Document:

EXHIBIT
10.1

 

Share
Sale Agreement

 

BETWEEN

 

3D
Pioneer Systems Inc.

 

AND

Host
Group of Companies Pty Ltd ACN 085 418 159

 

AND

 

Vantis
Partners Pty Ltd ACN 142 953 731

 

    	 

     

    

 

This
Acquisition Agreement (“Agreement”) is entered into this June of 23, 2021 by and among 3D Pioneer Systems Inc a USA Company
(“Acquirer”), and Host Group of Companies Pty Ltd an Australian Company (“Target”) and Vantis Partners Pty Ltd,
the shareholder of Host Group of Companies Pty Ltd the ultimate owners of the Target hereby referred as (“Sellers”).

 

Whereas,
Acquirer desires to acquire and the Sellers desires to transfer the issued securities of the Target identified in item 1.1 below in a
transaction intended to qualify as a reorganization within the meaning of section 368(a)(1)(B) of the United States Internal Revenue
Code of 1986, as amended.

 

Now,
therefore, Acquirer, Target, and the Sellers agree as follows:

 

1.  Purchase Price and Exchange of Stock

 

	 	1.1
    	The
    purchase price is AUD $3,500,000 or equivalent in USD 2,640,000 and will be paid in the form of shares of 3D Pioneer Systems Inc
    with the value per share based on the last subscription price sold post stock split USD 0.70 per share for the 100% shares of Host
    Group of Companies Pty Ltd.
	 	 	 
	 	1.2
    	Exchange
    of Certificate(s). The Sellers shall surrender such certificate(s) in the aggregate number of shares representing 100% of the issued
    and outstanding common stock of the Target to Acquirer and shall receive in exchange a certificate or certificates representing the
    3,771,429 shares of Acquirer`s common stock-based sellers percentage of ownership in Vantis Partners Pty Ltd. The transfer of Target
    shares by the Sellers shall be affected by the delivery to Acquirer at the Closing.
	 	 	 
	 	1.3
    	Further
    Assurances. At the Closing and from time to time thereafter, the Sellers shall execute such additional instruments and take such
    other action as Acquirer may request in order more effectively to sell, transfer, and assign the transferred stock to Acquirer and
    to confirm Acquirer’s title thereto.

 

2. Exchange of Other Securities.

 

	 	2.1
    	Securities
    Exchanged. The outstanding warrants, options, stock rights and other securities of Target owned by the Seller identified in item
    1.1 above shall be exchanged and adjusted, subject to the terms contained in such warrants, options, stock rights or other securities,
    for similar securities of Acquirer.

 

3.  Closing

 

The
Closing contemplated herein shall be held on or before June 23, 2021 at the principal offices of Acquirer, unless another place or time
is agreed upon by the parties without requiring the meeting of the parties hereof. All proceedings to be taken and all documents to be
executed at the Closing shall be deemed to have been taken, delivered and executed simultaneously, and no proceeding shall be deemed
taken nor documents deemed executed or delivered until all have been taken, delivered and executed. The date of Closing may be accelerated,
delayed or extended by agreement of the parties.

 

Any
copy, facsimile telecommunication or other reliable reproduction of the writing or transmission required by this Agreement or any signature
required thereon may be used in lieu of an original writing or transmission or signature for any and all purposes for which the original
could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire
original writing or transmission or original signature.

 

    	 

     

    

 

4.  Representations and Warranties of Target

 

Target
represents and warrants as follows:

 

4.1
Corporate Status. Target is a private company duly organized, validly existing, and in good standing under
the laws of respective jurisdictions.

 

4.2
Capitalization. The capital stock of Target consists as follows:

 

4.2.1:
Host Group of Companies Pty Ltd – 1,780,002 ordinary shares

 

No
other shares are outstanding

 

4.3
Subsidiaries. Target has no subsidiaries.

 

4.4
Financial Statements. The unaudited financial statements of Target for the year ended June 30, 2020 and the reviewed financial statements
for any interim period, (together, and collectively, “Target’ Financial Statements”) furnished to Acquirer are correct
and fairly present the financial condition of Target as of the dates and for the periods involved, and such statements were prepared
in accordance with generally accepted accounting principles consistently applied.

 

4.5
Undisclosed Liabilities. Target had no liabilities of any nature except to the extent reflected or reserved against in Target’s
Financial Statements, whether accrued, absolute, contingent, or otherwise, including, without limitation, tax liabilities and interest
due or to become due, and Target’s accounts receivable, if any, are collectible in accordance with the terms of such accounts,
except to the extent of the reserve therefore in Target’s Financial Statements.

 

4.6
Absence of Material Changes. Between the date of Target’s Financial Statements and the Closing of this Agreement, there have not
been, except as set forth in a list certified by the Directors of Target and delivered to Acquirer, (1) any changes in Target’s
financial condition, assets, liabilities, or business which, in the aggregate, have been materially adverse; (2) any damage, destruction,
or loss of or to Target’ property, whether or not covered by insurance; (3) any declaration or payment of any dividend or other
distribution in respect of Target’ capital stock, or any direct or indirect redemption, purchase, or other acquisition of any such
stock; or (4) any increase paid or agreed to in the compensation, retirement benefits, or other commitments to employees.

 

	 	4.7
    	Litigation.
    There is no litigation or proceeding pending, or to Target’ knowledge threatened, against or relating to Target, its properties
    or business, except as set forth in a list certified by the Directors of Target and delivered to Acquirer.
	 	 	 
	 	4.8
    	Contracts.
    The Target is not a party to any material contract except as set forth in a list certified by the Director of Target and delivered
    to Acquirer.
	 	 	 
	 	4.9
    	No
    Violation. Execution of this Agreement and performance by Target hereunder has been duly authorized by all requisite corporate action
    on the part of the Target, and this Agreement constitutes a valid and binding obligation of the Target, performance hereunder will
    not violate any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment, decree, law, or
    regulation to which any property of Target is subject or by which Target is bound.
	 	 	 
	 	4.10
    	Title
    to Property. Target has good and marketable title to all properties and assets, real and personal, reflected in Target’s Financial
    Statements, except as since sold or otherwise disposed of in the ordinary course of business, and Target’ properties and assets
    are subject to no mortgage, pledge, lien, or encumbrance, except for liens shown therein, with respect to which no default exists.
	 	 	 
	 	4.11
    	Corporate
    Authority. Target have full corporate power and authority to enter into this Agreement and to carry out its obligations hereunder
    and will deliver at the Closing a certified copy of resolutions of its board of directors authorizing execution of this Agreement
    by its officers and performance thereunder.
	 	 	 
	 	4.12
    	Access
    to Records. From the date of this Agreement to the Closing, Target will (1) give to Acquirer and its representatives full access
    during normal business hours to all of its offices, books, records, contracts, and other corporate documents and properties so that
    Acquirer may inspect and audit them and (2) furnish such information concerning Target’ properties and affairs as Acquirer
    may reasonably request.

 

    	 

     

    

 

	 	4.13
    	Confidentiality.
    Until the Closing (and permanently if there is no Closing), Target and the Sellers will keep confidential any information which they
    obtain from Acquirer concerning its properties, assets, and business. If the transactions contemplated by this Agreement are not
    consummated, Target and the Sellers will return to Acquirer all written matter with respect to Acquirer obtained by them in connection
    with the negotiation or consummation of this Agreement.

 

5.
Representations and Warranties of the Seller

 

The
Sellers hereby represents and warrants as follows:

 

5.1
Title to Shares. The current shareholders are the owners, free and clear of any liens and encumbrances, of shares of Target ordinary
stock which they have contracted to transfer, and which represents all of the issued and outstanding common stock of Target as stated
in item 4.2 above.

 

5.2
Litigation. There is no litigation or proceeding pending, or as to the Seller’s knowledge threatened, against or relating to the
shares of Target held by the Sellers.

 

6.
Representations and Warranties of Acquirer

 

The
Acquirer represents and warrants as follows:

 

6.1
Corporate Status. Acquirer is a corporation duly organized, validly existing, and in good standing under the laws of Nevada, USA.

 

6.2
Subsidiaries. Acquirer has no subsidiaries.

 

6.3
Acquirer is Corporation a Nevada company.

 

6.4
Public Filings. The Acquirer, is a public corporation and has not any reports required to be filed by it under Section 13 or 15 of the
Securities Exchange Act of 1934.

 

6.5
Undisclosed Liabilities. Acquirer had no liabilities of any nature except to the extent reflected or reserved against in Acquirer’s
Financial Statements, whether accrued, absolute, contingent, or otherwise, including, without limitation, tax liabilities and interest
due or to become due, and Acquirer’s accounts receivable, if any, are collectible in accordance with the terms of such accounts,
except to the extent of the reserve therefore in Acquirer’s Financial Statements.

 

6.6
Absence of Material Changes. Between the date of Acquirer’s Financial Statements and the Closing of this Agreement, there have
not been, except as set forth in a list certified by the president of Acquirer and delivered to Target, (1) any changes in Acquirer’s
financial condition, assets, liabilities, or business which, in the aggregate, have been materially adverse; (2) any damage, destruction,
or loss of or to Acquirer’s property, whether or not covered by insurance; (3) any declaration or payment of any dividend or other
distribution in respect of Acquirer’s capital stock, or any direct or indirect redemption, purchase, or other acquisition of any
such stock; or (4) any increase paid or agreed to in the compensation, retirement benefits, or other commitments to employees.

 

6.7
Litigation. There is no litigation or proceeding pending, or to Acquirer’s knowledge threatened, against or relating to Acquirer,
its properties or business, except as set forth in a list certified by the president of Acquirer and delivered to Target.

 

6.8
Contracts. Acquirer is not a party to any material contract other than those listed as an attachment hereto.

 

6.9
No Violation. Execution of this Agreement a n d performance by Acquirer hereunder has been duly authorized by all requisite corporate
action on the part of Acquirer, and this Agreement constitutes a valid and binding obligation of Acquirer, performance hereunder will
not violate any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment, decree, law, or regulation
to which any property of Acquirer is subject or by which Acquirer is bound.

 

    	 

     

    

 

6.10
Title to Property. Acquirer has good and marketable title to all properties and assets, real and personal, reflected in Acquirer’s
Financial Statements, except as since sold or otherwise disposed of in the ordinary course of business, and Acquirer’s properties
and assets are Subject to no mortgage, pledge, lien, or encumbrance, except for liens shown therein, with respect to which no default
exists.

 

6.11
Corporate Authority. Acquirer has full corporate power and authority to enter into this Agreement and to carry out its obligations hereunder
and will deliver at the Closing a certified copy of resolutions of its board of directors authorizing execution of this Agreement by
its officers and performance thereunder.

 

6.12
Confidentiality. Until the Closing (and permanently if there is no Closing), Acquirer and its representatives will keep confidential
any information which they obtain from Target concerning its properties, assets, and business. If the transactions contemplated by this
Agreement are not consummated, Acquirer will return to Target all written matter with respect to Target obtained by it in connection
with the negotiation or consummation of this Agreement.

 

6.13
Investment Intent. Acquirer is acquiring the Target shares to be transferred to it under this Agreement for investment and not with a
view to the sale or distribution thereof, and Acquirer has no commitment or present intention to liquidate Target or to sell or otherwise
dispose of its stock.

 

7.
Conduct Pending the Closing

 

Acquirer,
Target and the Sellers covenant that between the date of this Agreement and the Closing as to each of them:

 

7.1
No change will be made in the charter documents, by-laws, or other corporate documents of Acquirer or Target without the written consent
of the parties hereto.

 

7.2
Target and Acquirer will use their best efforts to maintain and preserve its business organization, employee relationships, and goodwill
intact, and will not enter into any material commitment except in the ordinary course of business.

 

7.3
The Sellers will not sell, transfer, assign, hypothecate, lien, or otherwise dispose or encumber the Target shares of common stock owned
by them.

 

 

8.
Conditions Precedent to Obligation of Target and the Sellers

 

Target`s
and the Sellers’ obligation to consummate this exchange shall be Subject to fulfillment on or before the Closing of each of the
following conditions, unless waived by Target or the Sellers as appropriate:

 

8.1
Acquirer’s Representations and Warranties. The representations and warranties of Acquirer set forth herein shall be true and correct
at the Closing as though made at and as of that date, except as affected by transactions contemplated hereby.

 

8.2
Acquirer’s Covenants. Acquirer shall have performed all covenants required by this Agreement to be performed by it on or
before the Closing.

 

8.3
Board of Director Approval. This Agreement shall have been approved by the Board of Directors of Acquirer.

 

    	 

     

    

 

8.4
Supporting Documents of Acquirer. Acquirer shall have delivered to Target and the Sellers supporting documents in form and substance
reasonably satisfactory to Target and the Sellers, to the effect that:

 

	 	(a)
    Acquirer is a corporation duly organized, validly existing, and in good standing;
	 	 
	 	(b)
    Copies of the resolutions of the board of directors of Acquirer authorizing the execution of this Agreement and the consummation
    hereof; and
	 	 
	 	(c)
    Any document as may be specified herein or required to satisfy the conditions, representations and warranties enumerated elsewhere
    herein.

 

9.
Conditions Precedent to Obligation of Acquirer

 

Acquirer’s
obligation to consummate this acquisition shall be Subject to fulfillment on or before the Closing of each of the following
conditions, unless waived by Acquirer:

 

9.1
Target’s and the Seller’ Representations and Warranties. The representations and warranties of Target and the Sellers set
forth herein shall be true and correct at the Closing as though made at and as of that date, except as affected by transactions contemplated
hereby.

 

9.2
Target’s and the Sellers’ Covenants. Target and the Sellers shall have performed all covenants required by this Agreement
to be performed by them on or before the Closing.

 

9.3
Board of Director Approval. This Agreement shall have been approved by the Board of Directors of Target.

 

9.4
Sellers Execution. This Agreement shall have been executed by the Sellers of Target.

 

    	 

     

    

 

9.5
Supporting Documents of Target. Target shall have delivered to Acquirer supporting documents in form and Substance reasonably satisfactory
to Acquirer to the effect that:

 

	 	(a)
    Target is a corporation duly organized, validly existing, and in good standing; (b) Target’ capital stock is as set forth herein;
	 	 
	 	(c)
Copies of the resolutions of the board of directors of Target authorizing the execution of this Agreement and the consummation hereof;
and
	 	 
	 	(d)
Any document as may be specified herein or required to satisfy the conditions, representations and warranties enumerated elsewhere herein.

 

10.
Indemnification

 

10.1
Indemnification of Acquirer. Target and the Sellers severally (and not jointly) agree to indemnify Acquirer against any loss, damage,
or expense (including reasonable attorney fees) suffered by Acquirer from (1) any breach by Target or the Sellers of this Agreement or
(2) any inaccuracy in or breach of any of the representations, warranties, or covenants by Target or the Sellers herein; provided, however,
that (a) Acquirer shall be entitled to assert rights of indemnification hereunder only if and to the extent that it suffers losses, damages,
and expenses (including reasonable attorney fees) exceeding $50,000 in the aggregate and (b) Acquirer shall give notice of any claims
hereunder within twelve months beginning on the date of the Closing. No loss, damage, or expense shall be deemed to have been sustained
by Acquirer to the extent of insurance proceeds paid to, or tax benefits realizable by, Acquirer as a result of the event giving rise
to such right to indemnification.

 

10.2
Proportionate Liability. The liability of the Sellers under this Section shall in no event exceed 50 percent of the value of the Acquirer
shares received by such Sellers.

 

10.3
Indemnification of Target and the Sellers. Acquirer agrees to indemnify Target and the Sellers against any loss, damage, or expense (including
reasonable attorney fees) suffered by Target or the Sellers from (1) any breach by Acquirer of this Agreement or (2) any inaccuracy in
or breach of any of Acquirer’s representations, warranties, or covenants herein.

 

10.4
Defense of Claims. Upon obtaining knowledge thereof, the indemnified party shall promptly notify the indemnifying party of any claim
which has given or could give rise to a right of indemnification under this Agreement. If the right of indemnification relates to a claim
asserted by a third party against the indemnified party, the indemnifying party shall have the right to employ counsel acceptable to
the indemnified party to cooperate in the defense of any such claim. As long as the indemnifying party is defending any such claim in
good faith, the indemnified party will not settle such claim. If the indemnifying party does not elect to defend any such claim, the
indemnified party shall have no obligation to do so.

 

11.
Termination. This Agreement may be terminated (1) by mutual consent in writing; (2) by either Target, the Sellers or Acquirer if
there has been a material misrepresentation or material breach of any warranty or covenant by any other party; or (3) by either Target,
the Sellers or Acquirer if the Closing shall not have taken place, unless adjourned to a later date by mutual consent in writing.

 

12.
Survival of Representations and Warranties. The representations a n d warranties of Target, the Sellers and Acquirer set out herein
shall survive the Closing for a period of twelve (12) months.

 

13.
Arbitration

 

Scope.
The parties hereby agree that any and all claims (except only for requests for injunctive or other equitable relief) whether existing
now, in the past or in the future as to which the parties or any affiliates may be adverse parties, and whether arising out of this agreement
or from any other cause, will be resolved by arbitration before the Australian Centre for International Commercial Arbitration.

 

Situs.
The situs of arbitration shall be chosen by the party against whom arbitration is sought, provided only that arbitration shall be held
at a place in the reasonable vicinity of such party’s place of business or primary residence and shall be within Australia. The
situs of counterclaims will be the same as the situs of the original arbitration. Any disputes concerning situs will be decided by the
Australian Centre for International Commercial Arbitration.

 

    	 

     

    

 

Applicable
Law. The law applicable to the arbitration and this agreement shall be that of the State of Queensland, Australia, determined without
regard to its provisions which would otherwise apply to a question of conflict of laws. Any dispute as to the applicable law shall be
decided by the arbitrator.

 

Disclosure
and Discovery. The arbitrator may, in its discretion, allow the parties to make reasonable disclosure and discovery in regard to any
matters which are the Subject of the arbitration and to compel compliance with such disclosure and discovery order. The arbitrator may
order the parties to comply with all or any of the disclosure and discovery provisions of the Federal Rules of Civil Procedure, as they
then exist, as may be modified by the arbitrator consistent with the desire to simplify the conduct and minimize the expense of the arbitration.

 

Finality
and Fees. Any award or decision by the Australian Centre for International Commercial Arbitration shall be final, binding and non-appealable
except as to errors of law. Each party to the arbitration shall pay its own costs and counsel fees.

 

Measure
of Damages. In any adverse action, the parties shall restrict themselves to claims for compensatory damages and no claims shall be made
by any party or affiliate for lost profits, punitive or multiple damages.

 

Covenant
Not to Sue. The parties covenant that under no conditions will any party or any affiliate file any action against the other (except only
requests for injunctive or other equitable relief) in any forum other than before the Australian Centre for International

 

Commercial
Arbitration, and the parties agree that any such action, if filed, shall be dismissed upon application and shall be referred for arbitration
hereunder with costs and attorney’s fees to

the
prevailing party.

 

Intention.
It is the intention of the parties and their affiliates that all disputes of any nature between them, whenever arising, from whatever
cause, based on whatever law, rule or regulation, whether statutory or common law, and however characterized, be decided by arbitration
as provided herein and that no party or affiliate be required to litigate in any other forum any disputes or other matters except for
requests for injunctive or equitable relief. This agreement shall be interpreted in conformance with this stated intent of the parties
and their affiliates.

 

14.
General Provisions

 

14.1
Further Assurances. From time to time, each party will execute such additional instruments and take such actions as may be reasonably
required to carry out the intent and purposes of this Agreement.

 

14.2
Waiver. Any failure on the part of either party hereto to comply with any of its obligations, agreements, or conditions hereunder may
be waived by the party to whom such compliance is owed.

 

14.3
Brokers. Each party agrees to indemnify and hold harmless the other party against any fee, loss, or expense arising out of claims by
brokers or finders employed or alleged to have been employed by the indemnifying party.

 

14.4
The seller has the right to request the acquirer to issue more common stock if the price per share drop under USD 0.70 within 180 days
from the date of this agreement.

 

14.5
Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been given if delivered in person
or sent by prepaid first-class certified mail, return receipt requested, or recognized commercial courier service, as follows:

 

If
to Acquirer, to:

 

3D
Pioneer Systems Inc.

Level
1, 220 Albert Road, South Melbourne, VIC 3205, Australia

If
To Target Or Seller, to:

 

Vantis
Partners Pty Ltd

Level
3, 26 Marine Parade, Southport QLD 4215, Australia

 

    	 

     

    

 

14.6
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of State of Queensland, Australia.

 

14.7
Assignment. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns; provided,
however, that any assignment by either party of its rights under this Agreement without the written consent of the other party shall
be void.

 

14.8
Counterparts. This Agreement may be executed simultaneously 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. Signatures sent by facsimile or electronic transmission shall be
deemed to be evidence of the original execution thereof.

 

14.9
Effective Date. The effective date of this Agreement shall be Jun 23, 2021.

 

	3D
    Pioneer Systems Inc 	 	Vantis
    Partners Pty Ltd
	 	 	 	 	 
	By	/s/
    Patrick St Pierre	 	By	/s/
    Marshini Thulkanam
	Name:	Patrick
    St Pierre	 	Name:	Marshini
    Thulkanam
	Title:	President
    & CEO 	 	Title:	Director
	 	 	 	 	 
	Host
    Groups of Companies Pty ltd	 	 	 
	 	 	 	 	 
	By	/s/
    James Kennett	 	 	 
	Name:	James
    Kennett	 	 	 
	Title:	DirectorDocument

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of June 23, 2021 (the “Effective Date”), by and between CV SCIENCES, INC., a Delaware corporation (the "Company"), and JOSEPH DOWLING ("Executive").

Recitals

A.The Company and Executive entered into that certain Executive Employment Agreement dated June 14, 2018, and this Agreement supersedes and replaces such prior agreement in its entirety.

B.      The Company operates two distinct business segments: a specialty pharmaceutical division focused on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (“CBD”); and, a consumer product division in manufacturing, marketing and selling plant-based CBD product to a range of market sectors.

C.      Executive is the Chief Executive Officer of the Company, and Executive and the Company desire to set forth the terms and conditions of the Executive's employment by the Company.

Agreement

NOW, THEREFORE, in consideration of these premises, the mutual covenants and agreements of the parties hereunder, and for other good and valuable consideration the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.      Employment and Duties.

1.1    Position. The Company hereby employs Executive, and Executive hereby accepts employment with the Company, as Chief Executive Officer of the Company.

1.2     Duties.  Executive agrees to devote his best efforts, and shall have primary responsibility within the Company, to act as the senior executive of the Company and have responsibility for the effective operation of the Company, the overall leadership and strategic directions of the Company, and to perform such other duties assigned to him by the Board of Directors of the Company (the "Board of Directors").  As Chief Executive Officer of the Company, Executive agrees to devote his best efforts, and shall have primary responsibility within the Company to act as the senior financial executive of the Company.  

1.3     Reporting.  Executive shall report to the Board of Directors.

1.4    Place of Employment.  Executive shall perform his services hereunder at the Company's San Diego, CA offices. 

1.5    Change of Duties.  The duties of Executive may reasonably be modified from time to time by the mutual consent of the Company and Executive without resulting in a rescission of this Agreement. The mutual written consent of the Company and Executive shall constitute execution of that modification. Notwithstanding any such change, the employment of Executive shall be construed as continuing under this Agreement as so modified.

1.6    Devotion of Time to Company's Business.  During the Term of this Agreement (as such term is defined in Section 1.7 hereof), Executive agrees (i) to devote substantially all of his productive time, ability and attention to the business of the Company during normal working hours, (ii) not to engage in any other business duties or business pursuits whatsoever which conflict with his duties to the Company, (iii) whether directly or indirectly, not to render any services of a commercial or professional nature to any individual, trust, partnership, company, corporation, business, organization, group or other entity (each, a "Person") which conflict with his duties 

to the Company, whether for compensation or otherwise, without the prior written consent of the Board of Directors, and (iv) whether directly or indirectly, not to acquire, hold or retain more than a one percent (1%) interest in any business competing with or similar in nature to the business of the Company or any of its Affiliates (as such term is defined below); provided, however, the expenditure of reasonable amounts of time for other matters and charitable, educational and professional activities or, subject to the foregoing, the making of passive personal investments shall not be deemed a breach of this Agreement or require the prior written consent of the Company if those activities do not materially interfere with the services required of Executive under this Agreement. For purposes of this Agreement, "Affiliates" shall mean any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Company.

1.7    Term.  Unless sooner terminated as provided in Section 4 hereof, the term of this Agreement shall commence on the Effective Date and shall continue through June 11, 2024 (the "Term”). The Company and Executive shall consult on extension of the Term as soon as reasonably practicable in the month of May 2024 but neither the Company nor Executive shall be under any obligation to extend the Term. The Term, together with any extensions or renewal terms shall be referred to in this Agreement as the "Term of this Agreement."

1.8    Observance of Company Rules. Regulations and Policies.  Executive shall duly, punctually and faithfully perform and observe any and all rules, regulations and policies which the Company may now or hereafter reasonably establish governing the conduct of its business or its employees to the extent such rules, regulations and policies are not in conflict with this Agreement. Executive shall promptly provide written notice to the Board of Directors of any such apparent conflict of which Executive becomes aware.

1.9    Intellectual Property.  Executive hereby assigns and agrees to assign in the future to the Company all Executive’s right, title and interest in and to any and all such work products and designs (whether or not patentable or registerable under copyright or similar statutes) made or conceived or reduced to practice or learned by Executive, either individually or jointly with others, during Executive’s employment with the Company (“Intellectual Property”).  

 2.        Compensation.

2.1    Base Salary.  During the Term of this Agreement, the Company shall pay to Executive an annual base salary in such amounts as the Compensation Committee of the Board of Directors (the "Compensation Committee") shall recommend to the full Board of Directors for approval (the "Base Salary").  As determined by the Board of Directors by special meeting prior to the end of each calendar year, effective as of January 1 of the following year, the Base Salary for such year shall be set and payable in accordance with the Company's standard payroll procedures in effect at the time of payment. As of the Effective Date and effective for calendar year 2021, Executive’s Base Salary shall be $525,000; provided, that the Company shall pay to Executive a reduced salary of $367,500 and accrue as deferred compensation the difference between the salary actually paid and the Base Salary.  The Company shall withhold from any payroll or other amounts payable to Executive pursuant to this Agreement all federal, state, city or other taxes and contributions as are required pursuant to any law or governmental regulation or ruling now applicable or that may be enacted and become applicable in the future. 

2.2    Performance Bonuses.  In addition to the Base Salary, the Company may pay to Executive annual bonuses based on the Company's performance and/or Executive's performance (“Annual Bonus”) as follows:

(a)    Bonus based on Achievement of Annual Performance Goals.  Based upon performance of the Company as reflected by satisfaction of the performance goals previously delivered to Executive, the Company may pay Executive a bonus in addition to Base Salary in such amount as may be determined by the Board of Directors.  The targeted amount of the Annual Bonus shall be 50% of Employee’s then effective Base Salary; provided, however, that the payment and amount of any Annual Bonus shall be in the sole discretion of the Board of Directors. 

(b)     Establishment of Annual Bonus Performance Goals.  The Company may propose new performance goals for purposes of determining additional annual bonuses payable to Executive in consultation with Executive.

2.3    Stock Options.  The Board may, from time to time and as recommended by the Compensation Committee, grant to Executive incentive stock options or other Stock Awards, as defined in and pursuant to the Company’s 2013 Amended and Restated Equity Incentive Plan. 

2.4    Incentive Plans.  In addition to all other benefits and compensation provided by this Agreement, Executive shall be eligible to participate in such of the Company's equity, compensation and incentive plans as are 

generally available to any of the management executives of the Company, including without limitation any executive and performance bonus or incentive plans.

2.5    Vacation.  Executive shall be entitled to such annual vacation time with full pay as the Company may provide in its standard policies and practices for any other management executives; provided, however, that in any event Executive shall be entitled to a minimum of twenty (20) days annual paid vacation time exclusive of holidays.

2.6    Directors and Officers Liability Insurance.  Executive shall be entitled to participation in, and have the benefit of directors’ and officers’ liability insurance providing coverage consistent with standards in the life science industry. 

2.7    Term Life Insurance.  The Company shall pay directly to the insurance carrier the cost of premiums due on a term life insurance in the amount of $1,500,000, with such beneficiary or beneficiaries thereunder as may be designated from time to time by Executive.  The Company shall reimburse Executive all amounts to maintain such policy in full force and effect during the Term of this Agreement.

2.8    Disability Insurance.  The Company shall procure and maintain a disability insurance policy and the Company shall pay the premiums due on such policy and maintain such policy in full force and effect during the Term of this Agreement.

2.9    Outside Counsel for Executive.  In order for Executive to have the benefit of counsel to advise and counsel Executive with respect to this Agreement, the Company shall pay the reasonable attorneys' fees and expenses incurred by Executive in connection with such advice and counsel and the drafting and execution of this Agreement.

2.10    Other Benefits.  Executive shall participate in and have the benefits of all present and future vacation, holiday, paid leave, unpaid leave, life, accident, disability, dental, vision and health insurance plans, pension, profit-sharing and savings plans and all other plans and benefits which the Company now or in the future from time to time makes available to any of its management executives.  

2.11    Car Allowance.  Executive shall receive a monthly car allowance of $1,500, to be paid directly by the Company.   

2.12    Deferred Compensation.  The Company has accrued deferred salary for Executive, and such deferred salary shall continue to accrue for the benefit of Executive as set forth in Section 2.1 (“Deferred Compensation”).  Upon determination by the Board in its sole discretion, the Company may pay all Deferred Compensation at any time during the Term. 

2.13    Withholding.  The parties shall comply with all applicable legal withholding requirements in connection with all regular monthly and/or bi-monthly compensation payable to Executive hereunder.

 3.        Expense Reimbursement.  The Company shall reimburse Executive for all business travel and other out-of-pocket expenses reasonably incurred by Executive in the course of performing his duties under this Agreement. All reimbursable expenses shall be appropriately documented and shall be in reasonable detail and in a format and manner consistent with the Company's expense reporting policy, as well as applicable federal and state tax record keeping requirements.

 4.        Termination and Rights on Termination.  This Agreement shall terminate upon the occurrence of any of the following events:

4.1    Death.  Upon the death of Executive, the Company shall, within thirty (30) days of receiving notice of such death, pay Executive's estate all salary and other compensation hereunder, then due and payable and all accrued vacation pay and bonuses, if any, in each case payable or accrued through the date of death. In addition, the Company shall pay Executive's estate at the time or times otherwise payable under the terms of this Agreement, all salary and accrued benefits that would have been payable hereunder by the Company to Executive during the one-year period immediately following Executive's death. Any payment due under this Section 4.1 may be funded by one or more policies of life insurance to be purchased by the Company and which provide for a benefit in the amount payable to Executive as beneficiary under such policy or policies equal to that due Executive under this Section. In the event the Company purchases such policy or policies and thereafter  maintains  such policy  or policies  in continuous and full force and effect during the term hereof, then Executive agrees to look solely to such policy or policies for payment of any amount due hereunder; provided, however, that in the event the Company does 

not purchase such policy or policies and thereafter maintain such policy or policies in continuous and full force and effect during term hereof, then the Company shall be directly and  fully obligated  to Executive for such payment.

4.2    Disability.  Upon the mental or physical Disability (as such term is defined below) of Executive, the Company shall, within thirty (30) days following the determination of Disability, pay Executive all salary then due and payable and all accrued vacation pay and bonuses, if any, in each case payable or accrued through the date of determination. In addition, the Company shall pay all salary and accrued benefits that would have been payable hereunder by the Company to Executive during the one-year period immediately following Executive's disability. For purposes of this Agreement, "Disability" shall mean a physical or mental condition, verified by a physician designated by the Company, which prevents Executive from carrying out one or more of the material aspects of his assigned duties for at least ninety (90) consecutive days, or for a total of ninety (90) days in any six (6) month period. Any payment due under this Section 4.2 may be funded by one or more policies of disability insurance to be purchased by the Company and which provide for a benefit in the amount payable to Executive as beneficiary under such policy or policies equal to that due Executive under this Section. In the event the Company purchases such policy or policies and thereafter maintains such policy or policies in continuous and full force and effect during the term hereof, then Executive agrees to look solely to such policy or policies for payment of any amount due hereunder; provided, however, that in the event the Company does not purchase such policy or policies and thereafter maintain such policy or policies in continuous and full force and effect during term hereof, then the Company shall be directly and fully obligated to Executive for such payment.

4.3    Termination by the Company for Cause.  Upon delivery by the Board to Executive of a written notice terminating this Agreement for Cause (as such term is defined below), which notice shall be supported by a reasonably detailed statement of the relevant facts and reasons for termination, the Company shall, within thirty (30) days following such termination, pay Executive all salary then due and payable through the date of termination and all unpaid Deferred Compensation.  Executive shall not be entitled to any severance compensation or any accrued vacation pay or bonuses. For purposes of this Agreement, "Cause" shall mean: 

(a)    Executive shall have committed an act of fraud, embezzlement or theft with respect to the property or business of the Company, in any such event in such a manner as to cause material loss, damage or injury to the Company;

(b)    Executive shall have materially breached this Agreement as determined by the Board and such breach shall have continued for a period of twenty (20) days after receipt of written notice from the Board specifying such breach;

(c)    Executive shall have been grossly negligent in the performance of his duties hereunder, intentionally not performed or mis-performed any of such duties, or refused to abide by or comply with the reasonable and lawful directives of the Board of Directors, in each case as reasonably determined by the Board, which action shall have continued for a period of twenty (20) days after receipt of written notice from the Board demanding such action cease or be cured; or

(d)    Executive shall have been found guilty of, or has plead nolo contendere to, the commission of a felony offense or other crime involving moral turpitude.

4.4    Termination by the Company Without Cause.  In the event the Board delivers to Executive a written notice terminating Executive's employment under this Agreement for any reason without Cause, and other than in connection with a Change of Control as provided in Section 4.8(b), the Company shall pay to Executive all unpaid Deferred Compensation and continue to pay Executive all salary, benefits, earned bonuses and other compensation that would be due hereunder through the end of the Term of this Agreement had the Company not terminated Executive's employment, but in any event not less than one-year after the date of such termination, with such amounts payable in accordance with the Company’s standard payroll.   

4.5    Voluntary Termination by Executive.  Thirty (30) days after delivery by Executive to the Company of a written notice terminating this Agreement for any reason without Good Reason, within thirty (30) days following the effective date of termination, the Company shall pay to Executive all unpaid Deferred Compensation and all salary then due and payable through the date of termination.  Executive shall not be entitled to any severance compensation or any accrued vacation pay or bonuses.  

4.6    Termination by Executive for Good Reason.  Thirty (30) days after delivery by Executive to the Company of a written notice terminating this Agreement for Good Reason (as such term is defined below), and except in the event of a Change of Control as provided in Section 4.8(b), the Company shall pay Executive such 

amounts in such manner as provided for in Section 4.4 hereof.  For purposes of this Agreement, "Good Reason" shall mean:

(a)    The assignment of Executive to any duties inconsistent with, or any adverse change in, Executive's positions, duties, responsibilities, functions or status with the Company, or the removal of Executive from, or failure to reelect Executive to, any of such positions; provided, however, that a change in Executive's positions, duties, responsibilities, functions or status that Executive shall agree to in writing  shall not be an event of Good Reason or give rise to termination under this Section 4.6;

(b)    A reduction by the Company of Executive's Base Salary without his written consent;

(c)    The failure by the Company to continue in effect for Executive any material benefit provided herein or otherwise available to any of the management executives of the Company, including without limitation, any retirement, pension or incentive plans, life, accident, disability or health insurance plans, equity or cash bonus plans or savings and profit sharing plans, or any action by the Company which would adversely affect Executive's participation in or reduce Executive's benefits under any of such plans  or deprive Executive of any fringe benefit  enjoyed  by Executive;  or

(d)    Any other material breach by the Company of this Agreement which is not cured within twenty (20) days of delivery of written notice thereof by Executive to the Company.

4.7    Effect of Termination; Executive's Stock Options. 

(a)    All rights and obligations of the Company and Executive under this Agreement shall cease as of the effective date of termination, except that the obligations of the Company under this Section 4 and Executive's obligations under Sections 5 and 6 hereof shall survive such termination in accordance with their respective terms.  

(b)    In addition, notwithstanding anything to the contrary contained herein or in any agreement with respect thereto, (i) upon termination of Executive's employment pursuant to Sections 4.3 or 4.5 (termination with Cause or voluntary termination without Good Reason) all Stock Options, other equity options, restricted equity grants and similar rights held by Executive with respect to securities of the Company, shall stock accelerate to the extent not then fully vested, immediately terminate and revert to the Company, (ii) upon termination of Executive's employment pursuant to Section 4.4 or Section 4.6 (termination without Cause or voluntary termination with Good Reason), all Stock Options, other equity options, restricted equity grants and similar rights held by Executive with respect to securities of the Company shall, remain in full force and effect and shall not be affected by such termination, and shall continue to vest, and (iii) upon termination of Executive's employment pursuant to Section 4.1 or Section 4.2 (Executive’s death or Disability), all Stock Options, other equity options, restricted equity grants and similar rights held by Executive with respect to securities of the Company shall, to the extent not then fully vested, immediately become fully vested.

4.8    Termination on Change of Control; Change of Control Bonus; Code Section 409A. 

(a)    This Agreement shall terminate upon consummation of a Change of Control (as defined below).  In such event, the Company shall pay Executive all salary then due and payable through the date of termination and all unpaid Deferred Compensation.  Executive shall not be entitled to any severance compensation or any accrued vacation pay or bonuses. 

(b)    Upon a Change of Control (as defined below), the Company shall pay, or shall cause to be paid, to Executive a lump sum cash payment equal to two (2) times $525,000, which represents the Base Salary in effect for Executive in 2020 (the “Sale Bonus”). “Change of Control” shall mean (i) the acquisition of equity interests of the Company by any one person, or more than one person acting as a group, whether through merger, consolidation, restructuring or otherwise, if upon such acquisition, such person or group acquires ownership interests or equity interests of the Company that, together with equity interests already held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the ownership interests or equity interests of the Company, or (ii) the sale of all or substantially all of the assets of the Company (so long as such transaction constitutes a “change in control event” as defined in Treas. Reg. 1.409A-3(i)(5)).  Notwithstanding the foregoing, (i) a restructuring, merger, or transfer of assets within the Company and its affiliated companies, and (ii) a change in ownership of ownership interests or equity interests of the Company between only the existing holders of ownership interests or equity interests of the Company in circumstances where the Company remains controlled only by the existing holders of ownership or equity interests of the Company is not intended to be a Change of 

Control.  For the avoidance of doubt, the sale of the Company’s consumer products business shall be deemed a sale of substantially all of the assets for purposes of determining whether a “Change of Control” under this Agreement has occurred.  In no event shall Executive be entitled to more than one Sale Bonus.  As a matter of clarity, in the event that a Sale Bonus is payable pursuant to this Section 4.8(b), Executive shall not be entitled to any continuation of compensation or other benefits as set forth in Section 4.4 and Section 4.6. 

(c)    280G Protection.

(A)    Notwithstanding subsection (b), in the event that Executive shall become entitled to payment and/or benefits provided by this Agreement or any other amounts in the “nature of compensation” (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, by any person whose actions result in a change of ownership or effective control covered by Section 280G(b)(2) of the Internal Revenue Code (the “Code”) or any person affiliated with the Company or such person) as a result of such change in ownership or effective control (collectively the “Company Payments”), and such Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority) the Company shall pay to the Executive the greater of the following (whichever gives the Executive the highest net after-tax amount, and after taking into account federal, state, local and social security taxes at the maximum marginal rates) (x) the Company Payments or (y) one dollar less than the amount of the Company Payments that would subject the Executive to the Excise Tax. In the event that the Company Payments are required to be reduced pursuant to the foregoing sentence, then the Company Payments shall be reduced as mutually agreed between the Company and the Executive or, in the event the parties cannot agree, in the following order (1) any lump sum severance based on Base Salary, (2) any other cash amounts payable to the Executive, (3) any benefits valued as parachute payments; and (4) acceleration of vesting of any equity

(B)    For purposes of determining whether any of the Company Payments will be subject to the Excise Tax and the amount of such Excise Tax, (x) the Company Payments shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Code Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Company’s independent certified public accountants appointed prior to any change in ownership (as defined under Section 280G(b)(2) of the Code) or tax counsel selected by such accountants or the Company (the “Accountants”) such Company Payments (in whole or in part) either expressly do not constitute “parachute payments,” represent reasonable compensation for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the “base amount” or are otherwise not subject to the Excise Tax, and (y) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants.  All determinations hereunder shall be made by the Accountants which shall provide detailed supporting calculations both to the Company and Executive at such time as it is requested by the Company or Executive. If the Accountants determine that payments under this Agreement must be reduced pursuant to this paragraph, they shall furnish Executive with a written opinion to such effect.  The determination of the Accountants shall be final and binding upon the Company and Executive.

(C)    In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Excise Tax, the Executive shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the Executive, but the Executive shall control any other issues. In the event the issues are interrelated, the Executive and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue, but if the parties cannot agree the Executive shall make the final determination with regard to the issues. In the event of any conference with any taxing authority regarding the Excise Tax or associated income taxes, the Executive shall permit the representative of the Company to accompany the Executive, and the Executive and the Executive’s representative shall cooperate with the Company and its representative.

(d)    Code Section 409A.

(A)    Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Code Section 409A (together, the “Deferred Payments”) will be payable until Executive has a “separation from service” within the meaning of Code Section 409A (“Section 409A”).  Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A 1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A.

(B)    If Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s separation from service (other than due to death), any Deferred Payments that otherwise are payable within the first six (6) months following Executive’s separation from service will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service.  All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, in the event of Executive’s death following Executive’s separation from service but prior to the six (6) month anniversary of Executive’s separation from service (or any later delay date), then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under the Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

(C)    Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) will not constitute Deferred Payments for purposes of clause (i) above.  Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii) that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes of clause (i) above.  For purposes of this Agreement, “Section 409A Limit” means the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year preceding the Executive’s taxable year of Executive’s termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

(D)    The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the Deferred Payments to be provided under the Agreement will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply or be exempt.  Executive and the Company agree to work together in good faith to consider amendments to the Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.  In no event will the Company reimburse Executive for any taxes that may be imposed on Executive as result of Section 409A.

4.9    Non-Disparagement.  During the Term and at all times thereafter, Executive agrees not to make or solicit or encourage others to make or solicit directly or indirectly any disparaging, derogatory or negative statement or communication, oral or written, about the Company or its business practices, programs, products, services, operations, policies, activities, current or former officers, directors, managerial personnel, or other employees, or its customers to any other person or entity; provided, however, that such restriction shall not prohibit truthful testimony compelled by valid legal process or to the extent made in connection with filing or asserting any claims relating to employment.  The Company agrees not to make any disparaging, derogatory or negative statement or communication, oral or written, about Executive; provided, however, that such restriction shall not prohibit truthful testimony compelled by valid legal process.  Notwithstanding anything herein to the contrary, nothing in this Section 4.11 shall prevent any party to this Agreement from exercising its or his authority or enforcing its or his rights or remedies hereunder or that such party may otherwise be entitled to enforce or assert under another agreement or applicable law, or limit such rights or remedies in any way.

 5.        Restriction on Competition.

5.1    Covenant Not to Compete. During the Term of this Agreement and for a period of twelve (12) months from the termination of this Agreement, Executive shall not, without the prior written consent of the Company, either directly or indirectly, for himself or on behalf of or in conjunction with any other Person if such activities would necessarily involve the disclosure or use of any of the Company’s trade secrets, confidential or other proprietary information (i) own, manage, operate, control, be employed by, participate in, render services to, or be associated in any manner with the ownership, management, operation or control of, any business similar to the type of business conducted by the Company or any of its Affiliates within any of the geographic territories in which the Company or any of its Affiliates conducts business, (ii) solicit business of the same or similar type being carried on by the Company or any of its Affiliates from any Person known  by Executive  to be a customer of the Company or any of its Affiliates, whether or not Executive had personal contact with such Person during and by reason of Executive's employment with the Company, or (iii) endeavor or attempt in any  way to interfere with or induce a breach of any contractual relationship that the Company or any of its Affiliates may have with any employee, customer, contractor,  supplier,  representative or distributor. 

5.2    No Breach for Activities Deemed Not Competitive.  It is further agreed that, in the event that Executive shall cease to be employed by the Company and enter into a business or pursue other activities that, at such time, are not in competition with the Company or any of its Affiliates, Executive shall not be chargeable with a violation of this Section 5 if the Company subsequently enters the same (or a similar) competitive business or activity. In addition, if Executive has no actual knowledge that his actions violate the terms of this Section 5, Executive shall not be deemed to have breached the restrictive covenants contained herein if, promptly after being notified by the Company of such breach, Executive ceases the prohibited actions.

5.3    Severability.  The covenants in this Section 5 are severable and separate, and the unenforceability of any specific covenant shall not affect the provisions of any other covenant. If any provision of this Section 5 relating to the time period or geographic area of the restrictive covenants shall be declared by a court of competent jurisdiction to exceed the maximum time period or geographic area, as applicable, that such court deems reasonable and enforceable, such time period or geographic area shall be deemed to be, and thereafter shall become, the maximum time period or largest geographic area that such court deems reasonable and enforceable and this Agreement shall automatically be considered to have been amended and revised to reflect such determination.

5.4    Fair and Reasonable.  Executive has carefully read and considered the provisions of this Section 5 and, having done so, agrees that the restrictive covenants in this Section 5 impose a fair and reasonable restraint on Executive and are reasonably required to protect the interests of the Company, its Affiliates and their respective officers, directors, employees and stockholders. It is further agreed that the Company and Executive intend that such covenants be construed and enforced in accordance with the changing activities, business and locations of the Company throughout the term of these covenants.

6.         Confidential Information.

6.1    Confidential   Information.  Executive  hereby  agrees  to hold  in strict confidence and not to disclose to any third party, other than employees and agents of the Company or persons retained by the Company to represent its interests, any of the valuable,  confidential and proprietary business, financial, technical,  economic, sales and/or other types of proprietary business information relating to the Company or any of its Affiliates (including all trade secrets) in whatever form, whether oral, written, or electronic (collectively, the "Confidential Information"), to which Executive has, or is given (or has had or been given), access during the course of his employment with the Company. It is agreed that the Confidential Information is confidential and proprietary to the Company because such Confidential Information encompasses technical know-how, trade secrets, or technical, financial, organizational, sales or other valuable aspects of the business and trade of the Company or its Affiliates, including without limitation, technologies, products, processes, plans, clients, personnel, operations and business activities. This restriction shall not apply to any Confidential Information that (a) becomes known generally to the public through no fault of the Executive, (b) is required by applicable law, legal process, or any order or mandate of a court or other governmental authority to be disclosed, or (c) is reasonably believed by Executive, based upon the advice of legal counsel, to be required to be disclosed in defense of a lawsuit or other legal or administrative action brought against Executive; provided, however, that in the case of clause (b) or (c), Executive shall give the Company reasonable advance written notice of the Confidential Information intended to be disclosed and the reasons and circumstances surrounding such disclosure, in order to permit the Company  to seek a protective  order or other appropriate request  for confidential  treatment  of the  applicable  Confidential Information.

6.2    Return of Company Property.  In the event of termination  of   Executive's employment  with the Company  for whatever  reason  or no reason,  (a) Executive agrees not to copy, make known, disclose or use, any of the Confidential Information without the Company's prior written consent, and (b) Executive or Executive's personal representative shall return to the Company (i) all Confidential Information, (ii) all other records, designs, patents, business plans, financial statements, manuals, memoranda, lists, correspondence, reports, records, charts, advertising materials and other data or property delivered to or compiled by Executive by or on behalf of the Company or its respective representatives, vendors or customers that pertain to the business of the Company or any of its Affiliates, whether in paper, electronic or other form, and (iii) all keys, credit cards, vehicles and other property of the Company. Executive shall not retain or cause to be retained any copies of the foregoing. Executive hereby agrees that all of the foregoing shall be and remain the property of the Company and the applicable Affiliates and be subject at all times to their discretion and control.

7.         Corporate Opportunities.

7.1    Duty to Notify.  During the Term of this Agreement, in the event that Executive shall become aware of any business opportunity related to the business of the Company, Executive shall promptly notify the 

Board of Directors of such opportunity. Executive shall not appropriate for himself or for any other Person other than the Company (or any Affiliate) any such opportunity unless, as to any particular opportunity, the Board of Directors fails to take appropriate action within thirty (30) days. Executive's duty to notify the Board of Directors and to refrain from appropriating all such opportunities for thirty (30) days shall neither be limited by, nor shall such duty limit, the application of the general laws relating to the fiduciary duties of an agent or employee.

7.2    Failure to Notify.  In the event that Executive fails to notify the Board of Directors or so appropriates any such opportunity without the express written consent of the Board of Directors, Executive shall be deemed to have violated the provisions of this Section notwithstanding the following:

(a)    The capacity in which Executive shall have acquired such opportunity; or

(b)    The probable success in the hands of the Company of such opportunity.

8.    No Prior Agreements.  Executive hereby represents and warrants to the Company that the execution of this Agreement by Executive, his employment by the Company, and the performance of his duties hereunder will not violate or be a breach of any agreement with a former employer or any other Person. Further,  Executive  agrees to indemnify  and hold harmless the Company and its officers, directors and representatives for any claim, including, but not limited to, reasonable attorneys' fees and expenses of investigation, of any such third party that such third party may now have or may hereafter come to have against the Company or such other persons, based upon or arising out of any non-competition agreement, invention, secrecy or other agreement  between  Executive  and such third party  that was in existence  as of the effective  date of this Agreement. To the extent that Executive had any oral or written employment agreement or understanding with the Company, this Agreement shall automatically supersede such agreement or understanding, and upon execution of this Agreement by Executive and the Company, such prior agreement or understanding automatically shall be deemed to have been terminated and shall be null and void.

9.    Representation.  Executive acknowledges that he (a) has reviewed this Agreement in its entirety, (b) has had an opportunity to obtain the advice of separate legal counsel prior to executing this Agreement, and (c) fully understands all provisions of this Agreement.

10.    Assignment: Binding Effect.  Executive understands that he has been selected for employment by the Company on the basis of his personal qualifications, experience and skills. Executive agrees, therefore, that he cannot assign or delegate all or any portion of his performance under this Agreement. This Agreement may not be assigned or transferred by the Company without the prior written consent of Executive. Subject to the preceding two sentences, this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns. Notwithstanding the foregoing, if Executive accepts employment with an Affiliate, unless Executive and his new employer agree otherwise in writing, this Agreement shall automatically be deemed to have been assigned to such new employer (which shall thereafter be an additional or substitute beneficiary of the covenants contained herein, as appropriate), with the consent of Executive, such assignment shall be considered a condition of employment by such new employer, and references to the "Company" in this Agreement shall be deemed to refer to such new employer.

11.    Complete Agreement; Waiver: Amendment.  Executive has no oral representations, understandings or agreements with the Company or any of its officers, directors or representatives covering the same subject matter as this Agreement. This Agreement is the final, complete and exclusive statement and expression of the agreement between the Company and Executive with respect to the subject matter hereof and thereof, and cannot be varied, contradicted, or supplemented by evidence of any prior or contemporaneous oral or written agreements. This Agreement may not be later modified except by a further writing signed by a duly authorized officer of the Company and Executive, and no term of this Agreement may be waived except by writing signed by the party waiving the benefit of such term.

12.    Notices.  All notices, requests, demands and other communications required or permitted to be given under this Agreement shall be in writing and shall be given or made by personally delivering the same to or sending the same by prepaid certified or registered mail, return receipt requested, or by reputable overnight courier, or by facsimile machine to the party to which it is directed at the address set out on the signature page to this Agreement, with copies to counsel as indicated, or at such other address as such party shall have specified by written notice to the other party as provided in this Section, and shall be deemed to be given if delivered personally at the time of delivery, or if sent by certified or registered mail as herein provided three (3) days after the same shall have been posted, or if sent by reputable overnight courier upon receipt, or if sent by facsimile machine as soon as the sender 

receives written or telephonic confirmation that the facsimile was received by the recipient and such facsimile is followed the same day by mailing by prepaid first class mail.

13.    Severability: Headings.  If any portion of this Agreement is held invalid or inoperative, the other portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held invalid and inoperative.  This severability provision shall be in addition to, and not in place of, the provisions of Section 5.3 above. The Sections headings herein are for reference purposes only and are not intended in any way to describe, interpret, define or limit the extent or intent of this Agreement or of any part hereof.

14.    Equitable Remedy.  Because of the difficulty of measuring economic losses to the Company as a result of a breach  of the restrictive  covenants  set forth in  Sections 5 and 6  hereof, and because of the immediate and irreparable damage that would be caused to the Company for which monetary damages would not be a sufficient remedy, it is hereby agreed that in addition to all other remedies that may be available to the Company or Executive at law or in equity, the Company  or Executive shall be entitled to specific performance  and any injunctive  or other  equitable relief as a remedy for any breach or threatened breach of the aforementioned restrictive covenants.         · ·

15.    Arbitration.  Any unresolved dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration conducted in accordance with the rules of the American Arbitration Association then in effect. The arbitrators shall not have the authority to add to, detract from, or modify any provision hereof nor to award punitive damages to any injured party. A decision by a majority of the arbitration panel shall be final and binding. Judgment may be entered on the arbitrators' award in any court having jurisdiction. Notwithstanding the foregoing, the Company shall be entitled to seek injunctive or other equitable relief, as contemplated by Section 14 hereof, from any court of competent jurisdiction, without the need to resort to arbitration. Should judicial proceedings be commenced to enforce or carry out this provision or any arbitration award, the prevailing party in such proceedings shall be entitled to reasonable attorneys' fees and costs in addition to other relief.

16.    Governing Law.  This Agreement shall in all respects be construed according to the laws of the State of California, without regard to its conflict of flaws principles.

17.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which may be executed by less than all of the parties to this Agreement, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

18.    Signatures.  The parties shall be entitled to rely upon and enforce a facsimile of any authorized signatures as if it were the original.

[Signatures on following page.]

IN WI1NESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

COMPANY:

CV SCIENCES, INC.

By:    /s/ Terri Graham                 
Name (print): Terri Funk Graham
Its: Chairman, Compensation Committee

Address for Notices:

CV Sciences, Inc. 10070 Barnes Canyon Road Suite 100 San Diego, CA 92121

EXECUTIVE:

JOSEPH DOWLING

(sign):    /s/ Joseph Dowling                

Address for Notices:

CV Sciences, Inc.
10070 Barnes Canyon Road Suite 100
San Diego, CA 92121

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