Document:

ex10-4.htm

Exhibit 10.4

	 
	This document constitutes part of the prospectus covering
	securities that have been registered under the Securities Act of 1933.

 

 

ICF International, Inc.

2010 Omnibus Incentive Plan, As Amended

Performance Share Award Agreement

 

THIS AGREEMENT, effective as of the Grant Date set forth below, represents a grant of performance shares (“Performance Shares”) by ICF International, Inc., a Delaware corporation (the “Company”), to the Participant named below, pursuant to the provisions of the ICF International, Inc. 2010 Omnibus Incentive Plan, as amended June 5, 2015 (the “Plan”).

 

You have been selected to receive a grant of Performance Shares pursuant to the Plan, as specified below.

 

The Plan provides a description of the terms and conditions governing the Performance Shares. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms used herein shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. 

 

The parties hereto agree as follows:

 

Participant: John Wasson

 

Grant Date: March 20, 2017

 

Target Number of Performance Shares Granted: 

 

	 	
			Performance Period: 

				
			January 1, 2017 through December 31, 2019

			
	 	 	 
	 	Performance Measures:	Compounded Annual Growth Rate (“CAGR”) in Earnings per Share:
	 	 	January 1, 2017 to December 31, 2018
	 	 	 
	 	 	Relative Total Shareholder Return (“rTSR”):
	 	 	January 1, 2017 to December 31, 2019

 

Purchase Price: None 

 

1.           Definitions:

 

	 	
			(a)

				
			“Average Stock Price” means the average of the closing prices of a Share, as reported on NASDAQ (or such other stock exchange as is applicable), for the forty-five (45) trading day period immediately preceding the date for which the Average Stock Price is being determined hereunder. 

			

 

 

 

 

	 	
			(b)

				
			“EPS” or “Earnings per Share” means reported net income determined in accordance with United States generally accepted accounting principles (“GAAP”) divided by the weighted average number of Shares outstanding, adjusted to exclude the following items:

			

 

	 	
			1.

				
			Changes in newly issued or existing accounting principles. 

			

 

	 	
			2.

				
			Gains and losses from dispositions of legal entities, subsidiaries and significant business lines/locations.

			

 

	 	
			3.

				
			Costs associated with mergers and acquisitions in the current year.

			

 

	 	
			4.

				
			Costs associated with unplanned reduction in force (“RIF”).

			

 

	 	
			5.

				
			Goodwill impairment.

			

 

	 	
			6.

				
			Acts of God and related insurance recoveries.

			

 

	 	
			7.

				
			Effects of any “extraordinary items” (for fiscal years of the Company commencing prior to the effective date of Subtopic 225-20 of the Financial Accounting Standards Board) as determined under GAAP, or other unusual or infrequently occurring gain or loss or other extraordinary item.

			

 

	 	
			8.

				
			The settlement of tax audits resulting in a significant financial impact (more or less than amounts previously recorded) from assets or businesses acquired within the past three years.

			

 

	 	
			9.

				
			Financial impact due to significant capital allocation, restructuring, or investment actions approved by the Board of Directors (e.g., dividend programs, issuance of a bond, issuance of a new class of stock, branding investments, etc.).

			

 

	 	
			10.

				
			Settlements and costs associated with actual or threatened legal actions related to events occurring more than three (3) years before the start of the Performance Period. 

			

 

	 	
			11.

				
			Effects of any statutory adjustments to corporate tax rates and the tax benefits/losses from assets acquired.

			

 

	 	
			12.

				
			Abnormal government actions adversely affecting the Company (e.g., government shutdowns).

			

 

	 	
			13.

				
			Government fines and penalties.

			

 

	 	
			(c)

				
			“rTSR” means the Company’s cumulative total shareholder return over the Performance Period relative to its Peer Group (defined below) as measured by (A) the sum of (i) the Company’s Average Stock Price (for the forty-five (45) day trading period ending December 31, 2019), and (ii) the cumulative amount of dividends declared during the Performance Period, assuming dividend reinvestment on the ex-dividend date, divided by (B) the Company’s Average Stock Price at the beginning of the Performance Period (for the forty-five (45) day trading period ending December 31, 2016); provided, however, that for purposes of calculating rTSR percentile rank, the Company shall be excluded from the Peer Group.

			

 

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2.         Employment with the Company. Except as otherwise set forth in Section 4 of this Agreement, the Performance Shares granted hereunder are granted on the condition that the Participant remains an Employee of the Company or its Subsidiaries from the Grant Date through (and including) the end of the Performance Period. This Award of Performance Shares shall not confer any right to the Participant (or any other Participant) to be granted future Performance Shares or other Awards under the Plan. 

 

 3.        Committee Determination. This Award of Performance Shares represents an agreement by the Company to deliver Shares of the Company to the Participant in the future, pursuant to the terms hereof. The Award of Performance Shares will become payable pursuant to the terms of this Agreement and the Plan based on the achievement of performance goals over the Performance Period. Attainment of the performance goals shall be determined and certified by the Committee in writing within sixty (60) days following the end of the Performance Period. 

 

4.         Performance Award. Subject to the terms of this Agreement and the Plan, the Company hereby grants the Participant an Award of Performance Shares in accordance with the following performance measures and performance goals:

 

(a)          Two Performance Periods. The number of Performance Shares the Participant will receive in connection with this Award will be based on the Company’s performance during two (2) periods. The initial performance period for the Participant’s Performance Shares (the “Initial Performance Period”) will begin on January 1, 2017 and end on December 31, 2018 (two years). The secondary performance period for the Participant’s Performance Shares (the “Secondary Performance Period”) will begin on January 1, 2017 and end on December 31, 2019 (three years). The Initial Performance Period and the Secondary Performance Period are collectively referred to as the “Performance Period.”

 

	 	
			(1)

				
			EPS Performance Measure for Initial Performance Period. The Award shall be further adjusted after the end of the Initial Performance Period based on the Company’s compounded annual growth EPS during the Initial Performance Period, as set forth in the table attached as Exhibit A hereto. 

			

 

	 	
			(2)

				
			rTSR Performance Measure for Secondary Performance Period. The Award will be further adjusted in accordance with Exhibit B hereto after the end of the Secondary Performance Period based on the Company’s rTSR relative to its Peer Group (the list of which is attached as Exhibit C hereto). 

			

 

After the end of the Secondary Performance Period, the Committee will certify a percentage adjustment in accordance with Exhibit B, and the Participant will receive a final number of Performance Shares. 

 

The levels of achievement of performance range are from the threshold level of achievement to the maximum level of achievement, as indicated on Exhibits A and B. For avoidance of doubt, there will not be an Award payout if the EPS threshold level of performance is not attained for the Initial Performance Period. If the threshold level of achievement is attained for the Performance Period, the Award will payout in accordance with the percentages set forth in Exhibits A and B. 

 

(b)           Partial Performance Period; Separation from Service. 

 

	 	
			(1)  

				
			Death or Disability. If the Participant ceases to be a Participant in the Plan before the end of the Performance Period due to the Participant’s Termination of Employment as a result of death or Disability, then the Participant or the Participant’s beneficiaries shall receive, within thirty (30) days after the date of such death or Disability, fully vested Performance Shares that the Participant would have been issued pursuant to the Award based on the formula set forth in Section 4(b)(4)(i) and (ii) below, with the death or Disability being the qualifying event and the date of death or Disability shall be substituted for the date of the Change of Control, and with rTSR calculated as of the last day of the month in which such Termination of Employment occurs.

			

 

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			(2)

				
			Retirement:  If Termination of Employment of the Participant with the Company is by reason of Retirement, the Performance Shares shall vest upon the date of the Participant’s Termination of Employment. Such Award shall be equal to the value of the Award at the end of the Performance Period based on the actual performance during the Performance Period.

			

 

	 	
			(3)

				
			Termination without Cause; Termination for Good Reason. If the Participant’s Termination of Employment is by reason of (i) termination by the Company without Cause or (ii) termination by the Participant for Good Reason, the Performance Shares shall vest upon the date of the Participant’s Termination of Employment. Such Award shall be equal to the value of the Award at the end of the Performance Period based on the actual performance during the Performance Period. As used in this Section 4(b)(3), “Good Reason” and “Cause” have the meanings ascribed to them for Termination of Employment unrelated to a Change of Control in an employment or severance agreement or letter between the Participant and the Company.

			

 

	 	
			(4)

				
			Change of Control. In the event of a Change of Control at any time during the Performance Period and the Participant’s Termination of Employment by the Company without Cause or by the Participant for Good Reason during the period of twenty-four (24) months following a Change of Control, the Performance Period shall be terminated upon such date of Termination of Employment and the Participant shall, within thirty (30) days following such date of Termination of Employment, receive fully vested Performance Shares, calculated based on (i) attainment of the EPS target performance level, and (ii) actual rTSR performance, with each of (i) and (ii) calculated up until the date of such Termination of Employment. As used in this Section 4(b)(4), the terms “Cause”, “Change of Control”, and “Good Reason” shall have the meanings set forth in the Participant’s December 12, 2008 Restated Severance Protection Agreement.

			

 

	 	
			(5)

				
			Termination for Any Other Reason. If the Participant voluntarily terminates employment other than for Good Reason, and this Award has not previously vested pursuant to Section 4(b)(4), the Performance Shares shall vest upon the date of the Participant’s Termination of Employment. Such Award shall be equal to the value of the Award at the end of the Performance Period based on the actual performance during the Performance Period. 

			

 

5.          Vesting of Award. Subject to the terms of the Plan and the Agreement, the Award, to the extent earned in accordance with Section 4(a) hereof, will be fully vested following the expiration of the Secondary Performance Period. The Committee has sole authority to determine whether and to what degree the Award has vested and is payable and to interpret the terms and conditions of this Agreement and the Plan. 

 

6.        Timing of Payout. Payout of all vested Performance Shares shall occur as soon as administratively feasible following the end of the Secondary Performance Period, but in no event later than seventy-five (75) days after such vesting date, provided that, if such seventy-five (75) day period begins in one calendar year and ends in another, the Participant may not choose in which calendar year payment will be made. 

 

7.        Participant Not a Shareholder.  This Award does not represent actual Shares of the Company and the Participant is not, and will not become, by virtue of this Award, a shareholder of the Company until such time as the Company delivers Shares to the Participant pursuant to Section 6 hereof.  The Participant may not sell, transfer, pledge, assign, or otherwise alienate or hypothecate his or her rights under this Award and any attempt to do so shall result in immediate forfeiture of this Award. 

 

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8.      Recapitalization. In the event of any change in the capitalization of the Company such as a stock split or a corporate transaction such as any reorganization, merger, consolidation, spin-off, combination, repurchase, or exchange of Shares or other securities, stock dividend, liquidation, dissolution, or otherwise, the number and class of Performance Shares subject to this Agreement shall be equitably adjusted by the Committee in the manner set forth in Section 4.4 of the Plan to prevent dilution or enlargement of rights. 

 

9.         Beneficiary Designation. The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Director of Human Resources of the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 

 

10.     Continuation of Employment. This Agreement shall not confer upon the Participant any right to continue employment with the Company or its Subsidiaries, nor shall this Agreement interfere in any way with the Company’s or its Subsidiaries’ right to terminate the Participant’s employment at any time. The Participant’s employment shall continue to be on an “at-will” basis. 

 

11.       Award Adjustments. Subject to Section 12(b) and to the extent consistent with the requirements of Section 162(m) of the Code, the Committee shall have authority to make adjustments to the terms and conditions of the Award in, recognition of unusual or nonrecurring events affecting the Company or its Subsidiaries, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles, if the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or necessary or appropriate to comply with applicable laws, rules or regulations; provided, however, that if the Participant is a Covered Employee, such adjustments may only be made if the effect thereof is to reduce the value and payout of the Award. 

 

12.          Miscellaneous. 

 

	 	
			(a)

				
			This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. The Committee shall have the right to impose such restrictions on any Shares acquired pursuant to this Agreement, as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant.

			

 

	 	
			(b)

				
			The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely impair the Participant’s rights under this Agreement, without the written consent of the Participant. 

			

 

	 	
			(c)

				
			The Company shall have the power and the right to deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation), domestic or foreign, required by law to be withheld with respect to any delivery of Shares under this Agreement.

			

 

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			(d)

				
			The Participant may elect, subject to any procedural rules adopted by the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having an aggregate Fair Market Value on the date the tax is to be determined, equal to the minimum amount required by law to be withheld.

			

 

	 	
			(e)

				
			This Award Agreement is intended to be exempt from the requirements of Section 409A of the Code, and shall be interpreted and construed consistently with such intent; provided, however, that in no event shall the Company or any of its directors, officers, employees or advisors be responsible for any such additional tax, interest, or related tax penalties that may be imposed under Section 409A of the Code. 

			

 

	 	
			(f)

				
			The Participant agrees to take all steps necessary to comply with all applicable provisions of federal and state securities laws in connection with the award of Performance Shares under this Agreement.

			

 

	 	
			(g)

				
			This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

			

 

	 	
			(h)

				
			All obligations of the Company under the Plan and this Agreement, with respect to the Performance Shares, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

			

 

	 	
			(i)

				
			To the extent any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

			

 

	 	
			(j)

				
			To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the state of Delaware without giving effect to the conflicts of laws principles thereof.

			

 

	 	
			(k)

				
			This Agreement may be executed (i) in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, or (ii) electronically. The parties hereto agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement.

			

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Date of Grant.

 

 

	
			 

				
			 

				
			ICF INTERNATIONAL, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name: Sudhakar Kesavan 

				
			 

			
	
			 

				
			 

				
			Title: Chairman and Chief Executive Officer

				
			 

			
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	PARTICIPANT	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	John Wasson	 
	 	 	Title: President and Chief Operating Officer	 

 

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EXHIBIT A

 

 

CAGR EPS Result

for January 1, 2017 through December 31, 2018 Initial Performance Period

 

 

100% Weighting

 

	
			Performance Level

				
			EPS

				
			Implied Annual

			Growth Rate

				
			% of Payout

			
	
			Maximum

				
			$2.91

				
			9%

				
			150%

			
	
			Target

				
			$2.70

				
			5%

				
			100%

			
	
			Threshold

				
			$2.57

				
			2.5%

				
			50%

			
	
			< Threshold

				
			<$2.57

				
			<2.5%

				
			0%

			

 

 

	
			*

				
			The payout percentage shall be determined using straight line interpolation between EPS performance levels.

			

 

A-1

 

 

EXHIBIT B

 

 

rTSR (Modifier of CAGR EPS Result) 

for January 1, 2017 through December 31, 2019 Secondary Performance Period

 

 

	
			Performance Level

				
			rTSR Percentile Ranking 

				
			% of Payout

			
	
			Maximum

				
			> = 75th Percentile

				
			125%

			
	
			Target

				
			= Median

				
			100%

			
	
			Threshold

				
			< = 25th Percentile

				
			75%

			

 

	
			*

				
			The payout percentage shall be determined using straight line interpolation between rTSR performance levels.

			

 

 

 

 

	 	
			Performance Shares Payout Grid

			
	 	
			Payout as % of Target

			
	 	
			EPS Performance

			
	 	 	
			< Threshold

				
			Threshold

				 	
			Target

				 	
			Maximum

			
	
			rTSR Performance as Modifier

				
			Threshold

				
			0.00%

				
			37.50%

				
			56.25%

				
			75.00%

				
			93.75%

				
			112.50%

			
	
			 

				
			0.00%

				
			43.75%

				
			65.63%

				
			87.50%

				
			109.38%

				
			131.25%

			
	
			Target

				
			0.00%

				
			50.00%

				
			75.00%

				
			100.00%

				
			125.00%

				
			150.00%

			
	
			 

				
			0.00%

				
			56.25%

				
			84.38%

				
			112.50%

				
			140.63%

				
			168.75%

			
	
			Maximum

				
			0.00%

				
			62.50%

				
			93.75%

				
			125.00%

				
			156.25%

				
			187.50%

			

 

B-1

 

 

EXHIBIT C

 

Peer Group

 

 

The “Peer Group” for the Awards is defined as set forth below. For subsequent Performance Periods, the Committee will re-evaluate the makeup of the Peer Group:

 

	 	
			1.

				
			Booz Allen Hamilton Holding Corp.

			

	 	
			2.

				
			Science Applications International Corp.

			

	 	
			3.

				
			CACI International, Inc.

			

	 	
			4.

				
			Unisys Corp.

			

	 	
			5.

				
			Convergys Corp.

			

	 	
			6.

				
			ManTech International, Inc.

			

	 	
			7.

				
			Tetra Tech, Inc.

			

	 	
			8.

				
			Gartner, Inc.

			

	 	
			9.

				
			MAXIMUS, Inc.

			

	 	
			10.

				
			FTI Consulting, Inc.

			

	 	
			11.

				
			CDI Corp.

			

	 	
			12.

				
			Huron Consulting Group, Inc.

			

	 	
			13.

				
			The Corporate Executive Board Co.

			

	 	
			14.

				
			Navigant Consulting, Inc.

			

	 	
			15.

				
			CBIZ, Inc.

			

	 	
			16.

				
			Resources Connection, Inc.

			

	 	
			17.

				
			The Advisory Board Co.

			

	 	
			18.

				
			GP Strategies Corp.

			

	 	
			19.

				
			VSE Corp.

			

	 	
			20.

				
			NCI, Inc.

			

	 	
			21.

				
			CRA International, Inc.

			

	 	
			22.

				
			Exponent, Inc.

			

 

 

	​1	Guidelines for Adjustment to the Peer Group:
	 	●	The company must still exist at the end of the Performance Period;
	 	●	If a company goes bankrupt during the Performance Period, it will be counted as the lowest in the gorup; and
	 	●	If a company is acquired during the Performance Period, it will be excluded from the applicable calculation(s).

 

 

C-1Exhibit 10.1

GACP STEM CELL BANK LLC

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

This Non-Competition and Non-Solicitation Agreement (this “Agreement”), dated as of March 3, 2017 (the “Closing Date”), is entered into between GACP Stem Cell Bank LLC, a Florida limited liability company ("Company"), U.S. Stem Cell, Inc., a Florida corporation ("U.S. Stem Cell"), and Michael Tomas and Kristin Comella (“Key Persons”).   Capitalized terms are defined herein or in the Definitions section below.

RECITALS

WHEREAS, U.S. Stem Cell is in the business of collecting, growing and banking cell cultures for future use in connection with regenerative medicine purposes (the “Human Banking Business”), as well as other related businesses not included within the term Human Banking Business;

WHEREAS, the Company and U.S. Stem Cell are parties to that certain Asset Sale and Lease Agreement (the “Asset Sale and Lease Agreement”), dated as of the date hereof, wherein U.S. Stem Cell sells to the Company, and the Company leases back to U.S. Stem Cell, the equipment assets (the “Equipment Assets”) used in the Human Banking Business, for a period of three (3) years or, if terminated sooner, then on such earlier date (the “Leaseback Period”);

WHEREAS, the Company and U.S. Stem Cell are parties to that certain Asset Purchase Agreement, dated as of the date hereof (the “Asset Purchase Agreement”), pursuant to which the Company purchases certain other assets (the “Purchased Assets”) from U.S. Stem Cell comprising certain non-equipment assets used in the Human Banking Business, effective upon expiration or earlier termination of the Leaseback Period (the “Effective Date”);

WHEREAS, the Company and U.S. Stem Cell are parties to that certain Customer Purchase Agreement, dated as of the date hereof (the “Customer Purchase Agreement”), pursuant to which U.S. Stem Cell sells to the Company, and the Company purchases from U.S. Stem Cell, certain assets related to customers acquired by U.S. Stem Cell during the Leaseback Period, with assignment and assumption of such customer assets effective upon the expiration or earlier termination of the Leaseback Period.

WHEREAS, the parties desire to enter into this Agreement to more effectively protect for Company the value and goodwill of such assets purchased by Company from U.S. Stem Cell under the Asset Sale and Lease Agreement, the Asset Purchase Agreement and the Customer Purchase Agreement.

NOW THEREFORE, in consideration of the foregoing, and for other valuable consideration (the receipt of which U.S. Stem Cell and the Key Persons hereby acknowledge), U.S. Stem Cell and the Key Persons, intending to be legally bound hereby, covenant and agree with the Company as follows:

AGREEMENT

1.          Definitions.

a.           “Post-Closing Deposits” means tissue samples or cell cultures derived therefrom deposited by customers in the tissue bank on or after the Closing Date, including tissue sample deposits made by customers after the Closing Date who had previously deposited tissue samples in the tissue bank prior to the Closing Date, as evidenced by receipt of physical delivery of the tissue samples or cell cultures at the laboratory facility.

 

b.           “Pre-Closing Deposits” means tissue samples or cell cultures derived therefrom deposited by customers in the tissue bank prior to the Closing Date, as evidenced by receipt of physical delivery of the tissue samples or cell cultures at the laboratory facility.

2.          Restricted Period. For a period commencing on the Closing Date and ending on the earlier (a) the date that is sixty (60) months from the Closing Date, (b) two years from the termination of any of the Asset Sale and Lease Agreement, the Asset Purchase Agreement and the Customer Purchase Agreement, or (c) solely for the Key Persons, two years from the termination of their employment with U.S. Stem Cell  (the “Restricted Period”), neither U.S. Stem Cell nor the Key Persons shall, except to the extent waived by the Company, or as set forth in the Asset Sale and Lease Agreement, the Asset Purchase Agreement and the Customer Purchase Agreement, engage or invest in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of, be employed by, serve as a director or officer of, be associated with, or in any manner connected with, lend its name, as applicable, render services or advice to, any business whose products or activities compete in whole or in part with the products or activities of the Human Banking Business, anywhere in the United States.

Except as set forth in the Asset Sale and Lease Agreement, the Asset Purchase Agreement and the Customer Purchase Agreement, during the Restricted Period, neither U.S. Stem Cell nor the Key Persons shall (i) induce or attempt to induce any employee of any of Company or its affiliates performing services relating to the Company to leave such employment, (ii) in any way interfere with the relationship between Company and its affiliates and any of their employees performing services relating to the Human Banking Business, (iii) employ, or otherwise engage as an employee, independent contractor or otherwise, any employee of Company or its affiliates performing services relating to the Company, (iv) induce or attempt to induce any customer, supplier, licensee or business relation of Company or its affiliates to cease doing business with or materially reduce its business with Company or its affiliates, in each case with respect to the Human Banking Business, or in any way interfere with the relationship between any customer,

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supplier, licensee or business relation of any Company or its affiliates, relating to the Human Banking Business; or (v) solicit the business of any person or entity known to it or him to be a customer of the Human Banking Business whether or not it or he had personal contact with such Person, with respect to products or activities which compete in whole or in part with the products or activities of the Human Banking Business.

3.          Leads Referrals.  Except as set forth in the Asset Sale and Lease Agreement, the Asset Purchase Agreement and the Customer Purchase Agreement, during the Restricted Period, U.S. Stem Cell and the Key Persons shall refer all customer leads and revenue generation opportunities that could benefit the Human Banking Business (the “Leads”) directly to the Company.  The Leads shall include, but not be limited to, potential patient customers, as well as potential doctor or practitioner customers or referral sources or any other source of potential revenues for the Human Banking Business. For the avoidance of doubt, it is acknowledged and agreed that, during the Leaseback Period, the revenues resulting from such Leads with respect to Human Banking Business shall be revenues of Seller subject to the terms of this Agreement, the Asset Sale and Lease Agreement, the Customer Purchase Agreement, the Asset Purchase Agreement and all agreements related thereto.  Effective upon termination of the Leaseback Period, all revenues resulting from such Leads with respect to the Post-Closing Deposits shall belong exclusively to Buyer or its designated affiliates.

4.          Customer Contracts. From and after the Effective Date, neither U.S. Stem Cell nor any other person or entity other than Company or its affiliates shall be a party to any contract relating to Post-Closing Deposits.

5.          Territory. The Human Banking Business is national in scope and U.S. Stem Cell and Key Persons agree that the restrictive covenants contained herein are reasonable under the circumstances and further agree that the covenants contained in this Section should be interpreted in such a manner as to be effective and valid under applicable law.

6.          Severability. In the event any provision of this Agreement or portion thereof shall be held to be illegal or unenforceable, the remainder of this Agreement or such provision shall remain in full force and effect.  If any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, such provision shall be construed by limiting or reducing it so as to be enforceable to the maximum extent compatible with applicable law.

7.          Miscellaneous.  It shall not be a violation of this Agreement for U.S. Stem Cell to take actions to comply with their obligations under (i) the Asset Sale and Lease Agreement during the Leaseback Period or (ii) the Asset Purchase Agreement and Customer Purchase Agreement so long as they are in effect.  Nothing herein shall prohibit U.S. Stem Cell or the Key Persons from owning less than one percent (1%) of the aggregate of any class of stock of any publicly traded corporation.

8.          Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

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9.          Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8):

	
If to U.S. Stem Cell:

	
U.S. Stem Cell, Inc.

13794 NW 4th Street, Suite 212

Sunrise, Florida 33325

Attention:        Michael Tomas

 

	
with a copy to:

	
Joseph I. Emas, P.A.

525 93 Street

Surfside, FL 33154

Attention: Joseph Emas

 

	
If to Company:

	
GACP Stem Cell Bank LLC

2333 Ponce de Leon Blvd. Suite R240

Coral Gables FL 33134

Attention:        David Neithardt

 

	
with a copy to:

	
Locke Lord LLP

525 Okeechobee Blvd, Suite 1600

West Palm Beach, Florida 33401

Attention:        John Igoe

 

10.          Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

11.          Entire Agreement. This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

12.          Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

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13.          No Third-party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

14.          Amendment and Modification. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.

15.          Waiver. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

16.          Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without giving effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction).

17.          Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the Florida, in each case located in Broward or Miami-Dade County, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

18.          Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

19.          Enforcement.  U.S. Stem Cell and the Key Persons agree and declare that it is impossible to measure in monetary terms the damages that may accrue to U.S. Stem Cell and the Key Persons by reason of the breach of the obligations of this Agreement and that any breach of this Agreement shall cause the Company irreparable injury.  Therefore, if the Company, or its respective successor-in-interest, shall institute an action or proceeding to enforce the provisions of this Agreement the U.S. Stem Cell and the Key Persons shall and hereby do, in advance, waive the claim or defense that there is an adequate remedy at law, and the Company shall be entitled to temporary and permanent injunctive relief without the necessity of proving damages at law or posting a bond.  If a court of competent jurisdiction requires the posting of a bond, the parties agree that a bond in the amount of $1,000 shall be adequate.

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20.          Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

	 	
Company:

 

GACP Stem Cell Bank LLC

 

 

By         s/s David Neithardt                 

Name:   David Neithardt

Title:     Authorized Signatory

 

 

 

 

U.S. Stem Cell, Inc.

 

 

	 	
By         /s/Michael Tomas                   

Name:   Michael Tomas

Title:     Chief Executive Officer

	
KEY PERSONS:

 

 

	
        Michael Tomas                           

Michael Tomas

 

	 
	
        /s/Kristin Comella                      

Kristin Comella

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