Document:

Exhibit
10.27

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made, entered into, and effective as of November 1, 2017 (the “Effective
Date”), by and between Cipherloc Corporation a Texas Corporation, (“Company”), and Michael Huffnagel, an individual
(“Employee”) (individually, a “Party”; collectively, the “Parties”).

 

RECITALS

 

WHEREAS,
Company desires to employ Employee, and Employee desires to be employed as Chief Operating Officer; and

 

WHEREAS,
Company desires to have an employment agreement with Employee as its Chief Operating Officer, subject to the terms and conditions
of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained herein, the Parties hereto hereby agree as follows:

 

AGREEMENT

 

1.
Term of Employment.

 

a.
Specified Period. Company hereby employs Employee and Employee accepts employment with Company for a period of one year
beginning on November 1, 2017 and terminating on October 31, 2018.

 

b.
Renewal. This Agreement is subject to automatic renewal for three successive one
year terms, upon the same terms and conditions as set forth herein, unless either this Agreement is terminated pursuant
to Section 8 hereof or a Party gives written notice to the other Party of its intent to terminate, at least 30 days prior to expiration
of the then-current term.

 

c.
Employment Term Defined. “Employment term” refers to the entire period of employment of Employee by Company,
whether for the period provided above, or whether terminated earlier as hereinafter provided or extended by mutual agreement between
Company and Employee.

 

2.
Duties and Obligations of Employee.

 

Employee
shall serve as Chief Operating Officer and shall report to the President. Employee shall faithfully and diligently perform all
services and duties as may be requested and required of Employee by the President. Employee shall devote such time and attention
on an exclusive basis to oversee the development of the Company’s Business and operate the Company on a day to day basis.
Employee at all times during the employment term shall strictly adhere to and obey all policies, rules and regulations established
from time to time governing the conduct of employees of the Company.

 

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3.
Exclusivity, Non-Disclosure.

 

a.
Devotion to Company Business. Employee agrees to perform Employee’s services efficiently and to the best of Employee’s
ability. Employee agrees throughout the term of this Agreement to devote his time, energy and skill to the business of the Company
and to the promotion of the best interests of the Company.

 

b.
Trade Secrets. Employee agrees that he shall not at any time, either during or subsequent to his employment term, unless
expressly consented to in writing by Company, either directly or indirectly use or disclose to any person or entity any confidential
information of any kind, nature or description concerning any matters affecting or relating to the business of Company, including,
but not limited to, information concerning the technology of the Company, the customers of Company, Company’s marketing
methods, compensation paid to employees, independent contractors or suppliers and other terms of their employment or contractual
relationships, financial and business records, know-how, or any other information concerning the business of Company, its manner
of operations, or other data of any kind, nature or description. Employee agrees that the above information and items are important,
material and confidential trade secrets and these affect the successful conduct of Company’s business and its goodwill.

 

c.
Inventions and Patents. Employee agrees to disclose and to assign immediately to the Company, or to any persons designated
by the Company, or at the Company’s option, any of the Company’s successors or assigns, all inventions or improvements
which are or were made, conceived or reduced to practice by Employee, whether acting independently or with others, during the
course of Employee’s employment with the Company, and which (i) were made, conceived of or first reduced to practice in
the performance of any duties assigned to or undertaken by the Employee as an employee of the Company; or (ii) were made, conceived
of or first reduced to practice with the use of the Company’s time, material, facilities or funds.

 

d.
Third Party Information. Employee recognizes that the Company has received and in the future will receive from third parties
their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of
such information and to use it only for certain limited purposes. Employee agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary
in carrying out Employee’s work for the Company consistent with the Company’s agreement with such third party.

 

e.
Conflicting Employment. Employee agrees that, during the term of his employment with the Company, Employee will devote
his full time and efforts to the Company and he will not engage in any other employment, occupation or consulting activity, nor
will Employee engage in any other activities that conflict with Employee’s obligations to the Company without written consent
of the Company.

 

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f.
Solicitation of Employees. By executing this Employment Agreement Employee agrees that for a period of eighteen (18) months
immediately following the termination of Employee’s relationship with the Company for any reason, whether with or without
good cause or for any or no cause, at the option either of the Company or Employee, with or without notice, Employee will not
hire any employees of the Company and will not, either directly or indirectly, solicit, induce, recruit or encourage any of the
Company’s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage
or take away employees of the Company, either for Employee or for any other person or entity.

 

g.
Noncompetition Covenants. Employee further agrees that during the period of employment by the Company and for a period
of two (2) years thereafter, regardless of the reason for the termination of such employment, Employee will not, directly or indirectly,
whether alone or as a partner, joint venturer, officer, director, consultant, employee, independent contractor or stockholder
of any company or business organization, engage in any business activity and/or accept employment with any person or entity, which
is or may be directly or indirectly in competition with the products or services being marketed, promoted, distributed, developed,
planned, sold or otherwise provided by the Company. The ownership by Employee of not more than one percent of the shares of capital
stock of any corporation having a class of equity securities traded on a national securities exchange shall not be deemed, in
and of itself, to violate this section.

 

4.
Compensation.

 

a.
Salary. Subject to the termination of this Agreement as provided herein, Company shall compensate Employee for his services
hereunder at an annual salary of $175,000.00 payable in accordance with the Company’s practices, less normal payroll deductions,
and prorated for the actual employment term.

 

b.
Stock. Common stock shall be granted to Employee on a quarterly basis commencing on the anniversary of Employees first
quarter of employment and a like amount each quarter so long as this Agreement is in effect. The value of the stock shall be determined
by the bid price on date of grant. The common stock shall be restricted Pursuant to Rule 144, with an annual value of $125,000.

 

c.
Bonuses and Salary Increases. Annual bonuses shall be equal to 1% of the net operating profit of the Company. Employee
shall receive such annual increases in salary and such additional compensation as may be determined by the Board of Directors
of the Company in its sole discretion. Such salary increases and/or additional compensation shall be paid to Employee on the anniversary
date of this Agreement during the Employment Term, and at such other times as may be determined by the Board of Directors.

 

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5.
Employee Incentives. Employee shall be entitled to receive incentives under all incentive plans made available by Company
or in the future to similarly situated employees, subject to the terms, conditions and overall administration of such plans, including
but not limited to stock options, profit sharing, and any other incentive plans that the Company has or will make available to
similarly situated employees.

 

6.
Employee Benefits.

 

a.
Vacation. Employee shall be entitled, during each employment year, to four weeks vacation, per annum, non-cumulative. Employee
may be absent from his employment for Vacation only at such times as may be convenient to Company and Employee.

 

b.
Medical Coverage. Company agrees to include Employee in the coverage of its medical and dental insurance when implemented.

 

c.
Plan Participation. Employee shall be entitled to participate in or to receive benefits under all of Company’s employee
benefit plans made available by Company or in the future to similarly situated employees, subject to the terms, conditions and
overall administration of such plans, including but not limited to 401(k) plans, IRA plans, E.R.I.S.A Plans, any other retirement
or benefit plans that the Company has made available to similarly situated employees.

 

7.
Business Expenses.

 

Employee
will be required to incur travel, meals, entertainment and other business expenses on behalf of the Company in the performance
of Employee’s duties hereunder. Company will reimburse Employee for all such reasonable business expenses incurred by Employee
in connection with Company’s business upon presentation of receipts or other acceptable documentation of the expenditures.
In compensating Employee for expenses, the ordinary and usual business guidelines and documentation requirements shall be adhered
to by Company and Employee.

 

8.
Termination of Employment.

 

(1)
Termination for Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any one of the
following events:

 

(a)
Employee’s material breach of any provision of this Agreement or of Executive Employee Confidentiality, Non-Competition
and Invention Assignment Agreement of even date herewith, entered into by and between the Company and Employee, which breach is
not cured within ten days after the Company provides Employee with written notice of the nature and existence of such material
breach;

 

(b)
Employee’s willful refusal to obey written directions of Employee’s supervisor of the Company (so long as such directions
do not involve illegal or immoral or otherwise improper acts), which refusal continues for a period of five business days after
notice to Employee by the Company, and which notice references such refusal and this Section 8.

 

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(c)
Employee’s failure to perform Employee’s duties and responsibilities with diligence and in accordance with the productivity
and quality requirements of the Company, which failure continues for a period of ten business days after written notice to Employee
by the Company of Employee’s failure to perform; provided, however, that if Employee has been provided written notice pursuant
to this Section 8 on two separate occasions during the Initial Term, any subsequent failure by Employee to perform Employee’s
duties and responsibilities in accordance with the Company’s requirements shall constitute Cause and the Company shall not
be required to provide any written notice or opportunity for Employee to correct Employee’s performance prior to a termination
of Employee’s employment by the Company;

 

(d)
Employee’s repeated refusal to comply with Company written policies or requirements which are adopted by the Board of Directors
from time to time and which apply to Employee’s responsibilities;

 

(e)
Employee’s action, or failure to act, in violation of any provision of the Company’s standard employee guidelines,
including but not limited to any policy concerning sexual harassment, substance abuse, as such policies may be in effect from
time to time, if such violation of the Company’s policy would generally result in the termination of employment of a Company
employee;

 

(f)
Fraud or dishonesty by Employee, in the good faith opinion of the Board of Directors of the Company; or

 

(g)
If Employee is convicted or admits to the commission of a criminal offense or act of moral turpitude that constitutes a felony
in the jurisdiction in which the offense is committed.

 

(h)
The notice of termination required by this section shall specify the ground for the termination and shall be supported by a statement
of all relevant facts.

 

(2).
Termination Upon Death or Disability.

 

i.
Death. This Agreement shall be terminated immediately upon the death of Employee.

 

ii.
Disability. Company reserves the right to terminate this Agreement if, due to illness or injury, either physical or mental,
Employee is unable to perform Employee’s customary duties as an employee of Company, unless reasonable accommodation can
be made to allow Employee to continue working, for more than 30 days in the aggregate out of a period of 12 consecutive months.
The disability shall be determined by a certification from a physician. Such a termination shall be effected by giving ten days’
written notice of termination to Employee. Termination pursuant to this provision shall not prejudice Employee’s rights
to receive disability insurance payments or the continued compensation pursuant to this Agreement.

 

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iii.
Without cause. Termination under this section for either death or disability shall not be considered “for cause”
for the purposes of this Agreement.

 

(3).
Effect of Merger, Transfer of Assets, or Dissolution. Without the prior written consent of Employee, this Agreement shall
not be terminated by any voluntary or involuntary dissolution of Company resulting from a merger or consolidation in which Company
is not the consolidated or surviving corporation, or a transfer of all or substantially all of the assets of Company. In the event
of any such merger or consolidation or transfer of assets, Employee’s rights, benefits, and obligations hereunder shall
be assigned to the surviving or resulting corporation or the transferee of Company’s assets, unless Employee agrees otherwise.

 

(4).
Payment on Termination. If Company terminates this Agreement “without cause,” it shall pay “Severance
Benefits” to the Employee. Severance Benefits shall mean, for purposes of this Agreement,
a cash payment equal to the aggregate compensation payable to the Employee during the remaining term of this Agreement, including
all salary, commissions, bonuses and other compensation.

 

(5).
Termination by Employee.

 

i.
Without Cause. Employee may terminate this Agreement without cause upon 30 days’ prior written notice to Company.

 

ii.
With Cause. Employee may terminate this Agreement immediately with cause, in which event Employee shall receive the Payment
on Termination in accordance with Section 8(4) herein. For the purposes of this Agreement, “cause” for termination
by Employee shall be a breach of any material covenant or obligation hereunder; or the termination of this Agreement without the
prior written consent of Employee due to the voluntary or involuntary dissolution of the Company, any merger or consolidation
in which the Company is not the surviving or resulting corporation, or any transfer of all or subsequently all of the assets of
Company.

 

9.
General Provisions.

 

a.
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto their respective devisees,
legatees, heirs, legal representatives, successors, and permitted assigns. The preceding sentence shall not affect any restriction
on assignment set forth elsewhere in this Agreement.

 

b.
Notices. Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any
of the Parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal
delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent
by facsimile/electronic transmission to the addresses of the Parties as follows:

 

    	 	6	 

    	 	 	 

    

 

	To
    Company:	Cipherloc
    Corporation
	 	825
    Main Street
	 	Suite
    100
	 	Buda
    Texas,78610
	 	Attn:
    President
	 	Email:mdgl@Cipherloc.net

 

	To
    Employee:	Michael
    Huffnagel
	 	2107
    Van Horn Cove
	 	Cedar
    Park, TX 78613
	 	Email:
    mhufnagel@cipherloc.net

 

The
persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal
delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given
at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with
the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice
is given by facsimile/electronic transmission in accordance with the provisions of this Section, such notice shall be conclusively
deemed given at the time of delivery if during business hours and if not during business hours, at the next business day after
delivery, provided a confirmation is obtained by the sender.

 

c.
Sums Due Deceased Employee. If Employee dies prior to the expiration of the employment term, any sums that may be due him
from Company under this Agreement as of the date of death shall be paid to Employee’s executors, administrators, heirs,
personal representatives, successors, and assigns.

 

d.
Assignment. Subject to all other provisions of this Agreement, any attempt to assign or transfer this Agreement or any
of the rights conferred hereby, by judicial process or otherwise, to any person, firm, Company, or corporation without the prior
written consent of the other Party, shall be invalid, and may, at the option of such other Party, result in an incurable event
of default resulting in termination of this Agreement and all rights hereby conferred.

 

e.
Choice of Law. This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance
with the laws of the State of Texas including all matters of construction, validity, performance, and enforcement and without
giving effect to the principles of conflict of laws.

 

f.
Jurisdiction. The parties submit to the jurisdiction of the Courts of the State of Texas or a Federal Court impaneled in
the State of Texas for the resolution of all legal disputes arising under the terms of this Agreement.

 

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g.
Indemnification. Company shall indemnify, defend and hold Employee harmless, to the fullest extent permitted by law, for
all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest,
penalties and reasonable attorney’s fees that Employee shall incur or suffer that arise from, result from or relate to the
discharge of Employee’s duties under this Agreement. Company shall maintain adequate insurance for this purpose or shall
advance Employee any expenses incurred in defending any such proceeding or claim to the maximum extent permitted by law.

 

h.
Entire Agreement. Except as provided herein, this Agreement, including exhibits, contains the entire agreement of the Parties,
and supersedes all existing negotiations, representations, or agreements and all other oral, written, or other communications
between them concerning the subject matter of this Agreement. There are no representations, agreements, arrangements, or understandings,
oral or written, between and among the Parties hereto relating to the subject matter of this Agreement that are not fully expressed
herein.

 

i.
Severability. If any provision hereof is held to be illegal, invalid or unenforceable under present or future laws effective
during the term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full
force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance wherefrom. Furthermore,
in lieu of such illegal, invalid or unenforceable provision there shall be added automatically by the Company as a part hereof
a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and legal, valid and enforceable.

 

j.
Captions. The captions in this Agreement are inserted only as a matter of convenience and for reference and shall not be
deemed to define, limit, enlarge, or describe the scope of this Agreement or the relationship of the Parties, and shall not affect
this Agreement or the construction of any provisions herein.

 

k.
Modification. No change, modification, addition, or amendment to this Agreement shall be valid unless in writing and signed
by all Parties hereto.

 

l.
Attorneys’ Fees. In the event any Party hereto shall commence legal proceedings against the other to enforce the
terms hereof, or to declare rights hereunder, as the result of a breach of any covenant or condition of this Agreement, the prevailing
Party in any such proceeding shall be entitled to recover from the losing Party its costs of suit, including reasonable attorneys’
fees, as may be fixed by the court.

 

m.
Taxes. Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by the Party
required to make such payment. Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and
the Party required to withhold such tax shall furnish to the Party receiving such payment all documentation necessary to prove
the proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding.

 

n.
Not for the Benefit of Creditors or Third Parties. The provisions of this Agreement are intended only for the regulation
of relations among the Parties. This Agreement is not intended for the benefit of creditors of the Parties or other third Parties
and no rights are granted to creditors of the Parties or other third Parties under this Agreement. Under no circumstances shall
any third party, who is a minor, be deemed to have accepted, adopted, or acted in reliance upon this Agreement.

 

o.
Counterparts. This Agreement may be executed in several counterparts and it shall not be necessary for each Party to execute
each of such counterparts, but when all of the parties have executed and delivered one of such counterparts, the counterparts,
when taken together, shall be deemed to constitute one and the same instrument, enforceable against each Party in accordance with
its terms.

 

p.
Facsimile Signatures. The parties hereto agree that this Agreement may be executed by facsimile signatures and such signatures
shall be deemed originals. The parties further agree that within ten days following the execution of this Agreement, they shall
exchange original signature pages.

 

    	 	8	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	 	COMPANY:
	 	 	 
	 	Cipherloc Corporation, a Texas Corporation
	 	 	 
	 	By: 	/s/
    Michael De La Garza
	 		Michael
    De La Garza
	 	Its:	President/CEO
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	Michael Huffnagel
	 	 	 
	 	By:	/s/
    Michael Hufnagel
	 		Michael
    Huffnagel

 

    	 	9ex_97645.htm

Exhibit 10.1

 

AMENDMENT No. 1 TO EXECUTIVE OFFER LETTER

 

This Amendment No. 1 (“Amendment”) to the Offer Letter (“Offer Letter”) is entered into as of August 23, 2017 (the “Effective Date”) by and between PetMed Express, Inc. (“PetMed” or the “Company”) and Bruce S. Rosenbloom, Chief Financial Officer of PetMed (the “Executive”).

 

WHEREAS, PetMed and the Executive entered into the Offer Letter dated May 30, 2001, and PetMed and the Executive wish to amend the Agreement.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

So much of Paragraph 5 of the Offer Letter that reads “If the Company terminates your employment other than for cause, you will be entitled to three (3) months’ severance pay at your base salary at the time of your termination.” is hereby revised to read “If the Company terminates your employment other than for cause, you will be entitled to twelve (12) months’ severance pay at your base salary at the time of your termination.” 

 

A new Paragraph 6 of the Offer Letter is as follows:

 

In the event that a change of control, as defined below, occurs, and within three months the Executive is not offered a commensurate position with a salary commensurate with the duties and responsibilities of the position and/or he chooses to terminate his employment with the Company, such termination shall be considered “with good cause” and the Executive shall be entitled to trigger paragraph 5 of the Offer Letter, as amended above. Provided however, Executive may not terminate the employment relationship for good cause in connection with a Change of Control without first providing the Company with written notice within sixty (60) days of the initial existence of the condition that Executive believes constitutes good cause in connection with a Change of Control specifically identifying the acts or omissions constituting the grounds therefor and a reasonable cure period of not less than thirty (30) days following the date of such notice. 

 

For purposes of this Offer Letter and Amendment, a “Change in Control” of the Company shall mean a change in control (A) as set forth in Section 280G of the Internal Revenue Code or (B) of a nature that would be required to be reported in response to Item 1 of the current report on Form 8K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); provided that, without limitation, such a change in control shall be deemed to have occurred at such time as:

 

(A) any “person”, other than the Executive, (as such term is used in Section 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” ( as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s outstanding securities then having the right to vote at elections of directors; or,

 

(B) the individuals who at the commencement date of the Agreement constitute the Board of Directors cease for any reason to constitute a majority thereof unless the election, or nomination for election, of each new director was approved by a vote of at least two thirds of the directors then in office who were directors at the commencement of the Agreement; or

 

(C) there is a failure to elect three or more (or such number of directors as would constitute a majority of the Board of Directors) candidates nominated by management of the Company to the Board of Directors; or

 

(D) the business of the Company for which the Executive’s services are principally performed is disposed of by the Company pursuant to a partial or complete liquidation of the Company, a sale of assets (including stock of a subsidiary of the Company) or otherwise.

 

Except as expressly provided in this Amendment, all other terms, conditions and provisions of the Offer Letter shall continue in full force and effect as provided therein.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date set forth in the first paragraph of the Amendment.

 

	
			 

				 	
			PetMed Express, Inc. 

				
			 

			
	
			 

				 	
			 

				
			 

				
			 

			
	
			 

				 	
			 

				
			 

				
			 

			
	
			Witness  /s/ Alison Berges

				 	
			By: 

				
			/s/ Menderes Akdag

				
			 

			
	
			 

				 	
			 

				
			Menderes Akdag, 

				
			 

			
	 	 	 	CEO and President	 
	 	 	 	 	 
	
			Witness  /s/ Alison Berges

				 	
			The Executive:

				
			 

			
	 	 	 	 	 
	 	 	 	/s/Bruce S.Rosenbloom	 
	 	 	 	Bruce S. Rosenbloom

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