Document:

Exhibit 10.12

 

 

DECEMBER 18, 2017

 

	Attn:	MR. JOHN GANDOLFO
	Re:	Engagement Letter and Offer of Employment

 

Dear Mr. Gandolfo:

 

On behalf
of Eyenovia, Inc. (the “Company”), I am pleased to extend this offer. This letter sets out the terms of your engagement
and employment with the Company, which will start immediately as CHIEF FINANCIAL OFFICER reporting to the CEO, Dr. Ianchulev.

 

Initially, you will
start in a part-time capacity not to exceed 2 days a week with compensation as a consultant. Commencing immediately, you will
work two days per week for the Company. In this capacity, you will be paid $9,167 per month and for any additional work at the
rate of $175 per hour.

 

We anticipate
that later in 2018, during the first of second quarter, assuming no change in role and responsibilities, based on mutual agreement
between you and the Company, you would transition to full-time employment as CFO with annualized salary of $275,000 payable monthly
or bi-weekly in accordance with the Company’s normal payroll procedures and you will be eligible for the company’s
benefits plan. You will also be entitled to a $500 monthly car allowance.

 

In addition,
after you become a full-time employee, we will propose to the Board that it approve a grant to you of stock options for up to 267,000
shares of Company common stock at an exercise price equal to the then fair market value of such common stock. This grant would
be governed by the terms of the Company’s 2014 Equity Incentive Plan (or such other type plan as is in effect at that time
(the “Plan”) and a separate stock option agreement and with a vesting schedule as approved by the Board. This option
grant is benchmarked above the median for the CFO role of life science companies for the CFO role according to the Radford report.
Eyenovia places great value on talent and performance and we offer a highly competitive incentive package for our employees, at
the top of the industry range.

 

Your position
as a full-time employee will be an exempt position, which means you are paid for the job and not by the hour.

 

After you become a
full-time employee, if, following any Change in Control (as defined in the Plan) of the Company, (i) your employment is terminated
by the Company without Cause (as such term is defined in the Plan) or (ii) you suffer an Involuntary Termination (as defined below),
and provided you have signed a full general release of all claims in a form reasonably satisfactory to the Company within thirty
(30) days of such termination, you will be entitled to receive severance in a total amount equal to six- month’s of your
then-current base salary rate, less applicable withholding. This severance will be paid over a six (6) month period in equal installments
on the Company’s regular payroll schedule beginning the first pay period following the date of termination and your delivery
of the general release of claims. For purposes of this Agreement, “Involuntary Termination” means any of the following
conditions (x) a material reduction in your level of responsibility or the nature of your function or your reporting structure;
or (y) a material decrease in your base salary and/or a material decrease in any of your then-existing bonus arrangements or employee
benefits (other than a material decrease which is applicable to all similarly situated employees and executives of the Company
in connection with an across- the-board cost savings strategy). The foregoing definition of Involuntary Termination is intended
to comply with the safe harbor provisions set forth in Treasury Regulation Section 1.409A-1(n)(2)(ii), and shall be interpreted
consistently therewith. An event described in this paragraph will not constitute an Involuntary Termination unless it is communicated
by you to the Company in writing within ninety (90) days of occurrence and not corrected (if correctible) by the Company within
sixty (60) days of the Company’s receipt of such notice.

 

     

     

    

  

 

 

This offer
letter and the payments contemplated hereby are intended to comply with the requirements of Section 409A of the Internal Revenue
Code (“Section 409A”) and shall be construed consistent with such requirements. Notwithstanding anything to the contrary,
the Company shall not be liable to you or any other person or entity if the Internal Revenue Service or any court or other authority
having jurisdiction over such matters determines for any reason that any payments or benefits to be provided hereunder are subject
to taxes, penalties or interest as a result of failing to comply with Section 409A.

 

As a condition
of your employment, you will be required to sign the Company’s standard form of employee nondisclosure and assignment agreement
(a copy of which is enclosed), and to provide the Company with documents establishing your identity and right to work in the United
States. Those documents must be provided to the Company within three (3) business days of your employment start date. Your employment
is also conditioned on and subject to a personal background check.

 

In the event
of any dispute or claim relating to or arising out of your employment relationship with the Company, this agreement, or the termination
of your employment with the Company for any reason (including, but not limited to, any claims of breach of contract, defamation,
wrongful termination or age, sex, sexual orientation, race, color, national origin, ancestry, marital status, religious creed,
physical or mental disability or medical condition or other discrimination, retaliation or harassment), you and the Company agree
that all such disputes shall be fully resolved by confidential, binding arbitration conducted by a single arbitrator through the
American Arbitration Association (“AAA”) under the AAA’s National Rules for the Resolution of Employment Disputes
then in effect, which are available online at the AAA’s website at www.adr.org. You and the company hereby waive your respective
rights to have any such disputes or claims tried before a judge or jury.

 

This Agreement
and the non-disclosure and stock option agreements referred to above constitute the entire agreement between you and the Company
regarding the terms and conditions of your employment, and they supersede all prior or contemporaneous negotiations, representations
or agreements between you and the Company. Except as otherwise specifically provided herein, your employment with the Company is
at-will and may be terminated at any time without or without notice. The provisions of this Agreement may only be amended or otherwise
modified by a document signed by you and an authorized representative of the Company.

 

We look forward to working with you at the Company.
Please sign and date this letter on the spaces provided below to acknowledge your acceptance of the terms of this agreement.

 

	 	Sincerely,
	 	 
	 	
	 	Sean Ianchulev, MD, CEO
	 	Eyenovia, Inc.FORM
OF NON-TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

 

	RIGHTS
    CERTIFICATE # [______] 	 	NUMBER
    OF RIGHTS: [______] 

 

THE
TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED [______], 2018 (THE “PROSPECTUS”)
AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST MACKENZIE PARTNERS, INC., THE INFORMATION
AGENT FOR THE RIGHTS OFFERING AT (800) 322-2885 (TOLL FREE)..

 

GIGGLES
N’ HUGS INC.

(Incorporated
under the laws of the State of Delaware)

 

SUBSCRIPTION
RIGHTS CERTIFICATE

 

Evidencing
non-transferable Subscription Rights, each to purchase Units of Giggles N’ Hugs,Inc.,

each
Unit consisting of one share of Common Stock and 0.70 Warrant to purchase Common Stock

Subscription
Price: $[  ] per Unit

 

THE
SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN TIME, ON [  ], 2018,

SUBJECT
TO EXTENSION OR EARLIER TERMINATION.

 

THIS
CERTIFIES THAT the registered owner whose name is inscribed hereon and is the owner of the number of subscription rights set forth
above. Each subscription right entitles the holder thereof to subscribe for and purchase one unit of Giggles N’ Hugs Inc.,
a Nevada corporation, pursuant to the basic subscription right, on the terms and subject to the conditions set forth in the Prospectus
and the “Instructions as to Use of Giggles N’ Hugs Inc. Subscription Rights Certificate” accompanying this Rights
Certificate. Each unit consists of one share of common stock and 0.70 warrant. Each whole warrant entitles the holder to purchase
one share of common stock. Holders who fully exercise their basic subscription rights are entitled to subscribe for additional
units that remain unsubscribed, subject to proration and stock ownership limitations, as described in the Prospectus pursuant
to the over-subscription privilege. The subscription rights may be exercised by duly completing Section 1 on the reverse side
hereof and by returning the full payment of the subscription price. THE RIGHTS EVIDENCED BY NON-TRANSFERABLE SUBSCRIPTION RIGHTS
CERTIFICATE MAY NOT BE EXERCISED UNLESS THE REVERSE SIDE HEREOF IS PROPERLY COMPLETED AND DULY SIGNED, WITH A SIGNATURE MEDALLION
GUARANTEE, IF APPLICABLE.

 

This
Rights Certificate is not valid unless countersigned by West Coast Stock Transfer, Inc., the Subscription Agent.

 

	WITNESS
    the seal of Giggles N’ Hugs Inc. and the signatures of its duly authorized officers.	 	By:
	Dated:
    [______], 2018	 	Joey
    Parsi, Chief Executive Officer 

 

COUNTERSIGNED
AND REGISTERED:

 

By:

 

West
Coast Stock Transfer, Inc.

 

    	 

    	 

    

 

SECTION
1. EXERCISE OF RIGHTS TO PURCHASE

 

PLEASE
PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

 

You
are required initially to pay for both the units subscribed for pursuant to the basic subscription right and the over-subscription
privilege. To subscribe for units pursuant to your basic subscription right, please complete lines (a) and (c) below. To subscribe
for additional units pursuant to your over-subscription privilege, please also complete line (b).

 

	(a)	EXERCISE
    OF BASIC SUBSCRIPTION RIGHT:

 

	 	Basic
    Subscription Right:	 	X	$[  ]	=	$
	 	 	Number
    of Units	 	Subscription
    Price	 	Payment
    Enclosed

 

	(b)	EXERCISE
    OF OVER-SUBSCRIPTION PRIVILEGE: If you have exercised your basic subscription right in full, you may subscribe for additional
    units pursuant to your over-subscription privilege

 

	 	Over
    Subscription Privilege:	 	X	$[  ]	=	$
	 	 	Number
    of Units	 	Subscription
    Price	 	Payment
    Enclosed

 

	(c)	TOTAL
    AMOUNT OF PAYMENT ENCLOSED $______________

 

	METHOD
    OF PAYMENT (CHECK ONE):	☐	 Cashier’s
    check, drawn on a U.S. Bank payable to “West Coast Stock Transfer, Inc., as subscription agent for Giggles N’
    Hugs, Inc.”; or
	 	 	 
	 	☐	 Wire
                                         transfer of immediately available funds directly to the account maintained by West Coast
                                         Stock Transfer, Inc., as subscription agent, for purposes of accepting subscriptions
                                         in this rights offering at Bank of America, N.A., 1340 Encinitas Blvd., Encinitas, CA
                                         92024, Credit: West Coast Stock Transfer, Inc. as subscription agent for Giggles N’
                                         Hugs Inc. Rights Offering, ABA Number: 026009593, SWIFT Number: BOFAUS3N, Account # 325083756739,
                                         for further credit to Giggles N’ Hugs Inc., and name of the subscription rights
                                         holder. 

 

SECTION
2. SIGNATURE(S)

 

IMPORTANT:
THE SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR, WITHOUT ALTERATION, WITH THE NAME(S) AS PRINTED ON THE FRONT OF THIS NON-TRANSFERABLE
SUBSCRIPTION RIGHTS CERTIFICATE. IF YOU ARE SIGNING ON BEHALF OF A REGISTERED STOCKHOLDER OR ENTITY YOU MUST SIGN IN YOUR LEGAL
CAPACITY WITH YOUR SIGNATURE MEDALLION GUARANTEED. YOUR GUARANTOR (BANK/BROKER) WILL REQUIRE PROOF OF YOUR AUTHORITY TO ACT. CONSULT
YOUR GUARANTOR FOR THEIR SPECIFIC REQUIREMENTS. YOU OR YOUR GUARANTOR MAY ACCESS THE SECURITIES TRANSFER ASSOCIATION (STA) RECOMMENDED
REQUIREMENTS ON-LINE AT WWW.STAI.ORG.

 

	 	 	APPLY
    MEDALLION GUARANTEE STAMP HERE
	 	 	 
	Signature(s)
    of Subscriber(s)	 	 
	 	 	 
	Names(s):	 	 	 
	 	 	 
	Capacity

         

        (Full
        Title):
	 	 	 
	 	 	 	 	 

 

OVERNIGHT
DELIVERY TO THE STREET ADDRESS BELOW BEST ENSURES RECEIPT BY THE EXPIRATION DATE.

 

Return
this statement to:

 

West
Coast Stock Transfer, Inc.

721
N. Vulcan Ave. Ste. 205

Encinitas,
CA 92024

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