Document:

exhibit10-14

 

 
Exhibit
10.14

 

CONSULTING AGREEMENT

 

Dynatronics
Corporation with its principle place of business at 1200 Trapp Road
Eagan MN, 55121 ("Company") and Brian Baker, a
Consultant located at 82 Centerville Commons Way Centerville, UT
("Consultant"),
execute this CONSULTANT AGREEMENT ("Agreement") effective October
8, 2020 ("Effective
Date").

 

RECITALS

 

WHEREAS, Company desires to engage
Consultant to perform various services, and Consultant wishes to
provide such services to the Company;

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein, the parties agree
as follows:

 

1.            Services
for Company. Company engages Consultant to provide
consultant services on an as needed basis and/or particularly
described in the Statement of Work submitted from time to time.
("Services").

 

2.            Performance
of Services. Consultant will devote the time and effort
necessary to perform the Services on behalf of Company as assigned.
Consultant at all times, shall promote Company's best interests and
be rendered in conformance with terms hereof, and must not
discredit Company or its services in any way.

 

3.            Compensation
and Expense Reimbursement. In consideration for the Services
to be rendered pursuant to this Agreement, Consultant shall receive
the sum One Hundred Fifty DOLLARS ($150.00) per hour. In addition,
Company shall pay Consultant a monetary stipend of Eight Hundred
Ninety DOLLARS ($890.00) per month for each month Consultant
provides services. Consultant shall also be reimbursed business
expenses as follows:

 

3.1           Invoices.
During the term of this Agreement, Consultant shall issue invoices
to Company on a weekly basis, during any month in which the
Consultant has provided Services hereunder. Each invoice relating
to this Agreement shall include a description of Services to which
it relates, including a reasonably detailed description of the type
of Services performed and the number of hours spent.

 

3.2           Payments.
So long as Consultant shall have provided an invoice Company shall
pay each invoice two weeks from the invoice date.

 

3.3           Stock
Options and Units. As long as Consultant meets the
definition of “Continuous Service” under the
Company’s 2018 Equity Incentive Plan, Consultant will
continue to vest in his granted stock options and restricted stock
units.

 

 

 

 

4.           Term
and Termination. This Agreement shall be effective as of the
date first written above and shall continue in effect until either
Party terminates the Agreement. At any time during the term of this
Agreement either Party may terminate the agreement with a 15 day
written notice to the other Party. Upon termination Consultant
shall only be entitled to be paid for Services rendered and
Expenses incurred up to the point of written notice.

 

 

             5.                       

Independent Consultant Status. Parties
understand that Consultant is an independent contractor and all
work performed hereunder shall be deemed a work-for-hire.
Consultant expressly understands and agrees that this Agreement
does not create an employer/employee relationship. Except as
otherwise agreed to in this Agreement or the Separation Agreement
between the parties, Consultant shall not be entitled to
participate in any of the Company’s benefit programs.
Consultant shall be responsible for all tax obligations under
federal and state tax laws and shall provide a completed Form W9
that can be found at https://www.irs.gov/pub/irs-pdf/fw9.pdf.

 

             6.                       

Indemnification. Unless due to
Consultant’s gross negligence or willful misconduct, the
Company agrees to indemnify and hold harmless Consultant from and
against any and all losses and otherwise defend Consultant against
all liabilities, claims, actions, proceedings, damages and expenses
arising out of or relating to consulting services and worked
performed on Company’s behalf.

 

7.            Confidential
Information; Proprietary Information and Inventions. The
relationship between the Company and Consultant is one of
confidence and trust. For the avoidance of doubt, the
Confidentiality and Non-Compete Agreement, Employment Agreement and
the Separation Agreement between the parties shall control and
Consultant shall be obligated to their provisions regarding
confidentiality and proprietary information. However, if the
confidentiality and/or proprietary provisions of those agreements
expire, then the confidentiality provision set forth in
Exhibit
A shall control until this Agreement is terminated as set
forth in Section 5 above.

 

8.            Notices.
All communications, requests, consents and other notices under this
Agreement shall be given in writing and delivered by, courier,
registered or certified mail (postage prepaid). Notice shall be
deemed given on the date of delivery as shown by the delivery
receipt. Notices will be addressed to each party as
follows:

 

Company:        
                          

 

Dynatronics
Corporation

Attn:
General Counsel
1200 Trapp Road

Eagan, MN
55121                        
 

Consultant:

 

Brian
Baker

82 Centerville
Commons Way

Centerville, UT
84014

 

 

 

 

9.            Governing
Law; Forum. The laws of the United States of America and the
State of Utah govern all matters arising out of or relating to this
Agreement without giving effect to any conflict of law principles.
The Company and Consultant each irrevocably consent to the
exclusive personal jurisdiction of the federal and state courts
located in Utah, as applicable, for any matter arising out of or
relating to this Agreement, except that in actions seeking to
enforce any order or any judgment of the federal or state courts
located in Utah, personal jurisdiction will be nonexclusive.
Additionally, notwithstanding anything in the foregoing to the
contrary, a claim for equitable relief arising out of or related to
this Agreement may be brought in any court of competent
jurisdiction.

 

10.           Construction
and Interpretation; Miscellaneous. This Agreement was
jointly negotiated and prepared by the parties, so any ambiguity
herein shall not be construed for or against any party. Unless the
context requires otherwise, words denoting the singular may be
construed as denoting the plural and the words of the plural may be
construed as denoting the singular as is appropriate. The terms
"include" and "including" mean "including without limitation". The
term "Law" includes constitutions, statutes, rules, regulations,
codes, plans, injunctions, judgments, orders, decrees, rulings,
judicial opinions, restrictions and charges; a reference to a
specific statute also refers to regulations relating to that
statute; a reference to a specific law refers to that law as
revised or amended at the time that law is being applied. An
"affiliate" of a party means any person (individual or entity) that
directly, or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with the
party. The section titles are stated only for convenience and shall
not control or affect the interpretation of construction of any
provision of the Agreement. If any particular provision of this
Agreement is found to be invalid or unenforceable, it is to that
extent deemed to be omitted in the particular jurisdiction(s) where
the provision is invalid or unenforceable and the remaining
provisions of this Agreement shall not be affected by such
omission. No provision of this Agreement shall be altered, amended,
revoked or waived, except by an instrument in writing signed by all
parties. A waiver of a breach of any provision of this Agreement
shall not operate or be construed as a waiver of any subsequent or
other breach. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of
which together will constitute a single instrument; provided, however, that this Agreement
shall not become binding upon any of the parties unless and until
counterparts are executed by all parties. Each such counterpart
shall be considered an original. A facsimile signature shall
constitute an original signature.

 

 

11. Restrictive
Covenants. The
parties acknowledge and agree that any confidentiality,
non-disclosure, non-competition, non-solicitation or other
restrictive covenant contained in any prior agreement between the
parties including but not limited to restrictive covenants in the
Confidentiality and Non-compete Agreement, Separation Agreement,
and Employment Agreement shall remain in full force and effect
following the Effective Date of this Agreement, unless otherwise
agreed in writing by the Parties.

 

 

 

 

12.
Entire Agreement. This
Agreement sets forth the entire agreement and understanding of the
parties relating to the subject matter.

 

 

IN WITNESS WHEREOF, each party's duly authorized
representative has executed this Agreement after reading and
understanding its terms.

 

Dynatronics
Corporation

 

By:  /s/
Jennifer Keeler
                                                   

       Jennifer
Keeler

 

Title: General
Counsel                  
 
                                                       

 

 

Consultant
Brian Baker

 

By:  /s/ Brian
Baker  
                                                  

       Brian
Baker

 

Title: Principal
Consultant        
                                                        

 

 

 

 

 

 

 

EXHIBIT A

Confidentiality & Proprietary Rights Provisions

 

 

A. Definition. Consultant may have
access to, or Company may provide to Consultant, information that
Company regards as confidential or proprietary. “Confidential
Information” includes information of a commercial,
proprietary, or technical nature and includes, but is not limited
to, the following, whether now in existence or hereafter
created:

 

i.

any information
about Company’s customers of any nature whatsoever,
specifically including: the fact that someone is a customer or
prospective customer of Company; all lists of customers, former
customers, applicants and prospective customers; and all personal
or financial information relating to and identified with such
persons;

ii.

all business,
financial or technical information of Company (including account
numbers and software licensed from third parties or owned by
Company or its affiliates);

iii.

Company’s
marketing philosophy and objectives, promotions, markets,
materials, financial results, technological developments, and other
similar proprietary information and materials;

iv.

all information
protected by rights embodied in copyrights, whether registered or
unregistered (including all derivative works), patents or pending
patent applications, “know how,” trade secrets and any
other Intellectual Property Rights, as defined below, of
Company;

v.

information with
respect to employees of Company that is non-public, confidential,
business-related, or proprietary in nature, including names of
employees, the employees’ positions within Company, the fact
that they are employees of Company, contact information for
employees, personal employee identification numbers, and any other
information released to Consultant regarding employees in the past
and in the future;

vi.

any other
information that Consultant should, in the exercise of reasonable
business judgment, recognize as confidential; and

vii.

all notes,
memoranda, analyses, compilations, studies and other documents,
whether prepared by Company, Consultant or others, which contain or
otherwise reflect Confidential Information.

 

B. Essential Obligation.
Consultant shall retain the Confidential Information in secret,
shall not utilize the Confidential Information for the benefit of
Consultant or any third party, and shall not divulge, furnish, or
make accessible Confidential Information to any third party.
Consultant shall use the Confidential Information solely and
exclusively for the purpose of performing under or receiving the
benefit of the Agreement. Upon the earlier of DYNA’s request,
or the date of expiration or termination of this Agreement,
Consultant will return to DYNA all documents, copies thereof,
including electronic or digital copies, and other material fixed in
tangible form in the possession of Consultant that pertains to the
business of DYNA, including, but not limited to, Confidential
Information, as well as all copies, adaptations and independent
compilations thereof in Consultant’s possession.

 

C. Compelled Disclosure. In the
event Consultant becomes legally compelled to disclose any of the
Confidential Information, Consultant shall provide the Company with
prompt notice so that Company may seek a protective order or other
appropriate remedy. In the event that such a protective order or
other remedy is not obtained, Consultant shall furnish only that
portion of the Confidential Information which in the opinion of
Consultant’s counsel is legally required and shall exercise
commercially reasonable efforts to obtain a protective order or
other reliable assurance that confidential treatment shall be
accorded to the Confidential Information.

 

D. Return or Destruction of Confidential
Information. Upon termination of this Agreement or a
Statement of Work, or earlier request, Consultant must return or
destroy all Confidential Information of Company, and upon request,
provide Company written certification attesting to its destruction.

 

E. Exclusions. The term
Confidential Information excludes any portion of such information
that Consultant can prove: (i) was publicly available at the time
the Consultant acquired the information from Company; (ii) has
become publicly available other than by the Consultant’s
breach of this Agreement, but the obligation of confidentiality
shall cease only after the date on which such information has
become publicly available; (ii) was known by Consultant prior to
acquiring the information from Company; (iii) was rightfully
acquired by Consultant from a source other than Company or
Company’s affiliates, directors, employees, agents, or
representatives, provided that such source is not prohibited from
transmitting such information pursuant to any contractual,
fiduciary, or legal obligation; (iv) was independently developed by
Consultant without using the Confidential Information; or (v) was
generally disclosed by Company to third parties without similar
obligations of confidentiality.

 

 

 

 

F. Remedies. If Consultant
breaches the covenants set forth in this Agreement, irreparable
injury may result to Company or third parties entrusting
Confidential Information to Company. Therefore, Company’s
remedies at law may be inadequate and Company (or such third party)
will be entitled to seek an injunction to restrain any continuing
breach. Notwithstanding any limitation on Consultant’s
liability, Company will further be entitled any other rights and
remedies that it may have at law or in equity.

 

G. Obligations. Consultant’s
obligations respecting the Confidential Information disclosed by
Company shall remain in effect (a) with respect to a trade secret,
for so long as such information remains a trade secret and (b) for
all other Confidential Information, for a period of seven (7) years
from the date of expiration or termination of this
Agreement.

 

2. Proprietary
Rights.

 

A. Consultant
and Company each acknowledge that performance of the Services may
result in the creation of Work Product. Consultant and Company
agree, Company is the sole and exclusive owner of and shall have
all Intellectual Property Rights in the Work Products. Consultant
acknowledges that the Work Products have been developed for Company
for Company’s sole use, and Consultant agrees not to sell,
disclose, use, or otherwise exploit any of the Work Products
without the prior written consent of Company. For purposes of this
Agreement, “Intellectual Property Rights” means all
patents (including originals, divisionals, continuations,
continuations-in-part, extensions, foreign applications, utility
models, and re-issues), patent applications, copyrights (including
all registrations and applications therefore), trade secrets,
trademarks, trademark applications and other proprietary and
Intellectual Property Rights, including moral rights and
“Work Product(s)” means collectively all work,
materials or ideas performed, created or prepared by Consultant for
Company pursuant to this Agreement, and all work, materials or
ideas performed, created or prepared by Consultant pursuant to all
prior agreements, both oral and written, between Consultant and
Company prior to the Effective Date of this Agreement, including
all programs, derivative works, source code, object code,
discoveries, business concepts, inventions, innovations,
improvements, materials, documentation, techniques, methods and
processes that are conceived, made, proposed, or developed by
Consultant, alone or with others, specifically related to any
Statement of Work, whether or not prepared on or off the premises
of Company or during regular work hours, but excluding any Excluded
Invention, as defined below.

 

B. It is expressly
agreed between Company and Consultant that if any Work Products are
copyrightable and such Work Products fall within the definition of
a “work made for hire” as defined in 17 U.S.C. §
101 and § 201(b), such Work Products will be considered a
“work made for hire” and all copyrights and copyright
registrations related to such copyrightable Work Products will be
the sole and exclusive property of Company. To the extent that any
Work Products do not fall within the definition of a “work
made for hire,” Consultant grants and assigns to Company
without reservation, all of Consultant’s worldwide ownership
rights, title and interest in and to all Intellectual Property
Rights in such Work Products. Such grant of rights by Consultant to
Company includes the exclusive right to make copies, prepare
derivative works from any Work Products, publish, publicly perform,
and publicly display the Work Products with full rights to
authorize others to do the same. Company’s ownership will
include all changes and additions to any Work Products made by
either Party and all derivative works made by either
Party.

 

During
the term of this Agreement and at all times thereafter, at the
request of Company, Consultant shall execute all papers,
applications, assignments, and other instruments and perform all
other reasonable acts that Company shall deem necessary or
convenient in order to transfer, convey, and assign to Company or
its nominee the sole and exclusive right, title, and interest in
and to and all Intellectual Property Rights to the Work Products,
and to apply for, register, perfect, confirm, establish, enforce,
and protect Company’s rights in the Work Products, and all
expenses reasonably incurred by Consultant pursuant hereto shall be
borne by Company. Consultant shall accept as final the judgment of
Company on these matters. Consultant shall render aid and
assistance to Company in any interference or litigation pertaining
to the Work Products. Consultant will not be required to assign to
Company any invention, discovery, innovation, or improvement that
Consultant: (i) can show was developed prior to the commencement of
Services and developed on Consultant’s own time and without
the use of any Company equipment, supplies, facility or
Confidential Information; and, (ii) was disclosed to DYNA in
writing prior to the commencement of any Services (the "Excluded
Inventions"). Notwithstanding the foregoing, Consultant hereby
grants to Company a non-exclusive, fully paid-up license to use all
such Excluded Inventions throughout the world in perpetuity as part
of the Work Product.exhibit10-15

 

Exhibit
10.15

 

July 7,
2020

 

John
Krier

 

Hand-delivered

 

Re:
Employment Agreement with Dynatronics Corporation

 

Dear
John:

 

This
letter (this “Agreement”) sets forth
the terms of your employment as Chief
Executive Officer of Dynatronics Corporation, a Utah corporation
(the “Company”). Your
employment under this Agreement is conditioned on your satisfactory
completion of certain requirements, as more fully explained
below.

 

Agreement:

 

Subject
to the following terms and conditions, it is agreed as
follows:

 

	

Duties:

	
 

	

In your capacity as Chief Executive Officer, you will perform
duties and responsibilities that are commensurate with this
position as the Company’s principal executive officer, as
well as such other duties as may be assigned to you from time to
time. You will report directly to the Chairman of the
Board of Directors of the Company (the
“Board”). You will also serve as a member of the
Board, for no additional compensation. You will have direct
supervisory responsibility for and receive reports from the
Company’s executive officers. You agree to devote your full
business time, attention and best efforts to the performance of
your duties and to the furtherance of the Company’s
interests. Notwithstanding the foregoing, nothing in this letter
shall preclude you, from devoting reasonable periods of time to
charitable and community activities, and managing personal
investment assets and performing the Other Employment described
below, provided that none of these activities interferes with the
performance of your duties hereunder or creates a conflict of
interest in the judgment of the Board. The policy of the Company is
that all outside board of
director service, including charitable and community activities, be
pre-approved by the Board. The Board’s approval of this
Agreement will include its consent for your service on the
boards of directors of the
corporations, if any, indicated in the
attached Schedule
I, “Approved Directorships”.

 

	

Location:

	
 

	

The
Company’s principal executive offices are currently located
in Eagan, Minnesota. Your duties will require you to be onsite
regularly at our Eagan, Minnesota office and to travel periodically
to our other facilities. You will remain on the payroll of the
Company’s subsidiary, Bird & Cronin, LLC.

 

 

 1

 

 

	

Start
Date:

	
 

	

Subject
to satisfaction of all of the conditions described in this
Agreement, your employment as Chief Executive Officer by the
Company will commence on July __, 2020 (the “Start
Date”).

 

	

Base
Salary:

	
 

	

In
consideration of your services, you will be paid an annual base
salary of $250,000 per year, payable in accordance with the
standard payroll practices of the Company and subject to all
withholdings and deductions as required by law.

 

	

Annual
Cash Bonus:

	
 

	

During
your employment, you will be eligible to receive an annual bonus,
payable at such times and in such amounts, as determined by the
Compensation Committee of the Board (“Compensation
Committee”), with a maximum payout opportunity of $75,000.
Actual payments will be determined based on a combination of
Company results and individual performance against the applicable
quantitative and qualitative performance goals established by the
Compensation Committee. Any annual bonus with respect to a
particular fiscal year will be paid the earlier of the date on
which such bonuses are paid to other executives of the Company for
the same fiscal period or a date which is within three (3) months
following the end of the fiscal year for which the bonus is earned.
You must remain continuously employed through the bonus payment
date to be eligible to receive an annual bonus payment for a
particular fiscal year. Your first annual bonus will be payable
after the completion of the fiscal year ending June 30,
2021.

 

	

Equity
Grants:

	
 

	

At the
next regularly scheduled meeting of the Compensation Committee
following your Start Date, the Compensation Committee will consider
a grant to you of an equity award in the form of (1) restricted
stock units (“RSUs”) for 50,000 shares, and (2) a stock
option for the purchase of 15,000 shares of common stock. The value
of the RSUs will be based on the market price of the
Company’s common stock on the date of grant. The value of the
stock options will be based on a grant date fair value generally
estimated using a Black-Scholes or similar model; the exercise
price of the options will be based on the market price of the
Company’s common stock on the date of grant. The initial
equity award above shall vest in equal amounts of twenty-five
percent (25%) each on the first, second, third and fourth
anniversaries of the date of grant of such award. In addition, for
each full fiscal year of employment, you will be eligible to
receive annual equity awards, as determined by the Compensation
Committee, in the form of RSUs, valued at $75,000, with such grants
to vest fifty percent (50%) on the date of grant and fifty percent
(50%) on the first anniversary of the date of grant. The actual
number of shares included in any future equity awards hereunder and
all other terms and conditions applicable to each such award shall
be determined by the Compensation Committee. The value of such
equity awards will be determined based on the market price of the
Company’s common stock on the date of grant of such awards.
Equity awards will be subject to the terms and conditions of the
Company’s 2015 Equity Incentive Award Plan, the 2018 Equity
Incentive Plan, or any successor plan adopted by the Company
pursuant to which such awards may be made, and the applicable award
agreement.

 

 

 2

 

 

	

Benefits
and Perquisites:

	
 

	

You
will be eligible to participate in the employee benefit plans and
programs generally available to the Company’s senior
executives, as outlined in the current “Dynatronics Benefits
Guide” which is attached as Exhibit A and incorporated herein
by reference, subject to the terms and conditions of such plans and
programs. You will also be entitled to the fringe benefits and
perquisites that may be made available from time to time to other
top executives of the Company at the discretion of the Compensation
Committee, in accordance with and subject to the eligibility and
provisions of such plans and programs. The Company reserves the
right to amend, modify or terminate any of its benefit plans or
programs at any time and for any reason.

 

	

Other
Employment:

 

 

 

 

 

 

 

 

 

Tax
Withholdings:

	
 

	

Until
April 2021, Dynatronics allows you to be a part-time consultant for
Breg based on the Consulting Agreement between you and Breg that
you provided to Dynatronics. However, you acknowledge that you will
be able to dedicate your time and energy to DYNA on a full-time
basis and fulfill all your obligations and duties. Likewise, you
may not extend your Consulting Agreement with Breg and may not
engage in any other secondary employment or consulting services
without advanced written permission from Dynatronics Board of
Directors, whose permission may be withheld for any
reason.

All
forms of compensation paid to you as an employee of the Company
shall be less all applicable withholdings.

 

	
 

	
 

	
 

	

Term;
At Will Employee:

	
 

	

Your
employment will be for no specific period of time. Rather, your
employment will be at-will, meaning that you or the Company may
terminate the employment relationship at any time, with or without
Cause (as defined below), and with or without notice and for any
reason or no particular reason. Although your compensation and
benefits may change from time to time, the at-will nature of your
employment may only be changed by an express written agreement
signed by an authorized officer of the Company.

 

	

Insurance;
Indemnification:

	
 

	

You
will be covered under the Company’s Directors and Officers
Liability policy. In addition, Utah corporation law and the
Company’s articles of incorporation and bylaws, each as
amended, provide certain indemnification rights and limitation of
liability for officers and directors of the Company performing
their duties in good faith. In addition, the Company has entered
into indemnification agreements with its Board and certain of its
executive officers.

 

	

Securities
and Exchange Commission Regulations:

	
 

	

As an
executive officer of a public company, you will be subject to rules
and regulations of the Securities and Exchange Commission
(“SEC”) and the Nasdaq Stock Exchange
(“NASDAQ”), including requirements that you report your
beneficial ownership of and trading activity involving the
Company’s equity securities and file reports with the SEC. We
will provide training on these requirements and assist you in
complying with all regulations. These regulations limit when you
may trade our securities. In addition, we are required to include
information regarding you and your education and professional
background to the SEC and NASDAQ. You will be required to comply
with these regulations. A copy of the Company’s Insider
Trading Policy is attached hereto as Exhibit B. This Agreement, and
your employment hereunder, are conditioned, among other things,
upon your representation and warranty that you are not under any
disciplinary bar or restriction from the SEC, NASDAQ or any other
regulatory agency from serving as an executive officer of a public
company.

 

 

 3

 

 

	

Representations;
Prior Restrictions and Covenants:

	
 

	

Upon
execution of this Agreement you represent that you have read and
understood, and that you accept all of the terms of employment as
provided in this Agreement, that you have not relied on any
agreements or representations, express or implied, that are not set
forth expressly in this Agreement, and that this Agreement
supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral,
with respect to the subject matter of this Agreement.

 

	

Confidentiality
and Non-Competition Agreement:

	
 

	

As a
condition of employment, you will be required to sign an agreement
that will: (i) restrict your ability to be employed by a competitor
of the Company during and for one year following termination of
your employment, and (ii) prohibit your solicitation of the
Company’s customers and employees during your employment and
for a period of two years following termination of your employment.
The form of such agreement, an “Agreement Regarding
Confidential Information, Ownership of Inventions, Non-Competition,
Customer Non-Solicitation, and Employee Non-Solicitation Covenants
and Acknowledgment of At-Will Employment”
(“Confidentiality Agreement”) is attached hereto as
Exhibit C and by this reference incorporated in and made a part
hereof.

 

	

Termination
Without Cause:

	
 

	

Notwithstanding
that your employment with the Company is “at will”, if
we terminate your employment during the first twelve (12) months
for any reason other than for Cause, you will be entitled to cash
severance in an amount equal to ninety (90) days of your
then-current annual base salary. In addition, fifty percent (50%)
of the initial equity grant previously made to you will vest
immediately upon your termination, subject to your execution, and
non-revocation, of a release of claims in a form provided by the
Company. “Cause” shall mean: (i) failure to perform
(other than any such failure resulting from incapacity due to
physical or mental illness) to the reasonable satisfaction of the
Company your duties and responsibilities assigned by the Board
which failure continues, in the reasonable judgment of the Board,
for more than fifteen (15) days following written notice of such
failure; (ii) failure to comply with any valid and legal directive
of the Board, which failure is not cured within fifteen (15) days
of notice thereof; (iii) engagement in dishonesty, illegal conduct,
or gross misconduct, which is, in each case, injurious to the
Company or its affiliates; (iv) embezzlement, misappropriation, or
fraud, whether or not related to your employment with the Company;
(v) conviction of or plea of guilty or nolo contendere to a crime
that constitutes a felony (or state law equivalent) or a crime that
constitutes a misdemeanor involving moral turpitude; (vi) breach of
the Confidentiality Agreement to be entered into by you, unless
such breach is cured pursuant to the terms of such agreement; (vii)
material breach of any material obligation under this or any other
written agreement between you and the Company which continues
without cure for a period of fifteen (15) days following notice
thereof; or (viii) any material failure to comply with the
Company’s policies or rules, as they may be in effect from
time to time during the term of your employment through your
willful misconduct or negligence.

 

 

 4

 

 

	

Section
409A and Section 280G:

	
 

	

Payments
in event of termination, including in the event of a Change in
Control, shall be subject to applicable tax law and regulations,
including, without limitation, Section 409A and Section 280G of the
Internal Revenue Code, as amended, as provided in the release
agreement to be executed at the time of termination, provided, that
we mutually agree to cooperate to minimize the amount of tax
payable by both you and the Company in connection with such
payments.

 

	

Clawback:

	
 

	

Any
incentive-based or other compensation, paid to you under this
Agreement or any other agreement or arrangement with the Company
which is subject to recovery under any law, government regulation,
or stock exchange listing requirement, will be subject to such
deductions and clawback as may be required to be made pursuant to
such law, government regulation, or stock exchange listing
requirement (whether currently in existence or later adopted) or
any policy established by the Company pursuant to any such law,
government regulation or stock exchange listing
requirement.

 

	

Governing
Law, Severability, Modification, Execution:

	
 

	

This
Agreement shall be governed by the laws of the State of New York,
without regard to conflict of law principles. In the event any of
the provisions hereof (including any portion thereof) are held by a
court of competent jurisdiction to be invalid, illegal, void or
otherwise unenforceable, the remaining provisions shall remain
enforceable to the fullest extent permitted by law. No supplement,
modification or amendment shall be binding unless executed in
writing by both you and the Company. No waiver of any provision
shall be binding unless in writing signed by the party against whom
enforcement of the waiver is sought, and no such waiver shall
operate as a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing
waiver.

	
 

	
 

	
 

Your
employment under this Agreement is contingent upon the following
conditions precedent, each of which must be completed to the
satisfaction of the Company if not expressly waived in advance by
the Company in writing:

 

  5

 

 

1. Supplementation, as
necessary, of applicable U.S. right to work documentation on file
with the Company (including, for example, Form I-9 and referenced
documentation verifying your identity and work
authorization).

 

2. Continued
compliance with Company employment testing including drug screening
and, if reasonably required, satisfactory completion of a
background investigation, for which the required notice and consent
forms will be provided to you.

 

3. Your execution of
the Company’s (A) Agreement Regarding Confidential
Information, Ownership of Inventions, Non-Competition, Customer
Non-Solicitation, and Employee Non-Solicitation Covenants and
Acknowledgment of At-Will Employment, (B) Insider Trading Policy
Acknowledgement, (C) Officer/Director Questionnaire, (D)
Indemnification Agreement.

 

4. Final approval of
the Board of all terms and conditions of your employment
hereunder.

 

5. Your execution of
this Agreement before the close of business on July 7,
2020.

 

Please
sign below and return a copy of this Agreement to me.

 

DYNATRONICS CORPORATION

 

 

 

Erin S.
Enright,

Chairman of the Board of Directors

 

 

 

Accepted and Agreed

 

/s/ John Krier

John
Krier

Date:
July 7, 2020

 

 

 

Signature
Page to Employment Agreement of John Krier

Dynatronics
Corporation

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