Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”)
is entered into as of June 30, 2015 and, except as provided herein, its terms will become effective as of August 1, 2015 (the
“Effective Date”), by and between InnerWorkings, Inc., a Delaware corporation (the “Company”),
and Jeffrey P. Pritchett (“Executive”).

 

1.          Employment;
Position and Duties. The Company agrees to employ Executive, and Executive agrees to be employed by the Company, upon the
terms and conditions of this Agreement. Upon the Effective Date, Executive shall be employed as Executive Vice President of the
Company, and effective August 12, 2015 (or such other date agreed to by the parties) as the Executive Vice President and Chief
Financial Officer of the Company. Executive will report directly to the Chief Executive Officer of the Company. In this capacity,
Executive agrees to devote his full time, energy and skill to the faithful performance of his duties herein, and shall perform
the duties and carry out the responsibilities assigned to him to the best of his ability and in a diligent, businesslike and efficient
manner. Notwithstanding the above, during the term of this Agreement, it shall not be a violation of this Agreement for the Executive
to serve on civic or charitable boards or committees, deliver lectures, fulfill speaking engagements, teach at educational institutions,
manage personal investments and, with the consent of the Board, serve on a corporate board, so long as such activities do not
interfere with the performance of Executive’s responsibilities in accordance with this Agreement.
Executive’s duties and authority shall include all the duties and authority contemplated by the Company’s by-laws
and those customarily performed by the Executive Vice President and Chief Financial Officer, including serving as the Company’s
principal financial and accounting officer. Executive shall also have such additional duties and authority commensurate with such
positions as may be reasonably assigned by the Chief Executive Officer or the Board of Directors (“Board”). Executive
shall comply with any policies and procedures established for Company employees, including, without limitation, those policies
and procedures contained in the Company’s employee handbook previously delivered to Executive.

 

2.          Term
of Employment. The term of this Agreement (the “Term”) shall commence on the Effective
Date and shall continue until and shall expire on July 31, 2016, as may be extended in accordance with this Section 2 and
unless terminated earlier by either party, in accordance with the terms of this Agreement. The Term shall be extended
automatically without further action by either party by one (1) additional year (added to the end of the Term), and then on
each succeeding annual anniversary thereafter, unless either party shall have given written notice to the other party prior
to the date that is ninety (90) days prior to the date which such extension would otherwise have become effective electing
not to further extend the Term, in which case Executive’s employment shall terminate on the date upon which the
extension would otherwise have become effective, unless earlier terminated in accordance with this Agreement. This Agreement
may be terminated by Executive or by the Chief Executive Officer or Board, with or without Cause (as defined below). Upon the
termination of Executive’s employment with the Company for any reason, neither party shall have any further obligation
or liability under this Agreement to the other party, except as set forth in Sections 4, 5, 6, 7, 8, 9, and 10 of this
Agreement. Non-renewal of the Term by the Company shall be treated for all purposes under this Agreement as a termination of
Executive’s employment without Cause.

 

    	 

    	 

    

 

3.          Compensation.
Executive shall be compensated by the Company for his services as follows:

 

(a)          Base
Salary. During the term of this Agreement, Executive shall be paid a base salary (“Base Salary”) of $33,333.33
per month (or $400,000 on an annualized basis) subject to applicable withholding, in accordance with the Company’s normal
payroll procedures. Executive’s base salary shall be reviewed on an annual basis by the Board for possible increase (but
not decrease) based on the Company’s operating results and financial condition, salaries paid to other Company executives,
and general marketplace and other applicable considerations. Such increased Base Salary, if any, shall then constitute Executive’s
“Base Salary” for purposes of this Agreement.

 

(b)          Benefits.
During the term of this Agreement, Executive shall have the right, on the same basis as other members of senior management of the
Company, to participate in and to receive benefits under any of the Company’s executive and employee benefit plans, long-term
or equity incentive plans, insurance programs and/or indemnification agreements, as may be in effect from time to time, subject
to any applicable waiting periods and other restrictions, and to the benefits afforded to other members of senior management under
the Company’s vacation, holiday and business expense reimbursement policies (all such benefits, the “Benefits”).
Executive shall receive 4 weeks of vacation per year pursuant to the Company’s vacation policies or, if greater, the amount
afforded to other members of senior management.

 

(c)          Bonuses.
In addition to the Base Salary, Executive shall be eligible to receive an annual performance bonus at a target of not less than
seventy-five percent (75%) of his then annual Base Salary, with an opportunity to earn a maximum performance bonus of two hundred
percent (200%) of his performance bonus target (the “Performance Bonus”). The Performance Bonus shall be a discretionary
bonus, determined in the sole discretion of the Board or the Compensation Committee thereof, based upon Executive’s performance
of his duties and the Company’s financial performance, as well as certain performance targets that are approved by the Board
or such Committee. The Company will pay Executive’s Performance Bonus for each year at the same time as annual performance
bonus payments for such year (if any) are made to other participants with respect to such fiscal year, and in all events within
the two and one half (21⁄2) months following the end of the year in which the Performance Bonus is earned. Executive’s
target bonus for fiscal year 2015 will be $300,000 (i.e., 75% of his annual base salary) and will not be prorated based on Executive’s
start date. The Performance Bonus is intended to qualify for the short-term deferral exception to Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

(d)          Expenses.
In addition to reimbursement for business expenses incurred by Executive in the normal and ordinary course of his employment by
the Company pursuant to the Company’s standard business expense reimbursement policies and procedures, the Company shall
reimburse Executive for the full amount of his health and dental insurance costs should he elect to participate in the Company’s
insurance program(s). In addition, Executive shall be reimbursed $800/month for automobile expenses.

 

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(e)          Long
Term Incentive Award. On Executive’s first day of employment with the Company, Executive will receive stock-based compensation
under and pursuant to the Company’s Stock Incentive Plan (the “Signing Grant”) equivalent to one million two
hundred thousand dollars ($1,200,000) in grant date target value (50% stock options, 50% restricted shares), vesting ratably over
a five year period on the anniversary date of the grant (i.e., $240,000 in annual target value). The strike price of such options
and the valuation of such options and shares shall be based on the closing price of the Company’s stock on Executive’s
first date of employment. Beginning in fiscal year 2016, Executive shall be eligible to receive, annually, on the same basis as
long term incentive awards to other senior executives, long term incentive awards with a targeted grant date value of one hundred
twenty-five percent (125%) of Executive’s then annual Base Salary, subject to adjustment by the Compensation Committee in
its sole discretion.

 

(f)          Relocation
Expenses. The Company will reimburse Executive or pay directly up to $62,500, grossed up to cover taxes where applicable, of Executive’s
expenses associated with his relocation from New York to Chicago.

 

4.          Benefits
Upon Termination.

 

(a)          Termination
for Cause or Termination for Other than Good Reason. In the event of the termination of Executive’s employment by the
Company for Cause (as defined below), the termination of Executive’s employment by reason of his death or Disability (as
defined in Company’s Stock Incentive Plan), or the termination of Executive’s employment by Executive for any reason
other than Good Reason (as defined below), Executive shall be entitled to no further compensation or benefits from the Company
following the date of termination, except the Accrued Obligations, which Accrued Obligations shall be paid to Executive within
thirty (30) days following the date of termination.

 

For purposes of this Agreement,
Executive’s “Accrued Obligations” include, to the extent not theretofore paid:

 

(i)          Executive’s
Base Salary earned through the date of termination;

 

(ii)         Executive’s
Benefits, vested or earned through the date of termination;

 

(iii)        Executive’s
Performance Bonus for the fiscal year immediately preceding the fiscal year in which the date of termination occurs if such award
has been earned but has not been paid as of the date of termination;

 

(iv)        Executive’s
vested restricted stock, stock options or other long-term or equity-based incentive compensation; and

 

(v)         Executive’s
business expenses that have not been reimbursed by the Company as of the date of termination that were incurred by Executive prior
to the date of termination in accordance with the applicable Company policy.

 

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For purposes
of this Agreement, a termination for “Cause” occurs if Executive’s employment is terminated by the Company for
any of the following reasons:

 

(A)         theft,
dishonesty or falsification of any employment or Company records by Executive;

 

(B)         the
determination by the Chief Executive Officer or Board that Executive has committed an act or acts constituting a felony or any
act involving moral turpitude;

 

(C)         the
determination by the Chief Executive Officer or Board that Executive has engaged in willful misconduct or gross negligence that
has had a material adverse effect on the Company’s reputation or business; or

 

(D)         the
continuing material breach by Executive of any provision of this Agreement after receipt of written notice of such breach from
the Chief Executive Officer or Board and a reasonable opportunity to cure such breach.

 

For purposes
of this Agreement, a termination by Executive shall be for “Good Reason” if Executive terminates his employment for
any of the following reasons:

 

(1)         the
Company materially reduces Executive’s duties or authority below, or assigns Executive duties that are materially inconsistent
with the duties and authority contemplated by Section 1 of this Agreement, or any failure by the Company to appoint or elect, or
to reappoint or reelect Executive to any of the positions set forth in Section 1;

 

(2)         the
Company requires Executive to relocate his office more than 100 miles from the current office of the Company without his consent;
or

 

(3)         the
Company has breached any provision of this Agreement, including, but not limited to, the provisions relating to the payment or
providing of compensation and Benefits in accordance with Section 3 above, and such breach continues for more than thirty (30)
days after notice from Executive to the Company specifying the action which constitutes the breach and demanding its discontinuance.

 

(b)          Termination
Without Cause or Termination for Good Reason. Each of the Company and Executive is free to terminate this Agreement, and Executive’s
employment with the Company, at any time, for any reason, in its or Executive’s absolute sole discretion. If Executive’s
employment is terminated by the Company for any reason other than (1) for Cause or (2) by reason of his death or disability, or
if Executive’s employment is terminated by Executive for Good Reason, Executive shall only be entitled to:

 

(i)          receive
an amount equal to the sum of (A) Executive’s annual Base Salary as in effect on the date of termination, and (B) Executive’s
target annual Performance Bonus for the fiscal year in which the date of termination occurs, payable in equal installments over
a twelve (12) month period following the termination of Executive’s employment in accordance with the Company’s normal
payroll procedures;

 

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(ii)         no
later than March 15 following the end of the year in which such termination occurs, in lieu of any annual Performance Bonus for
the year in which such termination occurs, payment of an amount equal to (A) the annual Performance Bonus which would have been
payable to Executive had Executive remained in employment with the Company during the entire year in which such termination occurred,
multiplied by (B) a fraction, the numerator of which is the number of days Executive was employed in the year in which such termination
occurs and the denominator of which is the total number of days in the year in which such termination occurs;

 

(iii)        immediate
vesting of all outstanding equity-based awards which would otherwise have vested based solely on the passage of time if Executive’s
employment had continued for a period of twenty-four (24) months following the termination, and immediate vesting of the any unvested
portion of the Signing Grant;

 

(iv)        with
respect to equity-based awards which would otherwise vest based on performance, Executive shall vest in the portion of such award
(which shall not exceed 100% of such award) Executive would have been entitled to had Executive remained employed until the last
day of the applicable performance period multiplied by a fraction, the numerator of which shall be the number of full calendar
months elapsed during the performance period through the date Executive’s employment terminated plus twenty-four (24) additional
months and the denominator of which shall be the total number of months in the applicable performance period, which awards shall
vest and be paid, if the applicable performance conditions are met, at the same time and in the same manner as though Executive
had remained employed by the Company; and

 

(v)         the
Accrued Obligations.

 

Notwithstanding
anything to the contrary herein, no payments shall be paid under this Section 4(b)(i) or (ii) unless and until Executive executes
and delivers a general release and waiver of claims (the “Release”) against the Company (and any revocation period
expires) by the Release Deadline, acknowledging Executive’s obligations under Section 7 below, and in a form prescribed by
the Company; provided that, such Release shall not require Executive to release any rights to Accrued Obligations, rights under
the Indemnification Provisions (as defined below), or under this Agreement, and the execution of such Release shall be a condition
to Executive’s rights under Section 4(b)(i) or (ii). The “Release Deadline” means the date that is 60 calendar
days after Executive’s separation from service. Payment of any amount that is not exempt from Code Section 409A that is conditioned
upon the execution of the Release shall be delayed until the Release Deadline, irrespective of when Executive executes the Release;
provided, however, that where Executive’s separation from service and the Release Deadline occur within the same calendar
year, the payment may be made up to 30 days prior to the Release Deadline, and provided further that where Executive’s separation
from service and the Release Deadline occur in two separate calendar years, payment may not be made before the later of January
1 of the second year or the date that is 30 days prior to the Release Deadline. In addition, if Code Section 409A requires that
a payment hereunder may not commence for a period of six (6) months following termination of employment, then such payments shall
be withheld by the Company and paid as soon as permissible, along with such other monthly payments then due and payable.

 

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5.          Change
in Control. Upon the occurrence of a Qualifying Termination (as defined
below), Executive shall be entitled to immediate vesting of all outstanding equity-based awards (including immediate vesting at
the target level of performance for equity-based awards which would otherwise vest based on performance).
For purposes of this Agreement, a “Qualifying Termination” means a termination of Executive’s employment within
ninety (90) days prior to or twenty-four (24) months following the consummation of a Change in Control as a result of Executive’s
(i) resignation for Good Reason or (ii) termination by the Company without Cause (including due to a non-renewal of the Term by
the Company).

 

Notwithstanding the
foregoing and notwithstanding any less favorable or contrary treatment in an award agreement or other grant documentation with
respect to equity-based awards, the vesting of all equity-based awards that are not assumed by a successor company or exchanged
for a replacement award on no less favorable economic terms will be fully accelerated as of the effective date of the Change in
Control (including immediate vesting at the target level of performance
for equity-based awards which would otherwise vest based on performance), and such equity-based awards shall be paid to
Executive within thirty (30) days after the effective date of the Change in Control.

 

For purposes of this
Agreement, a “Change in Control” means the occurrence of any one or more of the following:

 

		(a)	An effective change in control pursuant to which any person
or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) beneficial ownership of stock of the Company representing fifty percent (50%) or more of the voting
power of the Company’s then outstanding stock; provided, however, that a Change in Control shall not be deemed to occur
by virtue of any of the following acquisitions: (i) by the Company or any Affiliate, (ii) by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Affiliate, or (iii) by any underwriter temporarily holding securities pursuant
to an offering of such securities;

 

		(b)	Any person or persons acting as a group acquires beneficial
ownership of Company stock that, together with Company stock already held by such person or group, constitutes fifty percent (50%)
or more of the total fair market value or voting power of the Company’s then outstanding stock. The acquisition of Company
stock by the Company in exchange for property, which reduces the number of outstanding shares and increases the percentage ownership
by any person or group to 50% or more of the Company’s then outstanding stock will be treated as a Change in Control;

 

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		(c)	Individuals who constitute the Board immediately after
the Effective Date (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board
during any 12-month period; provided, however, that any person becoming a Director subsequent thereto whose election or nomination
for election was approved by a vote of a majority of the Incumbent Directors then on the Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person is named as a nominee for Director, without written objection
to such nomination) shall be an Incumbent Director, provided that no individual initially elected or nominated as a Director of
the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual
or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an
Incumbent Director; or

 

		(d)	Any person or persons acting as a group acquires (or has
acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the
Company that have a total gross fair market value of at least forty percent (40%) of the total gross fair market value of all
the assets of the Company immediately prior to such acquisition. For purposes of this section, gross fair market value means the
value of the assets of the Company, or the value of the assets being disposed of, without regard to any liabilities associated
with such assets. The event described in this paragraph (d) shall not be deemed to be a Change in Control if the assets are transferred
to (i) any owner of Company stock in exchange for or with respect to the Company’s stock, (ii) an entity in which the Company
owns, directly or indirectly, at least fifty percent (50%) of the entity’s total value or total voting power, (iii) any
person that owns, directly or indirectly, at least fifty percent (50%) of the Company stock, or (iv) an entity in which a person
described in (d)(iii) above owns at least fifty percent (50%) of the total value or voting power. For purposes of this section,
and except as otherwise provided, a person’s status is determined immediately after the transfer of the assets.

 

In no event
will a Change in Control be deemed to have occurred, with respect to Executive, if an employee benefit plan maintained by the Company
or an Affiliate of the Company or Executive is part of a purchasing group that consummates the transaction that would otherwise
result in a Change in Control. The employee benefit plan or Executive will be deemed “part of a purchasing group” for
purposes of the preceding sentence if the plan or Executive is an equity participant in the purchasing company or group, except
where participation is: (i) passive ownership of less than two percent (2%) of the stock of the purchasing company; or (ii) ownership
of equity participation in the purchasing company or group that is otherwise not significant, as determined prior to the Change
in Control by a majority of the non-employee continuing directors.

 

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6.          Employee
Inventions and Proprietary Rights Assignment Agreement. Executive agrees to abide by the terms and conditions of the Company’s
standard Employee Inventions and Proprietary Rights Assignment Agreement as executed by Executive and attached hereto as Exhibit
A.

 

7.          Covenants
Not to Compete or Solicit. During Executive’s employment and for a period of two (2) years following the termination
of Executive’s employment for any reason, Executive shall not, anywhere in the Geographic Area (as defined below), other
than on behalf of the Company or with the prior written consent of the Company, directly or indirectly:

 

(a)          perform
services for (whether as an employee, agent, consultant, advisor, independent contractor, proprietor, partner, officer, director
or otherwise), have any ownership interest in (except for passive ownership of five percent (5%) or less of any entity whose securities
have been registered under the Securities Act of 1933, as amended, or Section 12 of the Securities Exchange Act of 1934, as amended),
or participate in the financing, operation, management or control of, any firm, partnership, corporation, entity or business that
engages or participates in a “competing business purpose” (as defined below);

 

(b)          induce
or attempt to induce any customer, potential customer, supplier, licensee, licensor or business relation of the Company to cease
doing business with the Company, or in any way interfere with the relationship between any customer, potential customer, supplier,
licensee, licensor or business relation of the Company or solicit the business of any customer or potential customer of the Company,
whether or not Executive had personal contact with such entity; and

 

(c)          solicit,
encourage, hire or take any other action which is intended to induce or encourage, or has the effect of inducing or encouraging,
any employee or independent contractor of the Company or any subsidiary of the Company to terminate his or his employment or relationship
with the Company or any subsidiary of the Company, other than in the discharge of his duties as an officer of the Company.

 

For the purpose of
this Agreement, the term “competing business purpose” shall mean the sale or provision of any printed materials, items,
or other products or services that are competitive with in any manner the products or services sold or offered by the Company during
the term of this Agreement. The term “Geographic Area” shall mean the United States of America.

 

The covenants contained
in this Section 7 shall be construed as a series of separate covenants, one for each county, city, state or any similar subdivision
in any Geographic Area. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant
contained in the preceding Sections. If, in any judicial proceeding, a court refuses to enforce any of such separate covenants
(or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary
to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions of this Section
7 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed
to the maximum time, geographic or scope limitations, as the case may be, permitted by applicable law.

 

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8.          Equitable
Remedies. Executive acknowledges and agrees that the agreements and covenants set forth in Sections 6 and 7 are reasonable
and necessary for the protection of the Company’s business interests, that irreparable injury will result to the Company
if Executive breaches any of the terms of said covenants, and that in the event of Executive’s actual or threatened breach
of any such covenants, the Company will have no adequate remedy at law. Executive accordingly agrees that, in the event of any
actual or threatened breach by Executive of any of said covenants, the Company will be entitled to seek immediate injunctive and
other equitable relief, without bond and without the necessity of showing actual monetary damages. Nothing in this Section 8 will
be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach,
including the recovery of any damages that it is able to prove.

 

9.          Dispute
Resolution. In the event of any dispute or claim relating to or arising out of this Agreement (including, but not limited to,
any claims of breach of contract, wrongful termination or age, sex, race or other discrimination), Executive and the Company agree
that all such disputes shall be fully and finally resolved by binding arbitration conducted by the American Arbitration Association
in Chicago, Illinois in accordance with its National Employment Dispute Resolution rules, as those rules are currently in effect
(and not as they may be modified in the future). Executive acknowledges that by accepting this arbitration provision he is waiving
any right to a jury trial in the event of such dispute. Notwithstanding the foregoing, this arbitration provision shall not apply
to any disputes or claims relating to or arising out of (i) the misuse or misappropriation of trade secrets or proprietary information
or (ii) the breach of any non-competition or non-solicitation covenants.

 

10.         Governing
Law. This Agreement has been executed in the State of Illinois, and Executive and the Company agree that this Agreement shall
be interpreted in accordance with and governed by the laws of the State of Illinois, without regard to its conflicts of laws principles.

 

11.         Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns, provided
that successor or assignee is the successor to substantially all of the assets of the Company, or a majority of its then outstanding
stock, and that such successor or assignee assumes the liabilities, obligations and duties of the Company under this Agreement,
either contractually or as a matter of law. In view of the personal nature of the services to be performed under this Agreement
by Executive, he shall not have the right to assign or transfer any of his rights, obligations or benefits under this Agreement,
except as otherwise noted herein.

 

12.         Entire
Agreement. This Agreement, including its attached Exhibit A, constitutes the entire employment agreement between Executive
and the Company regarding the terms and conditions of his employment. This Agreement supersedes all prior negotiations, representations
or agreements between Executive and the Company, whether written or oral, concerning Executive’s employment.

 

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13.         No
Conflict. Executive represents and warrants to the Company that neither his entry into this Agreement nor his performance of
his obligations hereunder will conflict with or result in a breach of the terms, conditions or provisions of any other agreement
or obligation to which Executive is a party or by which Executive is bound, including, without limitation, any noncompetition or
confidentiality agreement previously entered into by Executive.

 

14.         Validity.
Except as otherwise provided in Section 7, above, if any one or more of the provisions (or any part thereof) of this Agreement
shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
(or any part thereof) shall not in any way be affected or impaired thereby.

 

15.         Modification.
This Agreement may not be modified or amended except by a written agreement signed by Executive and the Company.

 

16.         Code
Section 409. This Agreement is intended to comply with Section 409A of the Code, and the interpretative guidance thereunder,
including the exceptions for short-term deferrals, separation pay arrangements, reimbursements, and in kind distributions, and
shall be administered accordingly. Executive hereby agrees that the Company may, without further consent from Executive, make the
minimum changes to this Agreement as may be necessary or appropriate to avoid the imposition of additional taxes or penalties on
Executive pursuant to Section 409A of the Code. The Company can not guarantee that the payments and benefits that may be paid or
provided pursuant to this Agreement will satisfy all applicable provisions of Section 409A of the Code. In the case of any reimbursement
payment which is required to be made promptly under this Agreement, such payment will be made in all instances no later than December
31 of the calendar year following the calendar year in which the obligation to make such reimbursement arises. Notwithstanding
the foregoing, if any payments or benefits under this Agreement become subject to Section 409A of the Code, then for the purpose
of complying therewith, to the extent such payments or benefits do not satisfy the separation pay exemption described in Treasury
Regulation § 1.409A-1(b)(9)(iii) or any other exemption available under Section 409A of the Code (the “Non-Exempt Payments”),
if Executive is a specified employee as described in Treasury Regulation § 1.409A-1(i) on the date of termination, any amount
of such Non-Exempt Payments which would be paid prior to the six-month anniversary of the date of termination shall instead be
accumulated and paid to Executive in a lump sum payment within five (5) business days after such six-month anniversary. A termination
of employment shall be deemed to occur only if it is a “separation from service” as such term is defined under Code
Section 409A, and references to “termination,” “termination of employment,” or like terms shall mean a
“separation from service.”

 

17.         Adjustments
Due to Excise Tax .

 

(a)           If
it is determined that any amount or benefit to be paid or payable to Executive under this Agreement or otherwise in conjunction
with his employment (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise
in conjunction with his employment) would give rise to liability of Executive for the excise tax imposed by Section 4999 of the
Code, as amended from time to time, or any successor provision (the “Excise Tax”), then the amount or benefits payable
to Executive (the total value of such amounts or benefits, the “Payments”) shall be reduced by the Company to the extent
necessary so that no portion of the Payments to Executive is subject to the Excise Tax.  Such reduction shall only be
made if the net amount of the Payments, as so reduced (and after deduction of applicable federal, state, and local income and payroll
taxes on such reduced Payments other than the Excise Tax (collectively, the “Deductions”)), is greater than the excess
of (1) the net amount of the Payments, without reduction (but after making the Deductions), over (2) the amount of Excise Tax to
which Executive would be subject in respect of such Payments. In the event Payments are required to be reduced pursuant to this
Section 17(a), Executive shall designate the order in which such amounts or benefits shall be reduced in a manner consistent with
Code Section 409A.

 

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(b)           The
independent public accounting firm serving as the Company’s auditing firm, or such other accounting firm, law firm or professional
consulting services provider of national reputation and experience reasonably acceptable to the Company and Executive (the “Accountants”),
shall make in writing in good faith all calculations and determinations under this Section 17, including the assumptions to be
used in arriving at any calculations.  For purposes of making the calculations and determinations under this Section
17, the Accountants and each other party may make reasonable assumptions and approximations concerning the application of Section
280G and Section 4999 of the Code.  The Company and Executive shall furnish to the Accountants and each other such information
and documents as the Accountants and each other may reasonably request to make the calculations and determinations under this Section
17.  The Company shall bear all costs the Accountants incur in connection with any calculations contemplated hereby.

 

18.         Legal
Fees. The Company shall promptly reimburse Executive for any reasonable legal fees and expenses incurred by Executive in connection
with the review of this Agreement and any documents ancillary thereto up to $10,000.

 

19.         Indemnification.
To the fullest extent permitted by the indemnification provisions of the laws of the state or jurisdiction of the Company, as applicable,
in effect from time to time, and subject to the conditions thereof, the Company shall:

 

(a)          indemnify
Executive against all liabilities and reasonable expenses that Executive may incur in any threatened, pending, or completed action,
suit or proceeding, whether civil, criminal or administrative, or investigative and whether formal or informal, because Executive
is or was an officer or director of or service provider to the Company or any of its affiliates, provided, however, that Executive
shall have acted in good faith and in a manner that Executive reasonably believed to be in the best interests of the Company and

 

(b)          pay
for or reimburse the reasonable expenses upon submission of appropriate documentation incurred by Executive in the defense of any
proceeding to which Executive is a party because Executive is or was an officer or director of or service provider to the Company
or any of its affiliates, including an advancement of such expenses to the extent permitted by applicable
law, subject to Executive’s execution of any legally required repayment undertaking. 

 

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The preceding indemnification right shall
be in addition to, and not in lieu of, any rights to indemnification to which Executive may be entitled pursuant to the documents
under which the Company is organized as in effect from time to time and shall not apply with respect to any action or failure to
act by Executive which constitutes willful misconduct or bad faith on the part of Executive. The indemnification rights of Executive
in this Section 19 are referred to below as the “Indemnification Provisions.” The rights of Executive under the Indemnification
Provisions shall survive the cessation of Executive’s employment with the Company. The Company shall also maintain a directors’
and officers’ liability insurance policy, or an equivalent errors and omissions liability insurance policy, covering Executive
with reasonable scope, exclusions, amounts and deductibles based on Executive’s positions with the Company.

 

Notwithstanding the
foregoing, the Company shall have no obligation to indemnify, defend or hold harmless Executive from and against any liabilities
and expenses, or to pay for, or reimburse Executive for, any expenses arising from or relating to (a) Executive’s gross negligence
or intentional or willful misconduct, or (b) actions or claims which are initiated by Executive unless such action was approved
in advance by the Board.

 

*  *  *  *  *

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the 30th day of June, 2015.

 

	INNERWORKINGS, INC., a Delaware corporation	 	EXECUTIVE
	 	 	 	 
	By:	/s/ Eric Belcher	 	/s/ Jeffrey P. Pritchett
	Name:  Eric Belcher	 	Jeffrey P. Pritchett
	Its:  President and Chief Executive Officer	 	 

 

    	12EXHIBIT 10.1

 

HARVARD APPARATUS REGENERATIVE TECHNOLOGY,
INC. 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”)
is made as of the 23rd day of June, 2015, to be effective as of the Commencement Date (as defined below), between Harvard
Apparatus Regenerative Technology, Inc., a Delaware corporation (the “Company”), and James McGorry (“Executive”). For
purposes of this Agreement the “Company” shall refer to the Company and any of its predecessors.

 

WHEREAS, the Company desires to
employ Executive and Executive desires to be employed by the Company on the terms contained herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1. Employment.
The term of this Agreement shall automatically, without the requirement of any further action or notice, commence on July 6, 2015
(the “Commencement Date”) and shall extend until the third anniversary of the Commencement Date; provided, however,
that the term of this Agreement shall automatically be extended for one additional year on the third anniversary of the Commencement
Date and each anniversary thereafter unless, not less than 90 days prior to each such date, either party shall have given notice
to the other that it does not wish to extend this Agreement; provided, further, that if a Change in Control occurs during the original
or extended term of this Agreement, the term of this Agreement shall, notwithstanding anything in this sentence to the contrary,
continue in effect for a period of not less than twelve (12) months beyond the month in which the Change in Control occurred. The
term of this Agreement shall be subject to termination as provided in Paragraph 6 and may be referred to herein as the “Period
of Employment.”

 

2. Position and Duties. During
the Period of Employment, Executive shall serve as the President and Chief Executive Officer of the Company and shall have such
powers and duties as may from time to time be prescribed by the Board of Directors (the “Board”) of the Company, provided
that such duties are consistent with Executive’s position or other positions that he may hold from time to time. Executive
shall also serve on the Board as a Director. Executive shall devote his full working time and efforts to the business and affairs
of the Company. Notwithstanding the foregoing, Executive may serve on other boards of directors, with the approval of the Board
as long as such service does not materially interfere with Executive’s performance of his duties to the Company as provided
in this Agreement or otherwise breach any obligations of Executive to the Company.

 

3. Compensation and Related
Matters.

 

(a) Base
Salary and Incentive Compensation. Executive’s initial annual base salary shall be $31,250 per month, which annualizes
to Three Hundred Seventy Five Thousand Dollars ($375,000). Executive’s base salary shall be reviewed annually by the Board
or a Committee thereof; provided, however that the annual base salary shall not be lower than $375,000 without the Executive’s
consent. The base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall
be payable in substantially equal installments on a bi-weekly or more frequent basis. In addition to Base Salary, Executive shall
be eligible to receive cash incentive compensation as determined by the Board or a Committee thereof from time to time, and shall
also be eligible to participate in such incentive compensation plans as the Board or a Committee thereof shall determine from time
to time for employees of the same status within the hierarchy of the Company. The Board has discussed with Executive and agrees
with Executive’s intention to recommend the establishment of an annual incentive compensation plan for Executive and other
members of senior management.

 

(b) Expenses. Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him in performing services hereunder
during the Period of Employment, in accordance with the policies and procedures then in effect and established by the Company for
its senior executive officers, provided that such reimbursement does not occur later than the end of the second calendar year after
the calendar year in which such expense was incurred.

 

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(c) Other Benefits. During
the Period of Employment, Executive shall be entitled to continue to participate in or receive benefits under all of the Company’s
Employee Benefit Plans, or under plans or arrangements that provide no less favorable treatment to the Executive than the Employee
Benefit Plans provided to other, similarly situated, members of the Company’s senior management. As used herein, the
term “Employee Benefit Plans” includes, without limitation, each pension and retirement plan; supplemental pension,
retirement and deferred compensation plan; savings and profit-sharing plan; stock ownership plan; stock purchase plan; stock option
plan; life insurance plan; medical insurance plan; disability plan; and health and accident plan or arrangement established and
maintained by the Company on the date hereof or anytime hereafter.  The Executive’s participation in the Employee Benefit
Plans will be subject to the terms and conditions of each such Employee Benefit Plans, including eligibility and compliance requirements,
as well as any limitations imposed by applicable laws. To the extent that the scope or nature of benefits described in this section
is determined under the policies of the Company based in whole or in part on the seniority or tenure of an employee’s service,
Executive shall be deemed to have a tenure with the Company equal to the actual time of Executive’s service with the Company. During
the Period of Employment, Executive shall be entitled to participate in or receive benefits under any Employee Benefit Plans which
may, in the future, be made available by the Company to its executives and key management employees, subject to and on a basis
consistent with the terms, conditions and overall administration of such Employee Benefit Plans. Any payments or benefits
payable to Executive under an Employee Benefit Plan referred to in this Subparagraph 3(c) in respect of any calendar year during
which Executive is employed by the Company for less than the whole of such year shall, unless otherwise provided in the applicable
Employee Benefit Plan, be prorated in accordance with the number of days in such calendar year during which he is so employed. Should
any such payments or benefits accrue on a fiscal (rather than calendar) year, then the proration in the preceding sentence shall
be on the basis of a fiscal year rather than calendar year.

 

(d) Vacations. Executive
shall be entitled to twenty (20) paid vacation days in each calendar year, which shall be accrued ratably during the calendar
year.  Unless otherwise expressly permitted by the Company, any accrued and unused vacation days at the end of the calendar
year shall not carry forward and shall be forfeited unless pursuant to Company policy applicable to similarly situated, members
of the Company’s senior management such vacation days are not forfeited at the end of the calendar year. Executive shall
also be entitled to all paid holidays provided by the Company to its executives. To the extent that the scope or nature of
benefits described in this section are determined under the policies of the Company based in whole or in part on the seniority
or tenure of an employee’s service, Executive shall be deemed to have a tenure with the Company equal to the actual time
of Executive’s service with Company. Notwithstanding anything herein to the contrary, Executive shall be paid any accrued
and unused vacation upon his severance of employment with the Company, if and as protected by applicable law.

 

(e) Directors and
Officers Insurance and Indemnification. The Company shall also carry reasonable and customary D&O liability insurance
coverage for the benefit of its officers and directors, including Executive, during the term of this Agreement and for a customary
tail period following the termination of Executive’s employment. Executive shall be entitled to be indemnified by the Company
to the fullest extent permitted by the applicable state law and consistent with Company’s Amended and Restated Certificate
of Incorporation, as amended.

 

4. Unauthorized Disclosure.

 

(a) Confidential
Information. Executive acknowledges that in the course of his employment with the Company (and, if applicable, its predecessors),
he has been allowed to become, and will continue to be allowed to become, acquainted with the Company’s business affairs,
information, trade secrets, and other matters which are of a proprietary or confidential nature, including but not limited to the
Company’s and its affiliates’ and predecessors’ operations, business opportunities, price and cost information,
finance, customer information, business plans, various sales techniques, manuals, letters, notebooks, procedures, reports, products,
processes, services, and other confidential information and knowledge (collectively the “Confidential Information”)
concerning the Company’s and its affiliates’ and predecessors’ business. The Company agrees to provide on
an ongoing basis such Confidential Information as the Company deems necessary or desirable to aid Executive in the performance
of his duties. Executive understands and acknowledges that such Confidential Information is confidential, and he agrees not
to disclose such Confidential Information to anyone outside the Company except to the extent that (i) Executive deems such
disclosure or use reasonably necessary or appropriate in connection with performing his duties on behalf of the Company; (ii) Executive
is required by order of a court of competent jurisdiction (by subpoena or similar process) to disclose or discuss any Confidential
Information, provided that in such case, Executive shall promptly inform the Company of such event, shall cooperate with the Company
in attempting to obtain a protective order or to otherwise restrict such disclosure, and shall only disclose Confidential Information
to the minimum extent necessary to comply with any such court order; (iii) such Confidential Information becomes generally
known to and available for use in any industry in which the Company does business (the “Industry”) , including without
limitation the regenerative medicine industry, other than as a result of any action or inaction by Executive; or (iv) such
information has been rightfully received by a member of the Industry or has been published in a form generally available to the
Industry prior to the date Executive proposes to disclose or use such information. Executive further agrees that he will not
during employment and/or at any time thereafter use such Confidential Information in competing, directly or indirectly, with the
Company. At such time as Executive shall cease to be employed by the Company, he will immediately turn over to the Company
all Confidential Information, including papers, documents, writings, electronically stored information, other property, and all
copies of them provided to or created by him during the course of his employment with the Company.

 

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(b) Heirs, successors, and legal
representatives. The foregoing provisions of this Paragraph 4 shall be binding upon Executive’s heirs, successors,
and legal representatives. The provisions of this Paragraph 4 shall survive the termination of this Agreement for any
reason.

 

5. Covenant Not to Compete or
Solicit or Hire. In consideration for Executive’s employment by the Company under the terms provided in this Agreement
and as a means to aid in the performance and enforcement of the terms of the provisions of Paragraph 4, Executive agrees that

 

(a) during
the term of Executive’s employment with the Company and for a period of twelve (12) months thereafter, regardless of
the reason for termination of employment, Executive will not, directly or indirectly, as an owner, director, principal, agent,
officer, employee, partner, consultant, servant, or otherwise, carry on, operate, manage, control, or become involved in any manner
with any business, operation, corporation, partnership, association, agency, or other person or entity which is engaged in a business
that produces or develops products that compete or may compete directly with any of the Company’s products which are produced
or being developed by the Company or any affiliate of the Company or which the Company or any affiliate of the Company has active
plans to produce or develop as of the date of Executive’s termination of employment with the Company, in any area or territory
in which the Company or any affiliate of the Company conducts or has active plans to conduct operations as of the date of the Executive’s
termination of employment with the Company; provided, however, that the foregoing shall not prohibit Executive from owning up to
one percent (1%) of the outstanding stock of a publicly held company engaged in the Industry; and

 

(b) during
the term of Executive’s employment with the Company and for a period of twelve (12) months thereafter, regardless of
the reason for termination of employment, Executive will not directly or indirectly solicit or induce any present or future employee
of the Company or any affiliate of the Company to accept employment with Executive or with any business, operation, corporation,
partnership, association, agency, or other person or entity with which Executive may be associated, and Executive will not hire
or employ or cause any business, operation, corporation, partnership, association, agency, or other person or entity with which
Executive may be associated to hire or employ any present or future employee of the Company.

 

Should Executive violate any of the provisions
of this Paragraph, then in addition to all other rights and remedies available to the Company at law or in equity, the duration
of this covenant shall automatically be extended for the period of time from which Executive began such violation until he permanently
ceases such violation. Executive acknowledges and agrees that the terms and conditions of this Paragraph 5 are reasonable with
respect to its duration, geographic area and scope.

 

5A.           Remedies. Executive
acknowledges that full compliance with the terms of this Agreement is necessary to protect the significant value of the Confidential
Information and the customer and business goodwill of the Company. Executive acknowledges that if he breaches this Agreement, the
Company will be irreparably harmed and money damages will not be an adequate remedy. As a result, Executive agrees that, in the
event Executive breaches or threatens to breach any of the terms or provisions of this Agreement, the Company shall be entitled
to a preliminary or permanent injunction, without posting a bond or other security, in order to prevent the continuation of such
harm. Executive acknowledges that nothing in this Agreement will prohibit the Company from also pursuing any other remedy and all
remedies are cumulative.

 

    	3

    	 

    

 

6.  Termination. Executive’s
employment hereunder may be terminated without any breach of this Agreement under the following circumstances:

 

(a) Death. Executive’s
employment hereunder shall terminate upon his death.

 

(b) Disability.
If, as a result of Executive’s incapacity due to physical or mental illness, Executive shall have been absent from
his duties hereunder on a full-time basis for one hundred eighty (180) calendar days in the aggregate in any twelve (12) month
period, the Company may terminate Executive’s employment hereunder.

 

(c) Termination
by Company For Cause. At any time during the Period of Employment, the Company may terminate Executive’s employment
hereunder for Cause if such termination is approved by not less than a majority of the Board at a meeting of the Board called and
held for such purpose. For purposes of this Agreement, “Cause” shall mean: (A) conduct by Executive
constituting a material act of willful misconduct in connection with the performance of his duties, including, without limitation,
misappropriation of funds or property of the Company or any of its affiliates other than the occasional, customary and de minimis
use of Company property for personal purposes; (B) criminal or civil conviction of Executive, a plea of nolo contendere by
Executive or conduct by Executive that would reasonably be expected to result in material injury to the reputation of the Company
if he were retained in his position with the Company, including, without limitation, conviction of a felony involving moral turpitude;
(C) continued, willful and deliberate non-performance by Executive of his duties hereunder (other than by reason of Executive’s
physical or mental illness, incapacity or disability) which has continued for more than thirty (30) days following written
notice of such non-performance from the Board; (D) a breach by Executive of any of the provisions contained in Paragraphs
4 and 5 of this Agreement; or (E) a material violation by Executive of the Company’s employment policies which has continued
following written notice of such violation from the Board.

 

(d) Termination
Without Cause. At any time during the Period of Employment, the Company may terminate Executive’s employment hereunder
without Cause if such termination is approved by a majority of the Board at a meeting of the Board called and held for such purpose. Any
termination by the Company of Executive’s employment under this Agreement which does not constitute a termination for Cause
under Subparagraph 6(c) or result from the death or disability of the Executive under Subparagraph 6(a) or (b) shall be deemed
a termination without Cause. If the Company provides notice to Executive under Paragraph 1 that it does not wish to extend
the Period of Employment, such action shall be deemed a termination without Cause.

 

(e) Termination
by Executive. At any time during the Period of Employment, Executive may terminate his employment hereunder for any reason,
including but not limited to Good Reason. If Executive provides notice to the Company under Paragraph 1 that he does
not wish to extend the Period of Employment, such action shall be deemed a voluntary termination by Executive and one without Good
Reason. For purposes of this Agreement, “Good Reason” shall mean that Executive has complied with the “Good
Reason Process” (hereinafter defined) following the occurrence of any of the following events: (A) a substantial
diminution or other substantive adverse change, not consented to by Executive, in the nature or scope of Executive’s responsibilities,
authorities, powers, functions or duties; (B) any removal, during the Period of Employment, from Executive of his title of
President and/or Chief Executive Officer; (C) an involuntary reduction in Executive’s Base Salary except for across-the-board
reductions similarly affecting all or substantially all management employees; (D) a breach by the Company of any of its other
material obligations under this Agreement and the failure of the Company to cure such breach within thirty (30) days after
written notice thereof by Executive; (E) the involuntary relocation of the Company’s offices at which Executive is principally
employed or the involuntary relocation of the offices of Executive’s primary workgroup to a location more than 30 miles from
such offices, or the requirement by the Company that Executive be based anywhere other than the Company’s offices at such
location on an extended basis, except for required travel on the Company’s business to an extent substantially consistent
with Executive’s business travel obligations; or (F) the failure of the Company to obtain the agreement from any successor
to the Company to assume and agree to perform this Agreement as required by Paragraph 11 (each of which is hereinafter referred
to as a “Good Reason event”). “Good Reason Process” shall mean that (i) Executive reasonably
determines in good faith that a “Good Reason” event has occurred; (ii) Executive notifies the Company in writing
of the occurrence of the Good Reason event by no later than sixty (60) days after the initial occurrence of the event or condition
constituting Good Reason; (iii) Executive cooperates in good faith with the Company’s efforts, for a period not less
than ninety (90) days following such notice, to modify Executive’s employment situation in a manner acceptable to Executive
and Company; and (iv) notwithstanding such efforts, one or more of the Good Reason events continues to exist and has not been
modified in a manner acceptable to Executive. If the Company cures the Good Reason event in a manner acceptable to Executive
during the ninety (90) day period, Good Reason shall be deemed not to have occurred.

 

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(f) Notice of Termination.
Except for termination as specified in Subparagraph 6(a), any termination of Executive’s employment by the Company or any
such termination by Executive shall be communicated by written Notice of Termination to the other party hereto and shall be effective
on the Date of Termination (as defined below). For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

 

(g) Date of Termination.
“Date of Termination” shall mean: (A) if Executive’s employment is terminated by his death, the date
of his death; (B) if Executive’s employment is terminated on account of disability under Subparagraph 6(b) or by the
Company for Cause under Subparagraph 6(c), the date on which Notice of Termination is given or such later date as the Company may
specify in the Notice of Termination; (C) if Executive’s employment is terminated by the Company under Subparagraph
6(d), sixty (60) days after the date on which a Notice of Termination is given or such later date as the Company may specify
in the Notice of Termination (or, if such termination occurs as a result of the Company providing notice to Executive under Paragraph 1
that it does not wish to extend the Period of Employment, the date of the expiration of the current term of this Agreement); and
(D) if Executive’s employment is terminated by Executive under Subparagraph 6(e), thirty (30) days after the date
on which a Notice of Termination is given or, if such termination is without Good Reason, such later date up to sixty (60) days
after the date on which such Notice of Termination is given as Executive may specify in the Notice of Termination (or, if such
termination occurs as a result of the Company providing notice to Executive under Paragraph 1 that it does not wish to extend
the Period of Employment, the date of the expiration of the current term of this Agreement).

 

(h) Separation from Service.
Notwithstanding anything herein to the contrary, to the extent necessary to comply with Section 409A of the Internal Revenue Code
of 1986, as amended (“Code”), no event shall constitute a “termination of employment” in this Agreement,
unless such event is also a “separation from service,” as that term is defined for purposes of Section 409A and Treasury
Regulation §1.409A-3(a)(1).

 

(i) Resignation
of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive shall
be deemed to have resigned from all positions that the Executive holds as an officer or member of the board of directors (or a
committee thereof) of the Company or any of its affiliates, and the Executive will execute any resignation that may be requested
by the Company supplement this Agreement as evidence of such resignation.

 

7. Compensation Upon Termination
or During Disability. 

 

(a) Death.
If Executive’s employment terminates by reason of his death, the Company shall, within ninety (90) days of death,
pay in a lump sum to such person as Executive shall designate in a notice filed with the Company or, if no such person is designated,
to Executive’s estate, Executive’s accrued and unpaid Base Salary to the date of his death, and if to the extent required
by law, accrued and unused vacation, any bonuses or other compensation actually earned for periods ended prior to the date of Executive’s
death (collectively, the “Accrued Obligations”). Upon the death of Executive, all unvested stock options shall
immediately vest in full and become exercisable and Executive’s
estate or other legal representatives may exercise the options in accordance with their terms. All other stock-based grants
and awards held by Executive shall vest or be canceled upon the death of Executive in accordance with their terms. For a period
of one (1) year following the Date of Termination, the Company shall pay such health insurance premiums as may be necessary
to allow Executive’s spouse and dependents to receive health insurance coverage substantially similar to coverage they received
prior to the Date of Termination. In addition to the foregoing, any payments to which Executive’s spouse, beneficiaries,
or estate may be entitled under any employee benefit plan shall also be paid in accordance with the terms of such plan or arrangement.
Such payments, in the aggregate, shall fully discharge the Company’s obligations hereunder. 

 

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(b) Disability.
During any period that Executive fails to perform his duties hereunder as a result of incapacity due to physical or mental illness,
Executive shall continue to receive his Base Salary until Executive’s employment is terminated due to disability in accordance
with Subparagraph 6(b) or until Executive terminates his employment in accordance with Subparagraph 6(e), whichever first occurs. If
Executive’s employment is terminated due to disability in accordance with Subparagraph 6(b), then the Company shall pay Executive
all Accrued Obligations through the Date of Termination in a lump-sum payment by no later than fifteen (15) days after the Date
of Termination. Upon the Date of Termination by reason of Executive’s
disability, all unvested stock options shall immediately vest and become exercisable. All other stock-based grants and awards
held by Executive shall vest or be canceled upon the Date of Termination in accordance with their terms. For a period of one
(1) year following the Date of Termination, the Company shall pay such health insurance premiums as may be necessary to allow
Executive and Executive’s spouse and dependents to receive health insurance coverage substantially similar to coverage they
received prior to the Date of Termination. Upon termination due to death prior to the termination first to occur as specified in
the preceding sentence, Subparagraph 7(a) shall apply. 

 

(c) Termination
other than for Good Reason. If Executive’s voluntarily resigns from employment or employment is terminated by Executive,
in either case, other than for Good Reason as provided in Subparagraph 6(e), then the Company shall pay the Executive all Accrued
Obligations through the Date of Termination in a lump sum payment no later than fifteen (15) days after the Date of Termination. Thereafter,
the Company shall have no further obligations to Executive except as otherwise expressly provided under this Agreement, provided
any such termination shall not adversely affect or alter Executive’s rights under any employee benefit plan of the Company
in which Executive, at the Date of Termination, has a vested interest, unless otherwise provided in such employee benefit plan
or any agreement or other instrument attendant thereto.

 

(d) Termination
by Executive for Good Reason or by the Company without Cause. Subject to the terms of section 18(a), and subject to the
terms of this section, if the Executive’s employment is terminated for Good Reason as provided in Subparagraph 6(e) or without
Cause as provided in Subparagraph 6(d), the Company shall pay the Executive all Accrued Obligations through the Date of Termination
in a lump sum payment no later than fifteen (15) days after the Date of Termination.  In addition, subject to the Executive’s
execution of a general release of claims in the form attached hereto as Exhibit A within 21 days after the Date of Termination
and the expiration of the seven-day revocation period applicable thereto without the Executive revoking his acceptance of such
general release, commencing on the later of (i) the last day of the period for signing and revoking the general release of claims
in the form set forth in Exhibit A hereof (“Release”), or (ii) ninety (90) days (or such later period as may be required
by law) after the Executive’s employment is terminated for Good Reason as provided in Subparagraph 6(e) or without Cause
as provided in Subparagraph 6(d),

 

(i) the Company shall
pay Executive an amount equal to the sum of (A) Executive’s Average Base Salary and (B) Executive’s Average Incentive
Compensation (the “Severance Amount”). The Severance Amount shall be paid in cash in a single lump sum payment. 
For purposes of this Agreement, “Average Base Salary” shall mean the greater of (X) the average of the annual Base
Salary received by Executive during the three (3) immediately preceding complete fiscal years or such fewer number of complete
fiscal years as Executive may have been employed by the Company or (Y) the amount of Base Salary for the immediately prior fiscal
year. For purposes of this Agreement, “Average Incentive Compensation” shall mean the average of the annual cash
incentive compensation under Subparagraph 3(a) received by Executive for the three (3) immediately preceding fiscal years
or such fewer number of complete fiscal years as Executive may have been employed by the Company or the amount of cash incentive
compensation for the prior fiscal year, whichever is higher. In no event shall “Average Incentive Compensation”
include any sign-on bonus, retention bonus or any other special bonus. Notwithstanding the foregoing, if the Executive breaches
any of the provisions contained in Paragraphs 4 and 5 of this Agreement, all payments of the Severance Amount shall immediately
cease and the entire Severance Amount shall be forfeited and become repayable to the Company to the extent paid. Furthermore,
in the event Executive terminates his employment for Good Reason as provided in Subparagraph 6(e), he shall be entitled to the
Severance Amount only if he provides the Notice of Termination provided for in Subparagraph 6(f) within thirty (30) days after
he has complied with the Good Reason Process; and

 

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(ii) upon the Date of
Termination, each unvested stock option that would otherwise vest during the next twelve (12) months shall accelerate and immediately
vest. All other stock-based grants and awards held by Executive that would otherwise vest during the next twelve (12) months
shall accelerate and immediately vest upon the Date of Termination; and

 

(iii) in addition to any
other benefits to which Executive may be entitled in accordance with the Company’s then existing severance policies, the
Company shall, for a period of one (1) year commencing on the Date of Termination, pay such health insurance premiums as may
be necessary to allow Executive and Executive’s spouse and dependents to continue to receive health insurance coverage substantially
similar to coverage they received prior to the Date of Termination.

 

(e) Termination
for Cause. If Executive’s employment is terminated by the Company for Cause as provided in Subparagraph 6(c), then
the Company shall pay the Executive all Accrued Obligations through the Date of Termination in a lump-sum payment by no later than
sixty (60) days after the Date of Termination. Thereafter, the Company shall have no further obligations to Executive except
as otherwise expressly provided under this Agreement, provided any such termination shall not adversely affect or alter Executive’s
rights under any employee benefit plan of the Company in which Executive, at the Date of Termination, has a vested interest, unless
otherwise provided in such employee benefit plan or any agreement or other instrument attendant thereto. In addition, all
stock options held by Executive as of the Date of Termination shall immediately terminate and be of no further force and effect,
and all other stock-based grants and awards shall be canceled or terminated in accordance with their terms.

 

Nothing contained in the foregoing Subparagraphs 7(a) through
7(e) shall be construed so as to affect Executive’s rights or the Company’s obligations relating to agreements or benefits
which are unrelated to termination of employment.

 

8. Change in Control Payment.
The provisions of this Paragraph 8 set forth certain terms of an agreement reached between Executive and the Company regarding
Executive’s rights and obligations upon the occurrence of a Change in Control of the Company. These provisions are intended
to assure and encourage in advance Executive’s continued attention and dedication to his assigned duties and his objectivity
during the pendency and after the occurrence of any such event.

 

(a) Change in Control. If
within eighteen (18) months after the occurrence of the first event constituting a Change in Control, Executive’s employment
is terminated by the Company without Cause as provided in Subparagraph 6(d) or Executive terminates his employment for Good Reason
as provided in Subparagraph 6(e), then, subject to the terms of section 19(a), and subject to the Executive’s executing a
general release of claims in the form attached hereto as Exhibit A within 21 days after the Date of Termination and the
expiration of the seven-day revocation period applicable thereto without the Executive revoking his acceptance of such general
release, commencing on the later of (i) the last day of the period for signing and revoking the general release of claims in the
form set forth in Exhibit A hereof (“Release”), or (ii) ninety (90) days after the Executive’s employment is
terminated as provided above in this Section 8(a):

 

(i) In lieu of any amounts
otherwise payable pursuant to Subparagraph 7(d)(i), the Company shall pay Executive a single lump sum in cash equal to the sum
of (A) Executive’s current or most recent annual Base Salary plus (B) Executive’s most recent annual cash
incentive compensation under Subparagraph 3(a) for the most recent fiscal year, excluding any sign-on bonus, retention bonus or
any other special bonus;

 

(ii) Notwithstanding anything
to the contrary in any applicable option agreement or stock-based award agreement and in lieu of any acceleration of vesting that
would otherwise occur pursuant to Subparagraph 7(d)(ii), upon a Change in Control, all stock options and other stock-based awards
granted to Executive by the Company shall immediately accelerate and become exercisable or non-forfeitable as of the effective
date of such Change in Control. Executive shall also be entitled to any other rights and benefits with respect to stock-related
awards, to the extent and upon the terms provided in the employee stock option or incentive plan or any agreement or other instrument
attendant thereto pursuant to which such options or awards were granted; and

 

    	7

    	 

    

 

(iii) In lieu of the Company’s
obligations to pay health insurance premiums pursuant to Subparagraph 7(d)(iii), the Company shall, for a period of one (1) year
commencing on the Date of Termination, pay such health insurance premiums as may be necessary to allow Executive, Executive’s
spouse and dependents to continue to receive health insurance coverage substantially similar to the coverage they received prior
to the Date of Termination.

 

(b) Definitions.
For purposes of this Paragraph 8, the following terms shall have the following meanings:

 

“Change in Control”
shall mean any of the following:

 

(a) a change in effective
control consistent with Regulation §1.409A-3(i)(5)(vi) such that any “person,” as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than the Company, any of its
subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of
the Company or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms
are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined
in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of
the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s
Board (“Voting Securities”) (other than as a result of an acquisition of securities directly from the Company); or

 

(b) a change in effective
control consistent with Regulation §1.409A-3(i)(vi) such that persons who, as of the Commencement Date, constitute the Company’s
Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer,
proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming
a director of the Company subsequent to the Commencement Date shall be considered an Incumbent Director if such person’s
election was approved by or such person was nominated for election by a vote of at least a majority of the Incumbent Directors;
but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or consents by or
on behalf of a person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation, shall not be considered an Incumbent Director; or

 

(c) a change in ownership
consistent with Regulation §1.409A-3(i)(5)(v) and (vii) such that the stockholders of the Company shall approve (A) any
consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, shares representing in the aggregate more than fifty percent (50%) of the voting shares of the Company
issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan)
of all or substantially all of the assets of the Company or (C) any plan or proposal for the liquidation or dissolution of
the Company.

 

9. Stock Options Grant/Vesting.
Subject to your timely execution of a stock option agreement evidencing the option grant, the Company will grant you on the Commencement
Date, an option to purchase 671, 400 shares of Common Stock (approximately 5% of the outstanding shares of Common Stock of the
Company, including the shares of Common Stock underlying the outstanding shares of preferred stock on an as-converted basis). The
option will be subject to the terms and conditions of the Company’s 2013 Equity Incentive Plan and have an exercise price
equal to the closing price of the Company’s common stock on such date of grant. This option shall vest annually in four equal
annual installments on January 1 of each year for four consecutive years commencing with January 1, 2016. The options shall be
non-qualified stock options.

 

    	8

    	 

    

 

10. Notice. For purposes
of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed
as follows:

 

if to the Executive:

 

At his home address as shown

in the Company’s personnel records;

 

if to the Company:

 

Harvard Apparatus Regenerative Technology, Inc.

84 October Hill Road, Suite 11

Holliston, Massachusetts 01746

Attention: Board of Directors of Harvard Apparatus
Regenerative Technology, Inc.

 

with a copy to:

 

Josef B. Volman

Burns & Levinson LLP

125 Summer Street

Boston, MA 02110

 

or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

11. Successor to Company.
The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same
extent that the Company would be required to perform it if no succession had taken place. Failure of the Company to obtain
an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall
constitute Good Reason if the Executive elects to terminate employment.

 

12. Miscellaneous. No
provisions of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to
in writing and signed by Executive and such officer of the Company as may be specifically designated by the Board. No waiver
by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, unless specifically referred to herein, with respect to the
subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts (without regard
to principles of conflicts of laws).

 

13. Validity. The invalidity
or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect. The invalid portion of this Agreement, if any, shall
be modified by any court having jurisdiction to the extent necessary to render such portion enforceable.

 

14. Counterparts. This
Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

 

15. Arbitration; Other Disputes.
In the event of any dispute or controversy arising under or in connection with this Agreement, the parties shall first promptly
try in good faith to settle such dispute or controversy by mediation under the applicable rules of the American Arbitration Association
before resorting to arbitration. In the event such dispute or controversy remains unresolved in whole or in part for a period
of thirty (30) days after it arises, the parties will settle any remaining dispute or controversy exclusively by final, binding,
and confidential arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then
in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. Notwithstanding
the above, the Company shall be entitled to seek a restraining order or injunction without the need to post a bond or provide other
security in any court of competent jurisdiction to prevent any continuation of any violation of Paragraph 4 or 5 hereof. Furthermore,
should a dispute occur concerning Executive’s mental or physical capacity as described in Subparagraph 6(b), 6(c) or 7(b),
a doctor selected by Executive and a doctor selected by the Company shall be entitled to examine Executive. If the opinion
of the Company’s doctor and Executive’s doctor conflict, the Company’s doctor and Executive’s doctor shall
together agree upon a third doctor, whose opinion shall be binding.

 

    	9

    	 

    

 

16. Third-Party Agreements and
Rights. Executive represents to the Company that Executive’s execution of this Agreement, Executive’s
employment with the Company and the performance of Executive’s proposed duties for the Company will not violate any obligations
Executive may have to any employer or other party, and Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

 

17. Litigation and Regulatory
Cooperation. During and after Executive’s employment, Executive shall reasonably cooperate with the Company in the
defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of
the Company which relate to events or occurrences that transpired while Executive was employed by the Company; provided, however,
that such cooperation shall not materially and adversely affect Executive or expose Executive to an increased probability of civil
or criminal litigation. Executive’s cooperation in connection with such claims or actions shall include, but not be
limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company
at mutually convenient times. During and after Executive’s employment, Executive also shall cooperate fully with the
Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation
or review relates to events or occurrences that transpired while Executive was employed by the Company. The Company shall
also provide Executive with compensation on an hourly basis at a rate equivalent to the hourly rate of the Executive’s last
annual Base Salary calculated using a forty (40) hour week over fifty-two (52) weeks for requested litigation and regulatory
cooperation that occurs after his termination of employment, and reimburse Executive for all costs and expenses incurred in connection
with his performance under this Paragraph 17, including, but not limited to, reasonable attorneys’ fees and costs.

 

18. Section 409A of the Code.

 

(a) Anything in this Agreement
to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A
of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i)
of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of
the Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax
imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code,
such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months
and one day after the Executive’s separation from service, or (B) the Executive’s death.

 

(b) The parties intend that
this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this
Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so
that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as
reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related
rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(c) The determination of whether
and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation
Section 1.409A-1(h).

 

(d) The Company makes no representation
or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined
to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions
of, such Section.

 

(e) Notwithstanding anything
herein to the contrary, no event shall constitute a “termination of employment” in this Agreement, unless such event
is also a “separation from service,” as that term is defined for purposes of Section 409A of the Internal Revenue Code
of 1986, as amended (“Code”), and Treasury Regulation §1.409A-3(a)(1).

 

 

    	10

    	 

    

 

19.
Recoupment. Notwithstanding anything herein to the contrary,
Executive may be required to forfeit or repay any or all compensation received by Executive under this Agreement pursuant to the
terms of any compensation recovery, recoupment or claw-back policy that may be adopted by or applicable to the Company with respect
to or under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

20. Survival. Notwithstanding
anything to the contrary in this Agreement, the provisions of Sections 4, 5, 5A, 7 and 8 of this Agreement, and any other Sections
of this Agreement that must survive the termination of employment or expiration of the Agreement in order to effectuate the intent
of the parties, shall survive termination of Executive’s employment or expiration of the Agreement.

 

[signatures on following page]

 

    	11

    	 

    

 

IN WITNESS WHEREOF, the parties
have executed this Agreement effective on the date and year first above written.

 

	 	HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC.
	 	 	 
	 	By:  	/s/ Thomas McNaughton
	 	 	Name:	Thomas McNaughton
	 	 	Title:	Chief Financial Officer
	 	 
	 	EXECUTIVE
	 	 	 
	 	 	/s/ James McGorry
	 	 	James McGorry

 

    	 

    	 

    

 

EXHIBIT A- FORM OF GENERAL RELEASE OF CLAIMS

 

This Release Agreement (the “Release Agreement”)
is entered into by James McGorry (the “Executive”) in favor of Harvard Apparatus Regenerative Technology, Inc.
(the “Company”). This is the Release Agreement referenced in the Agreement between the Executive and the Company
dated June __, 2015 (the “Employment Agreement”). The consideration for the Executive’s agreement to this
Release Agreement consists of certain termination benefits as set forth in the Employment Agreement and the terms of this Release
Agreement.

 

The Executive agrees as follows:

 

Release. The Executive voluntarily
releases and forever discharges the Company and each of its subsidiaries, affiliates, predecessors, successors, assigns, and current
and former directors, officers, employees, representatives, attorneys and agents (any and all of whom or which are hereinafter
referred to as “Company Parties”), from any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including
attorney’s fees and costs actually incurred), of any nature whatsoever, known or unknown (collectively, “Claims”)
that the Executive now has, owns or holds, or claims to have, own, or hold, or that he at any time had, owned, or held, or claimed
to have had, owned, or held against any Company Party or Parties. This general release of Claims includes, without implication
of limitation, the release of all Claims:

  

	 	•	 	relating to the Executive’s employment by and termination from employment with the Company; 

 

	 	•	 	of wrongful discharge; 

 

	 	•	 	of breach of contract; 

 

	 	•	 	of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of age discrimination or retaliation under the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation under the Americans with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964 and Claims of discrimination or retaliation under Mass. Gen. Laws ch. 151B); 
	 	 	 	 
	 	•	 	under the Massachusetts Weekly Payment of Wages Act, the Massachusetts Fair Employment Practice Act, and the Fair Labor Standards Act; 

 

	 	•	 	under any other federal or state statute, to the fullest extent that Claims may be released; 

 

	 	•	 	of defamation or other torts; 

 

	 	•	 	of violation of public policy; 

 

	 	•	 	for salary, bonuses, vacation pay or any other compensation or benefits; and 

 

	 	•	 	for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees. 

 

1. Limitations on Release.

 

(a) Employment Agreement.
Nothing in this Release Agreement limits the Executive’s or the Company’s rights under the Employment Agreement.

 

(b) Benefit and Enforcement
Rights. Nothing in this Release Agreement is intended to release or waive the Executive’s right to COBRA, unemployment
insurance benefits or any accrued and vested retirement benefits, the right to seek enforcement of this Release Agreement or any
rights referenced in this Section of this Release Agreement.

 

(c) Indemnification.
It is further understood and agreed that the Executive’s rights to indemnification as provided in the Company’s certificate
of incorporation, bylaws, each as amended, or any indemnification agreement between the Company and the Executive (it being acknowledged
and agreed by the Executive that, as of the date of this Agreement, there are no amounts owing to the Executive pursuant to any
such indemnification rights), remain fully binding and in full effect subsequent to the execution of this Release Agreement.

 

    	 

    	 

    

 

(d) Exceptions. This
Release Agreement does not prohibit or restrict the Executive from communicating, providing relevant information to or otherwise
cooperating with the EEOC or any other governmental authority with responsibility for the administration of fair employment practices
laws regarding a possible violation of such laws or responding to any inquiry from such authority, including an inquiry about the
existence of this Release Agreement or its underlying facts; provided that such interaction with EEOC or any other governmental
authority shall not result in the Employee’s receipt of any monetary benefit or substantial equivalent thereof. This Release
Agreement also does not preclude the Executive from benefiting from classwide injunctive relief awarded in any fair employment
practices case brought by any governmental agency; provided that such relief does not result in the Executive’s receipt of
any monetary benefit or substantial equivalent thereof.

 

2. No Assignment. The Executive
represents that he or it has not assigned to any other person or entity any Claims against any Company Party.

 

3. No Disparagement. The Executive
shall not make any disparaging statements about the Company, members of the Board of Directors, any officer of the Company or any
other employee of the Company. The Executive shall direct his immediate family not to make any disparaging statements about any
of the foregoing. Any statement by a member of his immediate family shall be deemed to be a statement by the Executive for purposes
of this paragraph. The Executive shall be considered to represent that he has complied and shall continue to comply with he nondisparagement
obligations under this paragraph from the Date of Termination (as defined in the Employment Agreement); provided that this
representation shall have no effect if this Release Agreement does not become effective. Notwithstanding the foregoing, nothing
in this paragraph shall be construed to apply to any statements made in the course of testimony in a legal proceeding or in any
required written statements in any such proceeding.

 

4. Litigation and Regulatory Cooperation.
The Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence
or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired
while Executive was employed by the Company; provided, however, that such cooperation shall not materially and adversely affect
Executive or expose Executive to an increased probability of civil or criminal litigation. Executive’s cooperation in connection
with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery
or trial and to act as a witness on behalf of the Company at mutually convenient times. Executive also shall cooperate fully with
the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation
or review relates to events or occurrences that transpired while Executive was employed by the Company. The Company shall also
provide Executive with compensation on an hourly basis at a rate equivalent to the hourly rate of the Executive’s last annual
Base Salary (as defined in the Employment Agreement) calculated using a forty (40) hour week over fifty-two (52) weeks
for requested litigation and regulatory cooperation that occurs after his termination of employment, and reimburse Executive for
all costs and expenses incurred in connection with his performance under this Section 5, including, but not limited to, reasonable
attorneys’ fees and costs.

 

5. Reaffirmation of Post-Employment
Restrictive Covenants. The Executive reaffirms the restrictive covenants under the Employment Agreement to which he is subject
as follows: [Insert as appropriate.]

 

6. Right to Consider and Revoke Release
Agreement. This Release Agreement shall be considered to have been offered to the Executive on the Termination Date as defined
in the Employment Agreement. The Executive acknowledges that he has been given the opportunity to consider this Release Agreement
for a period ending twenty-one (21) days after the Termination Date. In the event that the Executive has executed this Release
Agreement within less than twenty-one (21) days of the Termination Date, the Executive acknowledges that such decision was
entirely voluntary and that he had the opportunity to consider this Release Agreement until the end of the twenty-one (21) day
period. To accept this Release Agreement, the Executive shall deliver a signed Release Agreement to the Company’s Board of
Directors within such twenty-one (21) day period. The Executive acknowledges that for a period of seven (7) days from
the date when the Executive executes this Release Agreement (the “Revocation Period”), he shall retain
the right to revoke this Release Agreement by written notice that is received by the Board of Directors of the Company before the
end of the Revocation Period. This Release Agreement shall take effect only if it is executed by the Executive within the twenty-one
(21) day period as set forth above and if it is not revoked pursuant to the preceding sentence. If those conditions are satisfied,
this Release Agreement shall become effective and enforceable on the date immediately following the last day of the Revocation
Period (the “Effective Date”).

 

    	 

    	 

    

 

7. Consideration Owed. Executive
affirms and agrees that as of the date of this Release Agreement, you acknowledge that you will be or have been paid any and all
wages (including all base compensation and, if applicable, any and all overtime, commissions, and bonuses) to which you are or
were entitled as of the date of termination of employment, and that no other wages (including all base compensation and, if applicable,
any and all incentive compensation and bonuses) are due to Executive. Executive acknowledges that Executive is unaware of any facts
or circumstances indicating that Executive may have an outstanding claim for unpaid wages, improper deductions from pay, or any
violation of the Massachusetts Weekly Payment of Wages Act (M.G.L. c. 149, s. 148) or the Fair Labor Standards Act or any other
federal, state or local laws, rules, ordinances or regulations that are related to payment of wages.

 

8. Other Terms.

 

(a) Legal Representation;
Review of Release Agreement. The Executive acknowledges that he has been advised to discuss all aspects of this Release Agreement
with he attorney. The Executive represents that he has carefully read and fully understands all of the provisions of this Release
Agreement and that he is voluntarily entering into this Release Agreement.

 

(b) Binding Nature of Release
Agreement. This Release Agreement shall be binding upon the Executive and upon his heirs, administrators, representatives,
executors, successors and assigns, and shall inure to the benefit of the Executive and the Company and to their heirs, administrators,
representatives, executors, successors, and assigns.

 

(c) Modification of Release
Agreement; Waiver. This Release Agreement may be amended, revoked, changed, or modified only upon a written agreement executed
by the Executive and the Company. No modification waiver of any provision of this Release Agreement will be valid unless it is
in writing and signed by the party against whom such waiver is charged. The failure of the Company to require the performance of
any term or obligation of this Release Agreement, or the waiver by the Company of any breach of this Release Agreement, shall not
prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

(d) Severability. In
the event that at any future time it is determined by a court of competent jurisdiction that any covenant, clause, provision or
term of this Release Agreement is illegal, invalid or unenforceable, the remaining provisions and terms of this Release Agreement
shall not be affected thereby and the illegal, invalid or unenforceable term or provision shall be severed from the remainder of
this Release Agreement. In the event of such severance, the remaining covenants shall be binding and enforceable.

 

(e) Enforcement. Sections
4, 5 and 6 of this Release Agreement shall be subject to enforcement pursuant to the same procedures that apply to a breach of
Paragraphs 4 or 5 of the Employment Agreement (as further detailed in Paragraph 15 of the Employment Agreement). Any other disputes
concerning this Release Agreement shall be subject to resolution pursuant to Section 15 of the Employment Agreement.

 

(f) Governing Law and Interpretation.
This Release Agreement shall be deemed to be made and entered into in the Commonwealth of Massachusetts, and shall in all respects
be interpreted, enforced and governed under the laws of Massachusetts, without giving effect to the conflict of laws provisions
of Massachusetts law. The language of all parts of this Release Agreement shall in all cases be construed as a whole, according
to its fair meaning, and not strictly for or against either the Executive or the Company.

 

(g) Entire Agreement; Absence
of Reliance. This Release Agreement constitutes the entire agreement of the Executive concerning any subject matter of this
Release Agreement and supersedes all prior agreements between the Executive and the Company with respect to any related subject
matter, except the Employment Agreement. The Executive acknowledges that he is not relying on any promises or representations by
the Company or its agents, representatives or attorneys regarding any subject matter addressed in this Release Agreement, other
than the provision of the Employment Agreement pursuant to which Employee is to receive certain consideration in return for signing
this Release Agreement and allowing it to become effective.

 

So agreed by the Executive.

  

	 	 	 
	Executive     James McGorry	 	Date

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