Document:

Exhibit 10.2

 

STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT, effective as of the 9th day of December 2020 (the “Effective Date”) by and among
Custodian Ventures LLC, a Wyoming limited liability company ("Seller"), Pengfei Zhou, an individual and Zhaowei
Zhang, an individual (each, a “Buyer” and collectively, “Buyers”) and Gushen Inc., a Nevada
corporation (the "Company").

 

WHEREAS,
Seller owns 30 million Series A Preferred Stock (the "Shares") of the Company. This Agreement provides for the
acquisition of the Shares by Buyers for a total purchase price of U.S. Dollars of five hundred and twenty-five thousand ($525,000.00)
(the “Purchase Price”) on the terms and conditions set forth below.

 

WHEREAS,
Matthew McMurdo, Esq. from McMurdo Law Group, LLC acts as the escrow agent of this transaction.

 

NOW,
THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth
and the mutual benefits to the parties to be derived therefrom, it is hereby agreed as follows:

 

ARTICLE
I

SALE
AND PURCHASE OF THE SHARES

 

Section
1.1 Closing. The purchase of the Shares shall be consummated at a closing ("Closing") to take place
at 10:00 o'clock a.m., before December ___, 2020 unless extended by agreement of the parties hereto (the "Closing Date").
Below are Seller’s wire instructions:

 

Bank
Name JP Morgan Chase Bank address 3285 Long Beach Rd, Oceanside NY 11572

 

ABA
# 021000021 Account # 259369285

 

Company
Name: CUSTODIAN VENTURES LLC

 

Company
Address 3445 Lawrence Ave Oceanside NY.11572

 

Section
1.2 Sale and Purchase. Subject to the terms and conditions hereof, at the Closing, Seller agrees to sell and deliver
to Buyers, and Buyers agree to purchase from Seller, the Shares.

 

Section
1.3 Payment of Purchase Price. The Purchase Price for the Shares shall be paid to Escrow Agent, among which
U.S. Dollars of five hundred thousand ($500,000) shall be released to Seller on the Closing Date and U.S. Dollars of twenty-five
thousand ($25,000) shall be released to Seller upon the receipt of FINRA approval of the intended Stock Split (defined below),
both pursuant to the wire instructions set forth in Section 1.1.

 

Section
1.4 Delivery of Shares. Immediately prior to the Closing, Seller shall have already delivered a duly executed copy
of the unanimous written consent of the board of directors of the Company to authorize and approve the transfer of the Shares
and reissuance of the Shares under Buyers’ names in an customary form of book entry of such Shares under Buyers’ names
by the Company with the allocation set forth in in Appendix A of this Agreement.

 

     

     

    

 

Section
1.5 Other Closing Deliveries. At the Closing, Seller and the Company shall deliver to Buyers a duly executed copy of
the unanimous written consent of the board of directors of Seller and the Company, respectively authorizing Seller and the Company
to enter into this Agreement and the transactions contemplated hereby. Seller, Buyers and the Company shall deliver such other
customary closing documents as may be reasonably requested by the other parties.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF SELLER

 

As
an inducement to and to obtain the reliance of Buyers, Seller represents and warrants to Buyers that each of the following are
true, correct, and complete as of the Effective Date and will be correct and complete as of the Closing. All references in this
Agreement to “knowledge of Seller” shall mean the actual knowledge, after reasonable investigation, of Seller
and its sole manager, David Lazar. Seller has no officers or any member or manager other than David Lazar.

 

Section
2.1 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which Seller is a party or to which the Shares are subject, nor result
in contravene, conflict with or a violation of, any Law or Order to which Seller is a party or to which the Shares are subject.
Seller has full power, authority and legal right and has taken all action required by law or otherwise to authorize the execution
and delivery of this Agreement.

 

Section
2.2 Title to the Shares. Seller owns, of record and beneficially, and has good valid and indefeasible title to the
Shares of the Company, free and clear of all liens, encumbrances, pledges, claims, options, charges and assessments of any nature
whatsoever, with full right and lawful authority and right to transfer the Shares to Buyers. No person has any preemptive rights
or rights of first refusal with respect to any of the Shares. There exists no voting agreement, voting trust, or outstanding proxy
with respect to any of the Shares. There are no outstanding rights, options, warrants, calls, commitments, or any other agreements
of any character, whether oral or written, with respect to the Shares.

 

Section
2.3 Tax Matters. The Shares are not subject to any lien arising in connection with any
failure or alleged failure to pay tax. There are no pending, threatened, or proposed audits, assessments or claims from any tax
authority for deficiencies, penalties, or interest with respect to Seller that would affect the Shares. 

 

Section
2.4 Due Diligence Materials Provided. Seller has provided Buyers with true and accurate copies of all corporate books
and records relating to the Company in Seller’s possession or control, save and except those additional books and records.
Seller does not have any actual knowledge of any liability or obligation of the Company other than is reflected in said books
and records.

 

    2

     

    

 

Section
2.5 Brokers and Finders. Seller represents and warrants that Seller has made no agreements involving any fees of any
type that relate to this Agreement and that would involve Buyers, including but not limited to broker’s fee, finder’s
fees or any similar compensation arrangement.

 

Section
2.6 Authorized Shares. As of the Closing (i) the total number of authorized shares of common stock of the Company shall
be 600,000,000 par value $0.0001 per share, and that the total number of shares of common stock of the Company issued and outstanding
shall be 26,998,130; and (ii) the total number of authorized shares of preferred stock of the Company shall be 200,000,000, par
value $0.0001 per share, and that the total number of shares of said preferred stock of the Company issued and outstanding shall
be 30,000,000.

 

Section
2.7 Litigation. To the knowledge of Seller, (i) there is no claim, legal action, suit, arbitration, investigation or
hearing, notice of claims or other legal, administrative or governmental proceedings pending or, to the knowledge of Seller, threatened
against Seller or the Company; and (ii) there is no continuing order, injunction, or decree of any court, arbitrator, or governmental
or administrative authority to which Seller or the Company is a party or to which it or any of its assets is subject.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF BUYERS

 

As
an inducement to and to obtain the reliance of Seller and the Company, each Buyer represents and warrants to Seller and the Company
that each of the following are true, correct, and complete as of the Effective Date and will be correct and complete as of the
Closing. All references in this Agreement to “knowledge of Buyers” shall mean the actual knowledge, after reasonable
investigation.

 

Section
3.1 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which each Buyer is a party , nor result in contravene, conflict with
or a violation of, any Law or Order to which each Buyer is a party. Each Buyer has full power, authority and legal right and has
taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.

 

Section
3.2 Restricted Shares. Each Buyer acknowledges that the sale of Shares pursuant to this Agreement has not been registered
under the Securities Act or any state securities laws, are being offered and sold to in reliance upon an exemption from the registration
and prospectus delivery requirements of the 1933 Securities Act, as amended (the “Securities Act”) which relate
to private offerings, are being offered and sold to in reliance upon exemptions from the registration and prospectus delivery
requirements of state securities laws which relate to private transfer and each Buyer must therefore bear the economic risk of
such investment indefinitely unless a subsequent disposition thereof is registered under the Act and applicable state securities
laws or is exempt therefrom. Each Buyer acknowledges that the shares shall bear restrictive legends.

 

    3

     

    

 

Section
3.3 Buyer’s Sophistication. Each Buyer (i) acknowledges that the purchase of Shares involves a high degree of
risk in that the Company has no current business operations or plans and may require substantial funds; (ii) an investment in
the Company is highly speculative and only investors who can afford the loss of their entire investment should consider investing
in the Company and the Shares; (iii) has such knowledge and experience in finance, securities, investments, including investment
in non-listed and non registered securities, and other business matters so as to be able to protect its interests in connection
with this transaction; (iv) that the sale of the Shares to each Buyer is not registered with the US Securities and Exchange Commission
or with the securities administrator of any state; (v) that the Shares are being sold pursuant to an exemption from such registration
requirements; and (vi) the Shares are “restricted securities” that will bear a restrictive legend prohibiting their
further transfer without registration or any exemption therefrom.

 

Section
3.4 Brokers and Finders. Each Buyer represents and warrants that he/she/it has made no agreements involving any fees
of any type that relate to this Agreement and that would involve Seller, including but not limited to broker’s fee, finder’s
fees or any similar compensation arrangement.

 

Section
3.5 Due Diligence Materials Provided. Each Buyer acknowledges that Seller has only recently become the controlling
shareholder of the Company and has obtained control of the Company through court process which, by its nature, provides Seller
with only very limited information regarding the Company, its history, its financial condition and any potential debts, obligations,
liabilities or other claims. Each Buyer understands that there may be significant obligations, claims or other obligations against
the Company of which Seller is unaware that would make the Company unsuitable for the business operations therein contemplated
by Buyer, and each Buyer expressly assumes such risk.

 

ARTICLE
IV 

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

As
an inducement to and to obtain the reliance of Buyers, the Company represents and warrants to Buyers that each of the following
are true, correct, and complete as of the Effective Date and will be correct and complete as of the Closing. All references in
this Agreement to “knowledge of the Company” shall mean the actual knowledge, after reasonable investigation,
of the Company, its officers and directors and controlling shareholder.

 

    4

     

    

 

Section
4.1 Organization. The Company is a Nevada corporation duly organized, validly existing, and in good standing under
the laws of Nevada, has all necessary corporate authority and powers, governmental licenses, authorizations, consents and approvals
to carry on its business as presently conducted and to own, hold and operate its properties and assets as now owned, and is duly
qualified to do business and is in good standing in the state of Nevada. The Company is duly qualified, licensed or domesticated
as a foreign corporation in good standing in each jurisdiction wherein the nature of its activities or its properties owned, held
or operated makes such qualification, licensing or domestication necessary, except where the failure to be so duly qualified,
licensed or domesticated and in good standing would not have a Material Adverse Effect. Schedule 4.1 sets forth a true,
correct and complete list of the Company’s jurisdiction of organization and each other jurisdiction in which the Company
presently conducts its business or owns, holds and operates its properties and assets. The Company is a reporting company under
the Securities Exchange Act of 1934 (the “Exchange Act”) pursuant to SEC rules and regulations. The shares
of Common Stock of The Company are currently quoted on the OTC Pink market of the OTC Markets Group under the symbol “GSHN”.
“Material Adverse Effect” means, any change, effect or circumstance which, individually or in the aggregate,
would reasonably be expected to: (a) have a material adverse effect on the business, assets, financial condition or results of
operations of The Company, as the case may be, in each case taken as a whole; (b) materially impair the ability of The Company,
as the case may be, to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from:
(i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, (ii) changes in the United
States securities markets generally, (iii) changes in general economic, currency exchange rate, political or regulatory conditions
in industries in which The Company, as the case may be, operates, (iv) any changes in applicable laws or accounting rules or principles,
including changes in GAAP, (v) acts of war, sabotage or terrorism, military actions or the escalation thereof; or (c) that would
prohibit or otherwise materially interfere with the ability of any party to this Agreement to perform any of its obligations under
this Agreement in any material respect.

 

Section
4.2 Subsidiaries. Except as disclosed in Schedule 4.2, the Company does not own, directly or indirectly, any
equity or other ownership interest in any corporation, partnership, joint venture or other entity or enterprise.

 

Section
4.3 Organizational Documents. True, correct and complete copies of the Organizational Documents of the Company have
been delivered to Buyers prior to the execution of this Agreement, and no action has been taken to amend or repeal such Organizational
Documents since such date of delivery. The Company is not in violation or breach of any of the provisions of its Organizational
Documents. “Organizational Documents” means, the Company’s certificate of incorporation and bylaws.

 

Section
4.4 Capitalization and Related Matters.

 

(a)
The authorized capital stock of the Company consists of 600,000,000 shares of Common Stock authorized, par value $0.0001per share,
of which 29,018,750 shares of Common Stock are issued and outstanding and 200,000,000 shares of Preferred Stock, par value $0.0001
per share, of which 30,000,000 shares of Preferred Stock are issued and outstanding. All issued and outstanding shares immediately
prior to the Closing are duly authorized, validly issued, fully paid and non-assessable, free of liens, encumbrances, options,
restrictions and legal or equitable rights of others not a party to this Agreement. There are no outstanding options, warrants,
purchase agreements, participation agreements, subscription rights, conversion rights, exchange rights or other securities or
contracts that could require The Company to issue, sell or otherwise cause to become outstanding any of its authorized but unissued
shares of capital stock or any securities convertible into, exchangeable for or carrying a right or option to purchase shares
of capital stock or to create, authorize, issue, sell or otherwise cause to become outstanding any new class of capital stock.

 

(b)
No Redemption Requirements. There are no outstanding contractual obligations (contingent or otherwise) of the Company to
retire, repurchase, redeem or otherwise acquire any outstanding shares of capital stock of, or other ownership interests in the
Company or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise) in any other
Person.

 

    5

     

    

 

Section
4.5 No Conflict, Authority. The execution of this Agreement and the consummation of the
transactions contemplated by this Agreement will not result in contravene or conflict with or the material breach of any term
or provision of, or constitute an event of default under, any material debt instrument, which may include an indenture, mortgage,
deed of trust or other contract, agreement or instrument to which the Company is a party , nor result in contravene, conflict
with or a violation of, any Law or Order to which the Company is a party. The Company has full power, authority and legal right
and has taken all action required by law or otherwise to authorize the execution and delivery of this Agreement.

 

Section
4.6 SEC Reports; Financial Statements. Except as set forth on Schedule 4.6, the Company has filed all SEC Reports
for the three (3) years preceding the date hereof (or such shorter period as the Company was required by law to file such material).
As of their respective dates, the SEC Reports and any registration statements filed under the Securities Act (the “Registration
Statements”) complied in all material respects with the requirements of the Exchange Act and the Securities Act, as
applicable, and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports or Registration
Statements, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
All Material Contracts to which the Company is a party or to which the property or assets of the Company are subject have been
appropriately filed as exhibits to the SEC Reports and the Registration Statements as and to the extent required under the Exchange
Act and the Securities Act, as applicable. The financial statements of the Company included in the Registration Statement and
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing, were prepared in accordance with GAAP applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto, or, in the case of unaudited statements as permitted by
Form 10-Q of the Commission), and fairly present in all material respects (subject in the case of unaudited statements, to normal,
recurring audit adjustments) the financial position of the Company as at the dates thereof and the results of its operations and
cash flows for the periods then ended. The disclosure set forth in the SEC Reports and Registration Statements regarding the Company’s
business is current and complete and accurately reflects operations of the Company, as it exists as of the date hereof, except
as has not had and would not reasonably be expected to have a Material Adverse Effect on the Company.

 

Section
4.7 Filings with Government Agencies. The Company files annual and quarterly reports with the SEC and is current in
all filings that might be required and is current in their filings and reporting to the state of Nevada. Upon the purchase of
the Shares by Buyers, Buyers will have the full responsibility for filing any and all documents required by the SEC and/or any
other government agency that may be required. The Company will supply Buyers with all information that is currently available
for the Company.

 

Section
4.8 Liabilities. Except as set forth on Schedule 4.8, in the SEC Reports, the Company has no debt, obligation
or liability of any nature, whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, arising
out of any transaction entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except
to the extent set forth on or reserved against on the Company’s Balance Sheet. The Company has not incurred any liabilities
or obligations under agreements entered into, in the usual and ordinary course of business since March 9, 2015. It is understood
and agreed that the purchase of the Shares is predicated on the Company not having any debt at Closing, and the Company will not,
as of Closing, have any debt other than as set forth on Schedule 4.8, which is to be paid at Closing. The Company is not
aware of any pending, threatened or asserted claims, lawsuits or contingencies involving the Company or its shares. To the Knowledge
of the Company, there is no dispute of any kind between the Company and any third party, and to the Company’s Knowledge,
no such dispute will exist at the Closing of this transaction and at the Closing, the Company will be free from any and all debts.

 

    6

     

    

 

Section
4.9 Tax Returns and Audits.

 

(a)
Tax Returns. The Company has filed all outstanding federal or state tax returns prior to the Closing. No Governmental Authority
in any jurisdiction has made a claim, assertion or threat to the Company that the Company is or may be subject to taxation by
such jurisdiction; there are no Liens with respect to taxes on the Company’s property or assets other than Permitted Liens;
and there are no tax rulings, requests for rulings, or closing agreements relating to the Company for any period (or portion of
a period) that would affect any period after the date hereof.

 

(b)
No Adjustments, Changes. Neither the Company nor any other person on behalf of the Company (a) has executed or entered
into a closing agreement pursuant to Section 7121 of the Code or any predecessor provision thereof or any similar provision of
state, local or foreign law; or (b) has agreed to or is required to make any adjustments pursuant to Section 481(a) of the Code
or any similar provision of state, local or foreign law.

 

(c)
No Disputes. To the Company’s Knowledge there is no pending audit, examination, investigation, dispute, proceeding
or claim with respect to any taxes of the Company, nor is any such claim or dispute pending or contemplated.

 

(d)
Not a U.S. Real Property Holding Corporation. The Company is not and has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code at any time during the applicable period specified in Section 897(c)(1)(A)(ii)
of the Code.

 

(e)
No Tax Allocation, Sharing. The Company is not and has not been a party to any tax allocation or sharing agreement.

 

(f)
No Other Arrangements. The Company is not a party to any agreement, contract or arrangement for services that would result,
individually or in the aggregate, in the payment of any amount that would not be deductible by reason of Section 162(m),
280G or 404 of the Code. The Company is not a “consenting corporation” within the meaning of Section 341(f) of the
Code. The Company does not have any “tax-exempt bond financed property” or “tax-exempt use property” within
the meaning of Section 168(g) or (h), respectively of the Code. The Company does not have any outstanding closing agreement, ruling
request, requests for consent to change a method of accounting, subpoena or request for information to or from a Governmental
Authority in connection with any tax matter. During the last two years, the Company has not engaged in any exchange with a related
party (within the meaning of Section 1031(f) of the Code) under which gain realized was not recognized by reason of Section 1031
of the Code. The Company is not a party to any reportable transaction within the meaning of Treasury Regulation Section 1.6011-4.

 

    7

     

    

 

Section
4.10 Material Assets. The financial statements of the Company set forth in the SEC Reports reflect the material properties
and assets (real and personal) owned or leased by the Company.

 

Section
4.11 Litigation; Orders. There is no proceeding (whether Federal, state, local or foreign) pending or, to the Knowledge
of the Company, threatened against or affecting the Company or any of the Company’s properties, assets, business or employees.
To the Knowledge of the Company, there is no fact that might result in or from the basis for any such proceeding. The Company
is not subject to any orders.

 

Section
4.12 No Brokers or Finders. Except as disclosed in Schedule 4.12, no person has, or as a result of the transactions
contemplated herein will have, any right or valid claim against the Company for any commission, fee or other compensation as a
finder or broker, or in any similar capacity, and after the Closing, the Company will indemnify and hold Buyer harmless against
any liability or expense arising out of, or in connection with, any such claim.

 

Section
4.13 Contracts, Leases and Assets. The Company has provided to Buyers, prior to the date of this Agreement, true, correct
and complete copies of each written contract which Buyers have requested from it and to which the Company is a party, including
each amendment, supplement and modification thereto. No person holds a power of attorney from the Company.

 

Section
4.14 No Defaults. The Company is not in material breach or material default of any Material Contract to which it is
a party and, to the Knowledge of the Company, no other party to any Material Contract to which the Company is a party is in material
breach or material default thereof, except as has not had a Material Adverse Effect on the Company. To the Company’s Knowledge,
no event has occurred or circumstance exists that (with or without notice or lapse of time) would (a) contravene, conflict with
or result in a violation or breach of, or become a material default or material event of default under, any provision of any Material
Contract to which the Company is a party, or (b) permit the Company or any other person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Material Contract to
which the Company is a party. The Company has not received notice of the pending or threatened cancellation, revocation or termination
of any Material Contract to which it is a party. There are no renegotiations of, or attempts to renegotiate, or outstanding rights
to renegotiate any material terms of any Material Contract to which the Company is a party. “Material Contract”
means any contract to which the Company is a party that: (i) involves aggregate annual revenue or payments in excess of $25,000
per year; (ii) that is for the purchase, sale or lease of real property; (iii) that involves the Company’s receipt of goods
or services in excess of $25,000 per year, without respect to dollar amounts, or (iv) is an employment agreement involving annual
base salary payments in excess of $80,000.

 

Section
4.15 Employees.

 

(a)
Except as set forth on Schedule 4.15(a), the Company has no employees, independent contractors or other Persons providing
services to them. Except as would not have a Material Adverse Effect, the Company is in full compliance with all Laws regarding
employment, wages, hours, benefits, equal opportunity, collective bargaining, the payment of Social Security and other taxes,
and occupational safety and health. The Company is not liable for the payment of any compensation, damages, taxes, fines, penalties
or other amounts, however designated, for failure to comply with any of the foregoing Laws.

 

    8

     

    

 

(b)
No director, officer or employee of the Company is a party to, or is otherwise bound by, any contract (including any confidentiality,
non-competition or proprietary rights agreement) with any other person that in any way adversely affects or will materially affect
(a) the performance of his or her duties as a director, officer or employee of the Company, or (b) the ability of the Company
to conduct its business. Except as set forth on Schedule 4.15(b), each employee of the Company is employed on an at-will
basis and the Company does not have any contract with any of its employees which would interfere with its ability to discharge
its employees.

 

Section
4.16 Compliance with Laws. The business and operations of the Company have been and are being conducted materially
in accordance with all applicable Laws and Orders. the Company has not received notice of any violation (or any Proceeding involving
an allegation of any violation) of any applicable Law or Order by or affecting the Company and, to the Knowledge of the Company,
no proceeding involving an allegation of violation of any applicable Law or Order is threatened or contemplated. To the Knowledge
of the Company, it has complied with all federal and state securities laws in connection with the offer, sale and distribution
of its securities. At the time that the Company sold the Shares to Seller, the Company was entitled to use the exemptions provided
by the Securities Act relative to the sale of its shares.

 

Section
4.17 Governmental Inquiries. The Company has provided to Buyers a copy of each material written inspection report,
questionnaire, inquiry, demand or request for information received by the Company from any Governmental Authority, and the Company’s
response thereto, and each material written statement, report or other document filed by the Company with any Governmental Authority.

 

Section
4.18 Bank Accounts and Safe Deposit Boxes. Except as set forth on Schedule 4.18, the Company does not have any
bank or other deposit or financial account, nor does the Company have any lock boxes or safety deposit boxes.

 

Section
4.19 Intellectual Property. The Company does not own, use or license any intellectual property in its business as presently
conducted.

 

Section
4.20 Stock Option Plans; Employee Benefits.

 

(a)
the Company has no stock option plans providing for the grant by the Company of stock options to directors, officers or employees.

 

(b)
the Company has no employee benefit plans or arrangements covering their present and former employees or providing benefits to
such persons in respect of services provided the Company.

 

    9

     

    

 

(c)
Neither the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to
each director, officer, employee and consultant of the Company, will result in (i) any payment (including, without limitation,
severance, unemployment compensation or bonus payments) becoming due from the Company (except as otherwise contemplated by this
Agreement), (ii) any increase in the amount of compensation or benefits payable to any such individual, or (iii) any acceleration
of the vesting or timing of payment of compensation payable to any such individual. No agreement, arrangement or other contract
of the Company provides benefits or payments contingent upon, triggered by, or increased as a result of a change in the ownership
or effective control of the Company.

 

Section
4.21 Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all U.S. and non-U.S. jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively,
the “Money Laundering Laws”) and no Proceeding involving the Company with respect to the Money Laundering Laws
is pending or, to the Knowledge of the Company, threatened.

 

Section
4.22 Bad Actor Representation. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the this transaction, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an "Issuer Covered
Person" and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications
described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a
Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any
Issuer Covered Person is subject to a Disqualification Event.

 

ARTICLE
V

EXCHANGE
PROCEDURE AND OTHER CONSIDERATION

 

Section
5.1 Delivery of Seller and the Company. On the Closing Date, Seller and the Company, as applicable, shall deliver the
following to Buyers, conditioned upon (i) all of Buyers’ representations and warranties set forth in Article III, above,
shall be true and correct as of the Closing, and (ii) each Buyer’s performance of its delivery obligations in Section
5.2, below:

 

		(a)	The
Shares together with a duly executed copy of the unanimous written consent of the board of directors of the Company or other instruction
required for the transfer of the Shares to Buyers. If necessary, after the Closing, Seller shall also execute such other certificates
or other documents reasonably necessary to transfer the Shares to Buyers. If the Shares are to be transferred electronically in
book form, then irrevocable instructions from Seller to the Escrow Agent and/or the Company’s transfer agent directing the
transfer of the Shares to Buyers.

 

		(b)	Written
consent from the Company’s board of directors approving this Agreement and the transaction contemplated herein and approving
the appointing Buyers’ designee to the board of directors, effective upon Closing.

 

    10

     

    

 

		(c)	Written
resignation from all members of the Company’s board of directors excepting only Buyers’ designee, effective upon Closing.

 

		(d)	Certificate
of good standing of the Company dated as of the Closing Date.

 

		(e)	A
written resignation from all officers of the Company, effective upon Closing.

 

		(f)	A
shareholder list dated as of the Closing Date issued by the transfer agent of the Company.

 

		(g)	A
written waiver and release from Seller in favor of the Company of any debt obligation owed to Seller.

 

Section
5.2 Buyer’s Delivery. On the Closing Date, Buyers shall deliver the following to Seller, conditioned upon (i)
all of Seller’s representations and warranties set forth in Article II, above, shall be true and correct as of the Closing,
and (ii) each Buyer’s performance of its delivery obligations in Section 5.1, above:

 

		(a)	Purchase
Price of $250,000 in immediately available good funds.

 

		(b)	A
written consent to serve on the Company’s board of directors by Buyers’ nominee, effective upon Closing, including
the nominee’s mailing address.

 

		(c)	A
written consent from Buyers’ nominee to serve as the President and as other officers of the Company, effective upon Closing,
including the nominee’s mailing address.

 

		(d)	A
written acceptance from a registered agent appointed by Buyers for the Company, effective upon Closing, together with the new
registered office for the Company which registered office shall be a street address and not a post-office box or similar mail
drop service.

 

Section
5.3 Buyers’ Post-Closing Delivery. Upon the receipt of FINRA approval of the by the Company of its Stock Split,
Buyers shall instruct the Escrow Agent to release the remaining Purchase Price of $25,000 to Seller.

 

Section
5.4 SEC Report.

 

(a)
From and after the Closing Date until the filing of the Immediate Report with the SEC, Seller shall timely collect and deliver
necessary information of the Company’s business or operation prior to and as of the Closing Date for the purpose of preparing
the Immediate Report and shall use its best efforts to cooperate with the Company and the Company’s auditor in connection
with the auditor’s review on the Immediate Report.

 

(b)
From and after the Closing Date, in the event the SEC notifies the Company of its intent to review any SEC Report filed prior
to the Closing Date or the Company receives any oral or written comments from the SEC with respect to any SEC Report filed prior
to the Closing Date or any disclosure regarding the Company business or operations, as in existence through the date hereof in
any SEC Report or registration statement filed after the Closing Date, Buyers shall promptly notify Seller and Seller shall make
commercially reasonable efforts to cooperate with Buyers in connection with such review and response.

 

    11

     

    

 

Section
5.5 Assistance with Post-Closing Record Requests. It is understood that certain corporate records that were generated
during the normal course of business of the Company have not been delivered to Buyers before the Closing Date and Seller agrees
to use its best efforts to obtain such records upon the reasonable request of the Purchaser after the Closing Date. In the event
that such records are not timely delivered to Buyers upon their request, Seller shall indemnify and hold Buyers harmless against
any loss, liability or expense arising out of, or in connection with the failure of such delivery.

 

Section
5.6 Public Announcements. Buyers shall cause the Company to file with the Commission a Current Report on Form 8-K describing
the material terms of the transactions contemplated hereby as soon as practicable following the Closing Date but in no event more
than four (4) business days following the Closing Date. Prior to the Closing Date, Buyers and the Company shall consult with each
other in issuing the Form 8-K and any other press releases or otherwise making public statements or filings and other communications
with the Commission or any regulatory agency or stock market or trading facility with respect to the transactions contemplated
hereby and none of the parties shall issue any such press release or otherwise make any such public statement, filings or other
communications without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed,
except that no prior consent shall be required if such disclosure is required by Law, or the rules of any securities exchange
or self-regulatory organization, in which case the disclosing party shall provide the other parties with prior notice of no less
than three (3) calendar days, of such public statement, filing or other communication and shall incorporate into such public statement,
filing or other communication the reasonable comments of the other parties.

 

Section
5.7 Assistance with Post-Closing SEC Reports and Inquiries. Upon the reasonable request of Buyers, after the Closing
Date, Seller shall use reasonable best efforts to provide such information available to them, including information, filings,
reports, financial statements or other circumstances of the Company occurring, reported or filed prior to the Closing, as may
be necessary or required by the Company for the preparation of the post-Closing Date reports that the Company is required to file
with the Commission to remain in compliance and current with its reporting requirements under the Exchange Act, or filings required
to address and resolve matters as may relate to the period prior to the Closing and any Commission comments relating thereto or
any Commission inquiry thereof.

 

ARTICLE
VI

REMEDIES

 

Section
6.1 Indemnification is Exclusive Remedy. This Agreement will be governed by the laws of the State of Nevada without
regard to conflicts of laws principles. Any controversy or claim arising out of, or relating to, this Agreement, or the making,
performance, or interpretation thereof, shall be adjudicated by the Courts of Nevada and may only be brought by a party if it
is permitted pursuant to and is brought in accordance with the provisions of this Article VI. No party may bring any claim for
breach, loss or damage arising out of, or relating to, this Agreement, or the making, performance, or interpretation thereof,
unless the party bringing such claim is entitled to indemnification for such breach, loss or damage pursuant to Article VI of
this Agreement.

 

    12

     

    

 

Section
6.2 Indemnification.

 

(a)
Indemnification by Seller. From and after the Closing, Seller agrees to indemnify the Purchasers against all actual losses,
damages and expenses (collectively, “Losses”) actually incurred by Buyers, caused by (i) any breach of any
representation or warranty made by Seller in Article III of this Agreement or made by the Company in Article IV
of this Agreement; and (ii) any breach of any covenant or obligation of Seller in this Agreement or any documents required to
be performed by Seller after the Closing Date. The representations and warranties contained in this Agreement (including all schedules
and exhibits hereto) shall survive the Closing for a period of two (2) months. Notwithstanding any other provision of this Agreement
Seller’s aggregate liability in respect of all claims that the Company and/or any and all Purchasers may have against it
pursuant to this Agreement will not exceed that amount of the Purchase Price.

 

Section
6.3 Indemnification Procedures.

 

(a)
Except to the extent set forth in this Section 6.3, a Party will not have any liability under the indemnity provisions
of this Agreement with respect to a particular matter unless a written notice (a “Claim Notice”) setting forth
in reasonable detail: (i) the breach or other matter giving rise to such indemnification claim which is asserted, (ii) the estimated
amount, if reasonably practicable, of the Losses that have been incurred by the Indemnified Party in connection therewith, and
(iii) copies of any notices, claims or complaints sent or filed by the claimant, has been given to the Indemnifying Party promptly,
but in any event within thirty (30) days, after the Indemnified Party becomes aware of such claim (including the assertion or
commencement of any third-party claim). Notwithstanding the preceding sentence, failure of the Indemnified Party to give timely
notice hereunder shall not release the Indemnifying Party from its obligations under this Section 6.3, except to the extent
the Indemnifying Party is actually prejudiced by such failure to give notice. With respect to Losses described in Section 6.2(a),
Seller whose breach caused the Loss shall be the “Indemnifying Party” and the applicable Purchaser who incurred
such Loss, shall be the “Indemnified Party”. With respect to Losses described in Section 6.2(b), the
Purchaser whose breach caused the Loss shall be the “Indemnifying Party” and Seller or its affiliate or Representative
who incurred such Loss, as applicable, shall be the “Indemnified Party”.

 

(b)
Upon receipt of notice of any claim, suit, action or legal proceeding by a third party for which indemnification might be claimed
by an Indemnified Party (a “Third-Party Claim”), the Indemnifying Party shall be entitled to defend, contest
or otherwise protect against the Third-Party Claim at its own cost and expense, by providing written notice to the Indemnified
Party of such election within thirty (30) days after the Indemnified Party receives a Claim Notice with respect to such Third-Party
Claim, and the Indemnified Party must cooperate in any such defense or other action; provided, that the Indemnifying Party may
not control the defense of any Third-Party Claim that is criminal in nature or that seeks non-monetary equitable relief that would
reasonably be expected to be material to the Indemnified Party if adversely determined. The Indemnified Party shall have the right,
but not the obligation, to participate at its own expense in defense thereof by counsel of its own choosing, but the Indemnifying
Party shall be entitled to control the defense unless the Indemnifying Party does not elect to assume defense of the Third-Party
Claim, is not entitled under this Section 6.3 to control the defense of the Third-Party Claim or fails to competently conduct
the defense of such Third-Party Claim. If the Indemnifying Party undertakes the defense of a Third-Party Claim, the Indemnified
Party shall not, so long as the Indemnifying Party competently conducts the defense thereof, be entitled to recover from the Indemnifying
Party any legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof, except
(i) where separate representation is necessary, in the reasonable opinion of counsel to the Indemnified Party, to avoid a conflict
of interest that cannot be waived such that representation of both parties by the same counsel would violate processional standards
of conduct for attorneys in the jurisdiction where the Indemnifying Party’s counsel is practicing on behalf of the Indemnifying
Party, or (ii) reasonable costs of investigation undertaken by the Indemnified Party with the prior written consent of the Indemnifying
Party. If the Indemnifying Party assumes the defense of a Third-Party Claim, no compromise or settlement of the Third-Party Claim
may be effected by the Indemnifying Party without the Indemnified Party’s consent (which consent shall not be unreasonably
withheld, conditioned or delayed). In the event the Indemnifying Party does not elect to assume control of the Third-Party Claim
or otherwise is not entitled to control such Third-Party Claim in accordance with this Section 6.3.

 

    13

     

    

 

ARTICLE
VII

MISCELLANEOUS

 

Section
7.1 Notification of OTC Markets, FINRA and Nevada Secretary of State. Buyers shall, within three (3) business days
following the Closing Date take the following actions:

 

		(a)	Notify
OTC Markets, both via certified letter and by access to the website section of www.otcmarkets.com established for this purpose,
of the new address and resident agent for the Company, the new director(s) of the Company and the new officers of the Company,
including its President. Buyers shall promptly pay any fees associated with this notice.

 

		(b)	Notify
FINRA corporate actions office, as required by its rules and procedures, of the change in control of the Company, the new address
and resident agent for the Company, the new director(s) of the Company and the new officers of the Company, including its President,
and the new controlling shareholder(s) of the Company. Buyers shall promptly pay any fees associated with this notice.

 

		(c)	Notify
the Nevada Secretary of State, by filing an amended annual list of officers and directors and by filing a change in resident agent
notification, of the new address and resident agent for the Company, the new director(s) of the Company and the new officers of
the Company, including its President. Buyers shall promptly pay any fees associated with these filings.

 

		(d)	Confirm
to Seller in writing via certified letter to Seller and by providing copies of the notices and filings provided to OTC Markets,
FINRA and the Nevada Secretary of State, that Seller has performed its obligations pursuant to Sections 7.1(a), (b)
and (c), above.

 

		(e)	Should
Buyers fail to timely perform according to this Section 5.1, Buyers expressly authorizes Seller to provide the notices
and filings contemplated by this Section 5.1 and Buyers agrees to promptly reimburse Seller for all expenses related thereto,
including filing fees and attorney’s fees actually incurred.

 

Section
7.2 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally
delivered to it or sent by overnight carrier or USPS via registered mail or certified mail, postage prepaid, addressed to the
addresses set forth in this Agreement or such other addresses as shall be furnished in writing by any party in the manner for
giving notices hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered,
mailed or sent. Any party with a non-US address may be provided notice via email, which notice shall be effective when sent to
the party or its representative.

 

    14

     

    

 

Section
7.3 Attorneys' Fees. Except as expressly provided herein, each party will be responsible for their own attorney’s
fees.

 

Section
7.4 Confidentiality. Each party hereto agrees with the other party that, unless and until the transactions contemplated
by this Agreement have been consummated, they and their representatives will hold in strict confidence (a) the existence and terms
of this Agreement and the transactions contemplated hereby, and (b) all data and information obtained with respect to another
party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal
inspection, of such other party, and shall not use such data or information or disclose the same to others, except: (i) to the
extent such data is a matter of public knowledge or is required by law to be published; and (ii) to the extent that such data
or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In addition,
no party shall issue any press release or other public announcement concerning this Agreement, its existence or the transactions
contemplated by this Agreement, without the prior written approval of the remaining parties.

 

Section
7.5 Entire Agreement. This Agreement represents the entire agreement between the parties relating to the subject matter
hereof. This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof.
There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set
forth herein. This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.

 

Section
7.6 Survival; Termination; Limitation of Seller’s Liability. The representations, warranties and covenants of
the respective parties shall survive the Closing and the consummation of the transactions herein contemplated two (2) months after
the Closing Date. In no instance shall the liability of Seller (including, without limitation its owners or managers) arising
hereunder or by reason of or related to any of the transactions contemplated hereby exceed the amounts actually paid by Buyers
to Seller under this Agreement.

 

Section
7.7 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original
and all of which taken together shall be but a single instrument.

 

Section
7.8 Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy,
whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance
of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter
occurring or existing. At any time prior to the Closing, this Agreement may be amended by a writing signed by all parties hereto,
with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance
hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

 

Section
7.9 Expenses. Each party herein shall bear all of their respective costs and expenses incurred in connection with the
negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation thereof.

 

    15

     

    

 

Section
7.10 Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience
of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.

 

Section
7.11 Benefit. This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their
permitted assigns hereunder. This Agreement shall not be assigned by any party without the prior written consent of the other
party. This contract is between Seller and Buyers. No person or entity shall be deemed to be a third party beneficiary of this
Agreement.

 

Section
7.12 Severability. In the event that any particular provision or provisions of this Agreement or the other agreements
contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order
or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue
in full force and effect and be binding upon the respective parties hereto.

 

Section
7.13 No Strict Construction. The language of this Agreement shall be construed as a whole, according to its fair meaning
and intendment, and not strictly for or against either party hereto, regardless of who drafted or was principally responsible
for drafting the Agreement or terms or conditions hereof.

 

Section
7.14 Execution Knowing and Voluntary. In executing this Agreement, the parties severally acknowledge and represent
that each: (a) has fully and carefully read and considered this Agreement; and (b) has been or has had the opportunity to be fully
apprized by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof.

 

Section
7.15 Further Assurances, Cooperation. Each party shall, upon reasonable request by the other party, execute and deliver
any additional documents necessary or desirable to complete sale contemplated by this agreement. The parties hereto agree to cooperate
and use their respective best efforts to consummate the transactions contemplated by this agreement.

 

Section
7.16 Governing Law. This Agreement shall be construed (both as to validity and performance) and enforced in accordance
with and governed by the laws of the state of Nevada applicable to agreements made and to be performed wholly within such jurisdiction
and without regard to its conflicts of laws principles. Any dispute arising out of this Agreement shall be resolved in the state
or federal courts sited in Clark County, Nevada to the exclusion of all other venues. The prevailing party in any such action
shall be entitled to an award of costs and its reasonable attorney’s fees.

 

Section
7.17 Waiver of Jury Trial. ALL PARTIES HEREBY WAIVE THEIR RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING
UNDER THIS AGREEMENT OR ANY DOCUMENT OR INSTRUMENT DELIVERED HEREUNDER.

 

    16

     

    

 

Section
7.18 Certain Definitions. For purposes of this Agreement, the following capitalized terms have the following meanings.
Other capitalized terms are defined elsewhere in this Agreement.

 

		(a)	“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

		(b)	“Governmental
Authority” means any federal, state, local or foreign government or political subdivision or union thereof (including
the European Union), or any department, agency or instrumentality or fully-owned or partially-owned enterprise of such government
or political subdivision or union, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any
arbitrator, court or tribunal of competent jurisdiction.

 

		(c)	“Lien”
means any mortgage, pledge, security interest, attachment, right of first refusal, option, proxy, voting trust, encumbrance, lien
or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), restriction
(whether on voting, sale, transfer, disposition or otherwise), any subordination arrangement in favor of another Person, any filing
or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar Law.

 

		(d)	“Order”
means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any
court, administrative agency, or other Governmental Authority.

 

		(e)	“Permitted
                                         Liens” means (a) Liens for taxes or assessments
                                         and similar governmental charges or levies, which either are (i) not delinquent or (ii)
                                         being contested in good faith and by appropriate proceedings, and adequate reserves have
                                         been established with respect thereto, (b) other Liens imposed by operation of Law arising
                                         in the ordinary course of business for amounts which are not due and payable and as would
                                         not in the aggregate materially adversely affect the value of, or materially adversely
                                         interfere with the use of, the property subject thereto, (c) Liens incurred or deposits
                                         made in the ordinary course of business in connection with social security, (d) Liens
                                         on goods in transit incurred pursuant to documentary letters of credit, in each case
                                         arising in the ordinary course of business, or (v) Liens arising under this Agreement
                                         or any agreement attached hereto or made a part hereof.

 

		(f)	“Stock
                                         Spit” mean a revere stock split of the existing
                                         issued and outstanding shares of Common Stock of the Company to be effected by the Company
                                         following the Closing.

 

[remainder
of this page intentionally blank, signature page to follow]

 

    17

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	Seller

        

        

        

        

        
	 	

        Buyers

        

	 	 	 
	Custodian
    Ventures LLC.	 	Pengfei
    Zhou
	 	 	 
	By:	/s/
    David Lazar	 	/s/
    Pengfei Zhou
	Name:
    	David
    Lazar                         	 	 
	Title:
    	CEO	 	 
	 	 	 	 
	Address
    of Seller for Notices:	 	 
	 	 	 
	3445
    Lawrence Ave, Oceanside, New York, 11572.	 	Zhaowei
    Zhang
	 	 	 
	Email:
    David@activistinvestingllc.com	 	/s/
    Zhaowei Zhang
	 	 	 
	With
    a copy to (which shall not constitute notice):	 	 
	 	 	 
	Company	 	Address
    of Buyers for Notices:
	 	 	 
	Gushen
    Inc.	 	Room
    302, Shizhi Commercial Hotel,
	 	 	West
    Hubin District, Sanmenxia City
	By:
    	/s/
    David Lazar	 	Henan
    Province, China
	Name
    : 	David
    Lazar	 	Email:
    N/A____________________
	Title:
    	President,
    CEO, and CFO	 	 
	 

        Address
        of the Company for Notices:

         

        (prior
        to the Closing)

        3445
        Lawrence Ave, Oceanside, New York, 11572.

         

        Email:
        David@activistinvestingllc.com

        
	 	 

        (upon
        and following the Closing)

         

        Room
        302, Shizhi Commercial Hotel, 

        West
        Hubin District, Sanmenxia City

        Henan
        Province, China 

        Email:
        N/A____________________

 

    18

     

    

 

Appendix
A

Allocation
Between Buyers

 

	Name of Buyer	 	Purchase Price	 	 	Allocation of Shares of Series A Preferred Stock
		 	 	Upon Closing	 	 	 	Upon Stock Split	 	 	 
	Pengfei Zhou	 	$	375,000	 	 	$	18,750	 	 	22,500,000 Shares
	Zhaowei Zhang	 	$	125,000	 	 	$	6,250	 	 	7,500,000 Shares

 

 

19vtvt-ex101_7.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT, dated as of December 10, 2020, by and between vTv Therapeutics LLC, a Delaware limited liability company (the “Company”), and Stephen L. Holcombe (the “Executive”), and for certain purposes specified herein, only, vTv Therapeutics Inc., a Delaware corporation (“vTv”).

WHEREAS, the Company desires to continue to employ the Executive, and the Executive is willing to serve the Company for the period and upon such other terms and conditions of this Agreement.

NOW, THEREFORE, the Company and the Executive hereby agree as follows:

1.Employment, Duties and Acceptance.

1.1Employment, Duties.  The Company hereby employs the Executive for the Term (as defined in Section 2.1), to render exclusive and full-time services to the Company as President and Chief Executive Officer of the Company, and to perform such other duties consistent with such position as may be assigned to the Executive by the Board of Directors of the Company (the “Board”).  During the Term, the Executive shall report solely to the Board.

1.2Acceptance.  The Executive hereby accepts such employment and agrees to render the services described above.  During the Term, the Executive agrees to serve the Company faithfully and to the best of the Executive’s ability, to devote the Executive’s entire business time, energy and skill to such employment, and to use the Executive’s best efforts, skill and ability to promote the Company’s interests.  The Executive further agrees to accept election, and to serve during all or any part of the Term, as an officer or director of the Company and of any Subsidiary or Affiliate of the Company, without any compensation therefor other than that specified in this Agreement, if elected to any such position by the shareholders or by the Board of any Subsidiary or Affiliate, as the case may be.  The Executive shall not engage in any other business activity or serve in any industry, trade, professional, governmental or academic position during the Term, except as may be expressly approved in advance by the Board in writing or unless set forth on Annex A hereto. The Executive shall be permitted to serve on the board of an entity that does not compete with the Company, subject to the advance approval by the Board and the Executive shall also be permitted to engage in charitable, community or personal investment activities; provided, that, such activities and investments do not conflict with or interfere with the Executive’s obligations under this Agreement and that such investments are in compliance with the Company’s policies and procedures.

1.3Location.  The duties to be performed by the Executive hereunder shall be performed primarily at the offices of the Company in North Carolina or at such other permitted location, subject to reasonable travel requirements on behalf of the Company.  

 

 

2.Term of Employment; Certain Post-Term Benefits.

2.1The Term.  This Agreement and the term of the Executive’s employment under this Agreement (the “Term”) shall become effective as of December 10, 2020 (the “Effective Date”) and will continue until December 31, 2021 (the “Termination Date”), subject to earlier termination pursuant to Section 4.

2.2End-of-Term Provisions.  Prior to the end of the Term, the Company and the Executive shall meet to discuss whether the Term should be extended.  The Company shall have the right at any time, however, to give written notice of non-renewal of the Term.  In the event of non-renewal of the Term by the Company and the Executive’s employment is terminated by the Company after the end of the Term, other than (i) for Cause (as defined below) or (ii) due to death or Disability (as defined below), then such termination shall be treated as a termination without Cause and the NC Restricted Period (as such term is defined in Section 8 of this Agreement) shall be reduced to a period of one year post termination of employment (the “Reduced NC Restricted Period”).  During such Reduced NC Restricted Period, the Executive shall receive as severance pay, an amount equal to the greater of (A) 50% of the payments set forth in Sections 4.4(i) and 4.4(ii) or (B) severance and benefits in accordance with Company policy as in effect at that time, in each case payable in installments in accordance with the Company’s normal payroll practices, subject to Executive’s signing and not revoking the release of claims as set forth in Section 4.6.  If the Executive’s employment is terminated by the Company after the end of the Term (x) for Cause, the Executive will not be entitled to receive any severance or other benefits or (y) due to death or Disability, the Executive will receive severance and benefits in accordance with Company policy as in effect at that time.  If the Company is willing to extend the Term and the Executive does not agree to extend the Term, then upon termination of employment at or after the end of the Term, the NC Restricted Period shall not be reduced and the Executive shall not be entitled to receive any severance benefits with respect to such termination of employment.  For the avoidance of doubt, except for the potential reduction in the duration of the NC Restricted Period, this Section 2.2 does not otherwise modify the terms of Sections 6 through 12 of this Agreement (collectively, the “Restrictive Covenants”) and the Executive shall, notwithstanding the termination of his employment with the Company, continue to be bound by the obligations contained therein.

3.Compensation; Benefits; Equity.

3.1Salary.  As compensation for all services to be rendered pursuant to this Agreement during the Term, the Company agrees to pay the Executive a base salary, payable in accordance with the Company’s normal payroll practices, at the annual rate of not less than $450,000 less such deductions or amounts to be withheld as required by applicable law and regulations (the “Base Salary”).  In the event that the Board, from time to time, increases the Base Salary, such increased amount shall, from and after the effective date of the increase, constitute “Base Salary” for purposes of this Agreement.

2

 

3.2Incentive Compensation.

3.2.1Annual Cash Bonus.  Commencing with the 2021 fiscal year, the Executive shall be eligible to receive, to the extent earned based on individual and corporate performance as determined by the compensation committee of vTv (the “Compensation Committee”), an annual cash performance bonus (a “Cash Bonus”) in respect of each fiscal year that ends during the Term.  Executive’s Cash Bonus for each such fiscal year shall equal up to 50% of his Base Salary in effect at the time such performance is evaluated (the “Target Cash Bonus”), with greater or lesser amounts (including zero) paid based upon individual and corporate performance as determined by the Compensation Committee. Subject to the Executive’s continued employment at the end of each applicable fiscal year, the amount earned in respect of any Target Cash Bonus shall be determined by the Compensation Committee after the end of the fiscal year for which such Target Cash Bonus is granted and shall be paid to the Executive on or prior to March 15th of the following calendar year. Notwithstanding anything in this Agreement to the contrary, it is acknowledged and agreed that no Cash Bonus shall be required to be paid to Executive, if the Compensation Committee determines that the Company does not have sufficient cash liquidity to pay cash bonuses (after taking into account the Company’s current and projected future liabilities). 

3.2.2Annual Equity Bonus.  Commencing with fiscal year 2021, the Executive shall be eligible to receive, to the extent earned based on individual and corporate performance as determined by the Compensation Committee, an annual equity performance bonus (an “Equity Bonus”) in respect of each fiscal year that ends during the Term. The type of award shall be determined by the Compensation Committee in its sole discretion.  Subject to the Executive’s continued employment through the date of grant, the amount earned in respect of any Equity Bonus shall be determined by the Compensation Committee after the end of the fiscal year for which such Equity Bonus is granted and shall be granted to the Executive on or prior to March 15 of such following year.  Notwithstanding anything in this Agreement, the Compensation Committee may, in its sole discretion, provide for payment of the Equity Bonus in cash as opposed to equity or equity-based compensation, subject to similar vesting conditions.  With respect to each Equity Bonus, (i) with respect to the portion of such Equity Bonus that consists of options to purchase Class A Common Stock, par value $0.01 (the “Common Stock”), the exercise price per share of Common Stock subject thereto will equal the fair market value of one share of Common Stock on the date of grant, as determined by the Compensation Committee in its sole discretion, subject to applicable law and the terms of the vTv 2015 Omnibus Incentive Plan, as the same shall be in effect from time to time (the “vTv Plan”); (ii) subject to the Executive’s continued services hereunder, each such grant will vest and, if applicable, become exercisable with respect to 33.33% of the shares of Common Stock subject thereto on each of the first three anniversaries of the applicable grant date, and (iii) the award will have other customary terms and conditions as are consistent with the vTv Plan and with applicable law.

3

 

3.3Business Expenses.  The Company shall pay or reimburse the Executive for all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of the Executive’s services under this Agreement, upon presentation of expense statements or vouchers or such other supporting information as the Company customarily may require of its officers; provided, however, that the maximum amount available for such expenses during any period may be fixed in advance by the Board.

3.4Vacation.  During the Term, the Executive shall be entitled to a vacation period or periods of four (4) weeks during any calendar year taken in accordance with the vacation policy of the Company during each year of the Term.  

3.5Fringe Benefits.  During the Term, the Executive shall be entitled to all benefits for which the Executive shall be eligible under any qualified pension plan, 401(k) plan, group insurance or other so-called “fringe” benefit plan which the Company provides to its executive employees generally, which benefits may be amended, modified or terminated in the Company’s sole discretion.

4.Termination.

4.1Death.  If the Executive dies during the Term, the Term shall terminate forthwith upon the Executive’s death.  The Company shall pay to the Executive’s estate: (i) any Base Salary earned but not paid; (ii) a Pro Rata Cash Bonus (defined below), payable at the time and in the manner that Cash Bonuses are paid to other executives receiving such bonus payment; and (iii) Cash Bonus for the year prior to the year in which the Executive dies if at the time of death the Executive has earned a Cash Bonus payment for such prior year and has not yet been paid such Cash Bonus, which prior year Cash Bonus will be paid at the time and in the manner such prior year Cash Bonus is paid to other executives receiving such prior year Cash Bonus.  The Executive shall have no further rights to any compensation or any other benefits under this Agreement, except to the extent already earned and vested as of the day immediately prior to his death, or as is earned, vested, or accrued by virtue of his death.  “Pro Rata Cash Bonus” shall mean a pro-rata portion of the Cash Bonus granted to the Executive for the year in which the date of termination occurs equal to a fraction, the numerator of which is the number of calendar days during such year through (and including) the date of termination and the denominator of which is 365, with such pro-rata portion earned in an amount based on the degree to which the applicable performance goals are achieved for the entire year in which the date of termination occurs.

4.2Disability.  If, during the Term the Executive is unable to perform his duties hereunder due to a physical or mental incapacity for a period of 6 months within any 12 month period (hereinafter a “Disability”), the Company shall have the right at any time thereafter to terminate the Term upon sending written notice of termination to the Executive.  If the Company elects to terminate the Term by reason of Disability, the Company shall pay to the Executive promptly after the notice of termination: (i) any Base Salary earned but not paid; (ii) a Pro Rata Cash Bonus paid at the time and in the manner such Cash Bonus is paid to other executives receiving such 

4

 

bonus payment; and (iii) a Cash Bonus for the year prior to the year in which the Executive is terminated if at the time of termination the Executive has earned a Cash Bonus payment for such prior year and has not yet been paid such Cash Bonus, which prior year Cash Bonus will be paid at the time and in the manner such prior year Cash Bonus is paid to other executives receiving such prior year Annual Cash Bonus, in each case less any other benefits payable to the Executive under any disability plan provided for hereunder or otherwise furnished to the Executive by the Company. The Executive shall have no further rights to any compensation or any other benefits under this Agreement except to the extent already earned and vested as of the day immediately prior to his termination by reason of Disability, or as earned, vested, or accrued by virtue of his Disability.

4.3Cause.  The Company may at any time by written notice to the Executive terminate the Term for “Cause” (as defined below) and, upon such termination, this Agreement shall terminate and the Executive shall be entitled to receive no further amounts or benefits hereunder, except for any Base Salary earned but not paid prior to such termination.  For the purposes of this Agreement, “Cause” means: (i) continued neglect by the Executive of the Executive’s duties hereunder, (ii) continued incompetence or unsatisfactory attendance, (iii) conviction of any felony, (iv) violation of the rules, regulations, procedures or instructions relating to the conduct of employees, directors, officers and/or consultants of the Company, (v) willful misconduct by the Executive in connection with the performance of any material portion of the Executive’s duties hereunder, (vi) breach of fiduciary obligation owed to the Company or commission of any act of fraud, embezzlement, disloyalty or defalcation, or usurpation of a Company opportunity, (vii) breach of any provision of this Agreement, including any non-competition, non-solicitation and/or confidentiality provisions hereof, (viii) any act that has a material adverse effect upon the reputation of and/or the public confidence in the Company, (ix) failure to comply with a reasonable order, policy or rule that constitutes material insubordination, (x) engaging in any discriminatory or sexually harassing behavior, or (xi) using, possessing or being impaired by or under the influence of illegal drugs or the abuse of controlled substances or alcohol on the premises of the Company or any of its Subsidiaries or Affiliates or while working or representing the Company or any of its Subsidiaries or Affiliates.  A termination for Cause by the Company of any of the events described in clauses (i), (ii), (iv), (ix), (x) and (xi) shall only be effective on 15 days advance written notification, providing the Executive the opportunity to cure, if reasonably capable of cure within said 15-day period; provided, however, that no such notification is required if the Cause event is not reasonably capable of cure or the Board determines that its fiduciary obligation requires it to effect a termination of the Executive for Cause immediately.

4.4Termination by Company without Cause or by the Executive for Good Reason.  If the Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or by the Executive for Good Reason (as defined below), the Term shall terminate and the Executive shall receive: (i) as severance pay, an amount equal to one times the Base Salary payable in installments in accordance with the Company’s normal payroll practices, (ii) continuation for a 12-month period following the date of termination of group health plan benefits to 

5

 

the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular premium for such benefits shared in the same relative proportion by the Company and the Executive as in effect on the date of termination (provided that the Company shall not be required to pay any portion of the premium if such payment would result in penalty taxes imposed on the Company), (iii) a Pro Rata Cash Bonus (provided, that, if the Executive’s employment is terminated pursuant to this Section 4.4 on or within twelve (12) months following a Change-in-Control (as such term is defined in the vTv Plan), the Executive shall receive, instead of a Pro Rata Cash Bonus, payment of his Target Cash Bonus) paid at the time and in the manner such Cash Bonus is paid to other executives receiving such bonus payment, and (iv) a Cash Bonus for the year prior to the year in which the Executive is so terminated if at the time of termination the Executive has earned a Cash Bonus payment for such prior year and such Cash Bonus has not yet been paid, which prior year Cash Bonus will be paid at the time and in the manner such prior year Cash Bonus is paid to other executives receiving such prior year Cash Bonus.  The Executive shall have no further rights to any compensation or any other benefits under this Agreement.  For purposes of this Agreement, “Good Reason” means, without the advance written consent of the Executive: (i) a reduction in Base Salary, (ii) a material and continuing reduction in the Executive’s responsibilities or (iii) if on or during the 12 month period following a Change-in-Control, the Executive is required to relocate to a principal place of employment which increases his one way commute by more than 50 miles; provided, that, a termination by the Executive for Good Reason under clauses (i), (ii) or (iii) shall be effective only if the Executive provides the Company with written notice specifying the event which constitutes Good Reason within thirty (30) days following the occurrence of such event or date the Executive became aware or should have become aware of such event and the Company fails to cure the circumstances giving rise to Good Reason within 30 days after such notice.

4.5Termination by the Executive other than for Good Reason.  The Executive is required to provide the Company with 30 days’ prior written notice of termination to the Company.  Subject to Section 4.4, upon termination of employment by the Executive, the Term shall terminate and the Executive shall receive any Base Salary earned but not paid prior to such termination and shall have no further rights to any compensation (including any Base Salary or Cash Bonus) or any other benefits under this Agreement, except to the extent already earned and vested as of the day immediately prior to such termination.

4.6Release.  Notwithstanding any other provision of this Agreement to the contrary, the Executive acknowledges and agrees that any and all payments, other than payment of any accrued and unpaid Base Salary to which the Executive is entitled under this Section 4 are conditioned upon and subject to the Executive’s execution of a general waiver and release (for the avoidance of doubt, the Restrictive Covenants shall survive the termination of this Agreement), in such form as may be prepared by the Company of all claims, except for such matters covered by provisions of this Agreement which expressly survive the termination of this Agreement.  Notwithstanding anything to the contrary, the severance payments and benefits are conditioned on the Executive’s execution, delivery and nonrevocation of the general 

6

 

waiver and release of claims within fifty-five (55) days following the Executive’s termination of employment (the “Release Condition”).  Payments and benefits of amounts which do not constitute nonqualified deferred compensation and are not subject to Section 409A (as defined below) shall commence five (5) days after the Release Condition is satisfied and payments and benefits which are subject to Section 409A shall commence on the 60th day after termination of employment (subject to further delay, if required pursuant to Section 4.7.2 below) provided that the Release Condition is satisfied.

4.7Section 409A.

4.7.1This Agreement is intended to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code,” and such section, “Section 409A”) with respect to amounts, if any, subject thereto and shall be interpreted and construed and shall be performed by the parties consistent with such intent.  If either party notifies the other in writing that one or more provisions of this Agreement contravenes any Treasury Regulations or guidance promulgated under Section 409A or causes any amounts to be subject to interest, additional tax or penalties under Section 409A, the parties shall agree to negotiate in good faith to make amendments to this Agreement as the parties mutually agree, reasonably and in good faith are necessary or desirable, to (i) maintain to the maximum extent reasonably practicable the original intent of the applicable provisions without violating the provisions of Section 409A or increasing the costs to the Company of providing the applicable benefit or payment and (ii) to the extent possible, to avoid the imposition of any interest, additional tax or other penalties under Section 409A upon the parties.

4.7.2To the extent the Executive would otherwise be entitled to any payment or benefit under this Agreement, or any plan or arrangement of the Company or its Affiliates, that constitutes a “deferral of compensation” subject to Section 409A and that, if paid during the six (6) months beginning on the date of termination of the Executive’s employment, would be subject to the Section 409A additional tax because the Executive is a “specified employee” (within the meaning of Section 409A and as determined by the Company), the payment or benefit will be paid or provided to the Executive on the earlier of the first day following the six (6) month anniversary of the Executive’s termination of employment or death.

4.7.3Any payment or benefit due upon a termination of the Executive’s employment that represents a “deferral of compensation” within the meaning of Section 409A shall be paid or provided to the Executive only upon a “separation from service” as defined in Treas. Reg. § 1.409A-1(h).  Each payment made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under 

7

 

subparagraph (iii)) and other applicable provisions of Treasury Regulation § 1.409A-1 through A-6.

4.7.4Notwithstanding anything to the contrary in this Agreement, any payment or benefit under this Agreement or otherwise that is exempt from Section 409A pursuant to Treasury Regulation § 1.409A-1(b)(9)(v)(A) or (C) (relating to certain reimbursements and in-kind benefits) shall be paid or provided to the Executive only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second calendar year following the calendar year in which the Executive’s “separation from service” occurs; and provided further that such expenses are reimbursed no later than the last day of the third calendar year following the calendar year in which the Executive’s “separation from service” occurs.  To the extent any expense reimbursement or the provision of any in-kind benefit is determined to be subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise), the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect provision of in-kind benefits or expenses eligible for reimbursement in any other calendar year (except for any life-time or other aggregate limitation applicable to medical expenses), and in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which the Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

5.Restrictive Covenant Acknowledgments; Reasonableness.

The Executive acknowledges that (i) his employment and job duties for the Company, including under this Agreement, have resulted and will continue to result in the Executive’s access and exposure to, and familiarity with, Confidential Information (as such term is defined in Section 9 of this Agreement) and that the disclosure or unauthorized use of such Confidential Information by the Executive will injure the Company’s business; (ii) the Company’s business would suffer great competitive harm if its Confidential Information should be disclosed to its competitors or to the general public, and the Company would also suffer great harm if the Executive were to exploit the relationships which have been established with the Company’s customers for the benefit of a competitor; (iii) the Company is entering into this Agreement in order to prevent the disclosure of trade secrets and other competitively sensitive information relating to the Company’s business, and in order to facilitate and induce the disclosure of Confidential Information among employees of the Company with the assurance that such information will not be used in unfair competition against the Company; (iv) he has had the opportunity to be represented by counsel in the negotiation and execution of this Agreement; and (v) that the covenants set forth in Sections 6 through 12 of this Agreement are reasonable in terms of duration, scope and area restrictions and are necessary for the protection of the legitimate business interests of the Company and its Affiliates.  If, at the time of enforcement of such covenants, a court shall hold that the duration, scope or area restrictions stated therein are unreasonable under circumstances then existing, the Executive and the Company agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, 

8

 

scope or area and that the court shall be allowed and directed to revise the covenants to cover the maximum period, scope and area permitted by applicable law.  For purposes of Sections 5 through 10, 12, and 13 of this Agreement, the term “Company” shall include the Company, its Subsidiaries and its Affiliates.

	
 
	
6.
	
Covenants Relating to Ownership of Notes, Records and Documents.

All memoranda, notes, records and other documents (and copies thereof), whether in hard copy or electronic format, made or compiled by the Executive or made available to the Executive during his employment concerning the business of the Company, including, without limitation, all technical or scientific data, ideas, intellectual property, records, notes, experiment books, bidding data and other technical material of the Company shall be the Company’s property; provided, that, the Executive shall be entitled to keep a copy of this Agreement and compensation and benefit plans to which the Executive is entitled to receive benefits thereunder.  All such property shall be delivered to Company on the date of termination of the Executive’s employment or upon request at any time by the Company, regardless of whether such property contains Confidential Information.  

7.Non-Solicitation Covenants.

7.1During (i) the Executive’s employment with the Company and (ii) for a period of three (3) years following termination of the Executive’s employment for any reason (the “NS Restricted Period”), the Executive shall not, directly or indirectly, solicit, divert or take away (or attempt to solicit, divert or take away) the business of any client, customer or supplier of the Company (each such party, a “Restricted Party”) or encourage any Restricted Party to cease doing business with the Company or to reduce the amount of business such Restricted Party does with the Company.

7.2Executive shall not, for the duration of the NS Restricted Period, directly or indirectly, solicit or encourage (or cause to be solicited or encouraged) any person who (i) is an employee of, or consultant then under contract with, the Company or (ii) who was an employee of, or consultant with, the Company within the six-month period preceding such solicitation, to cease employment with, or the provision of services to, the Company.

8.Noncompetition Covenant.

In support of the Executive’s commitment to maintain the confidentiality of the Company’s Confidential Information, (i) during the Executive’s employment with the Company and (ii) for a period of two (2) years following termination of the Executive’s employment for any reason (the “NC Restricted Period”), the Executive shall not, directly or indirectly, (a) enter the employ of, or render services to (including as a salesperson, consultant or in strategic planning role), any “Competing Business” within the “Territory” (as such terms are defined below), (b) engage in any Competing Business 

9

 

within the Territory for his own account, or (c) become interested in a Competing Business within the Territory as a partner, shareholder (whether or not a controlling shareholder), director, officer, principal, agent, trustee, or in any other relationship or capacity.  For purposes of this Agreement, “Competing Business” shall be defined as any business that engages in clinical research in drug development; provided, however, that this definition shall only apply to clinical research and development activities which involve products and services similar to those provided by the Company during the Term or which, during the Term, the Company anticipates providing; provided, that, as applied to conduct by the Executive following the Term, a Competing Business shall only include such activities that the Company was engaged in, or that the Company anticipated engaging in, as of the last day of the Term.  For purposes of this Agreement, “Territory” shall be defined as each and all of the geographic areas and locations where (x) the Company carries on or transacts its business, (y) the Company sells or markets its products or services, or (z) the Company’s customers are located.

9.Covenant Not to Disclose Confidential Information.

The Executive agrees that he has not and shall not, at any time during or after the Term, use, reveal or divulge (i) any trade secrets (as defined under applicable state law), (ii) any other confidential information, including business plans, customer information, formulae, financial information, pricing information, technical scientific data, technical processes, clinical or pre-clinical data, protocols, research projects, results, information technology programs or processes, database, or other information which the Company deems to be confidential or commercially sensitive, or (iii) any material confidential information whatsoever concerning any director, officer, employee, shareholder, partner, customer or agent of the Company or their respective family members learned by the Executive heretofore or hereafter (clauses (i) through (iii), collectively, “Confidential Information”).  

10.Non-disparagement Covenant.

Executive agrees that, during the Executive’s employment with the Company and at all times thereafter, the Executive shall not issue, circulate, publish or utter any false or disparaging statements, remarks or rumors about the Company or the customers, employees, directors, managers, officers, products, partners, shareholders or services of the Company; provided, that, nothing herein shall prohibit the Executive from providing truthful testimony if such testimony is required by law.

11.Inventions Covenant.

11.1During the course of employment, the Executive agrees to promptly disclose in confidence to the Company all inventions, improvements, designs, original works of authorship, formulae, processes, algorithms, compositions of matter, computer software programs, databases, mask works, and trade secrets (“Inventions”) that the Executive makes or conceives or first reduces to practice or creates, either alone or jointly with others, whether or not in the course of his employment, and whether or not such Inventions are patentable, copyrightable, or protectable as trade secrets.  

10

 

11.2The Executive understands that, under copyright laws, any copyrightable works prepared by the Executive within the course and scope of his employment is “works for hire.”  Consequently, the Company will be considered the author and owner of such works.

11.3The Executive agrees that all Inventions that (a) are developed using equipment, supplies, facilities or trade secrets of the Company, (b) result from work performed by the Executive for the Company, or (c) relate to the Company’s business or current or anticipated research and development, will be the sole and exclusive property of the Company.  The Executive hereby assigns and agrees to transfer to the Company any and all intellectual property, including all intellectual property rights, registrations, trade secrets rights as well as worldwide rights in any intellectual property or other forms of protection.

11.4The Executive also waives and agrees never to assert any “Moral Rights” the Executive might have in or with respect to any Invention even after the Executive leaves the Company.  “Moral Rights” means any right (or similar right existing under the judicial or statutory law of any country or treaty) to claim authorship of any Invention, to object or prevent modification of any Invention, or to withdraw from circulation or to control the publication distribution of any Invention.

11.5The Executive agrees to execute, acknowledge, make and deliver to Company or its attorneys, without additional compensation, but without expense to the Executive, any and all instruments, including, without limitation, United States and foreign patent applications, trademark and copyright applications, applications for securing, protecting or registering any property rights embraced within this Agreement, powers of attorney, assignments, oaths or affirmations, supplemental oaths and sworn statements, and to do any and all lawful acts that, in the judgment of the Company or its attorneys, may be necessary or desirable to vest in or secure for, or maintain for the benefit of, the Company, adequate patent and other property rights in the United States and all foreign countries with respect to any and all such Inventions.

11.6The Executive has attached hereto a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by the Executive prior to employment with the Company (collectively referred to as “Prior Inventions”), which belong to the Executive, which relate to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, the Executive represents that there are no such Prior Inventions.  The Executive agrees that he will not incorporate, or permit to be incorporated, any Prior Invention owned by the Executive or in which he has an interest into a Company product or process without the Company’s prior written consent.  Notwithstanding the foregoing sentence, if, in the course of the Executive’s employment, the Executive incorporates into a Company product or process a Prior Invention owned by the Executive or in which he has an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product or process.

11

 

12.Property of the Company.

The Executive acknowledges that from time to time in the course of providing services pursuant to this Agreement he shall have the opportunity to inspect and use certain property, both tangible and intangible, of the Company, and the Executive hereby agrees that said property shall remain the exclusive property of the Company, and the Executive shall have no right or proprietary interest in such property, whether tangible or intangible, including, without limitation, the Company’s customer and supplier lists, contract forms, books of account, computer programs and similar property.  The Executive acknowledges and agrees that he has no expectation of privacy with respect to the Company’s telecommunications, networking or information processing systems (including, without limitation, files, e-mail messages and voice messages) and that the Executive’s activity and any files or messages on or using any of those systems may be monitored at any time without notice.  The Executive further agrees that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel without notice.

 

13.Remedies.

13.1The Executive and the Company agree and acknowledge that any breach or threatened breach of this Agreement by the Executive would result in continuing material and irreparable harm and injury to the Company and/or its Affiliates, and because either (i) money damages will not provide an adequate remedy to the Company or (ii) it would be difficult or impossible to establish the full monetary value of such damages, the Company shall be entitled to equitable relief (including, without limitation, specific performance, account for profits, or injunctive relief) in the event of the Executive’s breach or threatened breach of this Agreement.  Any equitable relief is in addition to any other available remedy, including, damages.  In connection with the bringing of any legal or equitable action for the enforcement of this Agreement, the Company shall be entitled to recover, regardless of whether the Company seeks equitable relief, and regardless of the nature of the relief afforded, such reasonable attorneys’ fees and expenses as the Company may incur in such legal action.    

13.2In addition to any other remedy which may be available (i) at law or in equity or (ii) pursuant to any other provision of this Agreement, the continued payments by the Company of Base Salary and the regular premium for group health benefits pursuant to Section 4.4 (as modified by Section 2.2, if applicable) will cease as of the date on which such violation first occurs.  In addition, if the Executive breaches any of the Restrictive Covenants and the Company obtains injunctive relief with respect thereto (that is not later reversed or otherwise terminated or vacated by judicial order), the period during which the Executive is required to comply with that particular covenant shall be extended by the same period that the Executive was in breach of such covenant prior to the effective date of such injunctive relief.

13.3Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall prohibit Executive from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information 

12

 

requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the United States Congress, any state legislative and executive agency, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Executive does not need the prior authorization of the Company to make any such reports or disclosures and Executive is not required to notify the Company that Executive has made such reports or disclosures.

14.Executive Representation.  The Executive hereby represents and warrants that (i) the execution, delivery and performance of this Agreement by the Executive does not and will not conflict with, breach, violate, or cause a default under any agreement, contract, or instrument to which the Executive is a party or any judgment, order, or decree to which the Executive is subject and (ii) the Executive is not a party or bound by any other employment agreement, noncompetition agreement, or confidentiality agreement with any other person or entity, other than the Company.  The Executive further represents that he shall provide a copy of this Agreement to any new employer during the Term and for three (3) years thereafter and that the Company shall have a right to provide a copy of this Agreement to any new employer of the Executive during such period.   

15.Notices.

All notices, requests, consents, and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, sent by overnight courier or mailed first class, postage prepaid, by registered or certified mail (notices mailed shall be deemed to have been given on the date mailed), as follows (or to such other address as either party shall designate by notice in writing to the other in accordance herewith):

If to the Company, to:

vTv Therapeutics LLC
3980 Premier Drive, Suite 310
High Point, NC 27265
Attention:  Chief Financial Officer  

If to vTv, to:

vTv Therapeutics Inc.
3980 Premier Drive, Suite 310
High Point, NC 27265
Attention:  Chief Financial Officer  

If to the Executive, to:

13

 

Such address as shall most currently appear on the records of the Company.

16.Governing Law; Dispute Resolution.

16.1It is the intent of the parties hereto that all questions with respect to the construction of this Agreement and the rights and liabilities of the parties hereunder shall be determined in accordance with the laws of the State of Delaware, without regard to principles of conflicts of laws thereof that would call for the application of the substantive law of any jurisdiction other than the State of Delaware.

16.2Each party irrevocably agrees for the exclusive benefit of the other that any and all suits, actions or proceedings relating to this Agreement (a “Proceeding”) shall be maintained in either the courts of the State of Delaware or the federal District Courts sitting in Wilmington, Delaware (collectively, the “Chosen Courts”) and that the Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any such Proceeding and that any such Proceedings shall only be brought in the Chosen Courts.  Each party irrevocably waives any objection that it may have now or hereafter to the laying of the venue of any Proceedings in the Chosen Courts and any claim that any Proceedings have been brought in an inconvenient forum and further irrevocably agrees that a judgment in any Proceeding brought in the Chosen Courts shall be conclusive and binding upon it and may be enforced in the courts of any other jurisdiction.

16.3Each of the parties hereto agrees that this Agreement involves at least $100,000 and that this Agreement has been entered into in express reliance on Section 2708 of Title 6 of the Delaware Code.  Each of the parties hereto irrevocably and unconditionally agrees that (i) to the extent such party is not otherwise subject to service of process in the State of Delaware, it will appoint (and maintain an agreement with respect to) an agent in the State of Delaware as such party’s agent for acceptance of legal process and notify the other parties hereto of the name and address of said agent, (ii) service of process may also be made on such party by pre-paid certified mail with a validated proof of mailing receipt constituting evidence of valid service sent to such party at the address set forth in Section 15 of this Agreement, as such address may be changed from time to time pursuant hereto, and (iii) service made pursuant to clause (i) or (ii) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware.

17.General.

17.1JURY TRIAL WAIVER.  THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT WITH THE COMPANY IS LITIGATED OR HEARD IN ANY COURT.

14

 

17.2Continuation of Employment.  Unless the parties otherwise agree in writing, continuation of the Executive’s employment with the Company beyond the expiration of the Term shall be deemed an employment “at will” and shall not be deemed to extend any of the provisions of this Agreement, and the Executive’s employment may thereafter be terminated “at will” by the Executive or the Company and the Executive will be entitled to fringe benefits which the Executive is eligible to receive for so long as the Executive continues to be employed with the Company and the Executive shall be eligible for severance in accordance with the terms of the Company’s severance policy then in effect. Notwithstanding the foregoing, the Executive shall be subject to the Restrictive Covenants set forth in Sections 6 through 12 of this Agreement for the NC Restricted Period, the NS Restricted Period, the Reduced NC Restricted Period, or such other duration specified in the section of this Agreement applicable to such Restrictive Covenant, as applicable.

17.3Headings.  The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

17.4Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties relating to the Executive’s employment by the Company, and supersedes all prior agreements, arrangements and understandings, written or oral, relating to the Executive’s employment by the Company and its Affiliates including, without limitation, effective as of the Effective Date, the offer letter dated March 18, 2002, and any severance, retention, change in control or similar types of benefits.  No representation, promise or inducement has been made by either party that is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth.  The parties hereto understand and agree that, with respect to conduct occurring prior to the Term, the covenants in the (i) Noncompetition, Nonsolicitation, and Nondisclosure Agreement by and between the Executive and TransTech Pharma, Inc., dated as of February 9, 2012, (ii) Employment Agreement by and between Executive and vTv Therapeutics LLC, dated as of July 16, 2015, and (iii) Employment Agreement by and between Executive and vTv Therapeutics LLC, dated as of March 7, 2019, shall apply, such agreements not being superseded or voided in respect of their applicability to any such conduct.

17.5Assignment; Successors.  This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive.  The Company may assign its rights, together with its obligations, hereunder (i) to any Affiliate or (ii) to third parties in connection with any sale, transfer or other disposition of all or substantially all of the business or assets of the Company; in any event the obligations of the Company hereunder shall be binding on its successors or assigns, whether by merger, consolidation or acquisition of all or substantially all of its business or assets.  For the avoidance of doubt, the Company may assign this Agreement to vTv in connection with any internal reorganization.

17.6Waiver.  This Agreement may be amended, modified, superseded, canceled, renewed or extended and the terms or covenants hereof may be 

15

 

waived, only by a written instrument executed by all of the parties hereto, or in the case of a waiver, by the party waiving compliance.  The failure of either party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same.  No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement.

17.7Withholding Taxes.  The Company may withhold from any amounts payable under this Agreement such federal, state, local and other taxes as may be required to be withheld pursuant to any applicable law or regulation.

18.Subsidiaries and Affiliates.

18.1As used herein, the term “Subsidiary” shall mean any corporation or other business entity controlled directly or indirectly by the corporation or other business entity in question, and the term “Affiliate” shall mean and include any corporation or other business entity directly or indirectly controlling, controlled by or under common control with the corporation or other business entity in question.

[Remainder of Page Intentionally Left Blank]

16

Exhibit 10.1

ANNEX A

 

 

 

 

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

 

VTV THERAPEUTICS LLC

 

 

		
	
By:
	
/s/ Rudy C. Howard

	
Name:
	
Rudy C. Howard

	
Title:
	
Chief Financial Officer

 

For purposes of Section 3.2.2 hereof, only:

 

VTV THERAPEUTICS INC.

 

		
	
By:
	
/s/ Rudy C. Howard

	
Name:
	
Rudy C. Howard

	
Title:
	
Chief Financial Officer

 

		
	
By:
	
/s/ Stephen L. Holcombe

	
Name:
	
Stephen L. Holcombe

 

 

 

 

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}]]