HRD on or before the tenth (10th) business day after the
Final Closing Statement is agreed upon by HRD and the Shareholder. If the Final Closing Statement indicates that Net Working Capital
at Closing was in excess of the amount estimated on the Preliminary Closing Statement, HRD shall pay any such excess to the Shareholder
within said ten business (10) day period. If HRD and the Shareholder are unable to agree on the Final Closing Statement within
thirty (30) days after the Closing, they shall appoint the firm of Dye CPAs and Advisors (the “Accountants”)
to make such determination, which determination shall be final and binding upon HRD and the Shareholder the purposes of this Agreement.
HRD and the Shareholder shall each pay one-half the cost of the Accountants.

 

1.5          Continuing
Liabilities. After Closing, the Company will have no continuing liabilities, debts, claims, commitments and obligations
of any kind or nature, known or unknown, direct or indirect, contingent or obsolete, other than (a) such obligations as may arise
under the Contracts (as hereinafter defined) after Closing; (b) obligations identified on the balance sheet and as reflected on
the balance sheet as of the Balance Sheet Date (as hereinafter defined) included in the Company Financial Statements (as hereinafter
defined), together with trade payables incurred in the ordinary course since the Balance Sheet Date; (c) matters set forth on
the Company Disclosure Schedule (as hereinafter defined); and (d) such other obligations, if any, as are included in the calculation
of Net Working Capital (collectively, the “Continuing Liabilities”). Immediately prior to Closing, the Shareholder
shall satisfy and release, or assume responsibility for, all liabilities, debts, claims, commitments or obligations other than
the Continuing Liabilities, including, without limitation the $275,000 obligation of the Company to Burroughs & Partners,
LLC reflected on the balance sheet as of the Balance Sheet Date and the Lien (as hereinafter defined) on the Company’s assets
securing the Shareholder’s obligation to Funding Post and the Shareholder shall provide HRD evidence thereof.

 

     3 | Page

     

    

 

1.6          Closing. Closing
of the transactions contemplated by this Agreement (“Closing”) shall occur, by exchange of executed documents
delivered via overnight courier, facsimile or email, on the third (3rd) business day after last of the conditions set forth in
Article IV have been satisfied or such other date as may be agreed to by the Parties. The date and time of the Closing
(the “Closing Date”) for all purposes under this Agreement, including any calculations to be made as of the
Closing Date hereunder, shall be 11:59 p.m., Eastern Time, on the date of the Closing with any receipts allocable to and expenses
incurred on such day being allocated to the Shareholder.

 

1.7          Closing
Deliveries by the Shareholder. At Closing, the Shareholder shall deliver or cause to be delivered to HRD:

 

(a)          Certificates
evidencing the CCI Shares, duly endorsed for transfer to HRD;

 

(b)          An
Assignment of the Interests in the form of Exhibit C hereto, duly executed by the Shareholder;

 

(c)          A
five-year Non-Competition and Non-Solicitation Agreement in the form of Exhibit D hereto, duly executed by the Shareholder;

 

(d)          A
right of first refusal agreement in the form of Exhibit E hereto, duly executed by the Shareholder;

 

(e)          A
reciprocal commissions agreement, in the form of Exhibit F hereto, duly executed by Shareholder;

 

(f)      
    The duly executed resignation of the Shareholder as a director, officer or manager of the Company, as
the case may be;

 

(g)          Evidence
of a payoff of the obligation to Burroughs & Partners, LLC and Funding Post as referenced in Section 1.5 of this Agreement;
and

 

(h)          Such
other documents as counsel to HRD may reasonably request in order to effect the consummation of the transactions contemplated
by this Agreement.

 

     4 | Page

     

    

 

1.8       
  Closing Deliveries and Actions
by HRD. At Closing, HRD shall deliver or cause to be delivered to the Shareholder:

 

(a)          The
Cash Purchase Price for the Company Securities, in accordance with Section 1.2;

 

(b)          Certificates
evidencing the HRD Shares registered in the name of the Shareholder;

 

(c)          The
Note, duly executed by HRD;

 

(d)          Grants
of options (the “Options”) under and subject to the terms of HRD’s 2015 Stock Incentive Plan (the “Plan”),
to employees of the Company in the names and denominations set forth on Exhibit H hereto, to purchase up to 876,666 HRD
Shares at an exercise price of $0.35 per HRD Share, having the vesting provisions and term set forth on Exhibit H and evidenced
by duly executed stock option agreements in the form customarily used by HRD;

 

(e)          HRD’s
countersignature on the documents to be duly executed and delivered by the Shareholder to HRD pursuant to Section 1.7;
and

 

(f)       
   Such other documents as counsel to the Shareholder and the Company may reasonably request in order to effect
the consummation of the transactions contemplated by this Agreement.

 

ARTICLE
II

 

REPRESENTATIONS
AND WARRANTIES OF THE PARTIES

 

2.1          Representations
and Warranties of the Company and the Shareholder. The Company and the Shareholder, jointly and severally, represent and
warrant to HRD, that as of the Effective Date and as of the Closing Date (except where another date or period of time is specifically
stated herein), except as set forth on the disclosure schedule attached hereto (the “Company Disclosure Schedule”):

 

(a)           Organization
and Qualification. CCI is a corporation duly organized, validly existing and in good standing under the laws of the
State of Arkansas with the requisite power and authority to own and use its properties and assets and to carry on its business
as currently conducted. EZRX is a limited liability company duly organized, validly existing and in good standing under the laws
of the State of Arkansas with the requisite power and authority to own and use its properties and assets and to carry on its business
as currently conducted. To the knowledge of Shareholder, each of CCI and EZRX is qualified to do business as a foreign entity
in each jurisdiction where the character of its business requires such qualification, except where the failure to so qualify would
not have a material adverse effect on the business, prospects, operations or condition (financial or otherwise) of the Company
(a “Company Material Adverse Effect”). The Company has no subsidiaries.

 

     5 | Page

     

    

 

(b)           Authorization;
Enforcement. The Company and the Shareholder each have the requisite power and authority to enter into and to consummate
the transactions contemplated by this Agreement and all other agreements contemplated to be executed and delivered hereunder (collectively,
the “Transaction Agreements”) and to otherwise to carry out their respective obligations hereunder and thereunder.
The execution and delivery of the Transaction Agreements by the Company and the Shareholder, as the case may be, and the consummation
by them of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company and/or the Shareholder. The Transaction Agreements have been duly executed
by the Company and/or the Shareholder, as the case may be and, when delivered in accordance with the terms hereof and thereof,
will constitute the valid and binding obligations of the Company and the Shareholder, as the case may be, enforceable against
the Company and the Shareholder in accordance with their respective terms.

 

(c)           Organizational
Documents. The Company has delivered or made available to HRD true and correct copies of the Articles of Incorporation
and bylaws of CCI and the articles of organization and limited liability company operating agreement of EZRX and any other organizational
documents of CCI and EZRX, each as amended, and each such instrument is in full force and effect (the “Organizational
Documents”). To the knowledge of Shareholder, the Company is not in violation of any of the provisions of the Organizational
Documents.

 

(d)           Capitalization. The
capitalization of each of CCI and EZRX is set forth in Section 2.1(d) to the Company Disclosure Schedule. None of the Company
Securities are entitled to preemptive or similar rights, nor is any holder of Company Securities entitled to statutory preemptive
or similar rights arising out of any written agreement with the Company. There are no outstanding options, warrants, rights to
subscribe to or calls relating to securities, rights or obligations convertible into or exchangeable for, or giving any person
any right to subscribe for or acquire, any shares of capital stock of CCI or Interest of EZRX or contracts by which the Company
is or may become bound to issue additional Company Securities or securities or rights convertible or exchangeable into Company
Securities.

 

(e)           Title
to the Company Securities. The Company Securities are duly authorized, validly issued and, in the case of the CCI Shares,
fully paid and non-assessable. The Company Securities are owned of record and beneficially by the Shareholder, free and clear
of all liens, encumbrances and rights of first refusal of any kind (collectively, “Liens”).

 

(f)         
  No Conflicts. The execution, delivery and performance of the Transaction Agreements by the Company
and the Shareholder, as the case may be, and the consummation by the Company and the Shareholder of the transactions contemplated
hereby and thereby do not and will not (i) conflict with or violate any provision of the Organizational Documents; (ii) to the
knowledge of Shareholder, conflict with, or constitute a default (or an event which with notice or lapse of time, or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time, or both) of, any agreement, credit facility, indenture or instrument (evidencing a debt or otherwise) to
which the Company or the Shareholder is a party or by which any property or asset of the Company or the Shareholder is bound or
affected; or (iii) to the knowledge of Shareholder, result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company or the Shareholder is subject (including
federal and state securities laws and regulations), except in the case of each of clauses (ii) and (iii), as could not, individually
or in the aggregate, reasonably be expected to have or result in a Company Material Adverse Effect. To the knowledge of Shareholder,
the business of the Company is not being conducted in violation of any law, ordinance or regulation of any governmental authority,
except for violations which, individually or in the aggregate, could not reasonably be expected to have or result in a Company
Material Adverse Effect.

 

     6 | Page

     

    

 

(g)           Filings,
Consents and Approvals. To the knowledge of the Shareholder, neither the Company nor the Shareholder is required to
obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court
or other or foreign federal, state, local or other governmental authority or other person in connection with the execution, delivery
and performance by the Company or the Shareholder, as the case may be, of the Transaction Agreements.

 

(h)           Litigation;
Proceedings. There is no action, suit, notice of violation, proceeding or investigation pending or, to the knowledge
of the Company or the Shareholder, threatened against or affecting the Company or the Shareholder or any of their respective properties
before or by any court, governmental or administrative agency, or regulatory authority (U.S. federal, state, county, local or
foreign) (i) that adversely affects or challenges the legality, validity or enforceability of the Transaction Agreements or the
Company Securities; or (ii) that could, individually or in the aggregate, reasonably be expected to have or result in a Company
Material Adverse Effect.

 

(i)            No
Default or Violation. To the knowledge of the Shareholder, neither the Company nor the Shareholder (i) is in default
under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would
result in a default by the Company or the Shareholder), nor has the Company or the Shareholder received notice of a claim that
it or he is in default under or is in violation of any indenture, loan or credit agreement or any other agreement or instrument
to which it or he is a party or by which it or him or any of its or his properties is bound; (ii) is in violation of any order
of any court, arbitrator or governmental body; or (iii) is in violation of any statute, rule or regulation of any governmental
authority, except as could not, individually or in the aggregate, reasonably be expected to have or result in a Company Material
Adverse Effect.

 

(j)      
     Financial Statements; Books and Records; Accounts Receivable.

 

(i)          On
or before the August 15, 2017, the Company will deliver to HRD (A) combined financial statements of the Company for the years
ended December 31, 2016 and December 31, 2015; which have been audited by an independent public accounting the Shareholder firm;
and (B) unaudited combined financial statements of the Company for the six months ended June 30, 2017 and June 30, 2016, which
shall, upon delivery, be deemed to be attached hereto as Section 2.1(j)(i) of the Company Disclosure Schedule as of the
Effective Date (the “Company Financial Statements”). The Company Financial Statements have been prepared in
accordance with the Company’s historical accounting practices consistently applied during the periods involved and fairly
present in all material respects the financial position of the Company on a combined basis as of and for the dates thereof and
the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

 

     7 | Page

     

    

 

(ii)         The
books and records of the Company are complete and correct in all material respects.

 

(iii)        Section
2.1(j)(iii) of the Company Disclosure Schedule sets forth a true and correct listing, description and aging report of the
accounts receivable of the Company Business as of the close of business on the date set forth therein (the “Accounts
Receivable”). The Accounts Receivable reflected thereon are or will be, to the extent not previously collected in full,
true and valid obligations arising from sales actually made or services actually performed in the ordinary course of business
consistent with past practices and owed to the Company by unaffiliated third parties. Except as set forth in Section 2.1(j)(iii)
of the Company Disclosure Schedule, the Company has not permitted or agreed to any extension in the time for billing or payment
of any such accounts receivable other than in the ordinary course of business consistent with past practice. Unless paid prior
to the Closing Date, the Accounts Receivable are or will be as of the Closing Date current and collectible, net of the respective
reserves shown on the balance sheets contained in the Company Financial Statements (which reserves, as of the Effective Date are,
and as of the Closing Date will be adequate and calculated consistent with past practices). Subject to such reserves, each of
the Accounts Receivable either has been or will be collected in full, without any set-off, within ninety (90) days after the day
on which it first becomes due and payable. There is no contest, claim, or right of set-off under any Contract with any obligor
of an Account Receivable relating to the amount or validity of such Account Receivable.

 

(k)           Absence
of Certain Changes. Since the date of the latest balance sheet included in the Company Financial Statements (the “Balance
Sheet Date”), the Company has been operated, in the ordinary course and consistent with past practice and, in any event,
there has not been: (i) any material adverse change in the business, condition (financial or otherwise), operations, results of
operations or prospects of the Company; (ii) any loss or threatened or contemplated loss, of business of any customers or suppliers
of the Company which, individually or in the aggregate, could reasonably be expected to have a Company Material Adverse Effect;
(iii) any loss, damage, condemnation or destruction to any of the properties of the Company (whether or not covered by insurance);
(iv) any borrowings by the Company other than trade payables arising in the ordinary course of the business and consistent with
past practice; or (v) any sale, transfer or other disposition of any of the assets other than in the ordinary course of the business
and consistent with past practice.

 

     8 | Page

     

    

 

(l)        
   Intentionally Deleted.

 

(m)          Contracts. Section
2.1(m) of the Company Disclosure Schedule sets forth a list of all contracts, agreements, leases, licenses, permits, commitments
and arrangements of the Company (the “Contracts”). The Company is not alleged to be in default, nor to the
knowledge of the Shareholder is there any basis for the Company or any other party, under any of the Contracts and no event has
occurred and no condition or state of facts exists which, with the passage of time or the giving of notice or both, would constitute
such a default or breach by the Company or the Shareholder, or any other party thereto. All of the Contracts are in full force
and effect, will continue in full force and effect after the Closing without breaching the terms thereof or resulting in the forfeiture
or impairment of any rights thereunder and without the consent, approval or act of, or making of any filing with, any third party.
The Contracts are valid and enforceable against the Company and to the knowledge of the Shareholder, the other parties thereto.
Neither the Company nor the Shareholder has received any notice of the intention of any party to terminate, or substantially reduce
the volume of its purchases, sales, products or advertisements under, any Contract.

 

(n)           Tax
Matters. 

 

(i)          The
Company has filed all federal, state and local tax returns of any kind required to be filed (“Tax Returns”)
and has paid all taxes and other charges due or claimed to be due with respect to its taxing authorities (“Taxes”).
No taxing authority in any jurisdiction has made a claim, assertion or threat to the Company or the Shareholder that the Company
is or may be subject to taxation by such jurisdiction; there are no Liens with respect to Taxes on the Company’s property
or assets except for property taxes which are not yet due; and there are no Tax rulings, requests for rulings, or closing agreements
relating to the Company for any period (or portion of a period) that would affect any period after the Effective Date.

 

(ii)         Neither
the Company nor any person acting on behalf of the Company has (A) executed or entered into a closing agreement pursuant to Section
7121 of the Internal Revenue Code of 1986, as amended (the “Code”) or any similar provision of state or local
law; or (b) agreed to or is required to make any adjustments pursuant to Section 481(a) of the Code or any similar provision of
state or local law.

 

(iii)        There
is no pending audit, examination, investigation, dispute, proceeding or claim with respect to any Taxes of the Company, nor is
any such claim or dispute pending or contemplated. The Company has delivered to HRD true, correct and complete copies of all Tax
Returns and examination reports and statements of deficiencies assessed or asserted against or agreed to by the Company, if any,
since its inception and any and all correspondence with respect to the foregoing.

 

(o)       
   Labor Matters.

 

(i)          Section
2.1(o) of the Company Disclosure Schedule sets forth the name of each employee of the Company and a description of their compensation.

 

(ii)         There
are no collective bargaining or other labor union agreements to which the Company is a party or by which it is bound. To the knowledge
of the Shareholder, no material labor dispute exists or is imminent with respect to any of the employees of the Company.

 

     9 | Page

     

    

 

(iii)        To
the knowledge of the Shareholder, the Company is in full compliance with all federal, state and local laws regarding employment,
wages, hours, benefits, equal opportunity, collective bargaining, the payment of Social Security and other taxes, and occupational
safety and health. To the knowledge of the Shareholder, the Company is not liable for the payment of any compensation, damages,
taxes, fines, penalties or other amounts, however designated, for failure to comply with any of the foregoing laws.

 

(p)    
      Employee Benefits.

 

(i)
         The Company does not, and since its inception never has, maintained or contributed
to any bonus, pension, profit sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock option,
phantom stock, retirement, vacation, severance, disability, death benefit, hospitalization, medical or other plan, arrangement
or understanding (whether or not legally binding) providing benefits to any current or former manager, director, officer or employee
of the Company. There are not any employment, consulting, indemnification, severance or termination agreements or arrangements
between the Company and any current or former manager, Director, officer or employee of the Company, nor does the Company have
any general severance plan or policy.

 

(ii)         The
Company does not, and since its inception never has, maintained or contributed to any “employee pension benefit plans”
(as defined in Section 3(2) of ERISA), “employee welfare benefit plans” (as defined in Section 3(1) of ERISA)
or any other benefit plan for the benefit of any current or former managers, directors, officers, employees or consultants of
the Company.

 

(iii)        Neither
the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to each manager,
director, officer, employee and consultant of the Company, will result in (A) any payment (including, without limitation, severance,
unemployment compensation or bonus payments) becoming due from the Company; (B) any increase in the amount of compensation or
benefits payable to any such individual; or (C) any acceleration of the vesting or timing of payment of compensation payable to
any such individual. No arrangement or other Contract of the Company provides benefits or payments contingent upon, triggered
by, or increased as a result of a change in the ownership or effective control of the Company.

 

(q)           Intellectual
Property Rights. Section 2.1(q) of the Company Disclosure Schedule sets forth a list of all patents, patent
applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and rights owned by the Company
or that the Company has the right to use (collectively, the “Intellectual Property Rights”). The Intellectual
Property Rights constitute all the intellectual property rights that are necessary or material for use in connection with the
Company’s business, except where the failure to own or have the right to use an Intellectual Property Right could not be
reasonably expected to have a Material Adverse Effect. To the knowledge of the Shareholder, all the Intellectual Property Rights
are enforceable and there is no existing infringement by another person of any of the Intellectual Property Rights.

 

     10 | Page

     

    

 

(r)            Regulatory
Permits. The Company possesses the certificates, authorizations and permits issued by the appropriate federal, state
or local regulatory authorities listed in Section 2.1(r) of the Company Disclosure Schedule (the “Permits”).
To the knowledge of the Shareholder, the Permits constitute all the Permits necessary for the conduct of the Company’s business
except where the failure to possess such permits, individually or in the aggregate, could not reasonably be expected to have or
result in a Material Adverse Effect. Neither the Company nor the Shareholder has received any notice of proceedings relating to
the revocation or modification of any Permit.

 

(s)           Title
to Assets. The Company does not own any real property. The real property leased by the Company and the terms of such
leases are described in Section 2.1(s) of the Company Disclosure Schedule. The Company has good and marketable title to
or valid leasehold interests in all of its properties and assets used in the conduct of its businesses. All such assets and properties,
other than assets and properties in which the Company has leasehold interests, are free and clear of all Liens, except for Liens
that, in the aggregate, do not and will not materially interfere with the ability of the Company to conduct business as currently
conducted.

 

(t)        
   Intentionally Deleted.

 

(u)     
     Intentionally Deleted.

 

(v)           Brokers’
Fees. No fees or commissions will be payable by the Company or the Shareholder to any broker, financial advisor or
consultant, finder, placement agent, investment banker, or bank with respect to the transactions contemplated by this Agreement.

 

(w)      
   Intentionally Deleted.

 

2.2       
   Investment Representations of the Shareholder. The Shareholder represents and warrants to HRD
that as of the Effective Date and as of the Closing Date (except where another date or period of time is specifically stated herein
for a representation or warranty):

 

(a)           Investment
Intent. The Shareholder is acquiring the HRD Shares for his own account. The Shareholder is acquiring his HRD Shares
for investment purposes only and not with a view to or for distributing or reselling the HRD Shares or any part thereof or interest
therein, without prejudice, however, to the Shareholder’s right at all times to sell or otherwise dispose of all or any
part of the HRD Shares pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities
Act”) and in compliance with applicable state securities laws or under an exemption from such registration.

 

(b)           Status. The
Shareholder is an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

     11 | Page

     

    

 

(c)           Experience
of the Shareholder. The Shareholder has such knowledge, sophistication and experience in business and financial matters
so as to be capable of evaluating the merits and risks of the prospective investment in the HRD Shares, and has so evaluated the
merits and risks of such investment.

 

(d)           Ability
of Shareholder to Bear Risk of Investment. The Shareholder is able to bear the economic risk of an investment in the HRD
Shares and, at the present time, is able to afford a complete loss of such investment.

 

(e)           Access
to Information. The Shareholder acknowledges that he has been afforded (i) the opportunity to ask such questions as
he has deemed necessary of, and to receive answers from, representatives of HRD concerning the terms and conditions of the issuance
of the HRD Shares and the merits and risks of investing in the HRD Shares; (ii) access to information about HRD and HRD’s
financial condition, results of operations, business, properties, management and prospects sufficient to enable the Shareholder
to evaluate his investment; and (iii) the opportunity to obtain such additional information that HRD possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment
and to verify the accuracy and completeness of the information contained herein.

 

(f)            Reliance. The
Shareholder understands and acknowledges that (i) the HRD Shares are being offered and sold to the Shareholder without registration
under the Securities Act and applicable state securities laws in a private placement that is exempt from the registration provisions
of the Securities Act and applicable state securities laws; and (ii) the availability of such exemption depends in part on, and
HRD will rely upon the accuracy and truthfulness of, the foregoing representations and the Shareholder hereby consents to such
reliance.

 

(g)           Transfer
Restrictions.

 

(i)       The
HRD Shares may only be disposed of pursuant to an effective registration statement under the Securities Act, or pursuant to an
available exemption from or in a transaction not subject to the registration requirements of the Securities Act. In connection
with any transfer of the HRD Shares other than pursuant to an effective registration statement, HRD may require the transferor
thereof to provide to HRD an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably
satisfactory to HRD, to the effect that such transfer does not require registration of such transferred securities under the Securities
Act and applicable state securities laws.

 

(ii)       The
Shareholder agrees to the imprinting, so long as is required under the Securities Act and the rules and regulations thereunder,
or an appropriate restrictive legend on the certificates evidencing the HRD Shares.

 

    	12 | Page

     

    

 

2.3          Representations
and Warranties of HRD. HRD hereby represents and warrants to the Shareholder that as of the Effective Date and the
Closing Date (except where another date or period of time is specifically stated herein for a representation or warranty), except
as set forth in the SEC Documents:

 

(a)        Organization
and Qualification. HRD is a corporation, duly incorporated, validly existing and in good standing under the laws of
the State of Florida, with the requisite corporate power and authority to own and use its properties and assets and to carry on
its business as currently conducted. HRD is not qualified to do business as a foreign corporation in any other jurisdiction, there
being no jurisdiction in which the current character of its business requires such qualification. HRD has no subsidiaries.

 

(b)          Authorization;
Enforcement. HRD has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and the Transaction Agreements to which HRD is a party and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery by HRD of the Transaction Agreements to which it is a party and the consummation by
HRD of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of HRD and
no further action is required by HRD or its board of directors or shareholders. The Transaction Agreements have been duly executed
by HRD and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligations of HRD enforceable
against HRD in accordance with their respective terms. HRD is not in violation of any of the provisions of its articles of incorporation
or bylaws.

 

(c)          Capitalization. The
number of authorized, issued and outstanding shares of capital stock of HRD prior to the consummation of the transactions contemplated
hereby, is as set forth in the SEC Documents. No shares of capital stock of HRD are entitled to preemptive or similar rights,
nor is any holder of capital stock of HRD entitled to statutory preemptive or similar rights arising out of any agreement or understanding
with HRD. Except for the Private Placement and the issuance of the options to the employees of the Company as contemplated by
this Agreement, there are no outstanding options, warrants, rights to subscribe to, calls, or commitments of any character whatsoever
relating to securities, rights or obligations convertible into or exchangeable for, or giving any person any right to subscribe
for or acquire any shares of capital stock of HRD, or contracts, commitments, understandings, or arrangements by which HRD is
or may become bound to issue additional shares of capital stock of HRD, or securities or rights convertible or exchangeable into
shares of capital stock of HRD.

 

(d)          Issuance
of the HRD Shares. The HRD Shares are duly authorized, and, when issued and paid for in accordance with the terms hereof,
shall be duly and validly issued, fully paid and nonassessable, free and clear of all Liens.

 

    	13 | Page

     

    

 

(e)          No
Conflicts. The execution, delivery and performance by HRD of the Transaction Agreements to which it is a party and
the consummation by HRD of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any
provision of HRD’s articles of incorporation or bylaws (each as amended through the date hereof); (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time, or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time, or both) of, any agreement,
credit facility, indenture or instrument (evidencing a HRD debt or otherwise) to which HRD is a party or by which any property
or asset of HRD is bound or affected; or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which HRD is subject (including federal and state securities
laws and regulations), or by which any property or asset of HRD is bound or affected, except in the case of each of clauses (ii)
and (iii), as could not, individually or in the aggregate, reasonably be expected to have or result in a material adverse effect
on the business, prospects, operations or condition (financial or otherwise) of HRD.

 

(f)          Filings,
Consents and Approvals. HRD is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state or local governmental authority or other person
in connection with the execution, delivery and performance by HRD of the Transaction Agreements, other than filings to be made
subsequent to the Closing to report the transactions contemplated hereby as required by the Securities Act, the Exchange Act,
applicable state securities laws and the rules and regulations promulgated thereunder.

 

(g)          
Litigation; Proceedings. There is no action, suit, notice of violation, proceeding or investigation pending or,
to the knowledge of HRD, threatened against or affecting HRD or any of its properties before or by any court, governmental or
administrative agency, or regulatory authority (U.S. federal, state, county, local or foreign) (i) that adversely affects or challenges
the legality, validity or enforceability of the Transaction Agreements or the HRD Shares or (ii) that could, individually or in
the aggregate, reasonably be expected to have or result in a HRD Material Adverse Effect.

 

(h)          No
Default or Violation. HRD (i) is not in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by HRD), nor has HRD received written notice of a
claim that it is in default under or is in violation of any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound; (ii) is not in violation of any order of any court, arbitrator
or governmental body; or (iii) is not in violation of any statute, rule or regulation of any governmental authority, except as
could not, individually or in the aggregate, reasonably be expected to have or result in a HRD Material Adverse Effect.

 

(i)          Private
Offering. Assuming the accuracy of the representations and warranties of the Shareholder set forth in Section 2.2
of this Agreement, the offer, issuance and sale of the HRD Shares to the Shareholder as contemplated hereby is exempt from
the registration requirements of the Securities Act and applicable state securities laws. Neither HRD nor any person acting on
HRD’s behalf has taken any action that could subject the issuance of the HRD Shares to the registration requirements of
the Securities Act and applicable state securities laws.

 

    	14 | Page

     

    

 

(j)          SEC
Documents; Financial Statements. HRD has filed all reports required to be filed by it under the Securities Exchange
Act of 1934, as amended, including pursuant to Section 13(a) or 15(d) thereof, during such period as HRD was required by law to
file such material (the “SEC Documents”) on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Documents prior to the expiration of any such extension. As of their respective dates, the SEC
Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and
regulations promulgated thereunder. All material agreements to which HRD is a party or which are otherwise required to be filed
as exhibits to the SEC Documents have been so filed. The financial statements of HRD included in the SEC Documents comply in all
material respects with applicable accounting requirements and the rules and regulations of the Securities and Exchange Commission
(the “SEC”) with respect thereto as in effect at the time of filing. Such financial statements have been prepared
in accordance with GAAP during the periods involved, except as may be otherwise specified in such financial statements or the
notes thereto, and fairly present in all material respects the financial position of HRD as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

 

(k)          Brokers
Fees. Except for fees to be paid by HRD to RHK Capital at Closing with respect to financing to be used to consummate
the transactions contemplated hereby, no fees or commissions will be payable by HRD to any broker, financial advisor or consultant,
finder, placement agent, investment banker, or bank with respect to the transactions contemplated by this Agreement.

 

ARTICLE
III 

CONDUCT
PRIOR TO CLOSING

 

3.1           Conduct
of Business. At all times during the period commencing with the Effective Date and continuing until the earlier of
the termination of this Agreement pursuant to the terms hereof or the Closing, the Company shall (a) carry on its business in
the usual, regular and ordinary course of business, in substantially the same manner as heretofore conducted; (b) pay or perform
its material obligations when due; (c) use its commercially reasonable efforts, consistent with past practice and policies, to
preserve intact its present business organization, keep available the services of its present officers and employees and preserve
its relationships with customers, suppliers, distributors, licensors, licensees and others with which it has business dealings;
and (d) keep its business and properties substantially intact, including its operations, physical facilities and working conditions.
In furtherance of the foregoing and subject to applicable law, the Company shall confer with HRD prior to taking any material
actions or making any material management decisions with respect to the conduct of the business of the Company.

 

3.2           Intentionally
Deleted. 

 

3.3           Access
to Information. The Shareholder shall cause the Company to afford HRD, its accountants, counsel and other representatives,
reasonable access, during normal business hours, to the properties, books, records and personnel of the Company at any time prior
to Closing in order to enable HRD to obtain all information concerning the business, assets and properties, results of operations
and personnel of the Company as HRD may reasonably request.

 

    	15 | Page

     

    

 

3.4          Legal
Requirements. The Parties shall take all reasonable actions necessary or desirable to comply promptly with all legal
requirements which may be imposed on them with respect to the consummation of the transactions contemplated by this Agreement
(including, without limitation, furnishing all information required in connection with approvals of or filings with any governmental
authority, and prompt resolution of any litigation prompted hereby), and shall promptly cooperate with, and furnish information
to, the other Parties to the extent necessary in connection with any such requirements imposed upon any of them in connection
with the consummation of the transactions contemplated by this Agreement.

 

ARTICLE
IV

CONDITIONS
TO CLOSING

 

4.1          Conditions
to Obligation of the Parties Generally. The Parties shall not be obligated to consummate the transactions to be performed
by each of them in connection with Closing if, on the Closing Date, any Action shall be pending or threatened before any governmental
authority wherein an order or charge would (i) prevent consummation of any of the transactions contemplated by this Agreement;
(ii) cause any of the transactions contemplated by this Agreement to be rescinded following consummation; (iii) any law or order
which would have any of the foregoing effects shall have been enacted or promulgated by any governmental authority; or (iv) there
is no consummation of all required definitive instruments and agreements.

 

4.2        Conditions
to Obligation of the Company and the Shareholder.  The obligations of the Company and the Shareholder to enter into
and perform their respective obligations under this Agreement are subject, at the option of the Company and the Shareholder, to
the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which may be waived by the Company
and the Shareholder in writing:

 

(a)           The
representations and warranties of HRD set forth in this Agreement shall be true and correct in all material respects as of the
Closing Date, except to the extent such representations and warranties are specifically made as of a particular date, in which
case such representations and warranties shall be true and correct as of such date;

 

(b)           HRD
shall have performed and complied with all of its covenants hereunder in all material respects through the Closing;

 

(c)           No
action, suit, or proceeding shall be pending or, to the knowledge of HRD, threatened before any governmental authority wherein
an order or charge would (i) affect adversely the right of the Shareholder to own the HRD Shares; or (ii) affect adversely the
right of HRD to own its assets or to operate its business (and no such order or charge shall be in effect), nor shall any law
or order which would have any of the foregoing effects have been enacted or promulgated by any governmental authority;

 

(d)      
    No event, change or development shall exist or shall have occurred since December 31, 2016 that has had or
is reasonably likely to have a Material Adverse Effect on HRD;

 

    	16 | Page

     

    

 

(e)           All
consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by HRD for
the authorization, execution and delivery of this Agreement and the consummation by it of the transactions contemplated by this
Agreement, shall have been obtained and made by HRD and HRD shall have delivered proof of same to the Company and the Shareholder;

 

(f)            HRD
shall have filed all reports and other documents required to be filed by it under the Securities Act and/or the Exchange Act through
the Closing Date;

 

(g)           HRD
shall have delivered to the Company and the Shareholder a certificate, dated the Closing Date, executed by an officer of HRD,
certifying the satisfaction of the conditions specified in Sections 4.2(a) through 4.2(f), inclusive relating to
HRD;

 

(g)           HRD
shall have delivered to the Company and the Shareholder a certificate duly executed by an officer of HRD and dated as of the Closing
Date, as to the resolutions as adopted by HRD’s board of directors, in a form reasonably acceptable to the Company, approving
this Agreement and the Transaction Documents to which it is a party and the transactions contemplated hereby and thereby; and

 

(h)           All
actions to be taken by HRD in connection with consummation of the transactions contemplated hereby and all certificates, opinions,
instruments, and other documents required to effect the transactions contemplated hereby shall be reasonably satisfactory in form
and substance to counsel to the Company and the Shareholder.

 

4.3             Conditions
to Obligation of HRD. The obligations of HRD to enter into and perform its obligations under this Agreement are subject,
at the option of HRD, to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which
may be waived by HRD in writing:

 

(a)          The
representations and warranties of the Company and the Shareholder set forth in this Agreement shall be true and correct in all
material respects as of the Closing Date, except to the extent such representations and warranties are specifically made as of
a particular date, in which case such representations and warranties shall be true and correct as of such date;

 

(b)          The
Company and the Shareholder shall have performed and complied with all of their respective covenants hereunder in all material
respects through the Closing Date;

 

(c)          No
action, suit, or proceeding shall be pending or, to the knowledge of the Company or the Shareholder, threatened before any governmental
authority wherein an order or charge would (i) affect adversely the right of HRD to own the Company Securities; or (ii) affect
adversely the right of the Company to own its assets or to operate its business (and no such Order or charge shall be in effect),
nor shall any law or order which would have any of the foregoing effects have been enacted or promulgated by any governmental
authority;

 

    	17 | Page

     

    

 

(d)          No
event, change or development shall exist or shall have occurred since the Balance Sheet Date that has had or is reasonably likely
to have a Material Adverse Effect on the Company;

 

(e)          All
consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by the Company
for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions contemplated by
this Agreement, shall have been obtained and made by the Company and the Shareholder and the Company and the Shareholder shall
have delivered proof of same to the HRD;

 

(f)           The
Company shall have delivered to HRD a certificate, dated the Closing Date, executed by an officer of each of CCI and EZRX, certifying
the satisfaction of the conditions specified in Sections 4.3(a) through 4.3(e), inclusive, relating to the Company;

 

(g)          The
Shareholder shall have delivered to HRD a certificate, dated the Closing Date, executed by the Shareholder, certifying the satisfaction
of the conditions specified in Sections 4.3(a) through 4.3(b) relating to the Shareholder;

 

(h)           HRD
shall have, contemporaneously with the Closing, consummated financing in an amount and on terms satisfactory to it in its reasonable
discretion to pay the Cash Purchase Price and HRD agrees to use its best efforts to secure such financing between the Effective
Date and the Closing Date; and

 

(j)           All
actions to be taken by the Company and the Shareholder in connection with consummation of the transactions contemplated hereby
and all payments, certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby
shall be reasonably satisfactory in form and substance to HRD.

 

ARTICLE
V

TERMINATION

 

5.1             Grounds
for Termination. Anything herein or elsewhere to the contrary notwithstanding, this Agreement may be terminated and
the transactions contemplated hereby may be abandoned at any time prior to the Closing Date:

 

(a)           by
the mutual written agreement of the Parties;

 

(b)           by
the Company and the Shareholder (by written notice of termination from the Company and the Shareholder to HRD, in which reference
is made to this subsection) if Closing has not occurred on or prior to August 31, 2017, or such later date as may be agreed to
by the Parties in writing (the “Termination Date”), unless the failure of Closing to have occurred is attributable
to a failure on the part of the Company or the Shareholder to perform any material obligation to be performed by the Company or
the Shareholder pursuant to this Agreement prior to Closing;

 

    	18 | Page

     

    

 

(c)           by
HRD (by written notice of termination from HRD to the Company and the Shareholder, in which reference is made to this subsection)
if the Closing has not occurred on or prior to the Termination Date, unless the failure of Closing to have occurred is attributable
to a failure on the part of HRD to perform any material obligation required to be performed by HRD pursuant to this Agreement
prior to Closing;

 

(d)           by
HRD or the Company (by written notice of termination from such Party to the other Parties) if a court or other governmental authority
of competent jurisdiction shall have issued a final non-appealable order, or shall have taken any other action having the effect
of, permanently restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; provided,
however, that the right to terminate this Agreement under this Section 5.1(d) shall not be available to a Party if such
Order was primarily due to the failure of such Party to perform any of its obligations under this Agreement;

 

(e)           by
HRD, the Company or the Shareholder (by written notice of termination from such Party to the other Parties) if any event shall
occur after the date hereof that shall have made it impossible to satisfy a condition precedent to the terminating Party’s
obligations to perform its obligations hereunder, unless the occurrence of such event shall be due to the failure of the terminating
Party to perform or comply with any of the agreements, covenants or conditions hereof to be performed or complied with by such
Party prior to Closing;

 

(f)            by
the Company or the Shareholder (by written notice of termination from the Company or the Shareholder to HRD, in which reference
is made to this subsection) if, since the date of this Agreement, there shall have occurred any Material Adverse Effect regarding
HRD, or there shall have occurred any event or circumstance that, in combination with any other events or circumstances, could
reasonably be expected to have, a Material Adverse Effect with respect to HRD;

 

(g)
           by HRD (by written notice of termination from HRD to the Company and the Shareholder, in which reference is made to this subsection)
if, since the date of this Agreement, there shall have occurred any event or circumstance that, in combination with any other
events or circumstances, could reasonably be expected to have, a Material Adverse Effect with respect to the Company; 

 

(h)           by
the Company or the Shareholder (by written notice of termination from the Company or the Shareholder to HRD, in which reference
is made to the specific provision(s) of this subsection giving rise to the right of termination) if any of HRD’s (i) representations
and warranties shall have been materially inaccurate as of the date of this Agreement or as of a date subsequent to the date of
this Agreement (as if made on such subsequent date), such that the condition set forth in Section 4.2(a) would not be satisfied
and such inaccuracy has not been cured by HRD within five (5) business days after its receipt of written notice thereof; or (ii)
covenants contained in this Agreement shall have been breached, such that the condition set forth in Section 4.2(b) would
not be satisfied; or

 

    	19 | Page

     

    

 

(i)            by
HRD (by written notice of termination from HRD to the Company and the Shareholder, in which reference is made to the specific
provision(s) of this subsection giving rise to the right of termination) if any of the Company’s or the Shareholder’s
(i) representations and warranties shall have been materially inaccurate as of the date of this Agreement or as of a date subsequent
to the date of this Agreement (as if made on such subsequent date), such that the condition set forth in Section 4.3(a)
would not be satisfied and such inaccuracy has not been cured by the Company or the Shareholder within five (5) business days
after its receipt of written notice thereof; or (ii) covenants contained in this Agreement shall have been breached, such that
the condition set forth in Section 4.3(b) would not be satisfied.

 

5.2             Procedure
and Effect of Termination. In the event of the termination of this Agreement by HRD or the Company and/or the Shareholder
pursuant to Section 5.1, written notice thereof shall forthwith be given to the other Party or Parties. If this Agreement
is terminated as provided herein (a) each Party will redeliver all documents, work papers and other material of any other Party
relating to the transactions contemplated hereby, whether so obtained before or after the execution hereof, to the Party furnishing
the same; provided, that each Party may retain one copy of all such documents for archival purposes in the custody of its outside
counsel; and (b) all filings, applications and other submission made by any party to any person, including any governmental authority,
in connection with the transactions contemplated hereby shall, to the extent practicable, be withdrawn by such party from such
person.

 

5.3          Effect
of Termination. If this Agreement is terminated pursuant to Section 5.1 hereof, this Agreement shall become void
and of no further force and effect, except for the provisions of (a) Sections 2.1(v) and 2.3(k); (b) Section
5.2 and this Section 5.3; and (c) Article VI.

 

ARTICLE
VI

SURVIVAL;
INDEMNIFICATION

 

6.1          Survival. All
representations, warranties, covenants, and obligations of the Parties in this Agreement shall survive Closing for a period of
one (1) year after which they shall be of no further force and effect, other than those set forth in Sections 2.1(a) through
2.1(e), and Sections 2.3(a) through 2.3(d), which shall survive indefinitely, and those set forth in Section
2.1(n), which shall survive until forty-five (45) days after the expiration of applicable statutes of limitations.

 

6.2          Indemnification
by the Company and the Shareholder. The Company and the Shareholder, jointly and severally, shall indemnify HRD and
hold HRD and HRD’s directors, officers, employees and agents harmless against and in respect of any and all damages, losses,
claims, penalties, liabilities, costs and expenses (including, without limitation, all fines, interest, reasonable and actual
legal fees and expenses and amounts paid in settlement), that arise from or relate or are attributable to (and without giving
effect to any tax benefit to the indemnified party) (a) any material breach of any representation or warranty made by the Company
or the Shareholder in this Agreement or any of the other Transaction Agreements; or (b) any material breach of any covenant or
agreement made by the Company or the Shareholder in this Agreement or any of the other Transaction Agreements.

 

    	20 | Page

     

    

 

6.3          Indemnification
by HRD. HRD shall indemnify the Company and the Shareholder and hold the Company and the Shareholder harmless against
and in respect of any and all damages, losses, claims, penalties, liabilities, costs and expenses (including, without limitation,
all fines, interest, reasonable and actual legal fees and expenses and amounts paid in settlement), that arise from or relate
or are attributable to (and without giving effect to any tax benefit to the indemnified party) (a) any material breach of any
representation or warranty made by HRD in this Agreement or in any of the other Transaction Agreements; (b) any material breach
of any covenant or agreement made by HRD in this Agreement or in any of the other Transaction Agreements; or (c) with respect
to the Shareholder, any obligation of the Company pursuant to the Continuing Liabilities or otherwise related to the operation
of the Company after the Closing.

 

6.4          Notice
to Indemnitor; Right of Parties to Defend. Promptly after the assertion of any claim by a third party or occurrence
of any event which may give rise to a claim for indemnification from an indemnifying party (“Indemnitor”) under
this Article VI, an indemnified party (“Indemnitee”) shall notify the Indemnitor in writing of such
claim and include a detailed description within such notice. The Indemnitor shall have the right to assume the control and defense
of any such action (including, but without limitation, tax audits), provided that the Indemnitee may participate in the defense
of such action subject to the Indemnitor’s reasonable direction and at Indemnitee’s sole cost and expense. The party
contesting any such claim shall be furnished all reasonable assistance in connection therewith by the other party and be given
full access to all information relevant thereto. In no event, shall any such claim be settled without the Indemnitor’s consent.

 

ARTICLE
VII

MISCELLANEOUS

 

7.1          Further
Cooperation. In case at any time after Closing any further action is necessary to carry out the purposes of this Agreement,
each of the Parties will take such further action (including the execution and delivery of such further instruments and documents)
as any other Party reasonably may request provided the requesting Party shall bear the reasonable expenses of the other Party
in obtaining the same.

 

7.2        Fees
and Expenses. Each Party shall pay the fees and expenses of its or his advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such Party incident to the negotiations, preparation, execution, delivery and performance
of this Agreement.

 

7.3          Entire
Agreement; Amendments. This Agreement, together with the Exhibits hereto and the Company Disclosure Schedule, contains
the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral or written, with respect to such matters, which the Parties acknowledge have been merged into this Agreement, the Exhibits
hereto and the Company Disclosure Schedule.

 

    	21 | Page

     

    

 

7.4          Notices. Any
and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing, shall
be delivered by nationally recognized overnight courier and shall be deemed given and effective upon receipt. The address for
such notices and communications shall be as follows:

 

	If to HRD:	 	18851 N.E. 29th
    Avenue
	 	 	Suite 700
	 	 	Aventura, FL 33180
	 	 	Attention: President
	 	 	 
	If the Company or the Shareholder:	 	PO Box 1784
	 	 	Bentonville, AR 72712
	 	 	Attention: Mr. Hunter Burroughs

 

or
such other address as may be designated in writing hereafter, in the same manner, by such Party.

 

7.5          Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case
of an amendment, by all the Parties; or, in the case of a waiver, by the Party against whom enforcement of any such waiver is
sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any Party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

7.6        Headings. The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

7.7          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs,
legal representatives, successors and permitted assigns, as the case may be. No Party may assign this Agreement or any of the
rights or obligations hereunder without the written consent of each of the other Parties.

 

7.8          No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the Parties and their respective heirs, legal
representatives, successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by,
any other person.

 

7.9          Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State
of Florida without regard to the principles of conflicts of law thereof. Each Party hereby irrevocably submits to the exclusive
jurisdiction of the federal and state courts sitting in Miami-Dade County, Florida, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the interpretation
or enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.
Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such Party at the address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law.

 

    	22 | Page

     

    

 

7.10          Attorneys’
Fees. In any suit, action or proceeding brought with respect to interpretation or enforcement of this Agreement, the
prevailing Party shall be entitled to recover attorneys’ fees and costs at both the trial and appellate levels from the
non-prevailing Party.

 

7.11          Execution. This
Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each Party and delivered to the other Parties, it being understood
that all Parties need not sign the same counterpart. In the event that any signature is delivered by facsimile, .PDF or other
electronic transmission, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such facsimile or electronic signature page were an
original thereof.

 

7.12          Severability. In
case any one or more of the provisions of this Agreement shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Agreement shall not in any way be affecting or impaired thereby and the parties
will attempt to agree upon a valid and enforceable provision that shall be a reasonable substitute therefore, and upon so agreeing,
shall incorporate such substitute provision in this Agreement.

 

{Remainder
of Page Intentionally Left Blank; Signatures to Follow}

 

    	23 | Page

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

 

	 	HRD:
	 	 	 
	 	HEALTH-RIGHT DISCOVERIES, INC.
	 	 	 
	 	By:	/s/ David Hopkins
	 	 	David Hopkins, President

 

	 	THE COMPANY:
	 	 	 
	 	COMMON COMPOUNDS, INC.
	 	 	 
	 	By:	/s/ Hunter Burroughs
	 	 	Hunter Burroughs, President
	 	 	 
	 	EZPHARMARX, LLC

 

	 	By:	/s/ Hunter Burroughs
	 	 	Hunter Burroughs, President

 

	 	THE SHAREHOLDER:
	 	 
	 	/s/ Hunter Burroughs
	 	Hunter Burroughsex10-1.htm

Exhibit 10.1

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of August 29, 2017, by and between NV5 Global, Inc. a Delaware corporation (the “Company”), and Dickerson Wright (hereinafter called the “Executive”).

 

RECITALS

 

A.     The Executive has been employed by the Company as its Chairman and Chief Executive Officer pursuant to an Employment Agreement dated April 11, 2011 (the “Prior Employment Agreement”).

 

B.     The Executive and the Company desire to extend the term of the Executive’s employment with the Company in accordance with the terms and conditions set forth in this Agreement.

 

C.     The Company and the Executive desire to amend the Prior Employment Agreement in accordance with the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

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

 

1.     Employment.

 

1.1     Employment and Term. The Company hereby agrees to continue to employ the Executive and the Executive hereby agrees to continue to serve the Company on the terms and conditions set forth herein.

 

1.2     Duties of Executive. During the Term of Employment (as defined herein) under this Agreement, the Executive shall serve as the Chairman and Chief Executive Officer of the Company, shall diligently perform all services as may be assigned to him by the Board of Directors of the Company (the “Board”) (provided that, such services shall not materially differ from the services currently provided by the Executive), and shall exercise such power and authority as may from time to time be delegated to him by the Board. The Executive shall devote his full time and attention to the business and affairs of the Company, render such services to the best of his ability, and use his best efforts to promote the interests of the Company. It shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach at educational institutions, or (iii) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities to the Company in accordance with this Agreement.

 

 

1

 

 

2.     Term.

 

2.1     Initial Term. The initial Term of Employment under this Agreement, and the employment of the Executive hereunder, shall commence on the date set forth above (the “Commencement Date”) and shall expire on the date that is five (5) years after the Commencement Date, unless sooner terminated in accordance with Section 5 hereof (the “Initial Term”).

 

2.2     Renewal Terms. At the end of the Initial Term, the Term of Employment shall automatically renew for successive two (2) year terms, unless earlier terminated as provided in Section 5 hereof.

 

2.3     Term of Employment and Expiration Date. The period during which the Executive shall be employed by the Company pursuant to the terms of this Agreement is sometimes referred to in this Agreement as the “Term of Employment”, and the date on which the Term of Employment shall expire (including the date on which any renewal term shall expire), is sometimes referred to in this Agreement as the “Expiration Date”.

 

3.     Compensation.

 

3.1     Base Salary. The Executive shall receive a base salary at the annual rate of $525,000.00 (the “Base Salary”) during the Term of Employment, with such Base Salary payable in installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at least annually, for merit increases and may, by action and in the sole discretion of the Board, be increased at any time or from time to time. Executive’s Base Salary is subject to an annual increase equal to the greater of (i) a CPI Adjustment, or (ii) five percent (5%). For purposes of the CPI Adjustment, the following guidelines shall apply: (i) the CPI index shall be the CPI for all urban consumers for the United States City Average, and (ii) August 2017 shall be utilized as the baseline, August 2017 = 100. The amount in question shall be adjusted as of the date of determination.

 

3.2     Bonuses. During the Term of Employment, the Executive shall be eligible to receive performance bonuses of Base Salary based on the Executive’s performance and/or the Company’s overall performance in accordance with the Company’s incentive compensation plan as determined by the Compensation Committee of the Company’s Board of Directors.

 

3.3     Automobile and Telephone Expenses. The Executive shall be reimbursed for his business-related automobile and cell phone expenses.

 

3.4     Other Consideration. The Company shall pay the monthly management fees of Chatham Enterprises, LLC, relating to the aircraft which Executive has an ownership interest, consistent with terms of the existing management agreement, and any amendments, replacements or modifications thereto which change the management fee and which may be approved by the Company.

 

 

2

 

 

4.     Expense Reimbursement and Other Benefits.

 

4.1     Reimbursement of Expenses. Upon the submission of documentation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt, the Company shall reimburse the Executive for all reasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to the business of the Company. Any required reimbursements shall be paid to Executive no later than the last day of the calendar year following the calendar year in which the underlying expense was incurred by the Executive, and the amount of expenses eligible for reimbursement during any year may not affect the expenses eligible for reimbursement in any other year consistent with the requirements of Code Section 409A, as defined below.

 

4.2     Compensation/Benefit Programs. During the Term of Employment, the Executive shall be entitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insurance plans, and any and all other plans as are presently and hereinafter offered by the Company to its executives, including savings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forth in such plans. In addition, the Company shall pay for Executive to undertake an annual comprehensive physical examination at a nationally recognized facility.

 

4.3     Working Facilities. During the Term of Employment, the Company shall furnish the Executive with an office, secretarial help and such other facilities and services suitable to his/her position and adequate for the performance of his/her duties hereunder.

 

4.4     Equity Awards. During the Term of Employment, the Executive may be eligible to be granted options (the “Equity Awards”) to purchase common stock (the “Common Stock”) of the Company under (and therefore subject to all terms and conditions of) the Company’s equity award plans adopted from time to time by the Board of Directors, (the “Equity Award Plan”) and all rules of regulation of the Securities and Exchange Commission applicable to Equity Award plans then in effect. The number of Equity Awards, if any, and the terms and conditions of any such Equity Awards, shall be determined by the Committee appointed pursuant to the Equity Award Plan, or by the Board, in its sole discretion and pursuant to the Equity Award Plan.

 

4.5     Other Benefits. The Executive shall be entitled to four (4) weeks of vacation each calendar year during the Term of Employment (subject to the general eligibility provisions set forth in the Company’s personnel policy), to be taken at such times as the Executive and the Company shall mutually determine and provided that no vacation time shall interfere with the duties required to be rendered by the Executive hereunder. The Executive shall receive such additional benefits, if any, as the Board shall from time to time determine.

 

 

3

 

 

5.     Termination.

 

5.1     Termination for Cause. The Company shall at all times have the right, upon written notice to the Executive, to terminate the Term of Employment, for Cause. For purposes of this Agreement, the term “Cause” shall mean (i) an action or omission of the Executive which constitutes a willful, continuous and material breach of, or failure or refusal (other than by reason of his disability) to perform his duties under, this Agreement which is not cured within fifteen (15) days after receipt by the Executive of written notice of same from the Board of Directors, (ii) fraud, embezzlement or misappropriation of funds in connection with his services hereunder, (iii) conviction of a felony. Any termination for Cause shall be made in writing to the Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying for such termination. The Executive shall have the right to address the Board regarding the acts set forth in the notice of termination. Upon any termination pursuant to this Section 5.1, the Company shall only be obligated to pay to the Executive the following (collectively, the “Accrued Obligations”): (i) his Base Salary to the date of termination; (ii) reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1; and (iii) any vested accrued benefits under Company sponsored benefit plans, which shall continue to be payable subject to the terms and conditions of such plans. The Company shall have no further liability hereunder.

 

5.2     Termination Without Cause. At any time, the Company shall have the right to terminate the Term of Employment by written notice to the Executive. Upon any termination pursuant to this Section 5.2, or upon any termination pursuant to Section 5.3 or Section 5.4, (that is not a termination under any of Sections 5.1, 5.5 or 5.6), the Company shall (i) pay to the Executive any Accrued Obligations, (ii) continue to pay the Executive’s Base Salary for the remainder of the Initial Term, or the Renewal Term if such termination occurs during a Renewal Term, but in no event less than one (1) year’s Base Salary (the “Continuation Period”), (iii) continue to provide the Executive with the benefits he/she was receiving under Section 4.2 hereof (the “Benefits”) through the end of the Continuation Period in the manner and at such times as the Benefits otherwise would have been payable or provided to the Executive and (iv) within thirty days of Executive’s termination, pay Executive for any unused vacation days accumulated as of the date of termination. In the event that the Company is unable to provide the Executive with any Benefits required hereunder by reason of the termination of the Executive’s employment pursuant to this Section 5.2, then the Company shall make a cash payment, within thirty days of Executive’s termination, equal to the value of the Benefits that otherwise would have accrued for the Executive’s benefit under the plan, for the period during which such Benefits could not be provided under the plans. The Company’s good faith determination of the amount that would have been contributed or the value of any Benefits that would have accrued under any plan shall be binding and conclusive on the Executive. For this purpose, the Company may use as the value of any Benefit the cost to the Company of providing that Benefit to the Executive. Further, if Executive is terminated without cause under this Section 5.2, then the Executive’s Equity Awards, if any, shall immediately vest notwithstanding any other provisions of such Equity Award Agreements to the contrary. The Company shall have no further liability hereunder. For all purposes under this Agreement, the failure by the Company to offer to renew the Agreement following the expiration of the Initial Term or any Renewal Term on the same terms and conditions hereunder shall be treated as if the Company terminated this Agreement pursuant to this Section 5.2.

 

 

4

 

 

5.3     Disability. The Company shall at all times have the right, upon written notice to the Executive, to terminate the Term of Employment, if the Executive shall become entitled to benefits under the Company’s group disability policy or any individual disability policy then in effect, or, if the Executive shall, as the result of mental or physical incapacity, illness or disability, become unable to perform his obligations hereunder for a period of 180 days in any 12-month period. Any termination of the Term of Employment by the Company pursuant to this Section 5.3 shall be deemed to be a termination of the Executive without Cause, and, upon any such termination pursuant to this Section 5.3, the Executive shall be entitled to the compensation specified in Section 5.2 hereof. The Company shall have no further liability hereunder. In connection with making such determination, Company, at its option and expense, shall be entitled to select and retain a physician to confirm the existence of such incapacity or disability, and the determination made by such physician shall be binding on the parties for the purposes of this Agreement.

 

5.4     Death. In the event of the death of the Executive during the Term of Employment, the Executive shall be deemed to have been terminated without Cause, and the Company shall pay to the estate of the deceased Executive the compensation specified in Section 5.2 hereof. The Company shall have no further liability hereunder.

 

5.5     Termination by Executive.

 

(a)     The Executive shall at all times have the right, upon sixty (60) days written notice to the Company, to terminate the Term of Employment.

 

(b)     Upon termination of the Term of Employment pursuant to this Section 5.5 (that is not a termination under Section 5.6) by the Executive without Good Reason, the Company shall pay to the Executive the Accrued Obligations. The Company shall have no further liability hereunder. At the Company’s sole option, upon receipt of notice from the Executive pursuant to this Section, the Company may terminate the Term of Employment prior to the end of the sixty-day notice period, in which case, in addition to the covenants set forth above, the Company shall continue to pay the Executive Base Salary for the balance of the notice period. For all purposes under this Agreement, the failure by Executive to offer to renew the Agreement following the expiration of the Initial Term or any Renewal Term on the same terms and conditions hereunder shall be treated as if the Executive terminated this Agreement pursuant to this Section 5.5, except that the Executive shall not be entitled to any Base Salary in excess of that which is due through the last day of Executive’s employment hereunder.

 

(c)     Upon termination of the Term of Employment pursuant to this Section 5.5 (that is not a termination under Section 5.6) by the Executive for Good Reason, the Company shall pay to the Executive the same amounts that would have been payable by the Company to the Executive under Section 5.2 of this Agreement if the Term of Employment had been terminated by the Company without Cause. The Company shall have no further liability hereunder.

 

 

5

 

 

(d)     For purposes of this Agreement, “Good Reason” shall mean (i) the assignment to the Executive of any significant duties or responsibilities which are inconsistent with the Executive’s position (or a similar position in the Company or one of its subsidiaries, as contemplated by Section 1.2 of this Agreement), or any other action by the Company, in each case, which results in a material diminution in the Executive’s position, authority, duties or responsibilities; (ii) any failure by the Company to comply with any of the provisions of Article 3 or Section 4.2 of this Agreement; (iii) a material breach by the Company of its obligations to the Executive under this Agreement; or (iv) the Company’s requiring the Executive to be based at any office or location more than 30 miles outside of the area for which Executive was originally hired to work except where such change in work location does not represent a material change in the geographic location at which Executive is required to provide services. Notwithstanding the foregoing, Executive’s termination shall not constitute a termination for “Good Reason” as a result of any event in above unless (1) Executive first provides the Company with written notice thereof within ninety (90) days after the occurrence of such event, (2) to the extent correctable, Company fails to cure the circumstance or event so identified within thirty (30) days after receipt of such notice, and (3) the effective date of Executive’s termination for Good Reason occurs no later than thirty (30) days after the expiration of Company’s cure period. Nothing in this Section 5.5 shall limit the Company’s right to contest any assertion that Executive may make with respect to any such change.

 

5.6     Change in Control of the Company

 

(a)     In the event that (i) a Change in Control (as defined in paragraph (b) of this Section 5.6) of the Company shall occur during the Term of Employment, and (ii) prior to one (1) year after the date of the Change in Control, either (x) the Term of Employment is terminated by the Company without Cause, pursuant to Section 5.2 hereof or (y) the Executive terminates the Term of Employment for Good Reason, the Company shall (1) pay to the Executive any unpaid Base Salary through the effective date of termination, (2) pay to the Executive as a single lump sum payment, within thirty (30) days of the termination of his employment hereunder, the sum of (x) an amount equal to the Executive’s Base Salary for the remainder of the Initial Term, or the Renewal Term if such termination occurs during a Renewal Term, but in no event less than three (3) years of Base Salary, plus (y) any unused vacation pay and the value of the annual fringe benefits (based upon their cost to the Company) required to be provided to the Executive under Sections 4.2 and 4.4 hereof, for the year immediately preceding the year in which his employment terminates, plus (z) the value of the portion of his benefits under any savings, pension or profit sharing plans that are forfeited under those plans by reason of the termination of his employment hereunder. Further, if a Change in Control occurs during the Term of Employment, then the Executive’s Equity Awards, if any, shall immediately vest notwithstanding any other provisions of such Equity Award Agreements to the contrary. The Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1).

 

 

6

 

 

(b)     For purposes of this Agreement, the term “Change in Control” shall mean:

 

(i)     Approval by the shareholders of the Company of (x) a reorganization, merger, consolidation or other form of corporate transaction or series of transactions, in each case, with respect to which persons who were the shareholders of the Company immediately prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s then outstanding voting securities, in substantially the same proportions as their ownership immediately prior to such reorganization, merger, consolidation or other transaction, or (y) a liquidation or dissolution of the Company or (z) the sale of all or substantially all of the assets of the Company (unless such reorganization, merger, consolidation or other corporate transaction, liquidation, dissolution or sale is subsequently abandoned); or

 

(ii)     the acquisition in a transaction or series of related transactions (other than from the Company) by any person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of more than 50% of either the then outstanding shares of the Company’s Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors (hereinafter referred to as the ownership of a “Controlling Interest”) excluding, for this purpose, any acquisitions by (1) the Company or its Subsidiaries, (2) any person, entity or “group” that as of the Commencement Date of this Agreement owns beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling Interest or (3) any employee benefit plan of the Company or its Subsidiaries.

 

(c)     Notwithstanding the foregoing, the provisions of this Section 5.6 shall only apply if (i) the payments to be made hereunder are not subject to Code Section 409A, or (ii) any such Change in Control would also constitute a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, within the meaning of Treas. Reg. Section 1.409A-3(i)(5).

 

5.7     Resignation. Upon any notice or termination of employment pursuant to this Article 5, the Executive shall automatically and without further action be deemed to have resigned as an officer, and if he or she was then serving as a director of the Company, as a director, and if required by the Board, the Executive hereby agrees to immediately execute a resignation letter to the Board.

 

5.8     Survival. The provisions of this Article 5 shall survive the termination of this Agreement, as applicable.

 

 

7

 

 

5.9     Termination of Employment. For purposes of any benefit to be provided or any amount payable under this Agreement that is subject to Section 409A of the Code, termination of employment shall not be deemed to occur unless it is reasonably expected that Executive will provide no further services to the Company or its affiliates, as defined in Section 414(b) or (c) of the Code, or that the level of bona fide services will not exceed 20% of the average level of services provided by Executive over the thirty-six (36) months preceding Executive’s termination of employment. If Executive continues to provide bona fide services to the Company or any of its affiliates at a level that is more than 20% of the average level of services provided by Executive over such thirty-six (36) month period, then Executive shall be deemed not to have experienced a termination of employment.

 

5.10     Compliance with Code Section 409A. 

 

(a)     It is the intention of the Parties that the compensation arrangements under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and this Agreement shall be construed in a manner to give effect to such intention. Unless otherwise expressly provided, any payment of compensation by Company to the Executive, whether pursuant to this Agreement or otherwise, shall be made no later than the 15th day of the third month (i.e. 21⁄2 months) after the end of the later of the calendar year or the Company’s fiscal year in which the Executive’s right to such payment vests (i.e., is not subject to a substantial risk of forfeiture for purposes of Code Section 409A). Such amounts shall not be subject to the requirements of subsection (b) below applicable to “nonqualified deferred compensation.”

 

(b)     All payments of “nonqualified deferred compensation” (within the meaning of Code Section 409A – “Section 409A payments”) are intended to comply with the requirements of Code Section 409A, and shall be interpreted in accordance therewith. Neither party individually or in combination may accelerate, offset or assign any Section 409A payments, except in compliance with Code Section 409A. No amount shall be paid prior to the earliest date on which it is permitted to be paid under Code Section 409A and Executive shall have no discretion with respect to the timing of Section 409a payments except as permitted under Section 409A. Each payment and each installment of any severance payments provided for under this Agreement shall be treated as a separate payment for purposes of determining the application of Code Section 409A. The limitations under this subsection (b) shall not apply to that portion of any amounts payable upon termination of employment which shall qualify as “involuntary severance” under Section 409A. In the event that the Executive is determined to be a “specified employee” (as defined and determined under Code Section 409A) of Company at a time when its stock is deemed to be publicly traded on an established securities market, payments determined to be “nonqualified deferred compensation” payable by reason of separation from service shall be paid no earlier than (i) the first day of the seventh (7th) calendar month commencing after such termination of employment, or (ii) the Executive’s death, consistent with and to the extent necessary to meet the requirements Code Section 409A.  Any payment delayed by reason of the prior sentence shall be paid in a single lump sum, without interest, on the earliest date permitted under Code Section 409A in order to catch up to the original payment schedule.  Any payments to which Code Section 409A applies which are subject to execution of a waiver and release that may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment) occurs shall commence payment only in the calendar year in which the release revocation period ends as necessary to comply with Code Section 409A.   

 

 

8

 

 

(c)     Notwithstanding any provision of this Agreement to the contrary, (i) in the event that any amounts or benefits payable hereunder would otherwise violate Code Section 409A, Executive shall have no legally enforceable right to receive such amounts or benefits and (ii) in the event that the Company determines that any amounts payable hereunder would violate Code Section 409A, the Company may, but is not be obligated to, adopt such amendments to this Agreement and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Company determines in its discretion are necessary or appropriate to comply with the requirements of Code Section 409A. Notwithstanding the foregoing, the Executive shall be responsible for the payment of all taxes applicable to payments or benefits received from the Company. It is the intent of the Company that the provisions of this Agreement and all other plans and programs sponsored by the Company be interpreted to comply in all respects with Code Section 409A, however, the Company shall have no liability to the Executive, or any successor or beneficiary thereof, in the event taxes, penalties or excise taxes may ultimately be determined to be applicable to any payment or benefit received by the Executive or any successor or beneficiary thereof, nor for reporting in good faith any payment of benefit as subject to Code Section 409A.

 

6.     Restrictive Covenants.

 

6.1     Non-competition. At all times while the Executive is employed by the Company and for a one (1) year period after the termination of the Executive’s employment with the Company for any reason (other than by the Company without Cause (as defined in Section 5.1 hereof) or by the Executive for Good Reason (as defined in Section 5.5(d) hereof)), the Executive shall not, directly or indirectly, engage in or have any interest in any sole proprietorship, partnership, corporation or business or any other person or entity (whether as an employee, officer, director, partner, agent, security holder, creditor, consultant or otherwise) that directly or indirectly (or through any affiliated entity) engages in competition with the Company (based on the business in which the Company was engaged or was actively planning on being engaged as of the date of termination of the Employee’s employment and in the geographic areas in which the Company operated or was actively planning on operating as of date of termination of the Employee’s employment); provided that such provision shall not apply to the Executive’s ownership of Common Stock of the Company or the acquisition by the Executive, solely as an investment, of securities of any issuer that is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended, and that are listed or admitted for trading on any United States national securities exchange or that are quoted on the National Association of Securities Dealers Automated Quotations System, or any similar system or automated dissemination of quotations of securities prices in common use, so long as the Executive does not control, acquire a controlling interest in or become a member of a group which exercises direct or indirect control or, more than five percent of any class of capital stock of such corporation.

 

 

9

 

 

6.2     Nondisclosure. The Executive shall not at any time divulge, communicate, use to the detriment of the Company or for the benefit of any other person or persons, or misuse in any way, any Confidential Information (as hereinafter defined) pertaining to the business of the Company. Any Confidential Information or data now or hereafter acquired by the Executive with respect to the business of the Company (which shall include, but not be limited to, information concerning the Company’s financial condition, prospects, technology, customers, suppliers, sources of leads and methods of doing business) shall be deemed a valuable, special and unique asset of the Company that is received by the Executive in confidence and as a fiduciary, and the Executive shall remain a fiduciary to the Company with respect to all of such information. For purposes of this Agreement, “Confidential Information” means information disclosed to the Executive or known by the Executive as a consequence of or through his employment by the Company (including information conceived, originated, discovered or developed by the Executive) prior to or after the date hereof, and not generally known, about the Company or its business. Notwithstanding the foregoing, nothing herein shall be deemed to restrict the Executive from disclosing Confidential Information to the extent required by law.

 

6.3     Nonsolicitation of Employees and Clients. At all times while the Executive is employed by the Company and for a one (1) year period after the termination of the Executive’s employment with the Company for any reason, the Executive shall not, directly or indirectly, for himself or for any other person, firm, corporation, partnership, association or other entity (a) employ or attempt to employ or enter into any contractual arrangement with any employee or former employee of the Company, unless such employee or former employee has not been employed by the Company for a period in excess of six months, and/or (b) call on or solicit any of the actual or targeted prospective clients of the Company on behalf of any person or entity in connection with any business competitive with the business of the Company, nor shall the Executive make known the names and addresses of such clients or any information relating in any manner to the Company’s trade or business relationships with such customers, other than in connection with the performance of Executive’s duties under this Agreement.

 

6.4     Ownership of Developments. All copyrights, patents, trade secrets, or other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, or works of authorship developed or created by Executive during the course of performing work for the Company or its clients (collectively, the “Work Product”) shall belong exclusively to the Company and shall, to the extent possible, be considered a work made by the Executive for hire for the Company within the meaning of Title 17 of the United States Code. To the extent the Work Product may not be considered work made by the Executive for hire for the Company, the Executive agrees to assign, and automatically assign at the time of creation of the Work Product, without any requirement of further consideration, any right, title, or interest the Executive may have in such Work Product. Upon the request of the Company, the Executive shall take such further actions, including execution and delivery of instruments of conveyance, as may be appropriate to give full and proper effect to such assignment.

 

 

10

 

 

6.5     Books and Records. All books, records, and accounts relating in any manner to the customers or clients of the Company, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall be the exclusive property of the Company and shall be returned immediately to the Company on termination of the Executive’s employment hereunder or on the Company’s request at any time.

 

6.6     Definition of Company. Solely for purposes of this Article 6, the term “Company” also shall include any existing or future subsidiaries of the Company that are operating during the time periods described herein and any other entities that directly or indirectly, through one or more intermediaries, control, are controlled by or are under common control with the Company during the periods described herein.

 

6.7     Acknowledgment by Executive. The Executive acknowledges and confirms that

 

(a)     the restrictive covenants contained in this Article 6 are reasonably necessary to protect the legitimate business interests of the Company, and (b) the restrictions contained in this Article 6 (including without limitation the length of the term of the provisions of this Article 6) are not overbroad, overlong, or unfair and are not the result of overreaching, duress or coercion of any kind. The Executive further acknowledges and confirms that his full, uninhibited and faithful observance of each of the covenants contained in this Article 6 will not cause him any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained herein will not impair his ability to obtain employment commensurate with his abilities and on terms fully acceptable to him or otherwise to obtain income required for the comfortable support of him and his family and the satisfaction of the needs of his creditors. The Executive acknowledges and confirms that his special knowledge of the business of the Company is such as would cause the Company serious injury or loss if he were to use such ability and knowledge to the benefit of a competitor or were to compete with the Company in violation of the terms of this Article 6. The Executive further acknowledges that the restrictions contained in this Article 6 are intended to be, and shall be, for the benefit of and shall be enforceable by, the Company’s successors and assigns.

 

6.8     Reformation by Court. In the event that a court of competent jurisdiction shall determine that any provision of this Article 6 is invalid or more restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Article 6 within the jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for the maximum restriction permitted under such governing law.

 

6.9     Extension of Time. If the Executive shall be in violation of any provision of this Article 6, then each time limitation set forth in this Article 6 shall be extended for a period of time equal to the period of time during which such violation or violations occur. If the Company seeks injunctive relief from such violation in any court, then the covenants set forth in this Article 6 shall be extended for a period of time equal to the pendency of such proceeding including all appeals by the Executive.

 

 

11

 

 

6.10     Survival. The provisions of this Article 6 shall survive the termination of this Agreement, as applicable.

 

7.     Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by the Executive of any of the covenants contained in Article 6 of this Agreement will cause irreparable harm and damage to the Company, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to an injunction from any court of competent jurisdiction enjoining and restraining any violation of any or all of the covenants contained in Article 6 of this Agreement by the Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall be cumulative and in addition to whatever other remedies the Company may possess.

 

8.     Assignment. Neither party shall have the right to assign or delegate his rights or obligations hereunder, or any portion thereof, to any other person.

 

9.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. To the extent applicable, this Agreement is intended to comply with the distribution and other requirements under Section 409A of the Code. For any payments or reimbursements to be made (or in-kind benefits to be provided) under this Agreement that are subject to Section 409A of the Code, the Agreement shall be interpreted and applied in a manner consistent with the requirements of Section 409A of the Code and the regulations promulgated thereunder.

 

10.     Section 162(m) Limits. Notwithstanding any other provision of this Agreement to the contrary, if and to the extent that any remuneration payable by the Company to the Executive for any year would exceed the maximum amount of remuneration that the Company may deduct for that year under Section 162(m) (“Section 162(m)”) of the Internal Revenue Code of 1986, as amended (the “Code”), payment of the portion of the remuneration for that year that would not be so deductible under Section 162(m) shall, in the sole discretion of the Board, be deferred and become payable at such time or times as the Board determines that it first would be deductible by the Company under Section 162(m), with interest at the “short-term applicable rate” as such term is defined in Section 1274(d) of the Code. The limitation set forth under this Section 10 shall not apply with respect to any amounts payable to the Executive pursuant to Article 5 hereof.

 

11.     Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prior agreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its affiliates) with respect to such subject matter, including, without limitation, the Prior Employment Agreement. This Agreement may not be modified in any way unless by a written instrument signed by both the Company and the Executive.

 

 

12

 

 

12.     Notices: All notices required or permitted to be given hereunder shall be in writing and shall be personally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmission addressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing shall be deemed given upon the earlier of receipt by the addressee, as evidenced by the return receipt thereof, or three (3) days after deposit in the U.S. mail Notice shall be sent (i) if to the Company, addressed to Richard Tong, Executive Vice President and General Counsel, NV5 Global, Inc., 200 South Park Road, Suite 350, Hollywood, FL 33021-8758, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such other address as either party hereto may from time to time give notice of to the other.

 

13.     Benefits: Binding, Effect. This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs, personal representatives, legal representatives, successors and, where applicable, assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise.

 

14.     Severability. The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or sections had not been inserted. If such invalidity is caused by length of time or size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.

 

15.     Waivers. The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

 

16.     Damages. Nothing contained herein shall be construed to prevent the Company or the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement. In the event that either party hereto brings suit for the collection of any damages resulting from, or the injunction of any action constituting, a breach of any of the terms or provisions of this Agreement, then the party found to be at fault shall pay all reasonable court costs and attorneys’ fees of the other.

 

17.     Section Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

18.     No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successors and assigns, any rights or remedies under or by reason of this Agreement.

 

 

13

 

 

[signature page follows]

 

 

14

 

 

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

 

 

	
 
	
COMPANY

 

NV5 Global, Inc.

 

 

By:/s/ Richard Tong
Name: Richard Tong
Title: Executive Vice President and and General Counsel

 

EXECUTIVE:

 

 

By: /s/ Dickerson Wright
Name: Dickerson Wright

 

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]