Document:

Exhibit 10.23

 

 

FORM OF 

INDEMNITY AGREEMENT 

 

THIS INDEMNITY AGREEMENT (this “Agreement”)
dated as of _______________, is made by and between Humacyte, INC., a Delaware
corporation (the “Company”), and _________________ (“Indemnitee”).

 

RECITALS

 

A. The Company desires to attract and retain the services of
highly qualified individuals as directors, officers, employees and agents.

 

B. The Company’s second amended and restated certificate
of incorporation (the “Certificate of Incorporation”) and bylaws (the “Bylaws”) require
that the Company indemnify its directors and officers, and empowers the Company to indemnify its employees and agents, as authorized by
the Delaware General Corporation Law, as amended (the “Code”), under which the Company is organized, and such
Certificate of Incorporation and Bylaws expressly provide that the indemnification provided therein is not exclusive and contemplates
that the Company may enter into separate agreements with its directors, officers and other persons to set forth specific indemnification
provisions.

 

C. The Board of Directors of the Company (the “Board”)
has concluded that, to retain and attract talented and experienced individuals to serve or continue to serve as officers or directors
of the Company or as an Agent (as hereinafter defined), and to encourage such individuals to take the business risks necessary for the
success of the Company, it is necessary for the Company contractually to indemnify Agents and to assume for itself, to the fullest extent
permitted by law, expenses and damages in connection with claims against such Agents in connection with their service to the Company.

 

D. The Company desires and has requested Indemnitee to serve
or continue to serve as an Agent of the Company, as the case may be, and has proffered this Agreement to Indemnitee as an additional inducement
to serve in such capacity.

 

E. Indemnitee is willing to serve, or to continue to serve,
as an Agent of the Company, as the case may be, if Indemnitee is furnished the indemnity provided for herein by the Company.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the mutual covenants and
agreements set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1. Definitions.

 

(a) Agent. For purposes of this Agreement, the term “Agent”
of the Company means any person who: (i) is or was a director, officer, employee, agent, or other fiduciary of the Company or a subsidiary
of the Company; or (ii) is or was serving at the request or for the convenience of, or representing the interests of, the Company or
a subsidiary of the Company, as a director, officer, employee, agent, or other fiduciary of a foreign or domestic corporation, partnership,
joint venture, trust or other enterprise. Any person who is or was serving as a director, officer, employee or agent of the Company or
a subsidiary of the Company shall be deemed to be serving, or have served, at the request of the Company.

 

     

     

    

 

(b) Change in Control. For purposes of this Agreement, a “Change
in Control” shall be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more
of the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during any period of two consecutive
years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period are members
of the Company’s Board (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the members of the Company’s Board (provided, however, that if the appointment or election (or nomination for election)
of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such
new member shall be considered as a member of the Incumbent Board), or (iii) the stockholders of the Company approve a merger or consolidation
of the Company with any other corporation, 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 80% 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 stockholders of the Company approve a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions) all or substantially
all of the Company’s assets.

 

(c) Expenses. For purposes of this Agreement, the term “Expenses”
shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including,
without limitation, all attorneys’, witness, or other professional fees and related disbursements, and other out-of-pocket costs
of whatever nature) actually and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or appeal
of a proceeding or establishing or enforcing a right to indemnification under this Agreement, the Code or otherwise.

 

(d) Enterprise. For purposes of this Agreement, the term “Enterprise”
means any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity for which
Indemnitee is or was serving at the request of the Company as an Agent

 

(e) Independent Counsel. For purposes of this Agreement, the
term “Independent Counsel” means a law firm, or a partner (or, if applicable, member) of such a law firm, that
is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i)
the Company or any of its subsidiaries or affiliates, or Indemnitee in any matter material to either such party, or (ii) any other party
to the proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company
will pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any
and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(f) Liabilities. For purposes of this
Agreement, the term “Liabilities” shall be broadly construed and shall include, without limitation, judgments,
damages, deficiencies, liabilities, losses, penalties, excise taxes, fines, assessments and amounts paid in settlement, including any
interest and any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt of any payment under this
Agreement.

 

(g) Proceedings. For purposes of this Agreement, the term “proceeding” shall be broadly construed and
shall include, without limitation, any threatened, pending, or completed action, suit, claim, counterclaim, cross claim, arbitration,
mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, or any other actual, threatened or
completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative
nature, and whether formal or informal in any case, in which Indemnitee was, is or will be involved as a party, potential party, non-party
witness, or otherwise by reason of: (i) the fact that Indemnitee is or was a director or officer of the Company; (ii) the fact that any
action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee’s part
while acting as an Agent; or (iii) the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust, employee benefit plan, or other enterprise, and in any such case
described above, whether or not serving in any such capacity at the time any Liability or Expense is incurred for which indemnification,
reimbursement, or advancement of Expenses may be provided under this Agreement. If the Indemnitee believes in good faith that a given
situation may lead to or culminate in the institution of a proceeding, this shall be considered a proceeding under this paragraph.

 

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(h) Subsidiary. For purposes of this Agreement, the term “subsidiary”
means any corporation, limited liability company, or other entity, of which more than 50% of the outstanding voting securities or equity
interests are owned, directly or indirectly, by the Company and one or more of its subsidiaries, and any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request
of the Company as an Agent.

 

(i) Voting Securities. For purposes of this Agreement, “Voting
Securities” shall mean any securities of the Company that vote generally in the election of directors.

 

2. Agreement to Serve. Indemnitee will serve, or continue to
serve, as the case may be, as an Agent, faithfully and to the best of his or her ability, at the will of such entity designated by the
Company and at the request of the Company (or under separate agreement, if such agreement exists), in the capacity Indemnitee currently
serves such entity, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the
governance documents of such entity, or until such time as Indemnitee tenders his or her resignation in writing; provided, however,
that nothing contained in this Agreement is intended as an employment agreement between Indemnitee and the Company or any of its subsidiaries
or to create any right to continued employment of Indemnitee with the Company or any of its subsidiaries in any capacity.

 

The Company acknowledges that it has entered into this Agreement and
assumes the obligations imposed on it hereby, in addition to and separate from its obligations to Indemnitee under the Certificate of
Incorporation and the Bylaws, to induce Indemnitee to serve, or continue to serve, as an Agent, and the Company acknowledges that Indemnitee
is relying upon this Agreement in serving as an Agent.

 

3. Indemnification.

 

(a) Indemnification in Third Party Proceedings. Subject to Section
10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the Code, as the same may be amended from time to
time (but, to the fullest extent of the law, only to the extent that such amendment permits Indemnitee to broader indemnification rights
than the Code permitted prior to adoption of such amendment), if Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any proceeding, other than a proceeding by or in the right of the Company to procure a judgment in its favor, for any and
all Expenses and Liabilities (including all interest, assessments and other charges paid or payable in connection with or in respect of
such Expenses and Liabilities) incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of such proceeding,
if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company and, in the case of a criminal proceeding had no reasonable cause to believe that Indemnitee’s conduct was unlawful. The
parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly
permitted by statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the Bylaws, vote
of the Company’s stockholders or disinterested directors, or applicable law.

 

(b) Indemnification in Derivative Actions and Direct Actions by
the Company. Subject to Section 10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the Code, as the
same may be amended from time to time (but, fullest extent permitted by applicable law, only to the extent that such amendment permits
Indemnitee to broader indemnification rights than the Code permitted prior to adoption of such amendment), if Indemnitee is a party to
or threatened to be made a party to or otherwise involved in any proceeding by or in the right of the Company to procure a judgment in
its favor, against any and all (i) Expenses and (ii) to the fullest extent permitted by law, Liabilities actually and reasonably incurred
by Indemnitee in connection with the investigation, defense, settlement, or appeal of such proceedings, if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, except that with respect
to both clauses (i) and (ii) hereof, no indemnification for Expenses shall be made under this Section 3(b) in respect of any claim, issue
or matter as to which Indemnitee shall have been finally adjudged by a court competent jurisdiction to be liable to the Company, unless
and only to the extent that the Chancery Court of the State of Delaware or any court in which the proceeding was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and
reasonably entitled to indemnification.

 

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4. Indemnification of Expenses of Successful Party. To the fullest
extent permitted by law, the Company shall indemnify Indemnitee against all Expenses in connection with a proceeding to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any proceeding or in defense of any claim, issue or matter therein,
in whole or part, including the dismissal of any action without prejudice. If Indemnitee is not wholly successful in such proceeding but
is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such proceeding, the Company
shall indemnify Indemnitee against all Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection with or related to
each successfully resolved claim, issue or matter to the fullest extent permitted by law.

 

5. Partial Indemnification; Witness Indemnification. If Indemnitee
is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Expenses and Liabilities
incurred by Indemnitee in the investigation, defense, settlement or appeal of a proceeding, but is precluded by applicable law or the
specific terms of this Agreement to indemnification for the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled. Notwithstanding any other provision of this Agreement, to the fullest extent
permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee’s acting as an Agent, a witness or otherwise
asked to participate in any proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses incurred
by Indemnitee or on Indemnitee’s behalf in connection therewith.

 

6. Advancement of Expenses. To the extent not prohibited by
law, the Company shall advance the Expenses incurred by Indemnitee in connection with any proceeding, and such advancement shall be made
within 30 days after the receipt by the Company of a statement or statements requesting such advances (which shall include invoices received
by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal
work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included
with the invoice). Advances shall be unsecured, interest free and without regard to Indemnitee’s ability to repay the Expenses.
Advances shall include any and all Expenses incurred by Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification
under this Agreement or otherwise and this right of advancement, including expenses incurred preparing and forwarding statements to the
Company to support the advances claimed. Indemnitee acknowledges that the execution and delivery of this Agreement shall constitute an
undertaking providing that Indemnitee shall, to the fullest extent required by law, repay the advance (without interest) if and to the
extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee
is not entitled to be indemnified by the Company. The right to advances under this Section shall continue until final disposition of any
proceeding, including any appeal therein. This Section 6 shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 10.

 

7. Notice and Other Indemnification Procedures.

 

(a) Notification of Proceeding. Indemnitee will notify the Company
in writing promptly upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating
to any proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The written notification
to the Company shall include a description of the nature of the proceeding and the facts underlying the proceeding. The failure of Indemnitee
to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise
and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Company
will be entitled to participate in the proceeding at its own expense.

 

(b) Request for Indemnification Payments. Indemnitee shall submit
to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee
and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification under the terms of this
Agreement, and shall request payment thereof by the Company.

 

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(c) Determination of Right to Indemnification Payments. Upon
written request by Indemnitee for indemnification pursuant to the Section 7(b) hereof, a determination with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of the following four methods, which shall be at the election of the Board:
(1) by a majority vote of the disinterested directors, even though less than a quorum, (2) by a committee of disinterested directors
designated by a majority vote of the disinterested directors, even though less than a quorum, (3) if there are no disinterested directors
or if the disinterested directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered
to the Indemnitee, or (4) if so directed by the Board, by the stockholders of the Company; provided, however, that if there has
been a Change in Control, then such determination shall be made by Independent Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld). For purposes hereof, disinterested directors are those members of the Board who
are not parties to the action, suit or proceeding in respect of which indemnification is sought by Indemnitee. Determination of Indemnitee’s
entitlement to indemnification shall be made by the Company within 60 days after receipt of the written request of Indemnitee. Claims
for advancement of Expenses shall be made under the provisions of Section 6 herein.

 

(d) Application for Enforcement. In the event the Company fails to make timely payments as set forth in Sections 6 or 7(c) above,
Indemnitee shall have the right to apply to the Chancery Court of the State of Delaware for the purpose of enforcing Indemnitee’s
right to indemnification or advancement of Expenses pursuant to this Agreement. In such an enforcement hearing or proceeding, the burden
of proof shall be on the Company to prove that indemnification or advancement of Expenses to Indemnitee is not required under this Agreement
or permitted by applicable law. Any determination by the Company (including its Board, a committee thereof or Independent Counsel) or
stockholders, that Indemnitee is not entitled to indemnification hereunder, shall not be a defense by the Company to the action
nor create any presumption that Indemnitee is not entitled to indemnification or advancement of Expenses hereunder.

 

(e) Indemnification of Certain Expenses. The Company shall indemnify
Indemnitee against all Expenses incurred in connection with any hearing or proceeding under this Section 7 unless the Company prevails
in such hearing or proceeding on the merits in all material respects.

 

8. Presumptions and Effect of Certain Proceedings.

 

(a) In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such determination will, to the fullest extent not prohibited by law,
presume Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance
with Section 7 of this Agreement, and the Company will, to the fullest extent not prohibited by law, have the burden of proof to overcome
that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination
prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee
has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel)
that Indemnitee has not met such applicable standard of conduct, will be a defense to the action or create a presumption that Indemnitee
has not met the applicable standard of conduct.

 

(b) If the determination of the Indemnitee’s entitlement
to indemnification has not made pursuant to Section 7 within 60 days after the later of (i) receipt by the Company of Indemnitee’s
request for indemnification pursuant to Section 7 and (ii) the final disposition of the proceeding for which Indemnitee requested indemnification
(the “Determination Period”), the requisite determination of entitlement to indemnification will, to the fullest
extent not prohibited by law, be deemed to have been made and Indemnitee will be entitled to such indemnification, absent (A) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading,
in connection with the request for indemnification, or (B) a prohibition of such indemnification under applicable law. The Determination
Period may be extended for a reasonable time, not to exceed an additional 30 days, if the person, persons or entity making the determination
with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation
and/or information relating thereto; and provided, further, the Determination Period may be extended an additional 15 days if the determination
of entitlement to indemnification is to be made by the stockholders pursuant to Section 7(c) of this Agreement.

 

(c) The termination of any proceeding or of any claim, issue
or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, will not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create
a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s
conduct was unlawful.

 

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(d) For purposes of any determination of good faith, Indemnitee
will be deemed to have acted in good faith if Indemnitee acted based on the records or books of account of the Company, its subsidiaries,
or an Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Company,
its subsidiaries, or an Enterprise in the course of their duties, or on the advice of legal counsel for the Company, its subsidiaries,
or an Enterprise or on information or records given or reports made to the Company or an Enterprise by an independent certified public
accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Company, its subsidiaries,
or an Enterprise. Further, Indemnitee will be deemed to have acted in a manner “not opposed to the best interests of the Company,”
as referred to in this Agreement, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the best interests
of the participants and beneficiaries of an employee benefit plan. The provisions of this Section 8(d) are not exclusive and do not limit
in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

 

(e) The knowledge and/or actions, or failure to act, of any
director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise may not be imputed to Indemnitee
for purposes of determining Indemnitee’s right to indemnification under this Agreement.

 

9. Insurance. To the extent that the Company maintains an insurance
policy or policies providing liability insurance for Agents or for agents of any other Enterprise, Indemnitee shall be covered by such
policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such Agent or agent under
such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director
and officer liability insurance in effect or otherwise potentially available, the Company shall give prompt notice of the commencement
of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such proceeding in accordance with the terms of such policies.

 

10. Exceptions.

 

(a) Certain Matters. Any provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee on account of any proceeding with respect
to: (i) remuneration paid to Indemnitee if it is determined by final judgment or other final adjudication that such remuneration was in
violation of law (and, in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission
believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable
and that claims for indemnification should be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below);
(ii) a final judgment rendered against Indemnitee for an accounting, disgorgement or repayment of profits made from the purchase or sale
by Indemnitee of securities of the Company against Indemnitee pursuant to the provisions of Section 16(b) of the Exchange Act or other
provisions of any federal, state or local statute or rules and regulations thereunder; (iii) a final judgment or other final adjudication
that Indemnitee’s conduct was in bad faith, knowingly fraudulent or deliberately dishonest or constituted willful misconduct (but
only to the extent of such specific determination); or (iv) a final judgment by a court of competent jurisdiction determining that indemnification
of Indemnitee is prohibited by applicable law. For purposes of the foregoing sentence, a final judgment or other adjudication may be reached
in either the underlying proceeding or action in connection with which indemnification is sought or a separate proceeding or action to
establish rights and liabilities under this Agreement.

 

(b) Claims Initiated by Indemnitee. Any provision herein to
the contrary notwithstanding, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee with respect to proceedings
or claims initiated or brought by Indemnitee against the Company or its Agents and not by way of defense, except (i) with respect to proceedings
brought to establish or enforce a right to indemnification or advancement under this Agreement or under any other agreement, provision
in the Certificate of Incorporation or Bylaws or applicable law, or (ii) with respect to any other proceeding initiated by Indemnitee
that is either approved by the Board or Indemnitee’s participation is required by applicable law. However, indemnification or advancement
of Expenses may be provided by the Company in specific cases if the Board determines it to be appropriate.

 

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(c) Unauthorized Settlements. Any provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee under this Agreement
for any amounts paid in settlement of a proceeding effected without the Company’s written consent. Neither the Company nor the Indemnitee
shall unreasonably withhold consent to any proposed settlement; provided, however, that the Company may in any event decline to
consent to (or to otherwise admit or agree to any liability for indemnification hereunder in respect of) any proposed settlement if the
Company is also a party in such proceeding and determines in good faith that such settlement is not in the best interests of the Company
and its stockholders. The Company shall not settle any proceeding in which Indemnitee is a party without Indemnitee’s written consent
unless such settlement solely involves the payment of money and includes a complete and unconditional release of the Indemnitee from all
liability on any claims that are the subject matter of such proceeding; provided, however, that Indemnitee will not unreasonably
withhold his or her consent to any proposed settlement.

 

(d) Securities Act Liabilities. Any provision herein to the
contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee if such indemnification
would be a violation of any undertaking appearing in and required by the rules and regulations promulgated under the Securities Act of
1933, or in any registration statement filed with the SEC under the Act. Indemnitee acknowledges that paragraph (h) of Item 512 of Regulation
S-K currently generally requires the Company to undertake in connection with any registration statement filed under the Act to submit
the issue of the enforceability of Indemnitee’s rights under this Agreement in connection with any liability under the Act on public
policy grounds to a court of appropriate jurisdiction and to be governed by any final adjudication of such issue. Indemnitee specifically
agrees that any such undertaking shall supersede the provisions of this Agreement and to be bound by any such undertaking.

 

(e) Prior Payments. Any provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement to indemnify or advance Expenses to Indemnitee under this Agreement
for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except
with respect to any excess beyond the amount paid under any insurance policy or indemnity policy.

 

11. Nonexclusivity and Survival of Rights. The provisions for
indemnification and advancement of Expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee
may at any time be entitled under any provision of applicable law, the Certificate of Incorporation, Bylaws or other agreements, both
as to action in Indemnitee’s official capacity and Indemnitee’s action as an Agent, in any court in which a proceeding is
brought, and Indemnitee’s rights hereunder shall continue after Indemnitee has ceased acting as an Agent and shall inure to the
benefit of the heirs, executors, administrators and assigns of Indemnitee. The obligations and duties of the Company to Indemnitee under
this Agreement shall be binding on the Company and its successors and assigns until terminated in accordance with its terms. The Company
shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place.

 

No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
in his or her corporate status prior to such amendment, alteration or repeal. To the extent that a change in the Code, whether by statute
or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Certificate
of Incorporation, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy,
and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, by Indemnitee shall
not prevent the concurrent assertion or employment of any other right or remedy by Indemnitee.

 

12. Term. All the rights and privileges afforded by this agreement,
including the right to indemnification and the advancement of legal fees provided under this Agreement, shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity pertaining to an indemnifiable event even though Indemnitee
may have ceased to serve in such capacity at the time of any proceeding. No legal action shall be brought and no cause of action shall
be asserted by or in the right of the Company against an Indemnitee or an Indemnitee’s estate, spouse, heirs, executors or personal
or legal representatives after the expiration of five years from the date of accrual of such cause of action, and any claim or cause of
action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such five-year
period; provided, however, that if any shorter period of limitations is otherwise applicable to such cause of action, such shorter
period shall govern.

 

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13. Other Rights to Indemnification or Advancement; Subrogation.

 

(a) The Company hereby acknowledges that Indemnitee may have certain
rights to indemnification, advancement of Expenses and/or insurance provided by one or more other Persons, other than an Enterprise, with
whom or which Indemnitee may be associated (collectively, the “Secondary Indemnitors”). The relationship between
the Company and such Secondary Indemnitors with respect to the Indemnitee’s rights to indemnification, advancement of Expenses,
and insurance is described by this subsection, subject to the provisions of subsection (b) of this Section 13 with respect to a proceeding
concerning Indemnitee’s status with an Enterprise.

 

i. The Company hereby acknowledges and agrees:

 

(A) the Company is the indemnitor of first resort
with respect to any request for indemnification or advancement of Expenses made pursuant to this Agreement concerning any proceeding;

 

(B) the Company is primarily liable for all indemnification
and indemnification or advancement of Expenses obligations for any proceeding, whether created by law, organizational or constituent documents,
contract (including this Agreement) or otherwise;

 

(C) any obligation of any Secondary Indemnitor
to indemnify Indemnitee and/or advance Expenses to Indemnitee in respect of any proceeding are secondary to the obligations of the Company’s
obligations; and

 

(D) the Company will indemnify Indemnitee and advance
Expenses to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any Secondary
Indemnitor.

 

ii. The Company irrevocably waives, relinquishes and releases (A) any
Secondary Indemnitor from any claim of contribution, subrogation, reimbursement, exoneration or indemnification, or any other recovery
of any kind in respect of amounts paid by the Company to Indemnitee pursuant to this Agreement and (B) any right to participate in any
claim or remedy of Indemnitee against any Secondary Indemnitor, whether or not such claim, remedy or right arises in equity or under contract,
statute or common law, including, without limitation, the right to take or receive from any Secondary Indemnitor, directly or indirectly,
in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.

 

iii. In the event any Secondary Indemnitor or their respective insurers
advances or extinguishes any liability or loss for Indemnitee, the payor has a right of subrogation against the Company or its insurers
for all amounts so paid which would otherwise be payable by the Company or its insurers under this Agreement. In no event will payment
by any Secondary Indemnitor or their respective insurers affect the obligations of the Company hereunder or shift primary liability for
the Company’s obligation to indemnify or advance of Expenses to any Secondary Indemnitor.

 

iv. Any indemnification or advancement of Expenses provided by any
Secondary Indemnitor is specifically in excess over the Company’s obligation to indemnify and advance Expenses or any valid and
collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided
by the Company.

 

(b) The Company’s obligation to indemnify or advance Expenses
hereunder to Indemnitee for any proceeding concerning Indemnitee’s status with an Enterprise will be reduced by any amount Indemnitee
has actually received as indemnification or advancement of Expenses from such Enterprise. The Company and Indemnitee intend that any such
Enterprise (and its insurers) be the indemnitor of first resort with respect to indemnification and advancement of Expenses for any proceeding
related to or arising from Indemnitee’s status with such Enterprise. The Company’s obligation to indemnify and advance Expenses
to Indemnitee is secondary to the obligations the Enterprise or its insurers owe to Indemnitee. Indemnitee agrees to take all reasonably
necessary and desirable action to obtain from an Enterprise indemnification and advancement of Expenses for any proceeding related to
or arising from Indemnitee’s corporate status with such Enterprise.

 

(c) In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee from any insurance carrier or Enterprise.
Indemnitee shall, at the request and expense of the Company, execute all papers required and shall do everything that may be reasonably
necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

 

14. Interpretation of Agreement. It is understood that the parties
hereto intend this Agreement to be interpreted and enforced so as to provide indemnification and advancement of Expenses to Indemnitee
to the fullest extent now or hereafter permitted by law.

 

    8

     

    

 

15. Severability. If any provision of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining
provisions of the Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions
of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal
or unenforceable and to give effect to Section 14 hereof.

 

16. Amendment and Waiver. No supplement, modification, amendment,
or cancellation of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

17. Notice. Except as otherwise provided herein, any notice
or demand which, by the provisions hereof, is required or which may be given to or served upon the parties hereto shall be in writing
and, if by electronic transmission, shall be deemed to have been validly served, given or delivered when sent, if by overnight delivery,
courier or personal delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall
be deemed to have been validly served, given or delivered three business days after deposit in the United States mail, as registered or
certified mail, with proper postage prepaid and addressed to the party or parties to be notified at the addresses set forth on the signature
page of this Agreement (or such other address(es) as a party may designate for itself by like notice). If to the Company, notices and
demands shall be delivered to the attention of the Secretary of the Company.

 

18. Governing Law. This Agreement shall be governed exclusively
by and construed according to the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to
be performed entirely within Delaware.

 

19. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and
the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement.

 

20. Headings. The headings of the sections of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

 

21. Entire Agreement. Subject to Section 11 hereof, this Agreement
constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings
and negotiations, written and oral, between the parties with respect to the subject matter of this Agreement; provided, however,
that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, the Code and any other applicable
law, and shall not be deemed a substitute therefor, and does not diminish or abrogate any rights of Indemnitee thereunder.

 

22. Information Sharing. If Indemnitee
is the subject of or is implicated in any way during an investigation, whether formal or informal, the Company shall promptly notify
the Indemnitee of such investigation. The Company shall further share with Indemnitee any information it has turned over to any third
parties concerning the investigation (“Shared Information”) at the time such information is so furnished, unless
such notice is prohibited by any law, rule, regulation or formal order from a regulatory agency, would breach a confidentiality obligation
owed to a third party or would waive the Company’s attorney-client privilege. By executing this agreement, Indemnitee agrees that
such Shared Information is material non-public information that Indemnitee is obligated to hold in confidence and may not disclose publicly;
provided, however, that Indemnitee is permitted to use the Shared Information and to disclose such Shared information to Indemnitee’s
legal counsel and third parties solely in connection with defending Indemnitee from legal liability.

 

23. Contribution. To the fullest extent permissible under applicable
law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu
of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such proceeding in order to reflect
(i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such
proceeding; and/or (ii) the relative fault of the Company and Indemnitee in connection with such event(s) and/or transaction(s).

 

23. Consent to Jurisdiction. This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard
to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding
arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware
Court”), and not in any other state or federal court in the United States of America or any court in any other country,
(ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or
in connection with this Agreement, (iii) agree to appoint, to the extent such party is not otherwise subject to service of process in
the State of Delaware, an agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with
any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within
the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum.

 

[Signature Page to Follow]

 

    10

     

    

 

IN WITNESS WHEREOF, the parties hereto have entered into this
Agreement effective as of the date first above written.

 

	 	HUMACYTE, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title: 	 
	 	Address:	
     2525 East North Carolina Highway 54

    Durham, North Carolina 27713

    Attn: [●]

	 	 	 
	 	INDEMNITEE	 
	 	 
	 	 
	 	Signature of Indemnitee
	 	 	 
	 	 
	 	Print or Type Name of Indemnitee
	 	 
	 	 
	 	Address of Indemnitee

 

 

[Signature Page to Indemnity Agreement]Document

Exhibit 10.1

CHANGE OF CONTROL AND SEVERANCE AGREEMENT

This Change of Control and Severance Agreement (the “Agreement”) is made and entered into as of this ____ day of June, 2021 by and among CARROLS RESTAURANT GROUP, INC., a Delaware corporation (the “Parent”), CARROLS HOLDCO INC., a Delaware corporation and a wholly-owned subsidiary of the Parent (“Holdco”), CARROLS CORPORATION, a Delaware corporation and a wholly-owned subsidiary of Holdco (“Carrols”) and CARROLS LLC, a Delaware limited liability company and a wholly-owned subsidiary of Carrols (the “Employer”), and [______________] having an address at [___________________] (the “Executive”).
W I T N E S S E T H:
WHEREAS, the Executive has been employed by the Employer and desires to remain in the employ of the Employer and continue to provide services for the Companies and any present or future parent, subsidiary or affiliate of the Companies and their successors and assigns in such capacity; and
WHEREAS, the Parent, Holdco, Carrols and the Employer desire to induce the Executive to so remain in such employ;
NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter contained, the parties hereto hereby agree as follows:

1.    Definitions. 
For purposes of this Agreement, the following definitions shall apply:
1.1    “Affiliate” shall mean an entity controlled by, controlling or under the common control with the entity in question.
1.2    “Cause” shall mean:  (a) the commission by the Executive of any act or omission that would constitute a felony or any crime of moral turpitude under Federal law or the law of the state or foreign law in which such action occurred; (b) dishonesty, disloyalty, fraud, embezzlement, misappropriation, theft, disclosure of trade secrets or confidential information or other acts or omissions by the Executive that result in a breach of fiduciary or other material duty to the Parent, the Employer or any of the Companies; (c) continued reporting to work or working under the influence of alcohol, an illegal drug, an intoxicant or a controlled substance which renders the Executive incapable of performing his or her material duties to the satisfaction of the Parent or the Employer; (d) the Executive’s substantial disregard in the performance of the Executive’s duties and/or responsibilities with respect to the Parent, the Employer or any of the Companies, which disregard shall continue after written notice to the Executive and a reasonable 
1

opportunity to cure such behavior; or (e) an act of gross misconduct in connection with the Executive's duties. 
1.3    “Change of Control” shall mean and shall have occurred or be deemed to have occurred only if any of the following events occurs:
    1.3.1    The acquisition, directly or indirectly, by any person or group (as those terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules thereunder) of beneficial ownership (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (voting securities) of the Parent that represent 50% or more of the combined voting power of the Parent’s then outstanding voting securities, other than:
        a.    An acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Parent or any person controlled by the Parent or by any employee benefit plan (or related trust) sponsored or maintained by the Parent or any person controlled by the Parent; or
        b.    An acquisition of voting securities by the Parent or a corporation owned, directly or indirectly by all of the stockholders of the Parent in substantially the same proportions as their ownership of the stock of the Parent.
Notwithstanding the foregoing, the following event shall not constitute an acquisition by any person or group for purposes of this subsection 1.3.1: an acquisition of the Parent’s securities by the Parent which causes the Parent’s voting securities beneficially owned by a person or group to represent 50% or more of the combined voting power of the Parent’s then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 50% or more of the combined voting power of the Parent’s then outstanding voting securities by reason of share acquisitions by the Parent as described above and shall, after such share acquisitions by the Parent, become the beneficial owner of any additional voting securities of the Parent, then such acquisition shall constitute a Change of Control; or
    1.3.2    Individuals who, as of the Effective Date, constitute the Board of Directors of the Parent (as of the Effective Date, the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of the Parent, provided that any person becoming a director subsequent to the Effective Date whose election, or nomination for election by the Parent’s stockholders, was approved by a vote of at least a two-thirds of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Parent) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or
    1.3.3    The consummation by the Parent (whether directly involving the Parent or indirectly involving the Parent through one or more intermediaries) of (i) a merger, consolidation, reorganization, or business combination, or (ii) the acquisition of assets or stock of another entity, in each case other than a transaction:
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        a.    Which results in the Parent’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Parent or the person that, as a result of the transaction, controls, directly or indirectly, the Parent or owns, directly or indirectly, all or substantially all of the Parent’s assets or otherwise succeeds to the business of the Parent (the Parent or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction; and 
        b.    After which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (b) as beneficially owning 50% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Parent prior to the consummation of the transaction; or
    1.3.4    A sale or disposition of all or substantially all of the Parent’s assets; or
    1.3.5    The Parent’s stockholders approve a liquidation or dissolution of the Parent.
1.4     “Companies” shall mean the Parent, Holdco, Carrols, and the Employer and any present of future Affiliate of each of them and their respective successors and assigns (whether by operation of law or otherwise).
1.5    “Competitor” shall mean any company or organization operating a quick-service restaurant which features a hamburger or chicken as the primary or central menu item.
1.6    “Effective Date” shall mean June __, 2021.
1.7    “Executive Bonus Plan” shall mean: all bonus plans or arrangements maintained by the Employer or any of the Companies in which the Executive is eligible to participate for the year in which the Executive incurs a Termination of employment.
1.8    “Good Reason” shall mean:  (a) the material breach by the Employer, Carrols or the Parent of any material provision of this Agreement or any other agreement by and between the Executive and any of the Companies affecting the terms of the Executive’s employment with any of the Companies, which breach, if curable, is not remedied within thirty (30) days after the Employer’s or the Parent’s receipt of written notice thereof from the Executive; (b) the material diminution of the Executive’s position, authority, duties or responsibilities with respect to any of the Companies or the assignment to the Executive of duties and responsibilities that are materially inconsistent with those duties and responsibilities customarily assigned to individuals holding the position then held by the Executive; (c) the failure of any successor of the Parent, Carrols or the Employer to assume in a writing delivered to the Executive and reasonably satisfactory to the Executive the obligations of this Agreement; (d) solely with respect to Section 2.1, a reduction in the Executive’s base salary which reduction 
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is not commensurate with that of similarly situated employees; (e) solely with respect to Section 2.2, a reduction in the Executive’s base salary regardless of whether such reduction is or is not commensurate with that of similarly situated employees; (f) solely with respect to Section 2.1, treatment of the Executive under the Executive Bonus Plan or under any other executive bonus plan in which similarly situated executives of the Companies are eligible to participate in a manner inconsistent in any material respect with the treatment under such plan of such similarly situated executives, including, without limitation, with respect to eligibility to participate in such plan, conditions and criteria for earning bonuses thereunder and the amount of bonuses thereunder; (g) solely with respect to Section 2.2, any modification of the Executive Bonus Plan or any other executive bonus plan in which similarly situated executives of the Companies are eligible to participate in a manner that will materially change the Executive’s treatment under such plan including, without limitation, with respect to eligibility to participate in such plan, conditions and criteria for earning bonuses thereunder and the amount of bonuses thereunder and regardless of whether such material change is or is not commensurate with that of similarly situated employees; or (h) the requirement that the Executive be based at any location other than within 50 miles of the current home office of the Companies located at 968 James Street, Syracuse, New York 13203. 
1.9    “Mandatory Arbitration Agreement” shall mean that certain Agreement for Resolution of Disputes Pursuant to Binding Arbitration between the Employer and the Executive all as more fully as set forth on Exhibit “A” attached hereto and made a part hereof. 
1.10    “Prime Rate” shall mean:  the rate of interest established from time to time by Wells Fargo Bank, National Association (or such other bank which is then the principal lending bank to the Employer) as its prime commercial rate.
1.11    “Release” shall mean that certain Release as more fully set forth on  Exhibit “B” attached  hereto and made a part hereof.
1.12    “Severance Bonus” shall mean:  an amount equal to a pro rata portion of the aggregate annual bonus under the Executive Bonus Plan for the year in which the Executive incurs a Termination of employment to which the Executive would otherwise have been entitled had his employment not been terminated, provided, however, for any bonus (or portion thereof) under the Executive Bonus Plan based on the individual attainment of goals and objectives, “Severance Bonus” shall mean, subject to the achievement of any EBITDA threshold as a precondition for eligibility to receive such bonus, an amount equal to the pro rata portion of the target bonus for the year in which the Executive incurs a Termination of employment, regardless of whether the Executive would otherwise have achieved such bonus had his employment not been terminated.
1.13    “Severance Payment” shall mean:  an amount equal to the Executive’s annual base salary in effect immediately prior to the date the Executive incurs a Termination of employment.
1.14    “Special Severance Bonus” shall mean:  an amount equal to the aggregate annual bonus under the Executive Bonus Plan for the year in which the Executive incurs a 
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Termination of employment to which the Executive would otherwise have been entitled had his employment not been terminated, provided, however, for any bonus (or portion thereof) under the Executive Bonus Plan based on the individual attainment of goals and objectives, “Special Severance Bonus” shall mean, subject to the achievement of any EBITDA threshold as a precondition for eligibility to receive such bonus, an amount equal to the annual target bonus for the year in which the Executive incurs a Termination of employment, regardless of whether the Executive would otherwise have achieved such bonus had his employment not been terminated.
1.15    “Special Severance Payment” shall mean:  an amount equal to eighteen (18), multiplied by the amount of the Executive’s monthly base salary in effect immediately prior to the date the Executive incurs a Termination of employment, plus interest on such amount at a rate per annum equal to the Prime Rate plus three percent (3%), with such interest accruing from the date of Termination of employment until the date of payment of the Special Severance Payment.
1.16    “Termination of employment” means cessation of the Executive’s employment with the Parent, the Employer and all of the Companies by which the Executive is employed.
2.    Termination.  
2.1.    Termination for Good Reason by Executive or by the Companies without Cause.  Subject to the provisions of this Agreement and the Executive’s compliance with the provisions of Section 3 of this Agreement, in the event that the Executive incurs a Termination of employment that is other than a Termination of employment under Section 2.2 of this Agreement and is either (a) by the Parent or the Employer (or any successor thereof) without Cause or (b) by the Executive with Good Reason, and provided in each case that the Executive executes and does not revoke a general release of claims substantially in the form attached as Exhibit A hereto (a “Release”) within forty (40) days following such Termination of employment (the “Release Requirement”), the Employer (or any successor thereto) shall pay to the Executive the Severance Payment and the Severance Bonus. The Severance Payment shall be paid to the Executive as follows:  (i) for the portion of the Severance Payment covering the period from the date of Termination of employment to the date that is the six (6) month anniversary of the Termination of employment, in a single lump sum cash payment on the fifth (5th) business day following the six (6) month anniversary of Termination of employment plus interest on such amount at a rate per annum equal to the Prime Rate plus three percent (3%), with such interest accruing from the date of Termination of employment until the date of such lump sum payment, and (ii) the remaining amount of the Severance Payment in equal monthly installments until the date that is the twelve (12) month anniversary of the Termination of employment, provided that following the death of the Executive, the entire amount of the Severance Payment shall be paid to the Executive in a single lump sum cash payment on the fifth (5th) business day following the date of death of the Executive.  The Severance Bonus shall be paid to the Executive in a single lump sum cash payment on the date that bonuses are paid under the Executive Bonus Plan, but in no event later than March 15th of the calendar year following the calendar year in which the Executive’s employment terminates.  Notwithstanding the foregoing, the Executive's right to 
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receive any outstanding payment or payments under Sections 2.1(a) or 2.1(b) of this Agreement shall terminate if the Executive commences employment with, or serves as a director of, or consultant or independent contractor to, any business or organization that is a Competitor.   
2.2    Termination Following a Change of Control.  Notwithstanding Section 2.1 of this Agreement, in the event that the Executive incurs a Termination of employment within twelve months after a Change of Control either (a) by the Parent or the Employer (or any successor to the Parent or the Employer after the Change of Control) without Cause (but determined without regard to Section 1.2(d) of this Agreement) or (b) by the Executive with Good Reason, this Section 2.2 shall apply and Section 2.1 above shall not apply. For avoidance of doubt, it is understood that any payment pursuant to this Section 2.2 is in lieu of, and not in addition to, any payments pursuant to Section 2.1 above.  Subject to the Release Requirement being met and the Executive’s compliance with the provisions of Section 3 of this Agreement, in the event that the Executive incurs a Termination of employment pursuant to this Section 2.2, the Employer (or any successor thereto) shall pay to the Executive a single lump sum cash payment equal to the Special Severance Payment and the Special Severance Bonus. The Special Severance Payment shall be paid to the Executive on the fifth (5th) business day following the six (6) month anniversary of the Termination of employment (or on the fifth (5th) business day following the death of the Executive, if sooner). The Special Severance Bonus shall be paid to the Executive in a single lump sum cash payment on the date that bonuses are paid under the Executive Bonus Plan, but in no event later than March 15th of the calendar year following the calendar year in which the Executive’s employment terminates.     
2.3    Termination Without Good Reason by Executive or by the Companies with Cause.  Notwithstanding anything to the contrary in this Agreement, the Executive shall not be entitled to receive any payments under this Agreement in the event the Executive incurs a Termination of employment by the Companies for Cause or by the Executive without Good Reason.
3.    Non-Solicitation and Confidentiality.  
    3.1    Non-Solicitation. In consideration of the Executive’s employment and continued employment, the payment of Executive’s compensation by the Employer, the Parent or the Employer and the other Companies entrusting Executive with Confidential Information (as defined below), and the benefits provided under this Agreement, including without limitation the Special Severance Payment, the Special Severance Bonus, the Severance Payment and the Severance Bonus, the Executive agrees that during his employment with the Employer and for a period of two (2) years following termination of the Executive’s employment, the Executive will not solicit or employ any management-level employee who was employed by the Parent, the Employer or any of the Companies within six months prior to the termination of the Executive’s employment, in any business in which the Executive has a material interest, direct or indirect, as an officer, director, partner, shareholder or beneficial owner.  The preceding sentence shall not prohibit the Executive from hiring any person whose employment is terminated involuntarily by the Parent, the Employer or any of the Companies during the Executive’s employment with the 
6

Companies or at any time thereafter provided that such hiring shall not occur until after the Executive’s Termination of employment under this Agreement. 
    3.2    Confidentiality.  In consideration of the Executive’s employment and continued employment, the payment of Executive’s compensation by the Employer, the Parent or the Employer and the other Companies entrusting Executive with Confidential Information (as defined below), and the benefits provided under this Agreement, including without limitation the Special Severance Payment, the Special Severance Bonus, the Severance Payment and the Severance Bonus, the Executive agrees that during his employment with the Employer and following Termination of employment, Executive will not use or disclose to any individual or entity any Confidential Information (as defined below) except (i) in the performance of Executive’s duties for the Parent, the Employer or any of the Companies, (ii) as authorized in writing by the Parent or the Employer, or (c) as required by law or legal process, provided that, prior written notice of such required disclosure is provided to the Parent or the Employer and, provided further that the Executive uses all reasonable efforts to assist the Companies (at the Companies’ expense) in obtaining reliable assurance that the confidentiality of such information shall be preserved.  
    3.3    Confidential Information. As used in this Agreement, “Confidential Information” shall mean information that (a) is used or potentially useful in the business of the Parent, the Employer or any of the Companies, (b) the Parent, the Employer or any of the Companies treats as proprietary, private or confidential, and (c) is not generally known to the public. “Confidential Information” includes, without limitation, information relating to the Parent’s, the Employer’s or any of the Companies’ strategic plans, operating procedures, systems, internal controls, infrastructure, corporate organization, human resource management, products or services, processing, manufacturing, marketing, selling, customer lists, call lists, customer data, memoranda, notes, records, technical data, sketches, plans, drawings, chemical formulae, trade secrets, composition of products, research and development data, sources of supply and material, operating and cost data, financial information, personal information and information contained in manuals or memoranda. “Confidential Information” also includes proprietary and/or confidential information of the Parent’s, the Employer’s or any of the Companies’ customers, suppliers and trading partners who may share such information with the Parent, the Employer or any of the Companies pursuant to a confidentiality agreement or otherwise. The Executive agrees to treat all such customer, supplier or trading partner information as “Confidential Information” hereunder. The foregoing restrictions on the use or disclosure of confidential information shall continue after Executive’s employment terminates for any reason for so long as the information is not generally known to the public.
4.    Continued Welfare Coverage.         
    If Executive’s employment is terminated in any of the circumstances described in Section 2.1 or Section 2.2 of this Agreement, (a) the Executive shall be entitled to continued group term life and disability insurance coverage, at the Employer’s expense, for a period of twelve (12) months from the date of Termination of employment and (b) in the event Executive timely elects under the provisions of COBRA to continue his group health and/or dental plan 
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coverage that was in effect prior to the date of the termination of Executive’s employment, the Executive will be entitled to continuation of such coverage, at the Employer’s expense, for a period of twelve (12) months from the date of Termination of employment (or, if earlier, the date the Executive ceases to be eligible for COBRA Coverage).
5.    At Will Employment. 
    Nothing in this Agreement shall confer upon the Executive the right to remain in the employ of the Employer, the Parent or any of the Companies, it being understood and agreed that (a) the Executive is an employee at will and serves at the pleasure of the Parent or the Employer  at such compensation as the Parent or the Employer shall determine from time to time, (b) the Parent or the Employer shall have the right to terminate the Executive’s employment at any time, with or without Cause subject to the provisions of this Agreement, and (c) except for this Agreement, the Employer’s Mandatory Arbitration Program and any equity awards agreements entered into by Executive and the Employer, Parent, or any of the Companies pursuant to the Parent's 2016 Stock Incentive Plan, as amended (or any subsequent stock incentive plan of Parent),  there are no other arrangements or agreements between Executive and the Employer, the Parent or any of the Companies concerning the terms of the Executive’s employment with the Employer, the Parent or any of the Companies, and that nothing in this Agreement guarantees employment for any definitive or specific term or duration or any particular level of benefits or compensation.  
6.    Costs of Enforcement. 
     Notwithstanding anything to the contrary set forth in the terms of the Mandatory Arbitration Agreement, in the event that the Executive incurs any costs or expenses, including attorneys’ fees, in the enforcement of the Executive’s rights under this Agreement then, unless the Parent or the Employer is wholly successful in defending against the enforcement of such rights, the Employer shall promptly pay to the Executive all such costs and expenses.  Any such reimbursement shall be made as promptly as practicable after the final disposition of the Executive’s enforcement claims following the presentation of invoices evidencing such costs and expenses, but in no event later than March 15th of the calendar year following the calendar year in which occurs such final disposition.  
7.    Term.  
    This Agreement shall be for an initial term commencing on the Effective Date and terminating on December 31, 2021 (the "Initial Term") and shall thereafter be automatically extended for one or more additional one-year periods (each additional one-year period a "Renewal Period") unless notice of non-renewal is provided by either party to the other in accordance with the notice provisions of Section 8 of this Agreement, at least ninety (90) days prior to the expiration of the Initial Term or the applicable Renewal Period, as the case may be, or unless terminated sooner in accordance with the terms and provisions of this Agreement. Notwithstanding the foregoing, the above-referenced notice of non-renewal may not be given by the Employer, the Parent or any of the Companies during the eighteen (18) month period commencing upon a Change of Control.
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8.    Notices.  
    All notices under this Agreement shall be in writing and shall be sent by a national overnight delivery courier, or registered or certified mail, return receipt requested, if intended for the Parent or the Employer shall be addressed to it, attention of its Chief Executive Officer, 968 James Street, Syracuse, New York 13203 or at such other address of which the Parent or the Employer shall have given notice to the Executive in the manner herein provided; and if intended for the Executive, shall be mailed to the Executive at the address of the Executive’s address first set forth above or at such other address of which the Executive shall have given notice to the Parent or the Employer in the manner provided in this Section 8.   
9.    Entire Agreement.  
    This Agreement, together with the Release and the Mandatory Arbitration Agreement constitutes and contains the entire agreement and understanding between the parties with respect to the matters referred to herein and, as of the Effective Date, supersedes any and all prior negotiations, correspondence, understandings, and agreements between the parties respecting the subject matter hereof and no waiver of or modification to the terms hereof shall be valid unless in writing signed by the party to be charged and only to the extent therein set forth.  With the exception of the Mandatory Arbitration Agreement (which shall survive and continue), all prior and contemporaneous agreements and understandings with respect to the subject matter of this Agreement are hereby terminated and superseded by this Agreement. Notwithstanding the foregoing, nothing in this Agreement is intended to reduce, terminate, supersede or limit in any way the rights of Executive under any equity awards agreements entered into by Employer, Parent, or any of the Companies pursuant to the Parent's 2016 Stock Incentive Plan, as amended (or any subsequent stock incentive plan of Parent), and the Executive prior to the Effective Date. When used in this Agreement, the terms "hereof", "herein" and "hereunder" refer to this Agreement in its entirety, including any exhibits or schedules attached to this Agreement and not to any particular provisions of this Agreement, unless otherwise specifically indicated.   
10.    No Mitigation or Offset.  
    Except as otherwise provided in this Agreement, in the event of any termination of the Executive’s employment, the Executive shall not be required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive pursuant to this Agreement.  Except as specifically provided in the last sentence of Section 2.1 of this Agreement, the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive or benefit provided to the Executive as the result of employment by another employer or otherwise.  Except as specifically provided in the last sentence of Section 2.1 of this Agreement, the amounts payable under this Agreement shall not be subject to set-off, counterclaim, recoupment, defense or other right that the Companies may have against the Executive.  
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11.    Withholding.  
    The Employer shall be entitled to withhold from amounts payable to the Executive hereunder such amounts as may be required by applicable law. 
12.     Binding Nature.  
    This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, administrators, executors, personal representatives, successors and assigns.  
13.    Governing Law.  
    This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York without giving effect to conflicts of laws. All actions or proceedings brought by either Executive or Employer, Parent or any of the Companies arising out of or relating to this Agreement shall be subject to and brought under the Mandatory Arbitration Agreement. In the event of a conflict between the terms and conditions of this Agreement and the Mandatory Arbitration Agreement, the Mandatory Arbitration Agreement shall control. 
14.    Counterparts.  
    This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
15.    Advice of Counsel.
    Executive acknowledges that during the negotiation of this Agreement, Executive has retained or has been advised to retain counsel of Executive’s choosing who has provided or will provide advice to Executive in connection with the Executive’s decision to enter into this Agreement. Executive acknowledges that the Companies’ in-house and outside legal counsel have represented only the Companies in connection with the negotiation, drafting, and entering into of this Agreement and that Executive has not been provided nor has Executive relied upon any legal advice from the Companies’ in-house or outside legal counsel. 
16.    Severability. 
    It is the intention of the parties hereto that any provision of this Agreement found to be invalid or unenforceable be reformed rather than eliminated. If any of the provisions of this Agreement, or any part hereof, is at any time construed to be invalid or unenforceable, the same shall not affect the remainder of such provision or the other provisions of this Agreement, which shall be given full effect, without regard to the invalid portions. If any of the provisions of Section 3 of this Agreement, or any portion thereof, is held to be unenforceable because of the duration of such provision or portions thereof, the area covered thereby or the type of conduct restricted therein, the parties hereto agree that the court making such determination shall have the 
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power to modify the duration, geographic area and/or, as the case may be, other terms of such provisions or portions thereof, and, as so modified, said provisions or portions thereof shall then be enforceable. In the event that the courts of any one or more jurisdictions shall hold such provisions wholly or partially unenforceable by reason of the scope thereof or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect the Employer’s rights provided for herein in the courts of any other jurisdictions as to breaches or threatened breaches of such provisions in such other jurisdictions, the above provisions as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants. 
17.    Waiver.
    Failure by either the Employer or Executive to enforce any of the provisions of this Agreement or any rights with respect to this Agreement, or the failure to exercise any option provided hereunder, shall in no way be considered to be waiver of such provisions, rights or options, or to in any way affect the validity of this Agreement.   
18.    Headings; Interpretation.
    The headings preceding the text of the sections of this Agreement have been inserted solely for convenience of reference and neither constitutes a part of this Agreement nor affect the meaning, interpretation or effect of this Agreement. The terms and provisions of this Agreement shall be construed fairly as to both parties hereto and not in favor of or against any party, regardless of which party was generally responsible for the preparation of this Agreement.  
19.    Survivorship.
        The following sections of this Agreement shall survive the expiration or termination of this Agreement and shall survive Employee’s Termination of employment from the Companies for any reason: Section 2.1 (Termination For Good Reason by Executive or By the Companies without Cause), Section 2.2 (Termination Following a Change of Control), Section 3 (Non-Solicitation and Confidentiality), Section 6 (Cost of Enforcement), and Section 13 (Governing Law).  In addition, all sections of this Agreement that would, by their terms, survive expiration or termination of this Agreement shall so survive such expiration and termination and shall also survive termination for any reason of Employee’s employment with the Companies.

20.    Additional Tax Provisions.
    20.1    Golden Parachutes. Notwithstanding any other provision of this Agreement, in the event that any payment or benefit received or to be received by Executive (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (collectively, the "Total Benefits") would be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Total Benefits shall be reduced to the extent necessary so that no portion of the Total Benefits is subject to the Excise Tax; provided, however, that no such reduction in the Total Benefits shall be made if by not making such reduction, Executive’s 
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Retained Amount (as hereinafter defined) would be greater than Executive’s Retained Amount if the Total Benefits are not so reduced.  “Retained Amount” shall mean the present value (as determined in accordance with sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of the Total Benefits net of all federal, state and local taxes imposed on Executive with respect thereto. To the extent any reduction is required, the Total Benefits shall be reduced in the following order: (i) any portion of the Total Benefits that are not subject to Section 409A of the Code (other than Total Benefits resulting from any accelerated vesting of equity awards), (ii) Total Benefits that are subject to Section 409A of the Code in reverse order of when payment is due, and (iii) Total Benefits that are not subject to Section 409A and arise from any accelerated vesting of any equity awards. 
    20.2    Section 409A of the Code. It is intended that the provisions of this Agreement are either exempt from or comply with the terms and conditions of Section 409A of the Internal Revenue Code of 1986 and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”), and to the extent that the requirements of Code Section 409A are applicable thereto, all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A.  Notwithstanding the foregoing, the Companies shall have no liability with regard to any failure to comply with Code Section 409A.  If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment.  Notwithstanding anything herein to the contrary, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Section does not constitute a “deferral of compensation” within the meaning of Code Section 409A and the regulations and other guidance thereunder: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year; (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred; and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.  A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of amounts or benefits upon or following a termination of employment unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean Separation from Service.  If a payment obligation under this Agreement arises on account of Executive’s separation from service while Executive is a “specified employee” (as defined under Code Section 409A and determined in good faith by the Companies), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall be paid within five (5) business days after the end of the six-month period beginning on the date of such separation from service or, if earlier, within five (5) business days after the Executive’s death.
SIGNATURE PAGE TO FOLLOW
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

															
			CARROLS RESTAURANT GROUP, INC.

					
			By:	
			Name:	
			Title:	Vice President

															
			CARROLS HOLDCO INC.

					
			By:	
			Name:	
			Title:	Vice President

															
			CARROLS CORPORATION

					
			By:	
			Name:	
			Title:	Vice President

															
			CARROLS LLC

					
			By:	
			Name:	
			Title:	Vice President

															
				
			
			[Employee]

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