Document:

pvotf_ex1014.htm

EXHIBIT 10.14
 
CONSULTING AGREEMENT
 
THIS AGREEMENT is dated for reference the 19th day of November, 2015.
 
BETWEEN:
 
PIVOT PHARMACEUTICALS INC., a British Columbia corporation
having an address at 1275 West 6th Avenue, Vancouver, British
Columbia V6H 1A6
 
(the "Company")
 
AND:
 
GIORA DAVIDAI having an address at 21 Hampton Lane, New 
Canaan, CT 06840 USA
 
(the "Contractor")
 
WHEREAS:
 
A. The Company desires to retain the Contractor to provide services (the "Services") as a business consultant, in regards to the Company's ongoing corporate development; and
 
B. The Contractor has agreed to provide the Services to the Company on the terms and conditions of this Agreement.
 
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each, the parties hereto agree as follows:
 
ARTICLE 1
APPOINTMENT AND AUTHORITY OF 
CONTRACTOR
 
1.1 Appointment of Contractor. The Company hereby appoints the Contractor to perform the Services for the benefit of the Company as hereinafter set forth, and the Company hereby authorizes the Contractor to exercise such powers as provided under this Agreement. The Contractor accepts such appointment on the terms and conditions herein set forth. 
 
1.2 Performance of Services. The Services hereunder have been and shall continue to be provided on the basis of the following terms and conditions:
 
		(a) 	the Contractor shall report directly to the Chief Executive Officer and/or President of the Company;

			
		(b) 	the Contractor shall faithfully, honestly and diligently serve the Company and cooperate with the Company and utilize maximum professional skill and care to ensure that all services rendered hereunder, including the Services, are to the satisfaction of the Company, acting reasonably, and the Contractor shall provide any other services not specifically mentioned herein, but which by reason of the Contractor's capability the Contractor knows or ought to know to be necessary to ensure that the best interests of the Company are maintained; and

 
	 
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		(c) 	the Company shall report the results of the Contractor's duties hereunder as may be requested by the Company from time to time.

 
1.3 Authority of Contractor. The Contractor shall have no right or authority, express or implied, to commit or otherwise obligate the Company in any manner whatsoever except to the extent specifically provided herein or specifically authorized in writing by the Company.
 
1.4 Independent Contractor. In performing the Services, the Contractor shall be an independent contractor and not an employee or agent of the Company, except that the Contractor shall be the agent of the Company solely in circumstances where the Contractor must be the agent to carry out its obligations as set forth in this Agreement. Nothing in this Agreement shall be deemed to require the Contractor to provide the Services exclusively to the Company and the Contractor hereby acknowledges that the Company is not required and shall not be required to make any remittances and payments required of employers by statute on the Contractor's behalf and the Contractor or any of its agents shall not be entitled to the fringe benefits provided by the Company to its employees.
 
ARTICLE 2
CONTRACTOR'S AGREEMENTS
 
2.1 Regulatory Compliance. The Contractor agrees to comply with all applicable securities legislation and regulatory policies in relation to providing the Services, including but not limited to securities laws of the United States (in particular Regulation FD) and Canada all laws, rules, regulations and policies of the Securities and Exchange Commission of the United States and the British Columbia Securities Commission. 
 
2.2 Prohibition Against Insider Trading. The Contractor hereby acknowledges that the Contractor is aware, and further agrees that the Contractor will advise those of its directors, officers, employees and agents who may have access to Confidential Information, that securities laws of the United States and Canada prohibit any person who has material, non-public information about a company from purchasing or selling securities of such a company or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. 
 
ARTICLE 3
COMPANY'S AGREEMENTS
 
3.1 Compensation. The compensation for agreeing to enter into this agreement and providing the Services shall be 10,000,000 options to purchase common shares in the capital stock of the Company (the "Compensation Options") with an exercise price of $0.10, immediate vesting and term of five years from date of grant. 2,000,000 of the Compensation Options shall be granted to the Contractor on each of the following dates: December 15, 2015, December 15, 2016, December 15, 2017, December 15, 2018 and December 15, 2019 pursuant to a stock option agreement to be entered into on each of these dates. Both the Contractor and the Company agree that, in the event of Contractor's resignation or termination with cause as a Contractor of the Company, the Company may cancel any Compensation Options that have not been granted. 
 
	 
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3.2 Grant of Compensation Options. The Contractor acknowledges that each grant of Compensation Options is subject to applicable rules of any stock exchange or regulatory body having jurisdiction over the securities of the Company. 
 
3.3 Information. Subject to the terms of this Agreement, including without limitation Article 5 hereof, and provided that the Contractor agrees that it will not disclose any material non-public information to any person or entity, the Company shall make available to the Contractor such information and data and shall permit the Contractor to have access to such documents as are reasonably necessary to enable it to perform the Services under this Agreement. The Company also agrees that it will act reasonably and promptly in reviewing materials submitted to it from time to time by the Contractor and inform the Contractor of any material inaccuracies or omissions in such materials.
 
3.4 Directorship. Upon the availability of the Contractor to serve as a director of the Company, the Company will make the necessary arrangements for Contractor's appointment as a director, in accordance with the Business Corporations Act (British Columbia) and the Articles of the Company.
 
ARTICLE 4
DURATION, TERMINATION AND DEFAULT
 
4.1 Effective Date. This Agreement shall become effective as of the date written above (the "Effective Date"), shall supersede any prior executed consulting agreement, and shall continue for a period of one year, (the "Term"), renewable at the option of the parties or until earlier terminated pursuant to the terms of this Agreement.
 
4.2 Termination. Without prejudicing any other rights that the Company may have hereunder or at law or in equity, the Company may terminate this Agreement immediately upon delivery of written notice to the Contractor if:
 
		(a) 	the Contractor breaches section 2.1 of this Agreement;

			
		(b) 	the Contractor breaches any other material term of this Agreement and such breach is not cured to the reasonable satisfaction of the Company within thirty (30) days after written notice describing the breach in reasonable detail is delivered to the Contractor;

			
		(c) 	the Company acting reasonably determines that the Contractor has acted, is acting or is likely to act in a manner detrimental to the Company or has violated or is likely to violate the confidentiality of any information as provided for in this Agreement;

			
		(d) 	the Contractor is unable or unwilling to perform the Services under this Agreement in a timely fashion, or

			
		(e) 	the Contractor commits fraud, serious neglect or misconduct in the discharge of the Services.

 
4.3 Duties Upon Termination. Upon termination of this Agreement for any reason, the Contractor shall upon receipt of all sums due and owing, promptly deliver the following in accordance with the directions of the Company:
 
		(a) 	a final accounting, reflecting the balance of expenses incurred on behalf of the Company as of the date of termination; and

 
	 
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		(b) 	all documents pertaining to the Company or this Agreement, including but not limited to, all books of account, correspondence and contracts, provided that the Contractor shall be entitled thereafter to inspect, examine and copy all of the documents which it delivers in accordance with this provision at all reasonable times upon three (3) days' notice to the Company.

 
4.4 Compensation of Contractor on Termination. Upon termination of this Agreement pursuant to section 4.2, the Contractor shall be entitled to receive as its full and sole compensation in discharge of obligations of the Company to the Contractor under this Agreement all sums due and payable under this Agreement to the date of termination and the Contractor shall have no right to receive any further payments; provided, however, that the Company shall have the right to offset against any payment owing to the Contractor under this Agreement any damages, liabilities, costs or expenses suffered by the Company by reason of the fraud, negligence or wilful act of the Contractor, to the extent such right has not been waived by the Company. If the Company elects to terminate this Agreement otherwise than pursuant to section 4.2, the Contractor shall be entitled to all sums due and payable to the Contractor until the expiration of the Term.
 
ARTICLE 5
CONFIDENTIALITY AND NON-COMPETITION
 
5.1 Maintenance of Confidential Information. The Contractor acknowledges that in the course of its appointment hereunder the Contractor will, either directly or indirectly, have access to and be entrusted with information (whether oral, written or by inspection) relating to the business of the Company, or its respective affiliates, associates or customers (the "Confidential Information"). For the purposes of this Agreement, "Confidential Information" includes, without limitation, any and all Developments (as defined herein), trade secrets, inventions, innovations, techniques, processes, formulas, drawings, designs, products, systems, creations, improvements, documentation, data, specifications, technical reports, customer lists, supplier lists, distributor lists, distribution channels and methods, retailer lists, reseller lists, employee information, financial information, sales or marketing plans, competitive analysis reports and any other thing or information whatsoever, whether copyrightable or uncopyrightable or patentable or unpatentable. The Contractor acknowledges that the Confidential Information constitutes a proprietary right, which the Company is entitled to protect. Accordingly the Contractor covenants and agrees that during the Term and thereafter until such time as all the Confidential Information becomes publicly known and made generally available through no action or inaction of the Contractor, the Contractor will keep in strict confidence the Confidential Information and shall not, without prior written consent of the Company in each instance, disclose, use or otherwise disseminate the Confidential Information, directly or indirectly, to any third party.
 
5.2 Exceptions. The general prohibition contained in Section 5.1 against the unauthorized disclosure, use or dissemination of the Confidential Information shall not apply in respect of any Confidential Information that: 
 
		(a) 	is available to the public generally in the form disclosed;

			
		(b) 	becomes part of the public domain through no fault of the Contractor;

			
		(c) 	is already in the lawful possession of the Contractor at the time of receipt of the Confidential Information; or

			
		(d) 	is compelled by applicable law to be disclosed, provided that the Contractor gives the Company prompt written notice of such requirement prior to such disclosure and provides assistance in obtaining an order protecting the Confidential Information from public disclosure.

 
	 
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5.3 Developments. Any information, data, work product or any other thing or documentation whatsoever which the Contractor, either by itself or in conjunction with any third party, conceives, makes, develops, acquires or acquires knowledge of during the Contractor's appointment with the Company or which the Contractor, either by itself or in conjunction with any third party, shall conceive, make, develop, acquire or acquire knowledge of (collectively the "Developments") during the Term or at any time thereafter during which the Contractor is engaged by the Company that is related to the business of the Company shall automatically form part of the Confidential Information and shall become and remain the sole and exclusive property of the Company. Accordingly, the Contractor does hereby irrevocably, exclusively and absolutely assign, transfer and convey to the Company in perpetuity all worldwide right, title and interest in and to any and all Developments and other rights of whatsoever nature and kind in or arising from or pertaining to all such Developments created or produced by the Contractor during the course of performing this Agreement, including, without limitation, the right to effect any registration in the world to protect the foregoing rights. The Company shall have the sole, absolute and unlimited right throughout the world, therefore, to protect the Developments by patent, copyright, industrial design, trademark or otherwise and to make, have made, use, reconstruct, repair, modify, reproduce, publish, distribute and sell the Developments, in whole or in part, or combine the Developments with any other matter, or not use the Developments at all, as the Company sees fit.
 
5.4 Protection of Developments. The Contractor does hereby agree that, both before and after the termination of this Agreement, the Contractor shall perform such further acts and execute and deliver such further instruments, writings, documents and assurances (including, without limitation, specific assignments and other documentation which may be required anywhere in the world to register evidence of ownership of the rights assigned pursuant hereto) as the Company shall reasonably require in order to give full effect to the true intent and purpose of the assignment made under Section 5.3 hereof. If the Company is for any reason unable, after reasonable effort, to secure execution by the Contractor on documents needed to effect any registration or to apply for or prosecute any right or protection relating to the Developments, the Contractor hereby designates and appoints the Company and its duly authorized officers and agents as the Contractor's agent and attorney to act for and in the Contractor's behalf and stead to execute and file any such document and do all other lawfully permitted acts necessary or advisable in the opinion of the Company to effect such registration or to apply for or prosecute such right or protection, with the same legal force and effect as if executed by the Contractor.
 
5.5 Remedies. The parties to this Agreement recognize that any violation or threatened violation by the Contractor of any of the provisions contained in this Article 5 will result in immediate and irreparable damage to the Company and that the Company could not adequately be compensated for such damage by monetary award alone. Accordingly, the Contractor agrees that in the event of any such violation or threatened violation, the Company shall, in addition to any other remedies available to the Company at law or in equity, be entitled as a matter of right to apply to such relief by way of restraining order, temporary or permanent injunction and to such other relief as any court of competent jurisdiction may deem just and proper.
 
5.6 Reasonable Restrictions. The Contractor agrees that all restrictions in this Article 5 are reasonable and valid, and all defenses to the strict enforcement thereof by the Company are hereby waived by the Contractor.
 
	 
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ARTICLE 6
DEVOTION TO CONTRACT
 
6.1 Devotion to Contract. During the term of this Agreement, the Contractor shall devote sufficient time, attention, and ability to the business of the Company, and to any associated company, as is reasonably necessary for the proper performance of the Services pursuant to this Agreement. Nothing contained herein shall be deemed to require the Contractor to devote its exclusive time, attention and ability to the business of the Company. During the term of this Agreement, the Contractor shall, and shall cause each of its agents assigned to performance of the Services on behalf of the Contractor, to:
 
		(a) 	at all times perform the Services faithfully, diligently, to the best of its abilities and in the best interests of the Company;

			
		(b) 	devote such of its time, labour and attention to the business of the Company as is necessary for the proper performance of the Services hereunder; and

			
		(c) 	refrain from acting in any manner contrary to the best interests of the Company or contrary to the duties of the Contractor as contemplated herein.

 
6.2 Other Activities. The Contractor shall not be precluded from acting in a function similar to that contemplated under this Agreement for any other person, firm or company.
 
ARTICLE 7
MISCELLANEOUS
 
7.1 Notices. All notices required or allowed to be given under this Agreement shall be made either personally by delivery to or by facsimile transmission to the address as hereinafter set forth or to such other address as may be designated from time to time by such party in writing:
 
		(a) 	in the case of the Company, to:

	 
	 
	 

			Pivot Pharmaceuticals Inc.
1275 West 6th Avenue
Vancouver BC V6H 1A6
Attention: President and Chief Executive Officer

 
		(b) 	and in the case of the Contractor to:

	 
	 
	 

			Giora Davidai
21 Hampton Lane
New Canaan, CT 06840 USA 

 
	 
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7.2 Independent Legal Advice. The Contractor acknowledges that:
 
		(a) 	this Agreement was prepared for and by the Company;

			
		(b) 	the Contractor has been requested to obtain its own independent legal advice on this Agreement prior to signing this Agreement;

			
		(c) 	the Contractor has been given adequate time to obtain independent legal advice;

			
		(d) 	by signing this Agreement, the Company confirms that he fully understands this Agreement; and

			
		(e) 	by signing this Agreement without first obtaining independent legal advice, the Contractor waives its right to obtain independent legal advice.

 
7.3 Change of Address. Any party may, from time to time, change its address for service hereunder by written notice to the other party in the manner aforesaid.
 
7.4 Entire Agreement. As of from the date hereof, any and all previous agreements, written or oral between the parties hereto or on their behalf relating to the appointment of the Contractor by the Company are null and void. The parties hereto agree that they have expressed herein their entire understanding and agreement concerning the subject matter of this Agreement and it is expressly agreed that no implied covenant, condition, term or reservation or prior representation or warranty shall be read into this Agreement relating to or concerning the subject matter hereof or any matter or operation provided for herein.
 
7.5 Further Assurances. Each party hereto will promptly and duly execute and deliver to the other party such further documents and assurances and take such further action as such other party may from time to time reasonably request in order to more effectively carry out the intent and purpose of this Agreement and to establish and protect the rights and remedies created or intended to be created hereby.
 
7.6 Waiver. No provision hereof shall be deemed waived and no breach excused, unless such waiver or consent excusing the breach is made in writing and signed by the party to be charged with such waiver or consent. A waiver by a party of any provision of this Agreement shall not be construed as a waiver of a further breach of the same provision.
 
7.7 Amendments in Writing. No amendment, modification or rescission of this Agreement shall be effective unless set forth in writing and signed by the parties hereto.
 
7.8 Assignment. Except as herein expressly provided, the respective rights and obligations of the Contractor and the Company under this Agreement shall not be assignable by either party without the written consent of the other party and shall, subject to the foregoing, enure to the benefit of and be binding upon the Contractor and the Company and their permitted successors or assigns. Nothing herein expressed or implied is intended to confer on any person other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement.
 
	 
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7.9 Severability. In the event that any provision contained in this Agreement shall be declared invalid, illegal or unenforceable by a court or other lawful authority of competent jurisdiction, such provision shall be deemed not to affect or impair the validity or enforceability of any other provision of this Agreement, which shall continue to have full force and effect.
 
7.10 Headings. The headings in this Agreement are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.
 
7.11 Number and Gender. Wherever the singular or masculine or neuter is used in this Agreement, the same shall be construed as meaning the plural or feminine or a body politic or corporate and vice versa where the context so requires.
 
7.12 Time. Time shall be of the essence of this Agreement. In the event that any day on or before which any action is required to be taken hereunder is not a business day, then such action shall be required to be taken at or before the requisite time on the next succeeding day that is a business day. For the purposes of this Agreement, "business day" means a day which is not Saturday or Sunday or a statutory holiday in British Columbia, Canada.
 
7.13 Enurement. This Agreement is intended to bind and enure to the benefit of the Company, its successors and assigns, and the Contractor and the personal legal representatives of the Contractor.
 
7.14 Counterparts. This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.
 
7.15 Electronic Means. Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the effective date of this Agreement.
 
7.16 Proper Law. This Agreement will be governed by and construed in accordance with the law of British Columbia. The parties hereby attorn to the jurisdiction of the Courts in the Province of British Columbia.
 
	 
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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written.
    	PIVOT PHARMACEUTICALS INC.	 

	 	 	 
	Per: 	/s/ Ahmad Doroudian 	 

	 
	Authorized Signatory
	 

	 
		 

	 
	/s/ Giora Davidai 
	 

	 
	Giora Davidai 
	 

 
 
9pvotf_ex1016.htm

EXHIBIT 10.16
 
EMPLOYMENT AGREEMENT
 
THIS EMPLOYMENT AGREEMENT (the "Agreement") is effective the 20th day of November, 2015 (the "Effective Date"), by and between Pivot Pharmaceuticals, Inc., a British Columbia corporation (the "Company") and Pravin Chaturvedi (the "Executive").
 
WHEREAS, the Executive desires to be employed by the Company on the terms described herein.
 
WHEREAS, the Company desires to employ the Executive on the terms described herein.
 
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, and intending to be bound hereby, the parties agree as follows:
 
1. Duration of Agreement. This Agreement has no specific expiration date and, therefore, unless terminated by agreement of the parties, this Agreement will govern Executive's continued employment by the Company until that employment ceases. In the event either party wishes to terminate this agreement, the terminating party must provide notice to the other party at least 60 days prior to said party's intent to terminate.
 
2. Title; Duties. As of the Effective Date, Executive will be employed as the Company's President and Chief Executive Officer, reporting directly to the Company's Board of Directors, and will be appointed a member of the Board of Directors as of the Effective Date or the earliest possible date thereafter. Executive will devote his best efforts and substantially all of his business time and services to the Company and its affiliates to perform such duties as may be customarily incident to his position and as may reasonably be assigned to him from time to time. Except for ongoing business activities disclosed pursuant to Section 6 hereof, Executive will not, in any capacity, engage in other business activities or perform services for any other individual, firm or corporation without the prior written consent of the Company; provided, however, that without such consent, Executive may engage in charitable, public service and personal investment activities, so long as such activities do not in any respect interfere with Executive's performance of his duties and obligations hereunder.
 
3. Place of Performance. Executive will perform his services hereunder at office space located at 25-K Olympia Avenue, Suite 300, Woburn, Massachusetts 01801 or other suitable location in the Boston, Massachusetts metropolitan area; provided, however, that Executive may be required to travel from time to time for business purposes.
 
4. Compensation and Benefits.
 
4.1. Base Salary. Executive's annual salary will be US$300,000 (the "Base Salary"), paid in accordance with the Company's payroll practices, as in effect from time to time. The Base Salary will be reviewed annually on or before January 1 by the Company's Board of Directors (the "Board") or the Compensation Committee of the Board and may be adjusted from time to time. To the extent the Board has authorized its Compensation Committee to act on its behalf in any particular respect, references to the Board in that context will also be deemed to include the Compensation Committee.
 
	 
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4.2. Limited Waiver of Base Salary; Provision of Health Care Benefits. Executive's right to receive the Base Salary shall be waived from the Effective Date until Pivot completes a post-Effective Date financing transaction ("Waiver Period"). Notwithstanding the above, during the Waiver Period Executive shall be entitled to receive 25,000 shares of Pivot common stock each month, or a proportionate percentage thereof for each partial month of the Waiver Period. The Company's obligation to provide employee benefits, including health care, to the Executive as of the Effective Date shall not be subject to the herein described waiver. 
 
4.3. Annual Bonuses.
 
4.3.1. For each calendar year ending after the Effective Date, Executive will be eligible for an annual bonus in an amount established by the Board for the applicable year, if specified corporate and/or individual performance goals are met for that year. Any bonuses payable under this Section 4.3 will be paid within two and one-half months following the end of the applicable year.
 
4.3.2. The performance goals relevant under this Section 4.3 for any given calendar year will be established by the Board during the first quarter of the applicable calendar year and will be promptly communicated to Executive.
 
4.4. Bonus Stock Options
 
For each calendar year beginning on January 1, 2016 Executive will be eligible to receive additional equity incentive awards with respect to each such calendar year of the Company based upon Executive's perceived performance during such calendar year and the achievement of the Company targeted results of operations as set by the Board of Directors during the Company's budgeting process in the previous calendar year. Such equity incentive awards may be in the form of options to purchase shares of the Company's common stock, awards of restricted stock, stock appreciation rights, or other awards as determined by the Board or a Committee of the Board. The target number of shares subject to each annual award shall be one-half of one percent of the outstanding shares of the Company; provided, however, that the actual amount of the award, the vesting provisions and other terms and conditions of each award will be determined by the Board or a Committee of the Board. 
 
4.5. Employee Benefits. Executive will be eligible to participate in retirement/savings, health insurance, life insurance, disability insurance and other employee benefit plans, policies or arrangements maintained by the Company for its employees generally, subject to the terms and conditions of such plans, policies or arrangements; provided, however, that this Agreement will not limit the Company's ability to amend, modify or terminate such plans, policies or arrangements at any time for any reason.
 
4.6. Paid Time Off. Executive will be entitled to paid time off each year in accordance with the published policies of the Company.
 
4.7. Reimbursement of Expenses. Executive will be reimbursed by the Company for all reasonable business expenses incurred by him in accordance with the Company's customary expense reimbursement policies as in effect from time to time.
 
4.8. Indemnification. Executive will be indemnified by the Company for acts performed as an employee, officer and director of the Company to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by the Executive in connection with any action, suit or proceeding to which he may be made a party by reason of being an officer, director or employee of the Company or of any subsidiary or affiliate of the Company or any other corporation for which the Executive serves as an officer, director, or employee at the Company's request. In addition to indemnification under the Company's articles of association and bylaws, the Company will be obligated to purchase and maintain insurance covering its directors and officers adequate to fulfill its obligations to the Executive under this Section 4.8.
 
	 
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5. Termination. Upon any cessation of his employment with the Company, Executive will be entitled only to such compensation and benefits as described in this Section 5.
 
5.1. Termination without Cause or for Good Reason. If Executive's employment by the Company ceases due to a termination by the Company without Cause (as defined below) or by Executive for Good Reason (as defined below), Executive will be entitled to:
 
5.1.1. payment of all accrued and unpaid Base Salary and other earned compensation through the date of such cessation; 
 
5.1.2. payment of all bonuses earned during the period of employment;
 
5.1.3. payment of all earned but unused PTO;
 
5.1.4. payment of an amount equal to twenty-four months of Executive's Base Salary;
 
5.1.5. with respect to all options to purchase stock of the Company, all restricted stock, and all other compensatory awards granted to Executive which are subject to vesting over time, full acceleration of the vesting and exercisability and full acceleration of the lapse of any forfeiture conditions applicable to any such awards; and
 
5.1.6. waiver of the applicable premium otherwise payable for COBRA continuation coverage for Executive (and, to the extent covered immediately prior to the date of such cessation, his eligible dependents) for a period equal to 24 months.
 
Except as otherwise provided in this Section 5.1, all compensation and benefits will cease at the time of such cessation, subject to the terms of any benefits or compensation plans then in force and applicable to Executive, and the Company will have no further liability or obligation by reason of such cessation. The payments and benefits described in this Section 5.1 are in lieu of, and not in addition to, any other severance arrangement maintained by the Company. Notwithstanding any provision of this Agreement, the payments and benefits described in Section 5.1 are conditioned on Executive's resignation from all employee and director positions with the Company and its affiliates and on Executive's execution and delivery to the Company of a release in such form as the Company may require in a manner consistent with the requirements of the Older Workers Benefit Protection Act (the "Release"). The severance benefits described in this Section 5.1 will begin to be paid or provided as soon as the Release becomes irrevocable.
 
5.2. Involuntary Termination or Termination Without Cause Following a Change in Control. If within eighteen (18) months after a Change of Control (as defined below in Section 5.6.4), Executive's employment with the Company is terminated (i) by the Executive for Good Reason or (ii) by the Company without Cause, then, in addition to any payment or benefit under Section 5.1, Executive will be entitled to receive any incentive compensation earned by Executive pursuant to Section 4.4, but not yet granted by the Board or a Committee of the Board, through his/her date of employment. Such incentive compensation will be paid to the Executive within two and one-half months following the end of the calendar year in which Executive is terminated.
 
5.3. Other Terminations. If Executive's employment with the Company ceases by the Company for Cause, or by Executive without Good Reason, then the Company's obligation to Executive will be limited solely to the payment of accrued and unpaid Base Salary and other earned compensation through the date of such cessation. All compensation and benefits will cease at the time of such cessation and, except as otherwise provided by COBRA, the Company will have no further liability or obligation by reason of such termination. The foregoing will not be construed to limit Executive's right to payment or reimbursement for claims incurred prior to the date of such termination under any insurance contract funding an employee benefit plan, policy or arrangement of the Company in accordance with the terms of such insurance contract.
 
	 
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5.4. Compliance with Section 409A. If payments owed to Executive following his separation from service are subject to the requirements of Prop. Treas. Reg. § 1.409A-3(g)(2) (or any successor provision) at the time of that separation from service, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), those payments that are otherwise due within six months following Executive's separation from service will be deferred (without interest) and paid to Executive in a lump sum on the first day following the expiration of such six month period.
 
5.5. Compliance with Section 280G. If any payment or benefit due to Executive from the Company or its subsidiaries or affiliates, whether under this Agreement or otherwise, would (if paid or provided) constitute an Excess Parachute Payment (as defined below), that payment or benefit will be limited to the minimum extent necessary to ensure that no portion thereof will fail to be tax-deductible to the Company by reason of Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"). The determination of whether any payment or benefit would (if paid or provided) constitute an Excess Parachute Payment will be made by the Company, in good faith and in its sole discretion. If multiple payments or benefits are subject to reduction under this paragraph, the order in which such payments or benefits are reduced will be determined by the Company, in its discretion; provided that, in exercising its discretion in this regard, the Company will exercise reasonable efforts to reduce the payments or benefits in the order that maximizes Executive's economic position (as expressed by the Executive). If, notwithstanding the initial application of this Section 5.5, the Internal Revenue Service determines that any payment or benefit provided to Executive constituted an Excess Parachute Payment, this Section 5.5 will be reapplied based on the Internal Revenue Service's determination and Executive will be required to promptly repay to the Company any amount in excess of the payment limit of this Section 5.5. 
 
5.6. Definitions. For purposes of this Agreement:
 
5.6.1. "Cause" means the occurrence of any of the following: (a) Executive's refusal or failure to follow an express lawful directives of the Board of Directors which continues for more than 15 days after written notice to the Executive thereof; or (b) Executive's conviction of, or the entry of a plea of guilty or no contest to, a felony or a crime that could reasonably be expected to have an adverse effect on the operations, condition or reputation of the Company or its affiliates; 
 
5.6.2. "Disability" means a condition entitling Executive to benefits under any Company sponsored or funded disability plan, policy or arrangement or under the Social Security Act. "Excess Parachute Payment" has the same meaning as used in Section 280G(b)(1) of the Code. 
 
5.6.3. "Good Reason" means any of the following, without Executive's prior consent: (a) a material, adverse change in Executive's title, authority or duties (including the assignment of duties materially inconsistent with Executive's position), (b) a material reduction on the Executive's Base Salary and/or total compensation package; (c) Executive's death or disability. However, none of the foregoing events or conditions will constitute Good Reason unless: (x) Executive provides the Company with written objection (or notice) to the event or condition within 30 days following the occurrence thereof, (y) the Company does not reverse or otherwise cure the event or condition within 15 days of receiving that written objection, and (z) Executive resigns his employment within 15 days following the expiration of that cure period.
 
	 
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5.6.4."Change In Control" means the occurrence of any of the following events:
 
	 
	 
	·
	Any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than an existing shareholder of the Company as of the date of this Agreement, becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities, whether by tender offer, or otherwise; or,

	 
	 
	 
	 

	 
	 
	·
	The consummation of a merger or consolidation, share exchange, or reorganization of the Company, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or,

	 
	 
	 
	 

	 
	 
	·
	The liquidation of the Company or the sale or disposition by the Company of all or substantially all of the Company's assets; or,

	 
	 
	 
	 

	 
	 
	·
	Any similar event deemed by the Board of Directors to constitute a Change In Control.

 
6. Ventures. If, during the term of this Agreement, Executive is engaged in or associated with the planning or implementing of any project, program or venture involving the Company and a third party or parties, all rights in the project, program or venture will belong to the Company and will constitute a corporate opportunity belonging exclusively to the Company. Except as expressly approved in writing by the Company, Executive will not be entitled to any interest in such project, program or venture or to any commission, finder's fee or other compensation in connection therewith, other than the compensation to be paid to Executive as provided in this Agreement. The Executive has disclosed, and the Company hereby approves the continuation of, the Executive's role as a technical, strategic, professional or managerial advisor to the entities and organizations listed on Schedule A to this Agreement.
 
7. Protective Provisions.
 
7.1. Confidentiality; Assignment of Inventions. The Executive shall execute the Company's standard form confidentiality and assignment of inventions agreements. 
 
7.2. Acknowledgements. Executive acknowledges that the provisions of Section 7 are reasonable and necessary to protect the legitimate interests of the Company and its affiliates, and that the Company would not enter into this Agreement or otherwise continue to employ Executive unless Executive agrees to be bound by this Section 7.
 
	 
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7.3. Remedies and Enforcement Upon Breach.
 
7.3.1. Specific Enforcement. Executive acknowledges that any breach by him, willfully or otherwise, of this Section 7 may cause continuing and irreparable injury to the Company for which monetary damages would not be an adequate remedy. In the event of any breach by Executive of this Section 7, the Company will be entitled to seek injunctive or other similar equitable relief in any court, without any requirement that a bond or other security be posted, and this Agreement will not in any way limit remedies of law or in equity otherwise available to the Company.
 
equity.
 
7.3.2. Disclosure of Confidentiality and Assignment of Inventions Agreements . Executive agrees to disclose the existence and terms of the agreements described in this Section 8 to any employer that Executive may work for during while the agreements remain applicable.
 
7.3.3. Application Following Termination. The agreements described in this Section 7 will continue to apply following any cessation of Executive's employment without regard to the reason for that cessation and without regard to whether that cessation was initiated by Executive or the Company.
 
8. Miscellaneous.
 
8.1. Other Agreements. Executive represents and warrants to the Company that there are no restrictions, agreements or understandings whatsoever to which he is a party that would prevent or make unlawful his execution of this Agreement, that would be inconsistent or in conflict with this Agreement or Executive's obligations hereunder, or that would otherwise prevent, limit or impair the performance by Executive of his duties under this Agreement other than the ventures discussed in Section 6 hereof.
 
8.2. Successors and Assigns. The Company may assign this Agreement to any successor to all or substantially all of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets, sale of stock or otherwise. The duties of Executive hereunder are personal to Executive and may not be assigned by him.
 
8.3. Governing Law and Enforcement. This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to the principles of conflicts of laws. Any legal proceeding arising out of or relating to this Agreement will be instituted in a state or federal court in the Commonwealth of Massachusetts, and Executive and the Company hereby consent to the personal and exclusive jurisdiction of such court(s) and hereby waive any objection(s) that they may have to personal jurisdiction, the laying of venue of any such proceeding and any claim or defense of inconvenient forum.
 
	 
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8.4. Waivers. The waiver by either party of any right hereunder or of any breach by the other party will not be deemed a waiver of any other right hereunder or of any other breach by the other party. No waiver will be deemed to have occurred unless set forth in writing. No waiver will constitute a continuing waiver unless specifically stated, and any waiver will operate only as to the specific term or condition waived.
 
8.5. Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law. However, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Agreement will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained.
 
8.6. Survival. This Agreement will survive the cessation of Executive's employment to the extent necessary to fulfill the purposes and intent the Agreement.
 
8.7. Notices. Any notice or communication required or permitted under this Agreement will be made in writing and (a) sent by overnight courier, (b) mailed by overnight U.S. express mail, return receipt requested, (c) sent by telecopier or (d) electronically mailed by a means which provides acknowledgement of receipt. Any notice or communication to Executive will be sent to the address(es) set forth in Schedule B to this Agreement. Any notice or communication to the Company will be sent to the Company's principal executive offices, to the attention of the Secretary of the Board of Directors. Notwithstanding the foregoing, either party may change the address for notices or communications hereunder by providing written notice to the other in the manner specified in this paragraph. 
 
8.8. Entire Agreement; Amendments. This Agreement contains the entire agreement and understanding of the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to the subject matter. This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.
 
8.9. Withholding. All payments (or transfers of property) to Executive will be subject to tax withholding to the extent required by applicable law.
 
8.10. Section Headings. The headings of sections and paragraphs of this Agreement are inserted for convenience only and will not in any way affect the meaning or construction of any provision of this Agreement.
 
8.11. Counterparts; Facsimile. This Agreement may be executed in multiple counterparts (including by facsimile signature), each of which will be deemed to be an original, but all of which together will constitute but one and the same instrument.
 
	 
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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Executive has executed this Agreement, in each case on November 20, 2015.
 
	 
	Pivot Pharmaceuticals, Inc.	 

	 	 		 
		By:	/s/ Ahmad Doroudian	 

	 
	Name:
	Ahmad Doroudian	 

	 
	Title:  
	Chairman	 

	 
	 
	 
	 

	 
	Pravin Chaturvedi  
	 

	 
	 
	 
	 

	 
	By:
	/s/ Pravin Chaturvedi
	 

 
	 
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SCHEDULE A TO PIVOT-CHATURVEDI EMPLOYMENT AGREEMENT
 
Pravin Chaturvedi Continuing Role in Pre-Existing Other Ventures (Section 7)
 
For Profit Organizations
 
Cellanyx Diagnostics, LLC – Board Chairman
 
Jaguar Animal Health– No Board, Executive or Employee role but it pays compensation for certain Napo-related work.  
 
Napo Pharmaceuticals, Inc. - Chief Scientific Officer
 
Oceanyx Pharmaceuticals, Inc. - CEO & Director
 
Non-Profit Organizations
 
FuelEd Schools, Inc. – Board Chairman
 
Georgetown Medical School - Adjunct Prof. of Medicine (Endocrinology)
 
Pradan USA, Inc. – Board Chairman
 
Springboard Enterprises - Advisory Board Member
 
West Virginia University – Consultant 
 
	 
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SCHEDULE B TO PIVOT-CHATURVEDI EMPLOYMENT AGREEMENT
 
Pravin Chaturvedi Contact Information for Notices
 
27 Jenkins Road
Andover, MA 
USA 01810
 
 
10

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